Nationwide chairman says 'all options' being considered for future

The chairman of Irish Nationwide Building Society (INBS) has said a number of options are being considered for the society's future, including winding it down.

Speaking at the society's AGM, Daniel Kitchen said it was inevitable to assume the society faces further losses as its commercial loans are transferred to NAMA, with the bonds received by NAMA to be used either to repay existing borrowings or to bolster the society’s liquidity.

INBS posted losses of almost €2.5bn last year.

Mr Kitchen said that its future lies in returning to its roots as a savings and loan organisation.

"I don’t think it is an understatement to say that the (2009) losses are truly shocking, particularly in an undertaking the size of Irish Nationwide," Mr Kitchen said.

INBS is to prepare a reconstruction plan by late June 2010 for submission to Brussels.

"In so doing, the Board will consider all, and I stress all, options available to the Society," Mr Kitchen said.

However, he added "this will not include a continuation of the sort of commercial lending which has brought us to this position.

"The future involves a return to the traditional roots of the Society as a savings and loan organisation."