MBNA back in profit after slashing jobs
The business was threatened with closure in 2011 when the Bank of America said it was exiting the credit card business in the UK and Ireland.
However, the business remains operating at Carrick-on-Shannon, with job numbers last year down from 457 to 273.
Bank of America sold its Irish credit card operations to Apollo Global Management in March. Bank of America continues to seek a buyer for MBNA’s UK credit card loan book.
Revenues at the scaled-down operation last year fell 42% from €26.5m to €15.3m.
The directors’ report states that net operating expenses reduced from €26m to €15.3m “due to a combination of reduced people costs and other efficiency savings”.
The firm recorded a pre-tax profit last year of €1.67m following a pre-tax loss of €31.7m in 2011.
Staff costs at the firm last year reduced from €16.66m to €9.1m.
The main factor behind the 2011 loss was a €33.8m write-down on the company’s lands.
According to the directors’ report in Dec 2012, the company sold the land, buildings, and all associated fixtures and fittings owned by the company.
The assets were purchased by Apollo Global Management. The accounts show that MBNA Ireland Ltd recorded a profit of €236,980 on the sale of the fixed assets last year.
The report states: “Following the year end on Mar 31, 2013, the call centre operations provided by the company to MBNA Ltd — formerly MBNA Europe Bank Ltd — ceased and all employees of the company transferred to MBNA Ltd on Apr 1, 2013.
“As a result, the directors expect to place the company into voluntary liquidation during 2013. As the directors intend on liquidating the company, the financial statements are not prepared on a going concern basis.”
Denis Naughten, the independent TD for the Roscommon/South Leitrim area, said yesterday: “I am delighted that Apollo has come in and taken over MBNA’s Irish operation.
“The purchase of the premises shows their long- term commitment to the area.
“The UK MBNA credit card loan book remains up for sale and staff there are currently in a limbo situation, and I would hope that the IDA, the minister for jobs and Bank of America would find a suitable buyer,” the TD added.
