ACCBank Announces Restructuring Plans to Focus on Debt Recovery
25 October 2013
Importantly, there will be no changes to the businesses of Rabobank Ireland plc, which continues to have a strong position in the food & agri sector, and RaboDirect, two other operations of the Rabobank Group in Ireland, and they will continue to operate as usual with no impact on their customers or businesses as a result of this restructuring.
As part of the restructuring the Bank will also initiate a cost reduction programme through a voluntary-led severance programme, which will see a reduction of up to 180 employees, from approximately 470 at present.
Commenting on the decision, Kevin Knightly, Country Manager, said: “ACCBank has incurred significant losses since 2008 due to the deterioration of the Irish property market. While costs have been cut significantly, including a substantial restructuring programme in 2009, we are heading towards a situation where, without intervention, our costs will exceed our income during 2014. This is an unsustainable position and we need to take action now.”
He added: “ACCBank has remained at the forefront of loan recovery activity in the Irish market. We will continue with our approach to loan recovery but do not need to be a fully licensed bank for this purpose.”
As part of the changes, ACCBank is exploring the possibility of outsourcing a small portion of its loan book, excluding agricultural loans. Capita has been selected as the preferred service provider.
The Bank will write to all customers shortly and will also communicate well in advance with customers affected by any of these changes.
Notes to editors:
ACCBank is an agri-lending bank and is part of the Rabobank Group.
The Rabobank Group is an international financial services provider operating on the basis of cooperative principles. It offers banking, asset management, leasing, insurance and real estate services. Its focus is on broad financial services provision in the Netherlands and primarily on the food and agribusiness internationally.
Capita is a FTSE100 listed company with market capitalisation of €4.5bn. They service over €200bn of assets globally and employ over 1,000 people in Ireland.