ACC Bank to review operations due to current economic climate

ACC BANK is reviewing its operations in light of the current economic climate, the bank said in a statement released yesterday.

The bank, which is owned by Dutch financial giant Rabobank, would not comment on whether this would lead to job losses or a significant reduction in activities.

“No decisions have been made and the bank will make no comment on speculation,” it said in an e-mailed statement.

ACC Bank, which had a large exposure to the construction sector, incurred a loss of €244 million in 2008 after writing off bad loans of €373 million. This was an increase of almost €300 million, reflecting the sharp economic deterioration. The bank had carried out a detailed review of its loan book, particularly its exposure to construction and property.

Rabobank said at its annual results presentation last month that it had no interest in a takeover to grow its Irish business.

“We’re satisfied with the little bank we have over there,” said the bank’s chairman, Bert Heemskerk.

ACC Bank, which was bought from the Government by Rabobank in 2002, closed seven branches in Leinster and Munster earlier this year as it said it would focus on business customers.

It said last autumn that it would invest in new branches in Cork, Kilkenny and Limerick and would refurbish other offices.

The bank, which had 32 branches last year, said it would still open current and deposit accounts for business customers who do not need cash services.

Last month ACC Bank put nine of its branches on the market following the review of its operations. Four of the properties are in Cork, while the others are in Carlow, Kilkenny, Dundalk, Longford and Naas.

Rabobank said last month that it would cut “a few thousand” jobs out of a global workforce of about 61,000, as it focused on selling more products online.