NIB plans business banking growth in new strategy

National Irish Bank (NIB) will seek to grow aggressively within business banking, private banking and mortgages as part of its parent's new European strategy.

Mr Ross Pinney, who was appointed head of European operations at National Australia Group (NAG) yesterday, said the company "would like to grow quite strongly" in the Republic.

He confirmed that NIB's focus would be on organic growth rather than expansion through acquisition, but said resources would be made available to allow the Irish bank to develop a larger presence within the Republic's banking market.

Business banking will be a particular focus, with growth in private, or executive, banking seen as a natural accompaniment to this. The mortgage market will, however, be NIB's first target, with a media campaign in this area due to begin this month.

Mr Pinney acknowledged yesterday that NIB holds a very small share of the homeloan market, despite having offered relatively competitive products for some time.

The bank is likely to build on its advertising programme by offering its mortgages through the broker network. NIB is one of just three lenders that does not allow brokers to sell its loans.

Mr Pinney said NAG would also seek efficiencies by bringing together its European back-office functions. NAG owns Northern Bank in the North and Clydesdale and Yorkshire banks in Britain.

Mr Pinney said the parent was investigating the feasibility of integrating Northern Bank, which is the 100 per cent owner of National Irish, into a merged Clydesdale and Yorkshire entity.

He said NIB would continue to be incorporated in the Republic, whatever the result of a revised strategy would be.

Mr Pinney said it was about adopting a "consistency of approach" rather than merging the group's two Irish operations. NIB and Northern Bank already use the same technology platform.

Mr Pinney's elevation came after NAG's former European chief executive, Mr John Stewart, was appointed as chief executive of the overall group.

Mr Stewart, who is from Scotland, had been in his European job for six months. His new appointment followed the departure from of Mr Frank Cicutto, who resigned after shock currency losses of Aus$252 million (€393 million) due to unauthorised trading in currency options by staff in its Australian operations.