180 ACCBank jobs to go in services withdrawalFriday 25 October 2013 22.11
ACCBank is to cut 180 jobs, stop providing deposit and current accounts and focus solely on debt recovery.
In a statement, the bank said it will close all of its public business centres and give up its banking licence.
ACC employs 470 people in Ireland and it said it will reduce this by 180 through a voluntary severance scheme.
It said the bank would write to all customers shortly and communicate its plans.
The bank has been reporting losses since 2007.
Country manager Kevin Knightly said losses incurred because of the property crisis will see its costs exceed income during 2014 and that is unsustainable.
ACC said it will close all of its business centres as it gives up its banking licence over the next year.
However, it will still be regulated and said it will support its customers in the agriculture sector, while repaying all of its deposits in full.
ACC said it may outsource a portion of its loan book, excluding agricultural loans.
Capita has been selected as the preferred service provider. Capita employs over 1,000 staff in Ireland.
ACC has 5,000 deposit customers totalling €110 million. Overdrafts on current accounts amount to almost €75m.
The bank is exploring the possibility of outsourcing around 10% of the loan book.
The parent company, Rabobank Group, has provided capital support of €1.3 billion to ACC since 2008.
Over €2.1 billion of the loan book has been written down since 2008.
Unions want State to buy bank
SIPTU and UNITE trade unions are to look to the Government to take ACC Bank back into State ownership and are looking for a meeting with the Minister for Finance.
Speaking on RTÉ's News at One, SIPTU Finance Sector Organiser, Adrian Kane said that the union's job was to seek to save jobs and there was provision of a State investment bank in the Programme for Government.
Mr Kane said the union had been called to a meeting last night in which it was told that 40% of the staff would be made redundant during 2014 and that all nine branches would be closed to the public.
He also said there may be some redeployment opportunities to Rabobank.
He said that there was no new business being generated and had not been for some time with the bank's staff focused on debt recovery.