CRASH STYMIES CREATION OF NEW IRISH MULTIMILLIONAIRES - The numbers joining Ireland's richest club grew at the slowest rate out of 110 countries in the decade from 2004 - behind growth rates in Spain and Portugal - a new survey shows says the Irish Times.
According to the Wealth Report from Knight Frank, the number of Ireland's ultra-high net worth individuals (UHNWI) - those with assets of $30 million or more - grew just 16% from 2004-2014, up from 714 to 825 people. This compares with a growth rate of 38% in Spain, 31% in Portugal, 25% in the UK and 386% in China. The report forecasts that a further 158 Irish people will join the exclusive UHNWI club between now and 2024, while Ireland is likely to see 23 people move into the "centimillionaire" club, with assets of more than €100 million, and one new Irish billionaire will be created over the next decade. Liam Bailey, head of international research and architect of the report, said the main driver in the results was the weakness of the property market, "which formed an unusually large share of wealth portfolios" during the period. Property is unlikely to play as a big a role in creating and growing wealth going forward however, with Adrian Truick, director of investment for Knight Frank in Ireland, pointing to those from the technology sector, such as the Collison brothers of Stripe, or Colm Lyons, who recently sold his Realex business for €115 million, as likely forming the basis of Ireland's new wealthy.
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CORPORATE INSOLVENCIES RISE IN FIRST THREE MONTHS OF 2015 - The number of insolvencies here rose in the first three months of the year compared to the end of 2014. Corporate insolvencies in the first quarter of the year totalled 250, representing a 17% decrease on the same period in 2014, according to the data released by Deloitte. But there was also a 13% increase in insolvencies when compared to the final quarter of last year, says the Irish Independent. Receiverships accounted for 55, 22%, of the total corporate insolvencies in the first three months of the year, the same number as was recorded in the final quarter of 2014. But this was down from the 189 in the same period last year. David Van Dessel, partner at Deloitte, said that of the number of insolvencies, few have been put in examinership. "Take-up is consistent with the comparable periods and shows that the introduction of new legislation in early 2014 has not had the anticipated effect of encouraging more struggling SMEs to avail of this more cost-effective and accessible option," Mr Van Dessel said.
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CREDIT SUISSE TO MOVE JOBS FROM LONDON TO DUBLIN - Credit Suisse Group is planning to move some jobs from London to Ireland as it cuts costs at its investment bank, according to two people with knowledge of the matter. Switzerland’s second biggest bank has applied to Ireland’s Central Bank for permission to set up a branch in Dublin, the people said yesterday. According to the Irish Examiner, the sources asked not to be identified as the talks are private. One of the sources said the bank plans to relocate some business in prime services, which includes lending securities and cash to hedge funds and settling trades for them. Some general support functions and IT operations may also be moved, the person said. The number and type of jobs have not been decided, as the Central Bank has still not approved the plans to open a branch, the two people said. Credit Suisse wants to establish a branch in Ireland for its main Swiss unit, Credit Suisse AG, according to one of the people. It has been reported the bank may move as many as 200 jobs to Ireland from London.
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HEAD OF RBS’S INVESTMENT BANK RESIGNS OVER STRATEGY DIFFERENCES - Rory Cullinan has resigned as head of Royal Bank of Scotland’s investment bank only a month after being promoted to the role, following a falling-out with senior management over strategy. The Financial Times says that the unexpected move is a blow to the 80% state-owned bank, as Mr Cullinan had been due to oversee a significant shake-up of its investment banking operations, shrinking it to a third of its current size and cutting about 14,000 of the 18,000 jobs at the unit. Last year, he oversaw the high-profile public listing of Citizens Financial, the bank’s US subsidiary. However, he attracted tabloid newspaper headlines earlier this month when The Sun published photo messages he had sent to his daughter via the Snapchat social networking app, complaining that he was in a “boring meeting”. A person close to RBS said Mr Cullinan had fallen out with his fellow executives over the best way to pursue the strategy they had all agreed after he took over as head of its corporate and institutional banking (CIB) unit last month. Mr Cullinan could not be reached for comment. He had taken the role as executive chairman of the CIB unit in February, having been with the bank for more than six years. He will remain in post until April 30.
