150 jobs are likely to be lost at Danske Bank after it announced plans to withdraw from consumer banking. Existing day-to-day personal customer products and services will be withdrawn on a phased basis during the first half of 2014, and it will repay depositors in full.
Danske says the decision was taken to stem losses and it will now focus on corporate banking. Danske said this morning that it lost more than €31 million in the first nine months of the year.
The bank said it will enter into negotiations with the Irish Bank Officials Association (IBOA) about the impact on staff.
Larry Broderick of the IBOA says staff are shocked at the news which they heard about overnight.
The restructuring will cost Danske about €40 million and it will also set aside an extra €67 million for loan impairments.
While the Irish Small and Medium Enterprises Association (ISME) has expressed "deep disappointment" at the decision.
It expressed concern that this news comes less than a week after ACC Bank announced it was withdrawing from the Irish market.
"This leaves just three banks ostensibly trading in Ireland, with a big question still over the future of Ulster Bank", ISME said in a statement.
The Association is calling on the government to ensure "steps are taken by the Central Bank to protect small business from the gouging usually associated with Irish banks and now more especially due to the dearth of competition".
