National Irish Bank to rebrand as Danske Bank
Danske Bank, the owner of National Irish Bank and Northern Bank, is to establish a new division to wind down its NIB loan portfolio.
The group will also use the Danske Bank brand name for all of its Irish banking by the end of the year.
A new unit will take over NIB’s commercial and investment property loan portfolio while the rest of the institutions banking activities will continue as they are.
Eivind Kolding, Danske Bank chairman, said the group wants to focus on its core business in Ireland.
"Danske Bank has considered alternative options and decided that this solution is the best in terms of creating value. With these initiatives, we also confirm our commitment to Ireland," he said.
Danske was hit during the financial crisis by huge loan write-offs in its Irish business.
Operating profit at NIB was up 3pc to €11m in the first quarter of the year while €195m was set aside for loan impairment charges.
Chief executive Andrew Healy said that economic conditions are challenging and impairment charges remain high as property prices continue to fall.