Wednesday 21 February 2018

Bank of Ireland sells US division to Wells Fargo

Bank of Ireland chief executive Richie Boucher
Bank of Ireland chief executive Richie Boucher reporters

BANK Of Ireland has offloaded its London-based subsidiary Burndale to US bank Wells Fargo for an estimated €690m.

As part of the EU/IMF/ECB bailout, Irish banks have promised to sell off subsidiaries, bloated by the property market boom, by just under a third between 2011 and 2013 in an attempt to wean them off European Central Bank funding.

Bank of Ireland chief executive Richie Boucher said in April the bank has committed to selling off €10bn in asset sales.

The bank, the only Irish one to avoid full nationalisation following the banking crisis, said the move will not affect its core Tier 1 ratio or its basic capital requirements.

But the Central bank warned last month that Irish banks might have to slow down sales as competition grows with other European institutions also trying to deleverage.

The total cost of the banking crisis has been estimated at just under €70bn.

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