Saturday 16 December 2017

Ulster Bank boss McCarthy to leave without bumper payout

Nick Webb

Nick Webb

Ulster Bank's Cormac McCarthy, the last remaining boom-time big-bank boss, has insisted that he will not receive a big pay-off when he leaves the bank next year.

"No, Nothing. I'm not getting anything. I've handed in my notice and I'm working through my notice, so why should I get anything?" he told the Sunday Independent last week.

Recently it emerged that former Bank of Scotland boss Mark Duffy received a share of a €2.75m pay-off when leaving the bank last year. Former IL&P chief Denis Casey bagged a €1.25m payment in lieu of notice after resigning in the wake of the Anglo loans scandal. Mr McCarthy is to remain at Ulster Bank until a successor is appointed.

The bank chief, who unveiled losses of €361m for the first six months of the year, despite boosting margins, warned that borrowers could face further mortgage rate increases over the next year, as banks struggled to raise money on the markets. "I suspect that they will continue to rise," he said. Bank of Ireland recently hiked its rates, with AIB expected to follow suit in coming weeks.

"The UK market is seeing [standard variable] rates of 4.5pc to 5pc. The market there is a good proxy for where it might go in an Irish context," he added.

Mr McCarthy played down fears that Ireland could face a "double-dip" recession.

"I think the risks have increased but I'm not a buyer of it," he said.

Sunday Independent

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