Allied Irish Bank has announced plans to shut down two of its offshore businesses in Jersey and the Isle of Man following the news the bank will close AIB Bank and AIB International Savings (AIBIS).
While the winding down of the two businesses begins immediately, the operations on the offshore islands will finally close by the end of next year, 2013. AIB said that the decisions were made as part of the Bank’s ongoing strategic review being undertaken and fits in with the overall aim to become a “smaller, domestically focussed bank.”
The number of people employed by AIB in both offshore subsidiaries totals 170 - 114 on the Isle of Man and 56 on Jersey. A spokesperson for AIB said that it was in consultation with affected staff and that no final decisions concerning staffing will be made until that process is completed.
Joe Moynihan, CEO of AIB Jersey and Isle of Man, confirms customers of both subsidiaries will be contacted about making alternative arrangements. He said that the ongoing uncertainty in the financial markets for the last three years has had implications for the business that have created difficulties challenging the viability of AIB’s offshore business model.
The timing of the closures lands awkwardly for AIBIS, as less than a fortnight ago it had embarked on a customer survey asking for their assessment on whether the bank was delivering on both its core business values and product mission values introduced last October.
Speaking at Professional Adviser's conference
Equity release panel
Speaking at PA360
TISA's Peter Smith
Shone a light on 'closet trackers'