Menu
07/08/2009
Job Cuts As Ulster Bank Makes Losses
One of Northern Ireland's top banks has revealed losses.
Ulster Bank has announced that it plans to make a further 250 people redundant as a result of making an £8m loss during the first six months of 2009.
The news follows mixed financial news nationally with a £6 billion figure announced in combined profits from HSBC and Barclays on Monday and the Lloyds Banking Group and the recently nationalised Northern Rock reporting losses of £4 billion and £724 million respectively the next day.
To confuse the financial picture further, the group which owns Ulster Bank, RBS, actually reported a pre-tax profit of £15m during the same six month period.
Indeed, Ulster Bank made an operating profit of £149m but that was wiped out by £157m set aside to cover bad loans.
The Northern Bank also last week revealed that it was closing some branches in Northern Ireland due to the downturn.
They will all shut in September in a move that increases the numbers to ten inside just two years - coming on top of five other branch closures last year.
However, the Northern said there would be no job losses as a result of the latest round of closures.
Ulster Bank has a total of 92 branches currently in Northern Ireland and 132 in the Republic.
A voluntary redundancy scheme will be applicable to all Ulster Bank branches across the island of Ireland. A similar scheme in January was oversubscribed, according to the bank.
A statement said the bank intended to work with "our employees and their representatives to seek an additional 250 redundancies".
The bank said its results have been "severely affected by economic conditions across the island of Ireland."
Ulster Bank Chief Executive Cormac McCarthy said there had been a "big exposure in banking to property" which had "suffered greatly".
"Economic activity is down so there is pressure on incomes and margins as well," he added.
"It is reflected in the economies we are seeing in play on the island."
But, Ulster Bank said these were expected to rise again in the second half of this year.
Moves are also in hand to monitor the situation at political level.
Yesterday, the NI Finance Minister, Sammy Wilson, met with representatives of financial community to discuss the economic downturn.
The meeting was the first of the Executive's Cross Sector Advisory Forum's Banking, Finance and Lending sub-group, aimed at making recommendations addressing problems arising from the economic crisis.
Following the meeting, the Minister said: "There is no doubt that the banking sector has a crucial role to play in helping Northern Ireland's businesses in this difficult economic climate.
"A confident local financial sector is a prerequisite for a return to economic growth and prosperity," he said.
See: Northern Shuts Down Further Branches
(BMcC/JM)
Ulster Bank has announced that it plans to make a further 250 people redundant as a result of making an £8m loss during the first six months of 2009.
The news follows mixed financial news nationally with a £6 billion figure announced in combined profits from HSBC and Barclays on Monday and the Lloyds Banking Group and the recently nationalised Northern Rock reporting losses of £4 billion and £724 million respectively the next day.
To confuse the financial picture further, the group which owns Ulster Bank, RBS, actually reported a pre-tax profit of £15m during the same six month period.
Indeed, Ulster Bank made an operating profit of £149m but that was wiped out by £157m set aside to cover bad loans.
The Northern Bank also last week revealed that it was closing some branches in Northern Ireland due to the downturn.
They will all shut in September in a move that increases the numbers to ten inside just two years - coming on top of five other branch closures last year.
However, the Northern said there would be no job losses as a result of the latest round of closures.
Ulster Bank has a total of 92 branches currently in Northern Ireland and 132 in the Republic.
A voluntary redundancy scheme will be applicable to all Ulster Bank branches across the island of Ireland. A similar scheme in January was oversubscribed, according to the bank.
A statement said the bank intended to work with "our employees and their representatives to seek an additional 250 redundancies".
The bank said its results have been "severely affected by economic conditions across the island of Ireland."
Ulster Bank Chief Executive Cormac McCarthy said there had been a "big exposure in banking to property" which had "suffered greatly".
"Economic activity is down so there is pressure on incomes and margins as well," he added.
"It is reflected in the economies we are seeing in play on the island."
But, Ulster Bank said these were expected to rise again in the second half of this year.
Moves are also in hand to monitor the situation at political level.
Yesterday, the NI Finance Minister, Sammy Wilson, met with representatives of financial community to discuss the economic downturn.
The meeting was the first of the Executive's Cross Sector Advisory Forum's Banking, Finance and Lending sub-group, aimed at making recommendations addressing problems arising from the economic crisis.
Following the meeting, the Minister said: "There is no doubt that the banking sector has a crucial role to play in helping Northern Ireland's businesses in this difficult economic climate.
"A confident local financial sector is a prerequisite for a return to economic growth and prosperity," he said.
See: Northern Shuts Down Further Branches
(BMcC/JM)
Related Northern Ireland News Stories
Click here for the latest headlines.
25 June 2013
New NI Bank Notes In Circulation
New bank notes have been released into circulation in Northern Ireland. The £10 and £20 notes are being issued from Danske Bank and will gradually replace the existing Northern Bank notes. The design of the notes remains the same, the only difference is the Danske Bank logo has replaced the Northern Bank logo.
New NI Bank Notes In Circulation
New bank notes have been released into circulation in Northern Ireland. The £10 and £20 notes are being issued from Danske Bank and will gradually replace the existing Northern Bank notes. The design of the notes remains the same, the only difference is the Danske Bank logo has replaced the Northern Bank logo.
07 January 2005
Consequences ‘dire and grim’ says Robinson
The consequences for Sinn Féin will be “dire and grim” if Chief Constable Hugh Orde confirms IRA involvement in the £22 million Northern Bank robbery last month, said DUP deputy leader Peter Robinson.
Consequences ‘dire and grim’ says Robinson
The consequences for Sinn Féin will be “dire and grim” if Chief Constable Hugh Orde confirms IRA involvement in the £22 million Northern Bank robbery last month, said DUP deputy leader Peter Robinson.
10 May 2012
Northern Bank To Be Rebranded
Danske Bank has announced a new organisational set-up for its operations in Northern Ireland and Ireland. The new structure will take effect on 1 June 2012. The re-organisation mirrors a similar Group wide set-up being introduced in all Danske Bank operations.
Northern Bank To Be Rebranded
Danske Bank has announced a new organisational set-up for its operations in Northern Ireland and Ireland. The new structure will take effect on 1 June 2012. The re-organisation mirrors a similar Group wide set-up being introduced in all Danske Bank operations.
03 January 2007
Bank robbery charges dropped
The County Down man accused of the £26 million Northern Bank robbery in 2004, has had the charges against him dropped. Dominic McEvoy, 23, a builder from Mullandra Park in Kilcoo, was not present in Belfast Magistrates Court during the hearing.
Bank robbery charges dropped
The County Down man accused of the £26 million Northern Bank robbery in 2004, has had the charges against him dropped. Dominic McEvoy, 23, a builder from Mullandra Park in Kilcoo, was not present in Belfast Magistrates Court during the hearing.
10 May 2013
Queen's Festival Announces New Director
The Belfast festival at Queen's has announced arts programmer and producer Richard Wakely as its new director. Mr Wakely is a former Managing Director of the Abbey Theatre in Dublin, while his role as Commissioner for the China-Ireland Cultural Exchange Programme for the Irish government saw him tour throughout Europe, the UK and South America.
Queen's Festival Announces New Director
The Belfast festival at Queen's has announced arts programmer and producer Richard Wakely as its new director. Mr Wakely is a former Managing Director of the Abbey Theatre in Dublin, while his role as Commissioner for the China-Ireland Cultural Exchange Programme for the Irish government saw him tour throughout Europe, the UK and South America.
-
Northern Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.
