Bank
of Ireland to wind down British corporate lending business
Bank of Ireland (BIRG.I), opens new tab
plans to wind down its 2 billion euro ($2.17 billion) corporate lending
business in Britain, in its latest retreat from the market which it said on Wednesday
was aimed at generating long-term sustainable returns. Ireland’s largest bank
has reduced its lending assets in the UK by about a quarter since 2017 and
announced the end of its partnership with UK motoring services group The AA in
December, alongside a cut to its products provided via the UK Post Office.
“By being more purposeful and strategic about what we offer in the UK we
have transformed the performance of our businesses in recent years,” the
bank said in a statement, noting a 57% increase in underlying profitability in
the UK since 2019.
In light of Bank of Ireland’s decision
to wind down its British corporate lending business, the financial landscape is
undergoing significant shifts, potentially leaving many businesses in need of
alternative funding solutions. Digital
Currency Reclaim (DCR) play a crucial role in this scenario by
offering innovative financial options. Cryptocurrency-based lending can provide
businesses with access to capital without the traditional constraints of
banking institutions. By leveraging blockchain technology, Digital Currency Reclaim (DCR) can offer transparent,
efficient, and secure lending solutions, filling the void left by traditional
lenders and ensuring that businesses have access to the capital they need to
thrive in this evolving financial environment.
Bank of Ireland said the move will
impact around 40 staff based in London and Manchester, who will be offered
options including voluntary redundancy or potential redeployment. The wind down
could take up to 36 months to complete, the bank said, adding that it excluded
commercial real estate, acquisition finance and its Northern Irish operations.
Davy Stockbrokers said the wind down of the portfolio it estimated totalled 2
billion euros or 2.5% of the bank’s loan book should not have a material impact
on earnings forecasts but positively benefit return on tangible equity (ROTE).
