Overview of Banks in Ireland
The outlook of the banking system in Ireland has been positive, mentioned by Moody’s Investors Services. They have mentioned two important things while investigating the rating scenario of banks in Ireland –
- They expect that the operating conditions of the banking system will improve in the near future, and
- They also perceive that the creditworthiness of the banks will evolve in the next 12 to 18 months down the line.
The strengths of the Irish economy are their new demands for loans and demands for other banking products. Moody’s Investor Services expect that the Irish economy’s real GDP will outperform most of the countries in the Euro region. And Irish will retain their sustainable funding profiles in years to come.
Irish banking system works almost in a similar fashion to the UK’s banking system.
There are a total of 64 banks in Ireland. And most of the banks have been performing quite well.
Central Bank of Ireland (CBI) is the authority that controls the whole banking system in Ireland. CBI controls the entire thing – licensing, regulations, and controlling financial services.
Previously prior to 2010, there were three separate structures – the Central Bank, the Financial Services Authority of Ireland, and the Financial Regulator. In 2010, the structure of the Central Bank has been changed and only one entity exists to remain as the authority of the whole banking system.
All banks must be licensed by CBI. And these can be divided into two categories –
- Retail banks that offer general banking, mortgage bankingMortgage BankingA mortgage bank is a bank with a specialization in lending the money against the mortgage of any specific securities. They structure various loan products at a cheap rate or with better funding arrangements and involves various activities like loan origination, mortgage sale etc., and other allied services.
- Banks under International Financial Services Centre (IFSC).
List of Top Banks in Ireland
- Allied Irish Bank (AIB)
- Bank of Ireland
- Ulster Bank
- CitiBank Europe
- Permanent Group Holdings
- Danske Bank (Ireland)
- KBC Bank Ireland
- EBC d.a.c.
- DePfa Bank
- Bank of Montreal Ireland PLC
Out of 64 banks, here are 10 most prominent banks –
#1. Allied Irish Bank (AIB):
This is the biggest bank in Ireland. And it is 71.05% state-owned. In 2010, it had a bailout; but it has recovered from that and in 2015, it has recorded a return on capital of 19.57%. As per the last report in the year 2107, there are 10,500 people who work here.
It was founded on 21st September 1966, around 51 years ago. Its head-quarter is located in Dublin. As per the last report in the year 2016, the operating income and the net income were Euro 2.9 billion and Euro 1.7 billion respectively.
#2. Bank of Ireland:
It was established in the year 1783. Its head-quarter is situated in Dublin. The main focus of this bank is to sell and provide banking and insurance products. As per the report of 2014, it was found that around 11,086 people work here. The net income in the year 2014 was Euro 921 million. In the same year, the revenue and the operating incomes were Euro 2974 million and Euro 1301 million respectively.
#3. Ulster Bank:
Ulster Bank is one of the major commercial banks in Ireland; rather it is one of the traditional Big Four Irish banks. It was founded in the year 1836, around 181 years ago. The head-quarter of this bank is located in George’s Quay, Dublin. As per the data of 2013, it was found that around 3250 employees work in Ulster Bank. This bank is a subsidiary of The Royal Bank of Scotland Group.
#4. Citibank Europe:
It was founded in the year 1965, around 52 years ago. This is a subsidiary of Citibank, an American financial services company. The head-quarter of Citibank Europe is located in North Wall Quay, Dublin. It is one of the large foreign subsidiaries operating in Ireland.
It offers various banking services like cash managementCash ManagementCash Management refers to the appropriate collection, handling, & disbursement of cash for ensuring financial stability & avoiding insolvency risk. , investor products, trade services, corporate finance, trustee service, transfer agency, etc. As per Moody’s Investors Services, Citibank Europe is A1 in credit rating which means Citibank Europe is assigned upper-medium grade.
#5. Permanent Group Holdings:
Permanent Group Holdings was previously known as Irish Life and Permanent PLC. It is popular for offering personal financial services to customers in Ireland. It was established quite a long time ago, in the year 1884, almost 133 years ago. The head-quarter of this bank is situated in Dublin.
As per the data we got in 2015, it was found that both the net income and the operating income had been negative – Euro (425) million and Euro (399) million respectively. The revenue in the same year was Euro 694 million.
#6. Danske Bank (Ireland):
This is the subsidiary of Danske Bank Group whose head-quarter is in Copenhagen. This is one of the popular foreign subsidiaries in Ireland. It was established in the year 1986, almost 31 years ago. The head-quarter of Danske Bank is located in Dublin. As per the data of 2012, around 366 employees work here. Danske Bank is structured in three business units – business banking, personal banking, and corporate & institutional banking.
#7. KBC Bank Ireland:
It was established on 14th February 1973, almost 44 years ago. When it was founded, the name of KBC Bank Ireland PLC was Irish Intercontinental Bank. Later in the year 1999, KBC Bank acquired the whole shareholding (100%) and then changed the name to IIB Bank. Later in 2008, the name was changed again and it became KBC Bank Ireland.
In the year 2011, the number of employees was around 500. Total assets acquired of KBC Bank Ireland PLC were Euro 23 billion (loan – Euro 17 billion & deposits – Euro 6 billion).
#8. EBS d.a.c.
This bank was established in the year 1935 by Alex McCabe. The purpose of starting this institution is to provide affordable housing finance to teachers and other civil servants. In the year 2016, the number of employees worked here was around 350.
The net income and the operating income of EBS d.a.c. in the year 2016 were Euro 183 million and Euro 269 million respectively. Its head-quarter is located in EBS Building, Dublin.
#9. DePfa Bank Ireland:
DePfa Bank PLC is a German-Irish bank. It was founded in the year 2002, around 15 years ago. Though it was founded long ago under the control of the Prussian Government, later it is legislated by the Irish Government. The head-quarter is situated in Dublin.
The founder of this bank was Gerhard Bruckermann. It is a subsidiary of Hypo Real Estate. This bank has two major emphases – public sector and large infrastructure projects.
#10. Bank of Montreal Ireland PLC:
It is the subsidiary of Bank of Montreal Financial Group. It was previously called as Bank of Montreal PLC. Bank of Montreal Ireland PLC was established in the year 1996, almost 21 years ago. This is one of the most prominent foreign branches in Ireland.
It provides commercial services to its local customers. It mainly provides inter-mediate or long term industrial and general credit. The head-quarter of Bank of Montreal (BMO) PLC is located in Seagrave House, Dublin.
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