Effective today, Danske Bank will no longer offer personal and business banking services in Ireland. The move means that customers can no longer sign up to current accounts, credit cards or savings products with Danske Bank.
The bank will also close all deposit accounts and savings accounts for existing customers starting in 2014.
Loans and mortgages will continue under existing agreements.
The bank has said it is ceasing to offer its products to Irish customers because it is unable to establish a sustainable retail banking model in Ireland.
In an online announcement published today, Danske Bank says that all money in savings accounts and current accounts will be paid in full and that money on deposit is still protected up to €100,000 under the Irish and Danish Guarantees. The bank has not said exactly when it will return the money but has indicated that it will be some time in the first half of 2014.
The bank has said that will be writing to customers in the coming weeks with information on how and when they will be affected. They have said that customers don’t need to take any action yet.
Customers can begin the process of moving their Danske Bank current accounts by choosing a new bank and requesting a “switching pack”. Danske Bank and your new chosen bank are required to help you to move. This includes helping you with your direct debits and salary payments. The process has been streamlined with the help of the Central Bank’s Switching Code.
Commenting on today’s announcement, bonkers.ie managing director said: “This is a disappointing day for Irish banking customers. Over the last few years we’ve seen the number of institutions offering retail services in Ireland shrink to the point where there are now only a handful to choose from. I sincerely hope that the remaining banks don’t see this as an opportunity to increase fees.”
Mr Kerr continued “There is still value to be had in banking, but people do need to look for it. Danske Bank customers have plenty of time to make sure they find the right home for their money.”
Danske bank, which has 167,000 customers in Ireland, bought National Irish Bank in 2005. Between 2010 and 2011 the bank closed its 27 retail branches in Ireland. The bank still operates seven retail advisory centres but these will be closed along with their retail offering with an expected loss of 150 Jobs. Danske Bank will continue to offer services to corporate and institutional customers.
Danske Bank made a profit of 1.72 billion Danish Krone in 2011 – the equivalent of around €250 million.