|
|
|
|
|
EBS branches win out in Irish Nationwide merger
20 December 2009 By David Clerkin, Markets Correspondent
EBS will retain Irish Nationwide branches after the merger of the two building societies, in towns and cities where they are in more attractive locations than EBS’s existing offices.
EBS chief executive Fergus Murphy said last week that both societies were conscious of the overlap in their branch networks, but stressed that talks aimed at finalising the details of the merger remained at a preliminary stage.
‘‘We’ll be looking to provide the best service we can in the best locations we can," said Murphy.
Incorporating Irish Nationwide’s 50 branches into EBS’s 100-strong network will be one of the key challenges facing Murphy and Irish Nationwide chief executive Gerry McGinn.
Only a handful of Irish Nationwide’s offices are in towns in which EBS does not have a presence.
Industry sources told The Sunday Business Post that branch closures were likely to be gradual, as the cost savings involved would be significantly lower than those achieved by other institutions, such as Ulster Bank and First Active, that have amalgamated their networks.
Murphy also said that EBS members may be asked to provide funding to help repair the building society’s capital base in the medium term.
The society, whose members voted last week to grant a so called ‘special investment share’ to finance minister Brian Lenihan in return for a capital injection of up to €400 million, said that it had examined the possibility of asking members to provide it with additional capital, and that initial soundings of members had been more positive than expected.
Money raised in this way could be used to repay a portion of the government’s investment in the future, the society said.
|
|
|
