IRISH NATIONWIDE has appointed new executives and reshuffled its senior management team in advance of the Government’s break-up of the State-owned lender following the transfer of most of its loans to the National Asset Management Agency (Nama).
Gerry McGinn, chief executive of the building society, has appointed Irish Nationwide’s head of commercial banking Declan Buckley as director of banking and Valerie Mulhall as director of operations. Ms Mulhall managed the setting up of the internal Nama loan team and is overseeing the transfer of the loans to Nama.
George Alexander, head of human resources for Bank of Ireland in the UK until 2002, has been appointed to a new role as “director of people, communications and change” where he will help manage the building society’s break-up as an independent entity.
Antoinette Dunne, the former Bank of Scotland (Ireland) executive who set up the bank’s Halifax retail branch business, has been appointed interim director of retail at Irish Nationwide.
She will manage the building society’s €2 billion mortgage book, the only loans at Irish Nationwide on its €10 billion balance sheet that are not moving to Nama.
While the four new roles carry the title of director, these are in name only – the only executives who are board directors are Mr McGinn and John McGloughlin, the lender’s chief financial officer.
Nationwide has also appointed David Peacock, a former head of corporate affairs at Ulster Bank, as head of risk and Ita Rogers, an internal appointment, as society secretary, both of whom will report to Mr McGloughlin.
It insisted the appointments would not add to the cost for taxpayers but would ensure the lender was properly managed in the period until its break-up.
The European Commission is assessing a restructuring plan submitted last June under the state aid rules governing government bailouts of financial institutions.
Minister for Finance Brian Lenihan said last month Irish Nationwide had “no independent future” as he announced the doubling of the Government’s bailout of the society to €5.4 billion. Mr Lenihan has asked the National Treasury Management Agency, which manages the Government’s banking plan, to explore options for Irish Nationwide to bring “finality” to the society.
Irish Nationwide’s residential mortgages and deposits of €4 billion are expected to be sold off or merged with another institution once the transfer of €8.5 billion in loans to Nama is completed.
The society is growing residential mortgages again, as it attempts to maintain value for any potential institution acquiring its post-Nama shell. Nationwide last year refocused itself as a savings and mortgages lender and abandoned commercial lending to developers, its main focus under former chief executive Michael Fingleton, which led to bad debts due to the property crash.
Ms Dunne is working with John Byrne, the former head of broker sales at Bank of Scotland (Ireland).
Mr Buckley, a former Ulster Bank executive, and Ms Mulhall have worked at Irish Nationwide since last year.
