Zurich Bank has confirmed its intention to make new inroads in the Irish market after it poached a team of six senior lenders from Bank of Scotland (Ireland).
The bank, which is part of the Swiss-controlled Zurich Financial Services group, said its new Irish operation will concentrate on property lending. The move comes in spite of clear signs of a slowdown in the Irish property sector after years of growth.
"Zurich Bank confirms that we have recruited a number of people from Halifax Bank of Scotland (HBOS) in Ireland. We intend to expand into the Irish market, under the Zurich Bank brand, our highly successful property franchise established under the Dunbar Bank brand in the UK," the bank said.
"The property franchise focuses very strongly on relationships with and service to property developers, and we believe there is a strong opportunity for this type of service in the Irish market. Our recruitment of these experienced, respected and professional individuals will strengthen our proposition, combining expertise with local knowledge."
Bank of Scotland (Ireland) has acknowledged the departure of a team of lenders. Those leaving include figures such as Sandra Plunkett and Gerry Cuffe, who formerly worked for First Active.
"We anticipate that these new recruits will be working with us from late spring," Zurich said.
Dunbar Bank in Britain is the primary earnings driver of Zurich Bank, which already has an operation in the IFSC.
Moody's credit rating agency assigned a bank financial strength rating of D to Zurich Bank last January, noting that the institution had committed facilities in the amount of £255 million (€375.4 million) at its disposal and access to some cash deposits.
"Moody's notes the existence of a number of large individual exposures relative to equity in regard to the interbank and structured lending business (specifically total return swaps) of Zurich Bank. In mitigation, these interbank exposures are to highly-rated entities and have a short-term duration whilst the total return swaps are partially cash collaterised," the agency said.
"With the exception of its property lending business, Moody's recognises that Zurich Bank has yet to establish a solid track record and build a sustainable franchise along its chosen business lines."
Bank of Scotland (Ireland) said its business banking division continues to trade under that name. The business bank unit was not included in a rebranding last year under which the name of its retail bank was changed to Halifax.
