Severance scheme is understood to be targeted at the bank’s higher Grade 2 and Grade 1 ranks, including those immediately below the top executive tier
PTSB chief executive Eamonn Crowley. Photo: Collins
PTSB has announced a voluntary exit package to a cohort of its senior managers as part of a restructuring within the expanded bank.
The scheme is voluntary and was announced internally today, the Irish Independent understands. The process is likely to see around 20 senior managers exit the bank, it is thought. PTSB has a total staff of around 3,000.
A spokeswoman for the bank confirmed that a redundancy process is underway.
“Following a period of transformational growth, we are undertaking a number of important strategic business transformation change initiatives to enable our strategy and to improve organisational effectiveness. To ensure that the bank’s business model is both robust and sustainable into the future, we have launched a limited voluntary severance scheme which is open to application from colleagues at senior management levels and up,” she said.
The severance scheme is being targeted at managers in the bank’s higher Grade 2 and Grade 1 ranks, including those immediately below the top executive tier, it is understood.
The process is part of a reorganisation of the management team following a transformational couple of years for the bank.
Led by CEO Eamonn Crowley, the bank took over around €6.75bn of former Ulster Bank loans in the Republic, including mortgages and SME lending, Asset Finance and 25 branches in January 2023.
The planned senior management changes come as the bank is looking to recruit a chief financial officer following the announcement by Nicola O’Brien at the end of August that she was standing down from the bank’s number two leadership role. She is reported to be joining digital bank Monzo.
PTSB remains the bank with the largest State shareholding, which has reduced since the financial crisis to 57pc.
Other shareholders in PTSB include Ulster Bank’s former parent NatWest and Sretaw Private Equity – the investment firm controlled by Irish entrepreneur Eamon Waters – and Goldman Sachs, which cut its stake in PTSB to below 3pc from over 5.6pc two months ago.
The bank’s pre-tax profits in the first six months of the year nearly tripled to €75m.
The bank’s surge in profitability came on the back of a €20m impairment release and was despite an expected 20pc increase in operating costs.
Total customer lending stood at €21bn, broadly in line with forecasts, with a non-performing loan ratio that was reduced to 1.7pc.
