ACCBank wants more breathing space before it is sold. The bank has also withdrawn from large corporate deals, following questions about its involvement in the Four Seasons Hotel project in Dublin, which ran into funding problems.
Addressing the Dail Finance and Public Service Committee yesterday, ACCBank's chief executive, Mr Colm Darling, said the State-owned bank was not in negotiations on a sale and was focused on implementing a strategic plan to make it a more attractive acquisition prospect.
The plan, which includes the closure of Dublin branches and the switching out of unprofitable business such as retail banking and mortgages, is due to be completed in 2003. Mr Darling said the bank was still for sale and would eventually achieve a strategic alliance with another institution or would be sold outright.
ACCBank has already closed Dublin branches and is working to centralise administrative and other functions at its head office. Mr Darling said the bank would maintain its rural branch network of 40 to 50 branches but would concentrate more on selling products to customers rather than administration. It will begin to sell mortgages for other providers in January.
The chief executive was also questioned on the bank's exposure and involvement with the Four Seasons Hotel development in Dublin which ran into substantial budget overruns and delays which resulted in the appointment of a receiver.
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