The State-owned ACCBank will next week announce its results for 1997, but there will be more interest in where the bank is going in the future than in the historical results.
As the Minister for Finance considers changes for the state-owned banks, the board of ACC has suggested that 20 to 30 per cent of the bank be sold to an international bank as the first part of a strategic alliance deal under which the foreign bank would eventually take over ACC. But that is not what the unions representing ACC employees want. They want the Government to arrange a merger between ACC and TSB Bank with the resulting operation being floated on the stock market. Mr McCreevy is now in the unenviable position of trying to find a solution that would be acceptable to both sides and would allow for the future growth and development of the small bank. Some recent restructuring of top management at ACC, lead to internal friction and the danger is that a deal that did not have the backing of the majority of the 600 staff would be difficult to implement successfully.
The bank reported a 5 per cent rise in pre-tax profits to just under £14 million for 1996. Profit growth should be stronger for 1997.
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