National Irish Bank unveils new products

National Irish Bank (NIB) unveiled new products today following its takeover by Denmark's Danske Bank.

National Irish Bank (NIB) unveiled new products today following its takeover by Denmark's Danske Bank.

Danske bought NIB and its Northern Irish bank, Northern Bank, from National Australia Bank for 10.4 billion Danish crowns (€1.38 billion) in December 2004 and completed the planned migration of the two banks to its platform over Easter.

Foreign lenders see big opportunities in Ireland's economy, which has a rising population and a market heavily dominated by Allied Irish Banks and Bank of Ireland. New entrants such as Danske hope to grab market share with longer opening hours, fewer transaction fees and lower credit card rates.

NIB is offering interest rates of 1 per cent to 1.75 per cent in interest-bearing accounts and will charge rates on overdrafts and credit cards of around 9 to 10 per cent.

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"Comparing numbers between banks is never easy, but it appears the Dankse/NIB offer is competitively priced but not something that should unnerve investors in the Irish financials," said Goodbody Stockbrokers analyst Eamonn Hughes.

"We suspect they will add incrementally to competition levels in Ireland, rather than transform them," he added.

The NIB acquisition was Danske's first major push outside its Nordic home market.

National Irish Bank plans to open 15 or more new branches during the next three years.

In January, Bank of Scotland, a unit of Britain's HBOS began opening the first of its new branches in Ireland, while Dutch lender Rabobank started an Internet platform last year that offers savings and investments.