Lloyds Banking Group Offloads BoS Ireland Business
Lloyds Banking Group has concluded that there was little opportunity for scalable growth in the future for Bank of Scotland (Ireland) (BoSI) and it is therefore now intended that the business currently carried on by BoSI will transfer to Bank of Scotland (BoS). This announcement follows the decision earlier this year to close the retail and intermediary business of BoSI in Ireland.
The transfer of the BoSI business will allow BoS to use its operational and management capability (including general and credit management, oversight and control) within the UK in relation to the Irish portfolio. This will aid the efficient rundown of the existing lending portfolio.
The group’s other business operations in Ireland and Northern Ireland – including its Halifax branch network and customers service centre in Northern Ireland and its insurance operation in Shannon – are unaffected by this announcement.
Under this proposal it is envisaged that lending customers of BoSI would see minimal change in how their existing accounts are managed. It is intended that customers’ loan facilities would transfer to BoS where customers would continue to repay their loans until they reach maturity or when they are paid down in full. The group will work with depositors at BoSI to ensure a smooth transition of their banking arrangements. However, BoSI will cease to provide working capital and wealth management services by the end of the year.