Outgoing Bank of Ireland CEO Francesca McDonagh has been appointed Credit Suisse’s new director of European operations.
McDonagh, whose departure in September was announced after markets closed on Tuesday, was appointed on Wednesday as part of a major executive reshuffle at the crisis-hit Swiss bank.
She will take up the role of CEO for Europe, the Middle East and Africa at the Swiss bank from October 1 and will be based in Zurich. In her new role, she will also join Credit Suisse’s executive board, reporting to CEO Thomas Gottstein.
Ms McDonagh, a London-born Oxford University graduate of Irish descent, was the Bank of Ireland’s first female CEO when she was appointed in October 2017 to succeed Richie Boucher. She previously worked in a variety of senior positions for HSBC.
His departure is widely understood to be related to salary caps and ongoing bonuses at Irish financial institutions.
When news of her imminent departure was announced, President Patrick Kennedy described her as “an exceptional CEO” who has driven “with ambition and commitment, a clear strategic focus on transformation, service improvement and business growth.”
Details of his new job emerged as the Bank of Ireland said it had made a positive start to 2022 but was watching the impact of rising inflation on consumer confidence.
In an interim management statement, the bank said net interest income was in line with expectations, as was trading income in the first quarter of the year. Wealth and insurance income at the bank increased by about 10 percent.
Net funding was €400m in Ireland retail and corporate and markets in the first three months of the year.
That was offset by deleveraging in the UK market of €1.3bn and the impact of foreign exchange and other factors to the tune of €200m.
Bank of Ireland said it had a total of €75.2 billion in customer loan volumes at the end of March, up from €76.3 billion at the end of December 2021.
There was a significant increase in green loans in the quarter, with “green” loans accounting for 43 percent of new mortgage loans during the quarter and 11 percent of total new commercial term loans.
The group said its liquid assets of €49.8 billion and wholesale funding of €22.2 billion at the end of March 2022 were largely unchanged from December 2021.
Customer deposits at the end of the quarter were €1.5bn lower, falling to €91.3bn, as declines in UK retail deposits and corporate and market deposits were partially offset by growth in deposits. Irish retail deposits.
The bank’s net credit-impairment charge in the first quarter was in line with expectations, with non-performing exposures falling by €200m from December 2021 to €4.1bn.
Bank of Ireland’s €50m share buyback program that began in early April has netted the bank €17m worth of shares as of April 26.
The state currently has less than a 5 per cent stake in the bank, as the sale of the stake acquired during the financial crisis continued.
“The ongoing sell-off is supporting positive results for Irish taxpayers, the economy and the group,” said Ms McDonagh.
“The group is off to a positive start to 2022 with revenue, costs and capital performing in line with expectations. We continue to deliver on our strategic and customer priorities,” said Ms. McDonagh.
“Overall business momentum remains positive, but we are keeping an eye on the impact of higher inflation on customer confidence stemming from higher commodity prices and exacerbated by the unacceptable invasion of Ukraine. We have also taken a number of proactive steps to support the humanitarian response and stand ready to do more.”