Allied Irish Said to Consider Murphy to Succeed McCrohan
Allied Irish Banks Plc (ALBK), the largest government-controlled lender, may appoint Fergus Murphy, chief executive officer at its EBS Ltd. unit, to head its corporate, institutional and commercial banking division, according to three people with knowledge of with the matter.
Murphy, 48, would replace Jerry McCrohan, who is retiring, according to the people, who declined to comment as the process isn’t public. McCrohan, 62, who reached retirement age in 2010, had agreed to remain with the lender as his role evolved from head of capital banking to include oversight of the corporate, institutional and commercial banking division, which was set up last year.
Allied Irish was ordered by Finance Minister Michael Noonan to take over EBS, also owned by the state, in July after the government injected 20.7 billion euros ($27.4 billion) into the two lenders following the collapse of a domestic real estate bubble in 2008. Allied Irish has lost 28.1 billion euros and EBS 1.16 billion euros on soured loans in the past four years, according to data compiled by Bloomberg News.
McCrohan “has announced his intention to retire from AIB,” Niamh Hennessy, a spokeswoman for the Dublin-based bank, said today. “His successor will be announced in the coming weeks. In the meantime Jerry has agreed to stay on in his present role.” She declined to comment further and said Murphy wasn’t available for comment.
Murphy took over as CEO of EBS in January 2008, having previously worked for Utrecht, Netherland-based lender Rabobank Groep, which he joined in 1993, and where his jobs included head of the Asian region of Rabobank International.
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