Staff at Strategic Banking Corporation of Ireland shared €150,000 in bonuses last year

Staff working at the Strategic Banking Corporation of Ireland (SBCI) shared more than €151,000 in performance-related payments last year. Accounts for SBCI show that one employee received total benefits (excluding pension) of between €300,000 and €325,000, while three received between €175,000 and €200,000.
SBCI financial results for 2023 show an operating profit of €1.83 million, compared to an operating loss of €2.36 million in the previous year. A wholly-owned State body, the SBCI was established in 2014 and it avails of both national and European funding and other supports for the purpose of making low-cost, longer-term credit available to Irish SMEs.
The annual report also says that investigations are continuing in relation to suspected fraud associated with Covid and Brexit loans and supports provided in previous years.
“The 2021 and 2022 financial statements disclosed that SBCI had been notified of a small number of loans (11) with a total value of €1.2 million that had been approved by an on-lender on the basis of fraudulent financial information and identification presented by certain borrowers.
“Eight of the loans to the value of €1 million were obtained under the Covid-19 Credit Guarantee Scheme. The on-lender is liable for €0.2 million of the losses and the balance of €0.8 million potentially falls to be borne by the Department of Enterprise, Trade and Employment on whose behalf SBCI operates this scheme. Upon notification of the suspected fraud, SBCI engaged with the on-lender to investigate the matter and the fraud was immediately reported to the relevant authorities and investigations are ongoing.”
In the report chief executive June Butler said that with both the global and the Irish economy facing headwinds last year, the role of the SBCI came to the fore.
“We provide opportunities for Irish businesses to invest and grow, creating additional economic activity across Ireland, by providing low-cost finance through established and newly-emerging finance providers. We operate in a flexible way, which means that our role in supporting access to finance can adapt to the prevailing economic circumstances, and we stand ready to do what is needed throughout the economic cycle.”
She said SBCI financial results for 2023 show an operating profit of €1.83 million, compared to an operating loss of €2.36 million in the previous year. “The move to profitability is due in part to the increase in interest rates. Additional factors which influenced income levels included fees received from government departments for schemes under management.”
The report maintained that all staff assigned to the SBCI were employees of the National Treasury Management Agency (NTMA). It said the NTMA’s remuneration model was based on confidential, individually-negotiated employment contracts, with competitive, market-aligned remuneration.
“The typical remuneration package comprises a fixed-base salary, pension entitlement and provision for discretionary performance-related pay. Discretionary performance-related payments are intended to reward exceptional performance having regard to the employee’s own performance, the performance of the employee’s area of responsibility, and the overall performance of the SBCI.
“The overall amount of performance-related payments made in respect of any year is also subject to the approval of the board.”