Ireland & Northern Ireland

Until 1986, National Irish Bank and Northern Bank shared a common history because they operated under the same name. The story of the banks extends from 1809 to 2005, when they officially joined the Danske Bank Group.

1809-1824 – Northern Bank established
Northern Bank began in 1809 as a tiny bank in Belfast. At that time, banks were not allowed to have more than six owners, and the owners were personally liable for the banks’ debts. Following the panic of 1820, when seven of the 14 banks in the Munster Region failed, the law was changed to avoid a similar occurrence.

The new law allowed banks to have more than six owners and paved the way for the previous partner-owned bank to become the Northern Banking Company with 270 shareholders, who still had unlimited liability. Nonetheless, banks went from strength to strength and were also able to expand out of their local areas.

1878 – 2,000 families ruined in banking collapse
1878 was a disastrous year for 2,000 families because shareholders were still personally liable.

A Scottish bank, the City of Glasgow Bank, went into liquidation following speculations using the bank’s assets by directors who covered up their actions with misleading accounts. Losses ran to millions.

1910-1930 – change of name
A law on limited liability was subsequently passed. Northern Bank now became a limited liability company.

In 1929 the Northern Banking Company changed its name to Northern Bank. The reason was that after the creation of the Irish Free State the bank had to issue two sets of banknotes. The new name made it easier to differentiate the new notes from the old.

1965-1987 – Northern Bank bought and sold
In 1965, almost 30 years later, Northern Bank was taken over by Midland Bank, which also owned the Belfast Banking Company. Five years later, the two banks merged under the Northern Bank name.

In 1986, after a period of economic instability that was triggered when the Irish pound was decoupled from sterling, Northern Bank was split into two separate companies – Northern Bank and Northern Bank for Northern Ireland.

1987: Midland Bank sells the bank to National Australia Bank
Midland Bank was also having problems following its loss-making purchase of Crocker National Bank. To raise capital, the banks were sold to National Australia Bank in 1987 and became known as Northern Bank and National Irish Bank.

2004 – Danske Bank Group buys the two banks
On December 14, 2004, the Danske Bank Group notified the Copenhagen Stock Exchange of its purchase of Northern Bank and National Irish Bank. Today, the two banks are integrated into the Group’s shared IT platform.