The Bank of Ireland announced on Friday that Gavin Kelly, a senior group executive, will be the upcoming Chief Executive Officer (CEO) for its Davy stockbroking and wealth management unit. Additionally, the establishment of a new segment, Wealth and Insurance, over Davy and the New Ireland life and pensions business has been confirmed. Kelly will be at the helm of this new segment.
Bernard Byrne, who ascended to the helm of the business in 2021 and supervised its sale to Bank of Ireland following the imposition of a Central Bank fine, disclosed plans to exit the firm this year. His tenure at Davy began in May 2019 as the head of the capital markets division, after his role as AIB’s CEO.
Vincent Crowley, Chairman of Davy welcomed Gavin’s appointment and is excited to work closely with him when he formally takes on the CEO role later this year. Crowley recognises the wealth of experience Kelly brings and believes it will greatly benefit Davy as the firm aims to enhance the value proposition for its corporate and private clients, while maintaining its reputation as an excellent workplace. In his remarks, Crowley also acknowledged the significant contribution of Bernard Byrne to Davy’s success, notably his role in the shift of ownership in recent years. Crowley wished Byrne every success in his future endeavours.
The appointment of a high-ranking official from the Bank of Ireland essentially demonstrates the bank’s intent for more rigorous governance over Davy, a stark contrast to the high degree of independence Davy operated with between 1988 and 2006 when it was primarily owned by the Bank of Ireland.
At the bank’s annual general meeting last month, CEO Myles O’Grady spotlighted to shareholders the 18% increase in their wealth and insurance assets, which include Davy and New Ireland, to €46 billion last year. He anticipates potential future growth, a prospect buoyed by Ireland’s favourable demographics.
At the time Davy was welcomed on the market, their principal wealth unit managed assets worth approximately €16 billion. This figure increased to nearly €22 billion by year end, which includes roughly €2 billion transferred from Bank of Ireland earlier in 2023 as about 2,000 affluent clients transitioned to Davy.
Davy’s much-publicised capital markets unit has been contending with challenges recently due to several large organizational exits from the Irish market and a decrease in deals activity. The firm currently employs roughly 900 individuals.