LONDON, UK: Ulster Bank in the Republic of Ireland has announced signing of an agreement to sell the majority of its commercial lending to Allied Irish Banks p.l.c.

As part of the phased withdrawal from the Republic of Ireland, NatWest Group (NWG) and Ulster Bank in the Republic of Ireland (UBIDAC) announced on 19 February 2021 that they had agreed a non-binding memorandum of understanding with Allied Irish Banks, p.l.c. (a subsidiary of AIB Group p.l.c.) (AIB), in respect of performing commercial lending.

UBIDAC and NatWest Holdings Limited have entered into a binding agreement with AIB for the sale of c.€4.2bn gross performing commercial lending and associated undrawn exposures of c.€2.8bn. RWAs in relation to these total balances are estimated at c.€4bn1. This transaction is subject to regulatory approvals.

On completion, it is estimated that a small gain on disposal will be recognised, based on the net carrying value of the lending as at 31 December 2020. The exact impacts of disposal will depend on movements in the book between now and transfer, the timing of which remains uncertain.

As part of the transaction, it is anticipated that approximately 280 colleagues will transfer from UBIDAC to AIB with the final number of roles confirmed as the deal completes.

NatWest Group CEO Alison Rose said: “In line with our strategy of a phased withdrawal from the Republic of Ireland, I am pleased that we have now reached agreement with AIB on the sale of the majority of Ulster Bank’s performing commercial lending portfolio. Our priority remains to support our customers and colleagues through this period.”