Permanent TSB to buy €7.6 billion worth of assets of the Ulster Bank business
LONDON, UK: NatWest Group plc and Ulster Bank in the Republic of Ireland have today entered into a non-binding Memorandum of Understanding (MOU) with Permanent TSB (PTSB) for the proposed sale of a perimeter comprising performing non-tracker mortgages, performing micro-SME loans, Ulster’s asset finance business and a subset of its branch locations.
The proposed perimeter included approximately €7.6bn of gross performing loans as at 31 March 2021, the majority relating to non-tracker mortgages, and 25 branch locations. Ulster Bank had total retail, micro-SME and asset finance gross lending of €16.1bn at 31 March 2021.
The TUPE principle will apply to colleagues wholly or mainly assigned to the agreed in-scope perimeter and we expect the number of colleagues that will transfer as part of the transaction to be in the range of 400-500.
There is no immediate change for Ulster Bank customers and colleagues at this time.
As part of the consideration for the proposed transaction, it is proposed that NatWest Group would receive a minority non-consolidating equity stake in PTSB.
The potential sale contemplated by the MoU remains subject to due diligence, further negotiation and agreement of final terms and definitive documentation, as well as obtaining regulatory and other approvals and satisfying other conditions. The proposed sale may not be concluded on the terms contemplated in the MoU, or at all.
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 are today announcing a significant update in the form of this non-binding memorandum of understanding with Permanent TSB. This builds on the recently announced sale of the majority of Ulster Bank’s performing commercial banking business to Allied Irish Bank. Our focus remains on supporting our customers and colleagues as we continue our withdrawal from the Republic of Ireland.”
Speaking today, Eamonn Crowley CEO of PTSB Holdings said, “This Potential Transaction complements our growth strategy and will accelerate the delivery of Permanent TSB’s ambition of becoming Ireland’s best personal and small business bank. We see this as a once in a generation opportunity to fast-track the growth of an Irish bank with a strong community and customer service ethos that has evolved over its 200-year history.
It also supports the investments we are making in the transformation of our in-branch and digital banking services.
As we grow the Bank, we are committed to building on our local community heritage, further building trust with customers and taking accountability for the critical role that banks play in wider society, particularly in the areas of Sustainability and Social Responsibility.
We are conscious that there is still significant work to be done to agree legally binding agreements later this year, but we are optimistic that we can work with all parties to create an enlarged Permanent TSB with an increased national footprint that will provide enhanced products and services to our present and future customers. We welcome all Ulster Bank customers to Permanent TSB, whether or not their loan is transferring as part of this potential transaction, and we look forward to supporting them with their banking needs.”
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