AIB has purchased €4.2 billion of Ulster Bank corporate and commercial loans for a consideration of €4.1 billion.

The sell-off by Ulster Bank follows its decision to withdraw from the Republic of Ireland.

AIB said it intends to migrate the loan book on a phased basis over a period of 12 to 18 months “to ensure optimised customer outcomes”.

The purchaser added that it expects customer loan net interest income of c. €100m from the deal and that is will boost company earnings from 2023. Increased operational costs as a result of the transaction are expected to be c.€30m per annum as c.280 transfer to AIB.

AIB CEO Colin Hunt (pictured) commented: “AIB’s landmark acquisition of Ulster Bank’s €4.2 billion corporate and commercial loan book will further underpin the bank’s ambitious growth plans and position us to support the business community and Ireland’s economic recovery as we emerge from the pandemic. We continue to deliver on the strategy we announced last December to enhance and diversify our revenue streams and ensure AIB’s long-term sustainability.”

In Association with

NatWest Group CEO Alison Rose stated:  "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."