Ulster Bank has announced a phased withdrawal from the Republic of Ireland over the coming years. The decision does not impact Ulster Bank activities in Northern Ireland.

CEO Jane Howard (pictured) said there will be no immediate change for customers.

“Ulster Bank will continue to offer a full banking service in our branches, online and through normal channels for existing and new customers for the foreseeable future. Customers do not need to take any action as a consequence of this announcement,” she said.

“We will now consult with employee representative bodies to determine how best to plan and manage an orderly withdrawal of the bank over the coming years. There will be no new compulsory departures from the Bank this year.

“The phased withdrawal will include the careful and responsible execution of a strategy over time to deliver constructive solutions for our customers and their banking services within the Republic of Ireland.”

In Association with

The bank has already entered talks with AIB about offloading a c.€4bn portfolio of performing commercial loans. According to Howard, Ulster Bank relationship managers will actively engage with business customers throughout this process.

The bank is also in discussions with other banks including Permanent TSB about their potential interest in buying certain retail and SME assets, liabilities and operations.

Ulster Bank’s results for 2020, spanning activities on both sides of the border, disclose that the bank barely broke even last year. Total income was £205m and total outgoings were £203m, including £87m in staff costs. The bank booked impairment losses of £44m, resulting in a net loss of the year for £39m. Net profit in 2019 was £16m.

Meanwhile, AIB has sold c.€400m of non- performing loans to US vulture fund Apollo Global Management, Inc.

The portfolio consists of c. 4,000 non-performing customer connections, with an average time since first default of c. 10 years and c. 90% of the portfolio first entering default over seven years ago.

The portfolio comprises c. 92% private dwelling homes, c. 5% buy-to-let properties and c. 3% mixed use property. The portfolio extends across c. 3,500 assets.

AIB said the average balance per customer connection is c. €300,000 with an average arrears amount of c. €95,000. In 2019, the loan portfolio incurred a loss before tax and post-provisions of c.€62m.