NatWest’s Ulster Bank is preparing to sell €7.6 billion of loans and 25 branches to Irish bank Permanent TSB. Between 400 and 500 Ulster Bank employees will transfer over under the deal while NatWest will secure a 20% stake in PTSB as part payment. “In line with our strategy of a phased withdrawal from the Republic of Ireland,

NatWest Group CEO Alison Rose said “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.”

Ulster Bank Chief Executive Jane Howard said “Today we announce a significant update to our phased withdrawal process. We have advanced negotiations to a non-binding MOU with Permanent TSB for the proposed sale of a c€7.6bn perimeter of performing non-tracker mortgages and the performing loans in our micro-SME business
and Ulster Bank’s Lombard Asset Finance business, including the Lombard digital platform and 25
Ulster Bank branch locations.”

“Our agreement includes the proposed right to transfer under TUPE of c400-500 colleagues, those wholly or mainly assigned to the perimeter, including the colleagues associated with the 25 branches. The final, exact roles cannot be confirmed until the transaction progresses further, but we will continue to work with our colleagues and their representatives to manage this process in a fair and responsible manner. Our agreement remains subject to further due diligence, assessment and relevant approvals and may not result in a transaction.”

“Today’s agreement with PTSB, will provide a good solution for these customers and colleagues, building on our recently announced agreement with AIB. We remain in talks to find a similar constructive solution for our performing tracker mortgage portfolio. We expect, in the coming months to have further updates to make to customers and colleagues on progress including on other products and services which are not covered by today’s announcement. In the meantime, I would like to recognise and thank colleagues for their continued support of each other and dedication to our customers.”