An update from Ulster Bank
Today, Ulster Bank announces an update on its phased withdrawal process, as confirmed on 19 February 2021, binding agreement with AIB on 28 June 2021 and non-binding memorandum of understanding with Permanent TSB Group (“Permanent TSB”) on 23 July 2021.
Ulster Bank and its parent NatWest Group have agreed a binding agreement with Permanent TSB for the sale of performing non-tracker mortgages; the performing loans in our micro-SME business, Ulster Bank’s Lombard Asset Finance business, including the Lombard digital platform; and a subset of Ulster Bank branch locations.
The proposed sale will include a total of approximately €7.6bn gross performing loans as at 30 June 2021, the majority relating to non-tracker mortgages, and 25 of Ulster Bank’s 88 branch locations. The transaction is subject to further due diligence, obtaining regulatory approvals and satisfying other conditions. The proposed sale may not complete on the terms contemplated in the binding agreement, when envisaged by the binding agreement, or at all.
While performing tracker mortgages are not part of today’s binding agreement, Ulster Bank and NatWest Group are working on a pathway for these customers and a process is underway in this regard. We will update on this in due course.
There are customers and customer products which are not covered by today’s announcement and we will update on those as appropriate. While there is no change for customers today, in early 2022 we will begin to serve formal account closure notice to customers who have current and deposit accounts. This means that customers will need to Choose a new bank and prepare to Move and Close their accounts. We will ensure customers, including those in vulnerable situations, have ample notice periods as well as the support they need to complete the process.
We understand that choosing and moving to a new bank is a process that customers may wish to commence now, and we are already talking to customers who are considering their options. While we are not asking customers to move bank right now, we are ready to help those who have chosen their new bank. Our branch and telephony teams are ready to support customers with the move / and or close process and can be contacted here