Ulster Bank still ‘core part of RBS’

ULSTER Bank chief executive Cormac McCarthy has stressed that the company remains a core part of parent group Royal Bank of Scotland (RBS), despite the Irish bank posting operating losses of £85 million (€97m) for the third quarter of the year.

The results — in line with expectations — were driven down by a total impairment charge, for the three months to the end of September, of £144m (€161m). The £85m loss compared to a profit of £81m (€90m) for the same quarter last year.

For the first nine months of the year Ulster posted a £93m (€104m) operating loss, compared to an operating profit of £253m (€283m) for the same period last year. The impairment charge for the nine months was £301m.

Mr McCarthy said the results continue to be reflective of difficult market conditions, but said that the company remains in a healthy state overall.

“We’ve taken significant steps to adapt to the environment in which we operate and our underlying business remains solid. We continue to do good business and remain committed to supporting our 1.9m customers. Following this week’s announcement regarding the state aid measures agreed with the European Commission, Ulster Bank remains a core part of the Royal Bank of Scotland Group,” he added.

There was some good news, however. During the third quarter of this year, Ulster Bank saw a 3% year-on-year increase in customer account numbers — growth being boosted by generally strong current account activity in the marketplace and new-to-bank savings customers. The bank’s ongoing restructuring programme also resulted in a 4% quarter-on-quarter decline in costs, in constant currency terms.

The bank added that it expects to see this trend continuing into next year.

Earlier this week Ulster announced that it plans to dispose of 49 First Active branches, a move which is likely to raise around €13.5m.

Meanwhile, Ulster’s parent — RBS — yesterday reported a third quarter £1.53 billion (€1.71bn) operating loss (compared to an operating profit of £2.3bn (€2.57bn) for the corresponding period last year) and a pre-tax loss of £2.07bn, which was down from a profit of £1.9bn (€2.12bn) in the same quarter last year.