RBS to study merger options for Ulster Bank

State-controlled Royal Bank of Scotland has commissioned investment bank Morgan Stanley to advise it on potential merger opportunities for its Irish unit, Ulster Bank, the business’s chief executive was quoted as saying yesterday.

Ulster Bank, which is the biggest bank in Northern Ireland and the third largest in the Republic, has racked up losses of £2.5 billion (€3bn) over the past two years. It accounts for less than 4% of RBS’s assets but was responsible for 20% of its bad debt charges last year.

“We think there may be further consolidation in the market. We’re looking to see if Ulster Bank can play a part in that,” Jim Brown said in a newspaper interview.