Uncertainty to end as RBS set to retain Ulster Bank

Royal Bank of Scotland will signal on Friday that it intends to retain Ulster Bank as part of its core operations.

The move will end over two years of uncertainty about the future of Ulster Bank. The Irish Examiner reported in July that RBS was considering a management supported private equity takeover of Ulster Bank. At the time it was one of about four options being considered about the future of its troubled Irish division.

There has also been speculation that Ulster Bank would be merged with Permanent TSB to create a third banking force. However, these talks never progressed beyond a very preliminary discussion between the British and Irish governments.