Banking union urges swift completion of PTSB-Ulster Bank asset deal

Focus now turns to PTSB's potential deal for Ulster Bank assets.

Bank workers’ representative the Financial Services Union (FSU) has urged a quick completion of Permanent TSB’s planned purchase of part of Ulster Bank’s loan book in the Republic in order to provide further certainty for Ulster’s staff and customers.

The FSU welcomed confirmation of AIB’s €4.1bn purchase of Ulster Bank’s commercial and corporate loan book in the Republic, saying it brings some certainty and clarity for “at least 280 Ulster Bank staff who will, potentially, be in scope to transfer with the loans to AIB”.

The deal formally marks the start of Ulster Bank's withdrawal from the Republic.

“This has been a very unsettling time for staff in Ulster Bank, so the conclusion of this deal — subject to customary regulatory approval and negotiations with the FSU is welcome news,” said FSU general secretary John O’Connell.

Mr O’Connell said it is now important, for remaining Ulster Bank staff, for talks with Permanent TSB over the ownership of remaining assets to reach a successful conclusion.

Permanent TSB is in talks with Ulster Bank’s parent Natwest over buying parts of Ulster’s retail lending and SME banking business arms in the Republic.

“I would also urge PTSB and Ulster Bank to reach a conclusion on their talks as soon as possible, so further certainty can be provided for all staff and customers affected by the withdrawal,” Mr O'Connell said.

Ulster Bank chief executive Jane Howard called the confirmation of the AIB deal “a significant update” to the bank’s phased withdrawal plan.

Ms Howard said talks “continue” with Permanent TSB, “among other strategic banking counterparties on other elements of the phased withdrawal”.

Last week, PTSB chief executive Eamonn Crowley told the Oireachtas finance committee that talks with Natwest were “constructive” and ongoing. 

However, no memorandum of understanding has been agreed as yet. PTSB had previously said it hoped a deal would be agreed by the end of this year.

"I remain committed to managing our withdrawal carefully and responsibly over time," Ms Howard said.

It’s been a busy week for the Irish banking sector — with the Government starting its phased sell-out from Bank of Ireland, AIB’s takeover of Goodbody Stockbrokers receiving competition approval and now AIB’s confirmation of its Ulster Bank deal.

“The [AIB-Ulster Bank] announcement, coupled with other developments on state shareholdings in recent days, underpins the urgent need for a forum on banking to map out the future strategic direction of banking in Ireland," Mr O Connell said.

Despite the activity, Irish bank shares slumped - AIB and PTSB both down by nearly 4% and Bank of Ireland down more than 2%. The Government, last week, said there are currently no plans to sell the State's shareholdings in PTSB and AIB despite its Bank of Ireland plan.