Ulster Bank tells customers to 'get ready' to leave ahead of its exit from Irish market

Earlier this week, Permanent TSB said talks are ongoing between it and NatWest over the potential acquisition of parts of Ulster Bank’s retail and SME business in the Republic

Ulster’s parent NatWest said discussions with other counterparties about their potential interest in other parts of the bank are 'ongoing.' File Picture: Gareth Chaney/Collins

Ulster Bank has told customers to “get ready” to change bank and for further changes as it winds down its business ahead of exiting the Republic next year.

It follows Permanent TSB saying, earlier this week, that talks are ongoing between it and NatWest over the potential acquisition of parts of Ulster Bank’s retail and SME business in the Republic, with a view to entering into legally binding agreements “over the coming months”.

Ulster - which agreed, in June, a legally binding agreement with AIB for the sale of around €4.2bn commercial loans - reiterated the status of the Permanent TSB sales process. 

Ulster’s parent NatWest said discussions with other counterparties about their potential interest in other parts of the bank are “ongoing”.

While Ulster said no action is currently required by customers, before early 2022, it is “encouraging” customers to consider their options, avail of supports and “get ready to choose a new banking provider, particularly for customers’ current and deposit accounts.” 

It said previously announced changes to new business for personal customers come into effect today.

“We committed to giving customers up to six months’ notice to facilitate key changes for them,” said Ulster Bank CEO Jane Howard.

“While, right now, customers may not have noticed many changes, we expect this to change over the coming months,” she said.

The latest results for the bank show Ulster made an operating profit of €46m in the third quarter of the year, compared to a €20m loss for the second quarter. 

Total income increased by nearly 18% - or €26m – to €171m.

Net lending decreased by €4.1bn – or 21.1% - on the previous quarter, mainly due to the reclassification of €3.7bn worth of loans agreed to be sold to AIB.