Ulster Bank back in profit as withdrawal gathers pace

Ulster Bank’s withdrawal efforts accelerated this week with File Picture: Sam Boal / RollingNews.ie

Ulster Bank has posted a profit of €68m for 2021 as it accelerates its wind-down and exit from the banking market in the Republic.

The figure – a turnaround from a full loss of €255m in 2020 – covers continuing and discontinued operations. Ulster posted an operating loss of €259m for 2021 for its continuing operations, which excludes large parts of the bank.

The €259m figure is down from an operating loss from continuing operations of €405m in 2020, the last full year when the bank was accepting new customers and fully lending here.

Net loans to customers fell to €7.9bn last year, from €20bn in 2020. Ulster Bank formally ceased lending to new customers in the Republic last July and stopped accepting new customers from the end of last October.

The carve-up of the bulk of Ulster Bank’s total loan book to AIB and Permanent TSB has been agreed between the banks. Ulster’s parent NatWest said it continues to make “good progress” on its phased withdrawal from the Republic, “minimising job losses and protecting services”.

NatWest expects the majority of the AIB and PTSB asset sales to be “largely complete” by the end of this year, with deposits reducing over a longer timescale. It also expects to incur disposal losses through income of around €300m this year and withdrawal-related costs of around €600m between this year and 2024, with around €500m incurred by the end of 2023.

Ulster Bank’s withdrawal efforts accelerated this week with the bank announcing plans to begin writing to 1 million personal and business customers setting them deadlines of six months to switch banks and close current and deposit accounts.