Permanent TSB on course to clinch €7.6bn loans deal with Ulster Bank 'in fourth quarter'

Permanent TSB finalised an agreement in December with Ulster to acquire €7bn in mortgage loans, 20 branches, and €600m in other SME loans and assets.

Permanent TSB said it is on course to secure "exceptional accounting gains" should it acquire billions worth of mortgage loans from Ulster Bank.

In an update, the lender reiterated its hopes to have clinched the deal with Ulster, which is shutting its banking operations in the Republic, by the end of the year. 

The shares closed unchanged in the latest session following the issue of the interim management statement. "We remain focussed on our ambition of becoming Ireland’s best personal and small business bank," chief executive Eamonn Crowley said.  

Permanent TSB finalised an agreement in December with Ulster to acquire €7bn in mortgage loans, 20 branches, and €600m in other SME loans and assets. The agreement is under a preliminary scrutiny by the competition watchdog.

"On the expectation that the acquisition of Ulster Bank Dac retail and SME business completes in Q4 2022, the bank will have exceptional accounting gains which will increase the overall profitability of the bank and positively contribute to the bank’s capital position," Permanent TSB said.

AIB plans to get most of the rest of the Ulster loan books, including €6bn in tracker mortgages and €4.7bn in commercial or business loans. 

Bank of Ireland is seeking to acquire €9bn in mortgage loans from KBC Bank Ireland, which is also shutting its doors.