No reassurances secured over Ulster Bank future in Republic, warns union

Ulster Bank chief Jane Howard 'refused to answer any questions' on review by bank's parent NatWest at online meeting with Financial Services Union

Ulster Bank CEO Jane Howard was unable to give any reassurance about the future of the lender and the uncertainty for its customers and over 2,800 staff goes on, the Financial Services Union has said. Picture:Gareth Chaney/Collins

Ulster Bank chief Jane Howard was unable to give any reassurance about the future of the lender and the uncertainty for its customers and over 2,800 staff goes on, the Financial Services Union has said.

It comes as union general secretary John O’Connell had an online meeting with Ms Howard as the bank's parent NatWest continues a review that has been running for at least four months into the future of Ulster Bank's operations in the Republic.

The FSU believes the signs are that NatWest will announce the outcome of the review on February 19, when it unveils its latest earnings report. 

Concerns that NatWest will decide to wind down Ulster Bank have only increased after reports that it may be willing to sell off parts of its €20.5bn loan book, including its SME lending, to Permanent TSB (PTSB). 

Permanent TSB has made no comment, but the FSU has argued that because PTSB is 75%-owned by the State that there should be a role for the Government and the Central Bank to intervene in the review with NatWest.          

Concerns that NatWest will decide to wind down Ulster Bank have only increased after reports that it may be willing to sell off parts of its €20.5bn loan book, including its SME lending, to Permanent TSB. Picture: Leah Farrell/Rollingnews.ie

“The meeting today provided no reassurance for staff or for customers of Ulster Bank," Mr O'Connell said. 

"The CEO refused to answer any questions about the strategic review or to adequately respond to recent media reports about possible talks between NatWest and PTSB. The union left the CEO under no doubt as to the level of anxiety and stress that bank staff are under," he said. 

Ulster Bank is the third-largest mortgage and corporate lender in the Republic and has 88 branches and employs 2,800 people. 

The FSU has in the past also warned that any decision to wind down in the Republic would also hit 600 staff in Belfast, despite NatWest not including its operations in the North in its review. 

There are also major concerns from its customers and experts that any withdrawal by NatWest will further restrict competition in Irish banking and, at the very least, mean the costs in Ireland of home mortgages, as well as lending to small firms, will remain among the most costly in the eurozone. 

“The situation is now very serious. The threat of a closure or carve-up of the bank is growing, and this will seriously impact communities, customers, staff, and businesses all over Ireland. The manner in which people have been treated here is totally unacceptable," Mr O'Connell said.

Ulster Bank had no comment to make on the Dublin meeting and referred any queries to NatWest in Britain.