AIB seeks to secure €6bn in tracker mortgages in Ulster Bank closure

AIB chief executive Colin Hunt said the approval by the CCPC over the commercial loans was a further “important milestone” in the bank’s development

Fri, 29 Apr, 2022 - 08:36

Eamon Quinn Business Editor

AIB has extended an existing agreement and now plans to secure €6bn in performing tracker loans from Ulster Bank, which is preparing to shut its doors in the Republic.

It comes as the Competition and Consumer Protection Commission, or CCPC, on Thursday gave the green light to AIB to acquire €3.7bn in corporate and other commercial loans from Ulster.

The loans acquisitions are part of the carve up between AIB and Permanent TSB of the Ulster Bank loan books. The latest upheaval in Irish banking also involves Bank of Ireland, which wants to buy €9bn in mortgages from KBC Bank, which is also closing its operations in Ireland.

AIB chief executive Colin Hunt said the approval by the CCPC over the commercial loans was a further “important milestone” in the bank’s development.

Its latest plan to acquire the Ulster Bank tracker loans will also require approval from the competition watchdog.

The Government owns a stake of just under 70% in AIB and Finance Minister Paschal Donohoe welcomed the agreement.

“The successful conclusion of this transaction by AIB would be very positive in providing a significant number of Ulster Bank customers with certainty as to the destination of their mortgages,” Minister Donohoe said.

Average first-time mortgage jumps by €20,000 in a year to more than €250,000