PTSB cleared by CCPC to acquire Ulster Bank assets

The deal includes Ulster Bank's performing non-tracker mortgage loans and a subset of Ulster Bank’s non-performing non-tracker mortgage loans 

As part of the acquisition around 400 to 450 Ulster Bank employees who have their main role within the retail, SME or asset finance businesses are entitled to transfer to Permanent TSB. Picture: Sasko Lazarov/RollingNews.ie

The Competition and Consumer Protection Commission (CCPC) has cleared the acquisition of a portfolio of Ulster Bank loans by Permanent TSB.

The portfolio consists of approximately €7.6bn of performing loans, including Ulster Bank's performing non-tracker mortgage loans, a subset of Ulster Bank’s non-performing non-tracker mortgage loans and Ulster Bank’s entire performing micro-SME business direct loan book. 

The acquisition also includes 25 properties in the Ulster Bank branch network as well as Ulster Bank’s asset finance loan business.

As part of the acquisition around 400 to 450 Ulster Bank employees who have their main role within the retail, SME or asset finance businesses are entitled to transfer to Permanent TSB. This will occur under the transfer of undertakings regulations. 

Following the completion of the transaction, the final number of employees transferring will be confirmed.

In May 2022, the CCPC stated that it had begun an in-depth investigation of the proposed acquisition.

"The CCPC considered whether the proposed acquisition would result in a substantial lessening of competition, when compared to the alternative scenario of a sale of Ulster Bank’s mortgage and micro SME lending assets to an alternative purchaser, and found that it would not," the CCPC said in a statement.

Ulster Bank first announced its intention to exit the Irish banking market in February 2021.

Eamonn Crowley, Chief Executive, Permanent TSB said: "Following the recent approval of our own shareholders, today we have reached another significant milestone on our transformation journey with clearance from the Competition and Consumer Protection Commission for our proposed acquisition of certain elements of the Ulster Bank business."

Mr Crowley continued: "We are working closely with Ulster Bank to ensure a smooth transition for Ulster Bank customers and colleagues to Permanent TSB, which will begin in Q4 of this year, subject to regulatory approval. We look forward to welcoming them to a Bank with a deep community heritage and customer service ethos." 

Jane Howard, Chief Executive, Ulster Bank said: “Ulster Bank notes and welcomes the CCPC’s decision on the portfolio sale to Permanent TSB. This is a significant step forward in the progress of our withdrawal and our next steps, over the coming weeks and months, will be to communicate with colleagues who will transfer (TUPE) and to communicate with customers who are expected to migrate to Permanent TSB as part of this transaction. Our website will be updated with information for customers in the coming days."

According to analysis from the CCPC, published earlier this week fewer than halftarget="_blank" rel="noopener noreferrer"> of Ulster Bank and KBC customers have opened accounts with different banks, while one in five has not taken any action at all to switch, despite the i mpending departure of both from the Irish market.

Consumers have been warned that switching over all their direct debits will be among the biggest challenges they face when trying to open a new account, with a significant risk of missing essential payments such as a mortgage, rent, or utilities if this work isn’t done on time.

KBC began writing to customers on June 1 informing them they had six months to close their accounts. Ulster Bank has also been contacting customers and plans to finish the process of closing all customer accounts in the first quarter of 2023.