Ulster Bank has confirmed that it will be withdrawing it operations from the Republic of Ireland after more the 160 years.
The bank’s parent company, the NatWest Group, said the “orderly phased withdrawal” will take place over a number of years.
It said there will be no immediate changes for customers with full banking services to continue in the meantime.
The bank also confirmed that it is in talks with both AIB and Permanent TSB (PTSB) over the sale of portions of its Irish loan book.
A non-binding memorandum of understanding has been signed with AIB relating to the sale of commercial loans worth €4bn.
Meanwhile PTSB is interested in some of the bank’s retail and SME (Small to Medium Enterprise) assets; however, the bank is talking to a “number of other strategic banking counterparties” about the assets.
"Difficult and worrying"
Announcing the withdrawal, Ulster Bank CEO Jane Howard said: “The decision by NatWest to withdraw from this market is hugely disappointing and today will be a difficult and worrying time for our colleagues across the Bank.
“It may also lead to customer questions and concerns as to how this decision may impact them and their day-to-day banking needs.
“I want to be clear that there will be no change for customers today, changes will happen over the coming years.
“Ulster Bank will continue to offer a full banking service in our branches, online and through normal channels for existing and new customers for the foreseeable future.
“Customers do not need to take any action as a consequence of this announcement. We will communicate with customers in a timely manner over the coming weeks and months.”
"No new compulsory departures"
Ms Howard said the bank will now open talks with employee representatives; however, she insisted there will be “no new compulsory departures” this year.
“I am acutely conscious of our responsibilities to our colleagues and I am wholeheartedly committed to managing this process in a fair and responsible manner,” she said.
She said the bank will “work hard to minimise the impact on colleagues and customers and ultimately to provide a successful banking transition for customers.”
