Permanent TSB, NatWest agrees terms on Ulster Bank deal

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By Reuters
Permanent TSB, NatWest  agrees terms on Ulster Bank deal
Permanent TSB, NatWest agrees terms on Ulster Bank deal   -   Copyright  Thomson Reuters 2021   -  

<div> <p>By Emma-Victoria Farr and Graham Fahy</p> <p><span class="caps">LONDON</span>/DUBLIN – Permanent <span class="caps">TSB</span> said on Friday that it had finalised a deal to buy the loan books, branches and asset finance business of NatWest Group’s Ulster Bank. </p> <p>Permanent <span class="caps">TSB</span> (<span class="caps">PTSB</span>) said it will pay 6.4 billion euros ($7.25 billion) in cash and issue 90.9 million shares to NatWest in exchange for 25 of Ulster Bank’s 88 branches, as well as Ulster’s non-tracker mortgage and micro-<span class="caps">SME</span> lending books and its asset finance business.</p> <p>Following the deal, which is expected to complete in late 2022 or early 2023, NatWest will hold a 16.66% stake in <span class="caps">PTSB</span>. </p> <p>“This is a decisive step in transforming Permanent <span class="caps">TSB</span> to be Ireland’s best personal and small business bank,” <span class="caps">PTSB</span> chief executive Eamonn Crowley said in a statement.</p> <p>The deal will increase <span class="caps">PTSB</span>’s mortgage book by around 40% and its branch network by around 30%, the bank said. The bank’s business lending will triple in size relative to its level at the end on 2020.</p> <p>The deal, which was first announced in July, comes as NatWest sells off its Ulster Bank businesses. </p> <p>“With the withdrawal of Ulster Bank and <span class="caps">KBC</span> from the Irish market, a <span class="caps">PTSB</span> with greater scale has a more important role than ever in providing meaningful competition for consumers,” Finance Minister Paschal Donohoe said in a statement. </p> <p>NatWest said that it has now reached agreements to sell 58% of Ulster Bank’s total gross lending portfolio and around 65% of its credit risk weighted assets. </p> <p>($1 = 0.8831 euros)</p> <p/> </div>