AIB in exclusive talks to buy Ulster tracker mortgage book

[Brendan Burgess]

AIB in talks for Ulster Bank's tracker mortgages

AIB said it has started exclusive discussions with NatWest for the acquisition of about €6 billion of Ulster Bank's performing tracker mortgages.

www.rte.ie

That is good news for the Ulster tracker mortgage holders.

If they want to remortgage, they will be able to do so. If the mortgages had been bought by a fund, they probably would not.

And if someone wants to trade up, I presume they will be able to port their tracker and pay an additional 1% margin.

Brendan

 

[Brendan Burgess]

29 April 2022

AIB Group plc announces the potential acquisition of Ulster Bank's tracker mortgage portfolio and confirms receipt of competition clearance for the acquisition of Ulster Bank's corporate and commercial loans

Ulster Bank tracker mortgage portfolio

AIB Group plc announces that it is has entered into exclusive discussions with NatWest Group plc for the acquisition of circa €6 billion Ulster Bank performing tracker (and linked) mortgages. Any potential transaction remains subject to negotiations and agreement.

Ulster Bank corporate and commercial loans - CCPC approval

AIB Group plc confirms and welcomes the receipt of competition clearance from the Competition and Consumer Protection Commission (CCPC) on 28 April 2022 for the acquisition of c. €3.7 billion Ulster Bank performing corporate and commercial loans(1).

As intended, AIB will commence the migration of loans on a phased basis over the coming months to ensure optimised outcomes for the c. 5,000 impacted customers.

In line with previous guidance the Group expects a CET1 reduction of c. 130bps in relation to the corporate and commercial loan book acquisition.

AIB Chief Executive, Colin Hunt, commented:

"Receipt of CCPC approval is another important milestone in AIB's inorganic strategy and follows the successful integration of Goodbody last year. We look forward to working with our new customers and equally our new colleagues from Ulster Bank as they move to AIB Group. I would like to thank everyone who has worked on this landmark transaction."

 

[Wiresandmore]

So is the remaining (non-tracker) book still going to Permanent TSB?

 

[Brendan Burgess]

Yes, subject to the CCPC approval.

 

[Paul F]

Slightly off topic but are KBC selling their tracker mortgages to Bank of Ireland (along with the rest of their mortgage book)?

 

[Brendan Burgess]

Yes, I think so.

Brendan

 

[Ben Don]

The UB offset tracker mortgages are not part of the AIB binding agreement. Anybody know who will buy these mortgages?

 

[Monbretia]

The UB offset tracker mortgages are not part of the AIB binding agreement. Anybody know who will buy these mortgages?

Is that definite? I was in UB last week to find out which of my accounts were offsetting against the mtg so I'd know which ones not to close and cashier said the mortgage would be moving to AIB, now she knew it was an offset we were talking about or is that just assumption on their part because I'd say staff will be last to know the accurate story!