Ulster Bank and ptsb sign Memorandum of Understanding

[Brendan Burgess]

PTSB’s shares soar as it prepares to take over 7.6bn of Ulster Bank loans

Banks have signed a memorandum of understanding on sproposed deal

www.irishtimes.com

Seems to cover

The current accounts and some branches
The performing non-tracker mortgages

Excludes
Non performing mortgages - there are no plans for them as of now.

Performing tracker mortgages - "While performing tracker mortgages are not part of today’s MOU, Ulster Bank and NatWest Group are working on a similar pathway for these customers with strategic banking counterparties."

I gather that this means that an ordinary bank e.g. AIB will buy them.

 

[Brendan Burgess]

We have now agreed a non-binding Memorandum Of Understanding with Permanent TSB Group (PTSB) for the proposed sale of a perimeter comprising performing non-tracker mortgages; performing loans in our micro-SME business; Ulster Bank’s Lombard Asset Finance business, including the Lombard digital platform; and a subset of Ulster Bank branch locations. The proposed perimeter will include a total of approximately €7.6bn gross performing loans, the majority relating to non-tracker mortgages and PTSB are designated to acquire 25 of Ulster Bank’s 88 branch locations (list below). As part of the consideration for the proposed transaction, it is proposed that our parent, NatWest Group would receive a minority non-consolidating equity stake in PTSB.



This non-binding MOU is subject to further due diligence, the negotiation and completion of a final binding agreement and the obtaining of regulatory approvals as well as satisfying other conditions. The proposed sale may not complete on the terms contemplated in the MOU.



The principle of TUPE will apply to colleagues wholly or mainly assigned to the agreed in-scope perimeter including colleagues in the branches which are designated to be acquired by PTSB. A detailed assessment to identify colleagues anticipated to transfer under TUPE will be completed however, it is proposed that 400-500 colleagues will transfer if and when the transaction is completed and the relevant approvals are obtained.



There are customers and customer products which are not covered by today’s announcement and we will update on those as appropriate. While performing tracker mortgages are not part of today’s MOU, Ulster Bank and NatWest Group are working on a similar pathway for these customers with strategic banking counterparties. We will update in due course on this.



What’s next for customers



While there is no change for customers today, over the coming months, we will make a series of changes for our customers as we implement our phased withdrawal. We will proactively contact customers when they need to move bank and/ or close accounts. We will ensure that customers have ample time and notice periods as well as the support they need to complete the process. As part of this, our commitment remains that we will not close any branches in 2021, and we do not anticipate closing any branches in the first half of 2022. Branches will continue to play an important role and in the second half of 2022, we will begin to phase out traditional counter/ cash services to concentrate on in-person support to move bank and/ or close accounts.



We understand that choosing and moving to a new bank is a process that customers may wish to commence now and we are already talking to customers who are considering their options. We are ready to help those who have chosen their new bank and our branch and telephony teams are ready to support customers with the move and/ or close process.



Today’s agreement with PTSB will provide a good solution for customers and colleagues, building on our recently announced agreement with AIB. We have now negotiated proposed transfer paths and solutions for certain customers and colleagues through our deals with AIB and PTSB and we remain in talks to find a similar constructive solution for our performing tracker mortgage portfolio. I want to reassure you again that we are committed to managing this withdrawal on a phased basis and in a way that provides the best journey possible for our customers, communities and colleagues.






List of 25 Ulster Bank branches included in the non-binding MOU:

	County	Branch
1.	Cavan	Ballyconnell
2.	Cavan	Ballyjamesduff
3.	Clare	Shannon
4.	Cork	Wilton
5.	Donegal	Ballybofey
6.	Donegal	Buncrana
7.	Donegal	Donegal (town)
8.	Donegal	Killybegs
9.	Dublin	Blackrock
10.	Dublin	Blanchardstown
11.	Dublin	Lucan
12.	Dublin	Ranelagh
13.	Dublin	Rochestown Ave
14.	Dublin	Swords Pavilions
15.	Galway	Athenry
16.	Galway	Eyre Square
17.	Galway	Tuam
18.	Kildare	Celbridge
19.	Kildare	Kilcock
20.	Louth	Ardee
21.	Mayo	Belmullet
22.	Mayo	Westport
23.	Meath	Trim
24.	Tipperary	Thurles
25.	Wexford	Enniscorthy