NatWest to sell Ulster Bank asset finance business as part of Republic of Ireland withdrawal

NatWest Group is to sell Ulster Bank’s Lombard asset finance business to Permanent TSB as part of a €7.6bn deal which will see the British bank withdraw from Ireland.

NatWest has signed a non-binding memorandum of understanding with Permanent TSB covering a perimeter comprising performing non-tracker mortgages, performing micro-SME loans, Ulster Bank’s asset finance business and a subset of its branch locations.

The proposed perimeter includes approximately €7.6bn of gross performing loans as at 31 March 2021, the majority relating to non-tracker mortgages, and 25 branch locations. Ulster Bank had total retail, micro-SME and asset finance gross lending of €16.1bn at 31 March 2021. Around 500 employees will transfer.

NatWest Group CEO Alison Rose said: “In line with our strategy of a phased withdrawal from the Republic of Ireland, I am pleased that we are today announcing a significant update in the form of this non-binding memorandum of understanding with Permanent TSB. This builds on the recently announced sale of the majority of Ulster Bank’s performing commercial banking business to Allied Irish Bank. Our focus remains on supporting our customers and colleagues as we continue our withdrawal from the Republic of Ireland.”