Permanent TSB has signed an agreement to acquire €7.6 billion of assets from Ulster Bank. According to a report by The Journal, the assets include €7 billion of Ulster Bank’s performing non-tracker mortgage book, its performing Micro-SME/Business Direct, the Lombard Asset Finance loan business of Ulster Bank and 25 branch locations in Ulster Bank’s network.
Ulster Bank’s announcement of a phased withdrawal from Irish market came in February this year and the parental company Natwest has been in talks with potential entities regarding selling of the bank’s assets.
The PTSB deal still remains subject to obtaining the required regulatory approvals from the Competition & Consumer Protection Commission (CCPC) and the Central Bank of Ireland and approval by Permanent TSB shareholders.
Earlier Ulster Bank had said that there would be a six months period for the existing customers to take necessary actions regarding their accounts in the bank. Today, the bank has confirmed that customers will be provided with at least 60 days’ notice prior to the transfer and all legal and regulatory protections will transfer with the loans.
With the new deal, PTSB will have a 40% increase in mortgages compared to that of the end of 2020 and the number of branches will increase by 30%.
“This is a decisive step in transforming Permanent TSB to be Ireland’s best personal and small business bank,” PTSB chief executive Eamonn Crowley said.