Ulster Bank posts operating loss of 259 million euros for 2021

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Ulster Bank announced an operating loss of 259 million euros for 2021 as it said it continued to make progress in its gradual withdrawal from the Irish market.

This marks an improvement on the operating loss of 405 million euros for 2020.

Total revenue for the year increased to €265 million from €250 million in 2020, while operating expenses increased to €557 million from €498 million.

Ulster Bank said net lending to customers fell to €7.9 billion from €20 billion in 2020 as the bank stopped lending to new customers in July.

Since late October, it has also stopped accepting applications from new customers, but said it was still considering applications on a reduced number of products from existing customers, mainly mortgages.

Ulster Bank announced its gradual withdrawal from the Irish market last February.

She said since then she has made progress in developing and implementing a plan that acts in the best interests of customers, staff and stakeholders.

During the year, Permanent TSB agreed to acquire €7.6 billion in assets from Ulster Bank. The deal includes Ulster Bank’s €7 billion non-tracker residential mortgage portfolio and its performing SME loan portfolio – worth €230 million.

It also includes all of Lombard Asset Finance’s lending business – worth €400 million – and 25 branches of Ulster Bank’s branch network.

In addition, AIB has agreed to purchase approximately €4.2 billion of performing corporate and commercial loans from Ulster Bank.

Ulster Bank’s parent company, NatWest, said it expects to incur divestment losses via revenue of around €300 million in 2022 and withdrawal-related costs of around €600 million. euros from 2022 to 2024, with approximately 500 million euros incurred by the end of 2023.

NatWest also said it expects the phase-out to be capital accretive.

In today’s earnings statement, Ulster Bank said it had focused on ‘effective and timely communications’ regarding its exit from Ireland.

He said he was engaging with all customers affected by loan sales and launched the “Choose, Move & Close” preparedness campaign.

This aims to inform individual customers as soon as possible of the steps they will be required to take to move the products they hold with the bank and which are not already covered by the sales agreements.

“This readiness campaign is an important step in our closure, not only for customers but also for the industry, as we work together to ensure the safe transition of customers to their new suppliers,” Ulster Bank said.

“With this in mind, we are engaging with the rest of the industry within the limits of competition law, to give them time to prepare for the volume of customers who will need to relocate or switch accounts,” he said. declared.

“We are also engaging with major outsourcers and large employers to notify them in advance of changes to give them time to prepare to support their own clients and employees who will be switching accounts,” he said. -he adds.

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