Permanent TSB completes Ulster Bank mortgage transaction

Permanent TSB today confirmed it has completed its acquisition of Ireland’s Ulster Bank non-tracking mortgage business.

Lenders said today’s deal consisted of untracked mortgages worth €6.2 billion.

€5.2bn has now been transferred, with the rest to be transferred in the second quarter of next year.

Permanent TSB said today’s deal will move about 56,000 new mortgage customers into the bank, increasing the size of its mortgage book by about 40%.

The Bank respects all existing terms and conditions of the Ulster Bank loan and has written to all these customers to provide them with comprehensive information regarding the transfer.

As part of the transaction, 113 employees of Ulster Bank transferred to permanent TSB or its service partner Pepper Finance.

A further 230 Ulster Bank employees wholly or primarily assigned to the acquired branches, small business and wealth finance businesses will also be transferred to the permanent TSB in due course, it added.

Permanent TSB also confirmed that it has opened over 100,000 new checking accounts this year. This is a 250% increase over the same period last year.

It has also opened over 35,000 new savings accounts year-to-date, an 80% annual growth rate.

As expected, Permanent TSB issued subscription shares to Ulster Bank’s parent company, NatWest Group, as partial non-cash consideration for the mortgage transaction.

As a result, NatWest now holds 16.66% of the issued share capital of the permanent TSB, reducing the state’s stake in the bank from 74.9% to 62.4%.

Eamonn Crowley, CEO of Permanent TSB, said today is a transformative day for banks.

“We would like to extend a warm welcome to our 56,000 mortgage customers and our new colleagues who have joined us today and ensure that we provide best-in-class mortgage offerings and a colleague experience backed by high quality service. And they are wonderful people,” Crowley said.

He said today is a big change for banks as mortgage books are up about 40%.

TSB Executive CEO Eamon Crowley

“Together with the imminent acquisition of Ulster Bank’s small business and wealth finance business and its 25 branches, we are creating greater scale and becoming a much stronger competitive force in Irish retail banking. of individual and small business customers, with more communities across the country, it’s a really big platform for future growth,” he said.

“I want to thank so many people across Permanent TSB for the tremendous effort that went into making this deal happen,” he said.

“Furthermore, we would like to thank the Finance Minister and his associates, our broad shareholder base, Ulster Bank and its parent company NatWest, the regulators and competition authorities for their support of the transaction,” he added. rice field.

Treasurer Pascal Donohoe said today’s transaction will allow PTSB, its customers, staff and others to strengthen the bank’s position in the Irish banking market and position it for future growth. said it was a very positive development for the stakeholders of

“The state has made great strides this year in implementing its policy of returning three banks to private ownership,” Donohoe said.

“Today’s announcement has reduced our stake in PTSB from 74.9% to approximately 62.4%. I will continue to support PTSB in my capacity as a shareholder,” he added.

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