By Joe Hoppe
NatWest Group PLC announced on Friday that it has entered into a non-binding memorandum of understanding with Permanent TSB Group Holdings PLC, as part of its phasing out of Ireland.
The UK bank said that with its subsidiary Ulster Bank Ltd. it had entered into a memorandum of understanding with the Dublin-listed lender for the proposed sale of performing mortgages, micro-SME lending, business financing of the assets of the subsidiary and a subset of its branches.
This includes approximately 7.6 billion euros ($ 8.95 billion) in gross performing loans as of March 31 and 25 locations. Ulster Bank had a total gross retail, micro-SME and asset finance lending of € 16.1 billion in Ireland as of March 2021. Around 400-500 employees will also be transferred.
In return, the memorandum proposes that NatWest receive an unconsolidated minority stake in PTSB as part of the transaction consideration.
NatWest first said it would be leaving the Irish market on February 19. He then said his banking business in Northern Ireland would not be affected.
The potential sale is subject to due diligence, further negotiation and agreement, regulatory and other approvals and other conditions, and NatWest has said there is no guarantee of sale.
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