Deal follows carve-up of bulk of Ulster Bank’s loan book by AIB and Permanent TSB
Ulster Bank expects most of the loans in the latest transaction to transfer to Pepper by the end of this year, according to the spokesman. The bank has written to some affected customers to give them at least two months’ notice of sale prior to completion and transfer of their facility, as required by the Central Bank.
However, Ulster Bank has still to find a future home for its so-called offset mortgages, where money in customers’ savings accounts is used to lower the balance – and interest due – on home loan accounts. The spokesman declined to comment on the size of the offset mortgages portfolio. Meanwhile, NatWest disclosed in its interim results last month that Ulster Bank’s deposits had fallen to £400 million by the end of June, following a period of frantic activity by customers to find other providers to take care of their banking needs. The figure was down from about €2 billion in March and €21 billion at the end of 2021.
The bank laid the groundwork earlier this year for capital repatriation when it passed shareholder resolutions, following procedures allowed under Irish company law, that created “profits available for distribution”. These amounted to a net €2.63 billion at the time, after the deduction of retained losses on the balance sheet.
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