Ulster Bank splitting into good bank/bad bank

M

MrEarl

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Hello,

I have heard something on the "wind" this evening that there is to be an announcement in Ulster Bank tomorrow.

Anyone else heard anything ?
 
Today RBS Group has announced its third quarter financial results including those for Ulster Bank. RBS has also announced a number of important changes following the conclusion of HMT’s ‘Good Bank / Bad Bank’ review on the future structure of the RBS Group.



I am pleased to say that the review has confirmed that Ulster Bank is a core business for RBS and acknowledges its importance to the whole of Ireland and the need to get the business doing all it can for its customers. Today’s announcement, combined with other initiatives RBS is undertaking will give Ulster Bank certainty in how we face the future and a much more solid platform on which to continue to build a really good bank for our customers.
The review will also result in the creation of an internal ‘bad bank’ within the RBS Group which will include assets from Ulster Bank. We will now work through the detail, but in the meantime it is business as usual for our customers and we will communicate directly to any affected customers.
Ulster Bank will also be participating in a Group-wide review of the business to be complete in February 2014. This review will ensure that we are playing our part within the wider RBS Group and that the needs of our customers are at the centre of everything we do.
These changes, when complete will create a less complex, more effective and simpler customer-focused business. Ulster Bank, the third largest in Republic of Ireland is a core part of the future RBS and it will play an important role in contributing to the overall recovery of the Group and the ongoing support of our customers across the island of Ireland.
Ross McEwan, CEO of RBS said,
“Like all of our businesses, Ulster Bank will form part of our February 2014 review. Subject to regulatory approval, a number of Ulster Bank assets (approximately £9 billion) will be managed by the “bad bank” and run down. But we also need to have full confidence that the rest of the Ulster Bank business is doing all it can for its customers and is playing its part within the wider company. We need to ensure that we have a viable and sustainable business model for Ulster Bank as part of this review. It’s an important business for the whole island of Ireland and we understand the need to get this right”
Please don’t hesitate to contact me should you have any queries on the above and the full announcement can be accessed here:
http://www.rbs.com/news/2013/11/letter-from-our-chief-executive.html
The full HM Treasury report, which notes that 'Ulster Bank fits well with RBS‟s strategic footprint and core capabilities, though a sustainable operating model needs to be found for it so that it is a viable business in a normalising Irish economy. There is considerable connectivity between Ulster and the rest of RBS. It is the largest bank in Northern Ireland, and so is important to the health of the UK economy. UK businesses benefit from a bank which is active in both the UK and the Ireland, which remains one of the UK‟s largest export markets. And Ulster benefits from considerable synergies with the rest of the RBS Group; for example, it shares common systems with the Group‟s other UK banking operations' (page 18) can be accessed at the following link:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/254508/PU1581_RBS_bad_bank_Govt_review.pdf
 
Brendan Burgess said:
And Ulster benefits from considerable synergies with the rest of the RBS Group; for example, it shares common systems with the Group‟s other UK banking operations' ...
Click to expand...

What, like the IT systems? Ulster Bank really "benefited" from that synergy as I recall!
 
Seems like more UB job cuts are the next strategic move by RBS.

 
Ulster Bank might try and do a deal with An Post and close the majority of branches - pure speculation on my part.
 
The Sunday Times are reporting that RBS could still pull the plug on Ulster Bank within the next 6 months.
 
I think you can't believe a word they say about it's future.

Having worked for a connected company in the past we had no clue of our future fate and any questions were met with the usual committed to the business etc, yet I read on this very site of the demise of our company over two weeks before any announcement was made to the public. I was always grateful to that 'mole' as it at least prepared me and some of my colleagues for the shock announcement that came.

We used to joke that Stephen Hester was practicing his highland games throw so that he could throw the keys of UB back across the water.
 
According to The Irish Times today, between 100-300 jobs are going to be moved from Dublin to Edinburgh at RBS / Ulster Bank.

The separate strategic review of the Ulster Bank operations will be published in late February 2014. I think the question is really as to what part of RBS's Irish operation will close post the latest strategic review.
 
RBS in the news again, with more shocking losses. Of billons. Meanwhile they want to have the bonus percentage approved by the shareholders. Shocking.
 
RBS .
Have put aside another £3 Billion to cover what they call (misdemeanours)? ie Rate manipulation and more payouts on Payment Protection Insurance.

Correct me, but hasn,t Ulster cost RBS £16 Billion so far?

I hope Ulster do stay, maybe they will stay in oi and maybe they have survived all their own shocks.
 
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