Permanent TSB to buy Ulster Bank’s €400m Lombard business 

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ermanent TSB has completed a deal to buy the asset finance business, loan book and branches of NatWest Group’s Ulster Bank, the lender said in a statement.

PTSB said it has entered into a €7.6bn (£6.48bn) legally binding agreement to buy Ulster Bank’s retail, SME and asset finance business.

The deal includes Ulster’s €7bn performing non-tracker residential mortgage book, its €230m performing SME loan book and its €400m Lombard asset finance business.

The deal also includes 25 of Ulster Bank’s branch network. In July 2021, Ulster Bank announced that it was withdrawing from the Irish market in an orderly and considered manner.

“This is a decisive step in transforming Permanent TSB to be Ireland’s best personal and small business bank,” PTSB chief executive Eamonn Crowley said in a statement.

NatWest owned Ulster Bank has 1.1 million customers in the Republic of Ireland along with 2,800 staff in 88 branches around the country.

PTSB expects to complete the acquisition of Lombard Asset Finance loans by no later than 30 June 2023.

John Cronin, a financials analyst for Goodbody, said: “These are long-dated timeframes and reflect the complexity of the transactions as well as the fact that the Competition and Consumer Protection Commission, the Central Bank of Ireland, and shareholder approvals will be necessary. As a result, PTSB expects to acquire less than €7.6bn of loan assets (due to redemptions in the interim) and envisages that it will acquire €6.5 to 7bn of loan assets at completion at a 2% discount to book value.