ONLY a small number of Ulster Bank staff based in Belfast will transfer to AIB after the latter agreed to buy the Natwest-owned lender’s €4.2 billion (£3.6bn) corporate and commercial loan book in the Republic.
The sale follows a memorandum of understanding signed in February after Ulster Bank confirmed a phased withdrawal from the Republic.
Around 280 staff in total, who are wholly or mainly assigned to servicing the loan book, are expected to move to AIB.
But it’s understood that will include just a very small number of jobs in Belfast, where around 600 people are directly employed in Ulster Bank operations across the border.
The Ulster Bank operation on the island was formally split by its parent group in 2015.
The future of the Belfast staff who work in the southern operation remains unclear.
The Financial Services Union (FSU) has said the jobs are “salvageable” if NatWest gradually transfers the roles as the Ulster Bank Ireland operation is wound down over the next few years.
AIB’s acquisition of Ulster Bank’s performing loans remains subject to regulatory approvals, but it’s expected that the loan book will be migrated over 12 to 18 months.
Chief executive of Ulster Bank Ireland, Jane Howard,ane how said there would be no change for customers in the short-term.
She said the final number of jobs moving to AIB will be confirmed as the deal completes.
“We will continue to work with our colleagues and their representatives to manage this process in a fair and responsible manner.”
The bank boss said Ulster Bank is continuing to negotiate with other lenders about the potential offloading of other aspects of its business in the Republic.
It’s understood that NatWest is in active talks with Permanent TSB over buying parts of Ulster Bank’s retail lending and SME banking business arms in the Republic.
“Talks continue with Permanent TSB Group Holdings plc among other strategic banking counterparties on other elements of the phased withdrawal,” said Ms Howard.
“I remain committed to managing our withdrawal carefully and responsibly over time, to deliver constructive solutions for our customers and their banking services within the Republic of Ireland.”
AIB chief executive Colin Hunt said the deal underpins the bank’s “ambitious growth plans”.
“We continue to deliver on the strategy we announced last December to enhance and diversify our revenue streams and ensure AIB’s long-term sustainability,” he said.
“We look forward to welcoming new colleagues from Ulster Bank and working with our new customers as they transition to AIB.”
