The NatWest group and Ulster Bank in the Republic of Ireland (UBIDAC) have agreed with Allied Irish Banks (AIB) to sell the majority of its commercial lending for around €4.2bn.
Around 280 workers will transfer from UBIDAC to AIB, one of Ireland’s largest banks, as part of the agreement, with the final number of roles being confirmed when the deal is completed.
The deal will also give AIB associated undrawn exposures of around €2.8bn, and forms part of NatWest’s plan to pull out of Ireland, the British bank said in a statement this morning.
NatWest’s shares dipped slightly in its afternoon’s trading, sliding 0.82 per cent after edging higher this morning, taking its share price to 206p per share.
NatWest group CEO, Alison Rose said: “In line with our strategy of a phased withdrawal from the Republic of Ireland, I am pleased that we have now reached agreement with AIB on the sale of the majority of Ulster Bank’s performing commercial lending portfolio.”
While the deal is still subject to regulatory approvals, it is expected that a small gain on disposal will be recognised.