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Ulster Bank to remain under control of RBS | Ulster Bank to remain under control of RBS |
(about 1 hour later) | |
RBS will retain control of Ulster Bank and said it has a good market position that can deliver attractive returns. | RBS will retain control of Ulster Bank and said it has a good market position that can deliver attractive returns. |
RBS had been carrying out a review that could have seen the Ulster Bank business in the Republic of Ireland sold off. | RBS had been carrying out a review that could have seen the Ulster Bank business in the Republic of Ireland sold off. |
Ross McEwan, RBS chief executive, said: "We have confirmed today that Ulster Bank remains a core part of our bank." | Ross McEwan, RBS chief executive, said: "We have confirmed today that Ulster Bank remains a core part of our bank." |
Ulster Bank is the largest bank in Northern Ireland and the third biggest in the Republic of Ireland. | Ulster Bank is the largest bank in Northern Ireland and the third biggest in the Republic of Ireland. |
Ulster Bank reported an operating profit of £394m in the third quarter of 2014. | Ulster Bank reported an operating profit of £394m in the third quarter of 2014. |
That is compared to a £58m profit in the previous quarter. | That is compared to a £58m profit in the previous quarter. |
That performance was heavily influenced by an improving property market, particularly in Dublin. | That performance was heavily influenced by an improving property market, particularly in Dublin. |
It allowed the bank to "write back" £318m of impairment charges. | It allowed the bank to "write back" £318m of impairment charges. |
'Signal' | 'Signal' |
That means money that had been set aside to cover expected bad loans can now be released. | That means money that had been set aside to cover expected bad loans can now be released. |
The bank had an underlying quarterly profit of £64m before the write backs are included. | The bank had an underlying quarterly profit of £64m before the write backs are included. |
Ulster Bank chief executive Jim Brown said this was the third profitable quarter in a row and "a clear signal that our strategy is working". | Ulster Bank chief executive Jim Brown said this was the third profitable quarter in a row and "a clear signal that our strategy is working". |
"We will continue with our dual strategy of building a challenger bank in the Republic of Ireland and strengthen our market leading position in Northern Ireland as we progress closer alignment with RBS in Great Britain." | "We will continue with our dual strategy of building a challenger bank in the Republic of Ireland and strengthen our market leading position in Northern Ireland as we progress closer alignment with RBS in Great Britain." |
He told BBC's Good Morning Ulster that the news confirmed that Ulster Bank is "core to RBS". | |
"I think there are several reasons for that," he added. "We have a very good market position right across the island of Ireland, we're a good strategic fit with the rest of the RBS group and the business sees great opportunities in the market as well." | |
The bank's biggest problems in recent years have been in the Dublin-based part of the business. | The bank's biggest problems in recent years have been in the Dublin-based part of the business. |
At one stage, it appeared as though RBS was planning to sell that part of the business or merge it with another lender. | At one stage, it appeared as though RBS was planning to sell that part of the business or merge it with another lender. |