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(Alliance News) - NatWest Group PLC announced on Friday it had signed a binding agreement with Permanent TSB PLC for the sale of assets in its Ulster Bank business.
The agreement with Permanent TSB will offload about EUR7.6 billion of assets. The package of assets is made up of performing non-tracker mortgages, a performing micro-SME loan book, Ulster Bank's Lombard asset finance business and 25 of its branch locations.
The announcement comes as part of NatWest's planned exit from the Republic of Ireland which was outlined in its annual result in mid-February.
The exit has already included selling EUR4.2 billion in gross performing commercial lending and associated undrawn exposures of about EUR2.8 billion to Dublin-based consumer lending company AIB Group PLC.
A non-binding memorandum of understanding was inked between the parties back in July. Completion is expected to occur between the fourth quarter of next year and early 2023.
As part of the deal, NatWest will receive just under 17% non-consolidating equity stake in Permanent TSB.
Ulster Bank now has deals in place for around 58% of its total gross lending portfolio and an estimated 65% of its credit risk-weighted assets, NatWest explained.
Shares in NatWest were down 0.5% at 222.40 pence on Friday morning in London. Permanent TSB shares were 3.5% higher at EUR1.55 each.
By Heather Rydings; heatherrydings@alliancenews.com
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