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LAST UPDATE | 21 Oct 2020
MINISTER FOR FINANCE Paschal Donohoe has been told by Ulster Bank that “no decision has yet been taken” on the future of the bank’s operations in Ireland, amid reports that its parent company is considering winding down here.
In a statement following his meeting with senior bank officials, the Department of Finance said that Donohoe told Ulster Bank that staff, customers and other stakeholders “must be informed properly about any decisions being made”.
Donohoe said he expects staff representatives will be consulted and kept informed on developments.
The department said: “Ulster Bank confirmed that the strategic review is ongoing and assured the Minister that no decision has yet been taken. Ulster Bank also confirmed that there is no set timetable for this review and that it is fully aware of the strategically important role that Ulster Bank plays in the provision of financial services to the Irish market.”
In a statement from parent company NatWest, a spokesperson said: “We had a constructive meeting and an important discussion today with the Minister for Finance who is a key stakeholder in the review underway. Our priority is to continue to remain focussed on supporting our colleagues in serving our customers in these difficult times.”
Speaking to RTÉ Radio 1′s Morning Ireland ahead of the meeting, Donohoe said his first step would be to “establish exactly what is happening”.
He also said he was “very concerned” by the reports that had emerged.
“I’m aware there’s a process under way,” he said. “I need to know more than just what’s been in public reports.”
Ahead of his meeting with Ulster Bank later, the Financial Services Union said there were a number of questions that the union needs to answer when they meet Minister Donohoe.
Its general secretary John O’Connell said: “This lack of clarity is causing huge anxiety amongst the bank’s employees and customers in the Republic of Ireland, as well as for many employees in Northern Ireland who directly support the operation of Ulster Bank in the Republic.
[Parent company] NatWest puts itself forward as being a people-focused bank. On its website, it describes itself as having a ‘purpose-led strategy’ and sets out its key ambitions, which include being ‘the best bank for everyone across the UK and Ireland’.
It says that its purpose is to ‘champion the potential of people, families, and businesses’ and highlights that it ‘must deliver’ for ‘customers, colleagues and communities throughout the UK and RoI to help to build a cleaner, fairer and more inclusive economy’. This document was published in July 2020. We want to know what has changed between then and now?
The FSU has been joined by other unions and other parties in calling for NatWest to guarantee the future of Ulster Bank in Ireland.
Ulster Bank has 2,400 staff across the country.
He did not comment, however, on reports that Ulster Bank was considering the sale of a portfolio of loans to a vulture fund.
Sinn Féin’s finance spokesperson Pearse Doherty called on Ulster Bank to guarantee that it will not sell its loan book, including family mortgages, to US vulture fund Cerberus.
“It has also been reported that the US vulture fund Cerberus is planning to buy Ulster Bank’s entire €20.5 billion loan book.
For Ulster Bank to sell off its mortgage loans, and those mortgage-holders, to a vulture fund like Cerberus is totally unacceptable.
“Cerberus has no long-term interest in Ireland, and no interest whatsoever in the welfare of mortgage-holders,” he said.
The Oireachtas Finance Committee has agreed to Doherty’s request to hold a meeting with the CEO of Ulster Bank regarding its future in the banking sector.
Earlier, Social Democrat co-leader Róisín Shortall had called for assurances to be given on the future of Ulster Bank to provide clarity for staff and customers.
“The Minister needs to make it clear that the needs of customers and staff have to be prioritised,” she said. “The potential exit of such a big player in Irish banking would have a very negative impact. Staff and customers need to hear clear commitments from bank management as to the future.
“The Minister needs to press for assurances around the review which Natwest are currently conducting into Ulster Bank operations in the Republic of Ireland. The voices of staff and customers need to be heard in this review.
“The Minister should seek assurances that the review will take on board these views, as well as look at the potential impact of any sale on the Irish economy.”
Speaking earlier, Donohoe also said that enhanced supports would be provided for businesses through to the new year, and admitted that returning to Level 3 is the likely scenario in December.
“Our country will come through this,” he said. “We’ll support our economy through this. We will support them through this period and get the country to a better place.”
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And so it begins.
@Peter O Donoghue: not really, it’s been on the books for ages.
Ulster Bank has been an after thought fir RBS for years now
@Peter O Donoghue: been going on a while, virtually nothing to do with covid.
@Aaron: spot on, this was happening one way or another.
Ulster Bank has been run by its parent RBS ,since 2006 . RBS have had such a time of paybacks and rigging of rates in the UK they have changed their name to Nat West and are trying to “turn over a new leaf” .
Ulster Bank should have their banking licence removed for their treatment of their customers
@Top Horse Shop: I’ve found it no different to bank of ireland and AIB. The prices in the market are almost fixed.
They’ve carved up the Irish market where customers have nowhere to run.
@Top Horse Shop: I think that ulster was owned by Nat west to begin with, Nat west was the investment side of the business for a few years trading as Ulster investment bank in Ireland then moved to RBS a few years ago when they got sold to RBS who got a massive bailout from British government that they are still trying to pay back. Would suspect that RBS want to dump some of the debt they have on Ulster bank and do a Debenhams on it then pass any savings they make from selling what they can back to British government.
@Peter McGlynn: kbc. They are lovely.
@Top Horse Shop: Ulster Bank card services, well I won’t miss them one bit! :-D In branch services were generally good over the years, even though, since the branch closures things have been more difficult to access. I’m happy to have made the move to KBC earlier in the year, though they are also closing some hubs now too. For me I can get lower fees, better savings rates, and hopefully less lies, and fictional letters and calls, if I ever have issues with my cards! Fingers crossed I haven’t jinxed it there! :-)
@Adam Col: sure they are ! Read the central bank tracker mortgage fraud report on them
- they are a disgrace.
@Top Horse Shop: lots of legacy issues to emerge shortly
Obviously hasn’t a clue what’s going on in the financial world in Ireland then despite being finance minister
@John Egan: English owned bank, deciding on its own strategy in England to suit interest of its primary stakeholders…. UK government. They’re hardly going to be picking up the phone to Paschal after each strategy meeting to keep him appraised. And you can bet the UB Ireland senior management are being told to keep shtum too or else risk losing their tidy severance packages
@Kevin Cassidy: Well you’d imagine Central Bank should be informed at a minimum of signal of shifting out of the Irish market.
@Dave.: agree with you but given the way the Brits are acting at the minute with Brexit, wouldn’t really surprise me if this lot are following suit with dodgy tactics
@Dave.: Oh I am sure they would be, when NatWest has all the boxes ticked and ready for the final move. For now, when it is not internally finalised they can do whatever and say whatever – all behind the closed door. Reality of any fin corp. That’s how they do business.
@John Egan:
May I suggest he has a chat with his FG buddy Brian Hayes who has all the right connections in the banking industry.
There is one word to sum them up and it rhymes with bankers
Ya I’d say it will keep him up all night. Unlike those who work for Ulster Bank.
So what happens to customer’s deposits in the ROI? Are they guaranteed by NatWest?
@Handsome McWonderful: Covered by us – the taxpayer via the deposit guarantee scheme that applies to all banks regulated by the Central Bank of Ireland.
In the event of a wind up or sale, deposits aren’t at risk in any case – customers will be simply advised to find a new home for their funds.
@Dara O’Brien: Cheers Dara. I’ve read a few articles regarding this story over the last month and not once has that been mentioned.
@Handsome McWonderful: There aren’t any customer”s deposits in ROI for the simple reason that there isn’t a country called ROI but there is a country called Ireland and it has been called Ireland since 1937. This is the case despite ignorant journalists including RTÉ saying different.
@James McErlain: oh take a day off
@James McErlain:
Sorry the Republic of Ireland Act 1948 states
“It is hereby declared that the description of the State shall be the Republic of Ireland.”
http://www.irishstatutebook.ie/eli/1948/act/22/enacted/en/print#sec2
Shouldn’t even be of government concern. The chequebook needs to stay in the pocket this time.
This is a long time coming to be fair. Should not be a surprise!
Henry the Hippo to give his views on the matter later in week
They sold my mortgage off to a vulture fund few weeks ago, I wouldn’t be shocked
@Sam Louise: as long as u keep up repayments nothing should change i think
What’s happens to mortgages taken out with this bank?
Thats code for…..we’re closing soon
Time to switch bank!
What happens with the pensions being paid into Ulster Bank ,? Do people have to switch over to a different branch now ?
Not a nice bank to deal with
have your say