"Unwelcome news" as Ulster Bank is to pull out of the Republic of Ireland

By Q Radio news

NatWest  has announced plans to close its Ulster Bank business in the Republic of Ireland.

It said a strategic review had concluded that Ulster Bank would not achieve an acceptable level of sustainable returns.

It means that the bank will start a phased withdrawal from the Republic of Ireland, but its business in Northern Ireland will be unaffected. NatWest said it would try to ensure that job losses are minimised.

 Customers were in shock that after 160 years, the bank is to close its doors:

Tanaiste Leo Varadkar said NatWest's decision to withdraw Ulster Bank from the Irish market is "unwelcome news."

Mr Varadkar said that this would be a gradual withdrawal over the next few years.

NatWest chief executive Alison Rose said: “Following an extensive review and despite the progress that has been made, it has become clear Ulster Bank will not be able to generate sustainable long-term returns for our shareholders.

“As a result, we are to begin a phased withdrawal from the Republic of Ireland over the coming years which will be undertaken with careful consideration of the impact on customers and our colleagues."

Uncertainty now surrounds the bank’s 2,800 staff, although NatWest insists it will try to keep job losses to a minimum.

Permanent TSB and other banking interests are in talks with NatWest over the potential acquisition of Ulster Bank’s retail and SME assets, liabilities and operations.

Ireland's Finance Minister Paschal Donohoe said today was a "difficult day" for Irish banking.

Speaking in a news briefing this afternoon, Mr Donohoe said: “There will be consequences of this exit that will be important for the future of the banking sector, and it will be important to reflect on the broad set of reasons that led to this exit."

Ulster Bank's operations in Northern Ireland are unaffected by this announcement.