REG - AIB Group PLC - AIB - CCPC clearance tracker mortgages acquisition

AIBAnnouncement

13/01/2023 12:30

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RNS Number : 7100M  AIB Group PLC  13 January 2023

 

 

13 January 2023

 

 

AIB Group plc receives CCPC clearance for the acquisition of Ulster Bank's
performing tracker mortgages

 

 

AIB Group plc confirms and welcomes the receipt of competition clearance from
the Competition and

Consumer Protection Commission (CCPC) on 13 January 2023 for the acquisition
of a circa €5.7 billion Ulster Bank performing tracker (and linked) mortgage
portfolio.

 

In line with previous guidance, the Group expects a CET1 reduction of circa
60bps reflecting increased risk-weighted assets of circa €2.5 billion in
relation to the portfolio. The acquisition was priced at 95.15% of par value
and is expected to be enhancing to RoTE in 2023. The transaction and customer
migration are expected to complete by H1 2023.

 

AIB Group plc Chief Executive, Colin Hunt, commented:

"We set out our new medium-term targets in December 2022 and as we start the
year we continue to make progress on the execution of our strategy. Receipt of
CCPC approval is another important milestone in the Group's transformation and
follows the acquisition of Ulster Bank's corporate and commercial loans which
are in the process of migrating to AIB Group plc. We look forward to welcoming
these new customers from Ulster Bank as well as the many more new customers we
are pleased to welcome to the Group as the Irish banking landscape evolves. I
would like to acknowledge the huge efforts and thank everyone who has worked
on this significant transaction involving c. 47,000 customers and c. €5.7
billion of mortgages."

 

 

AIB Group plc will issue its 2022 full year financial results on 8 March 2023.

 

-ENDS-

 

 

For further information, please contact:

 

 Niamh Hore / Siobhain Walsh                                        Paddy McDonnell / Graham Union
 Group Investor Relations                                           Media Relations
 AIB Group plc                                                      AIB Group plc
 Dublin                                                             Dublin
 Tel: +353-86-3135647 / +353 -87-3956864                            Tel: +353-87-7390743 / +353-1-6412430
 email:      niamh.a.hore@aib.ie (mailto:niamh.a.hore@aib.ie)       email:       paddy.x.mcdonnell@aib.ie
                    siobhain.m.walsh@aib.ie                                            Graham.x.union@aib.ie
 (mailto:siobhain.m.walsh@aib.ie)

 

 

 

Forward Looking Statements

This document contains certain forward looking statements with respect to the
financial condition, results of operations and business of AIB Group and
certain of the plans and objectives of the Group. These forward looking
statements can be identified by the fact that they do not relate only to
historical or current facts. Forward looking statements sometimes use words
such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan',
'goal', 'believe', 'may', 'could', 'will', 'seek', 'continue', 'should',
'assume', or other words of similar meaning. Examples of forward looking
statements include, among others, statements regarding the Group's future
financial position, capital structure, Government shareholding in the Group,
income growth, loan losses, business strategy, projected costs, capital
ratios, estimates of capital expenditures, and plans and objectives for future
operations. Because such statements are inherently subject to risks and
uncertainties, actual results may differ materially from those expressed or
implied by such forward looking information. By their nature, forward looking
statements involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ materially
from those expressed or implied by these forward looking statements. These are
set out in Principal risks on pages 28 to 30 of the Annual Financial Report
2021 and updated on page 37 of the Half-Yearly Financial Report 2022. In
addition to matters relating to the Group's business, future performance will
be impacted by the direct and indirect impacts of the COVID-19 pandemic, the
direct and indirect consequences of the Russia-Ukraine War on European and
global macroeconomic conditions, the impact of higher inflation on customer
sentiment and by Irish, UK and wider European and global economic and
financial market considerations. Any forward looking statements made by or on
behalf of the Group speak only as of the date they are made. The Group
cautions that the list of important factors on pages 28 to 30 of the Annual
Financial Report 2021 is not exhaustive. Investors and others should carefully
consider the foregoing factors and other uncertainties and events when making
an investment decision based on any forward looking statement.

 

 

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