REG - AIB Group PLC - Update on Ulster Bank Loan Portfolios

AIBAnnouncement

29/04/2022 08:15

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RNS Number : 8456J  AIB Group PLC  29 April 2022

 

 

 29 April 2022

 

AIB Group plc announces the potential acquisition of Ulster Bank's tracker
mortgage portfolio and confirms receipt of competition clearance for the
acquisition of Ulster Bank's corporate and commercial loans

 

 

Ulster Bank tracker mortgage portfolio

AIB Group plc announces that it is has entered into exclusive discussions with
NatWest Group plc for the acquisition of circa €6 billion Ulster Bank
performing tracker (and linked) mortgages. Any potential transaction remains
subject to negotiations and agreement.

 

Ulster Bank corporate and commercial loans - CCPC approval

AIB Group plc confirms and welcomes the receipt of competition clearance from
the Competition and Consumer Protection Commission (CCPC) on 28 April 2022 for
the acquisition of c. €3.7 billion Ulster Bank performing corporate and
commercial loans((1)).

As intended, AIB will commence the migration of loans on a phased basis over
the coming months to ensure optimised outcomes for the c. 5,000 impacted
customers.

In line with previous guidance the Group expects a CET1 reduction of c. 130bps
in relation to the corporate and commercial loan book acquisition.

 

AIB Chief Executive, Colin Hunt, commented:

"Receipt of CCPC approval is another important milestone in AIB's inorganic
strategy and follows the successful integration of Goodbody last year. We look
forward to working with our new customers and equally our new colleagues from
Ulster Bank as they move to AIB Group. I would like to thank everyone who has
worked on this landmark transaction."

 

AIB will issue its Q1 Trading Update on 5 May 2022.

 

This announcement contains inside information.

 

((1))Estimate based on the transaction had it completed on 31 December 2021

Ends

Contact details:

 Niamh Hore / Siobhain Walsh                                                   Kathleen Barrington / Paddy McDonnell
 Investor Relations                                                            Media Relations
 AIB Group                                                                     AIB Group
 Dublin                                                                        Dublin
 Tel: +353-86-3135647 / +353-87-3956864                                        Tel: +353-87-4088323/ +353-87-7390743
 email: niamh.a.hore@aib.ie (mailto:niamh.a.hore@aib.ie)                       email: kathleen.m.barrington@aib.ie (mailto:kathleen.m.barrington@aib.ie)

             siobhain.m.walsh@aib.ie (mailto:siobhain.m.walsh@aib.ie)                      paddy.x.mcdonnell@aib.ie
                                                                               (mailto:paddy.x.mcdonnell@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 the Principal risks on pages 28 to 30 in the 2021 Annual Financial
Report. In addition to matters relating to the Group's business, future
performance will be impacted by direct and indirect impacts of the COVID-19
pandemic 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 2021 Annual Financial
Report 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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