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The British owners of Ulster Bank are considering closing it.
Any such measure would put the jobs of 2,500 people at risk and lead to the closure of its 88 branches.
The failure of the deficit bank is believed to take six years, but it would be a severe blow to banking competition in this country.
Parent company NatWest is also considering merging Ulster Bank with another bank here, but that outcome is said to be less likely.
Nat West, which until recently was called the Royal Bank of Scotland, is more inclined to shut down its banking operation in this state, according to a report in the Irish Times.
No final decision has been made, but any closure would mean checking account clients and savers would have to find another bank. Your mortgage book is likely to be sold.
There were no comments from spokespersons for Ulster Bank or NatWest.
The Financial Services Union (FSU) said it was shocked by the revelation that the bank’s closure was being considered and asked the bank to immediately reassure staff and the union that NatWest is committed to its future.
FSU Secretary General John O’Connell said: “If this story is substantiated, we are dismayed and angry at the way the bank is treating staff.
“We have participated in good faith in a restructuring process over the past weeks to secure jobs and minimize layoffs, and the bank assured us of NatWest’s commitment to Ulster Bank.”
It is understood that there are no plans to shut down the Northern Ireland operation.
In August, NatWest CEO Alison Rose said all options for Ulster Bank were being considered.
She said at the time: “As you know, our strategy was and is to grow that business organically and safely, and we have been successful in growing both the personal mortgage and part of the business share in 2019.
“That strategy has not changed. Clearly, Covid-19 presents different challenges for the economy and we will continue to consider all strategic options in relation to that business. “
Ulster Bank posted a loss of € 276 million during the first half of the year.
It has struggled to gain market share due to its small scale.
Ulster Bank obtained a 15 billion euro (16 billion euro) bailout from its British parent after the financial crisis of more than a decade ago. Much of this money came from British taxpayers.
Since then, it has sold several delinquent mortgage accounts, cut jobs and closed branches.
Despite this, its owners are believed to have lost patience with it, especially since the pandemic has made profiting from banks a huge challenge.
The news broke just hours after Ulster Bank named banking and insurance industry veteran Ruairí O’Flynn as its new president. Now you will potentially face the task of overseeing the complex task of dismantling, selling and closing one of the oldest and largest financial institutions in the country.
Online editors
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