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The chief executive of Ulster Bank has told staff that the strategy of its parent company NatWest to grow the Republic of Ireland operations, while considering all strategic options, has not changed.
In a note to staff this morning, Jane Howard described last night’s reports that NatWest is considering shutting down all Ulster Bank operations in the Republic as “speculative.”
“It is important to emphasize to your colleagues and clients that we have seen comments like this before and this, like previous stories, is also speculative,” he said.
“I know it can be a distraction, but I ask that you stay focused on serving our customers well,” he added.
According to last night’s report in the Irish Times, the liquidation of Ulster Bank’s operations in the Republic of Ireland is one of the options being considered as part of a strategic review by NatWest.
Other possibilities being considered include the merger of Ulster Bank with another lender, the Irish Times said.
In her note to staff, Ms Howard referred to comments from Natwest CEO Alison Rose in July who said the group’s strategy was and is to grow Ulster Bank “organically and safely.”
She said the group had been successful in “increasing 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,” he added.
Both NatWest and Ulster Bank have declined to comment on the matter.
The Financial Services Union (FSU), which represents up to 70% of the more than 2,500 employees at Ulster Bank, said it held an emergency meeting of its Ulster Bank negotiating team last night.
John O’Connell, general secretary of the Financial Services Union, said the communication to staff as of this morning from the CEO raised more questions than answers and adds to concerns from staff and customers.
Speaking on RTE Radio One’s Today show with Claire Byrne, O’Connell said the FSU has written to the bank.
He said the union had a good, good faith engagement with the bank in recent weeks about an ongoing layoff program, but now it appears that a vital piece of information about an ongoing strategic review was withheld from them.
As a result, he said, the news was a great shock to the union and staff, who are “outraged.”
O’Connell said NatWest now needs to publish the review’s terms of reference, reveal what other options are on the table, and what the outcome will be when it is concluded.
He also asked the Minister of Finance to contact NatWest and seek assurances about the future role of Ulster Bank in the banking system here.
A spokesman for the Finance Department said media reports on Ulster Bank had been noted.
The spokesperson said that Ulster Bank Ireland has 88 branches and approximately 2,800 employees and a sizeable market share in terms of home loans and loans to SMEs.
It is important to have competition in all sectors, but particularly in banking in order to provide more options and lower-cost services for clients, the spokesperson added.
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