In addition to the acquisition of certain Ulster Bank assets, PTSB has now opened over 100,000 new current accounts so far in 2022, a 250% increase on the same period last year
Ulster Bank, Market Street, Cootehill. (Credit: Eric Jones/Wikipedia)
Permanent TSB Group Holdings plc (the “Group” or “PTSBGH”) today announces that Permanent TSB plc (the “Bank” or “PTSB”), a wholly owned subsidiary of the Group, has materially completed the acquisition of the performing non-tracker residential mortgage business (the “Residential Portfolio”) of Ulster Bank Ireland DAC (“Ulster Bank”) (“Completion”).
The Residential Portfolio being acquired currently comprises loans with a value of €6.2 billion. Of this, c. €5.2bn is being migrated today and the remaining c. €1bn is expected to migrate in Q2 2023 but no later than Q4 2023. As a result of the acquisition, PTSB is today welcoming approximately 56,000 residential mortgage customers connected to the c. 36,000 accounts migrating to the Group.
PTSB will honour all the existing terms and conditions of their loans and is writing to all of these customers to provide them with comprehensive information about the transfer.
The transaction has increased the size of PTSB’s mortgage book by approximately 40%.
PTSB has acquired today’s tranche of the Residential Portfolio for c. €4.8bn of cash consideration funded from internal resources and existing funding sources, in addition to the issue of 90,893,627 PTSBGH ordinary shares of €0.50 each (the “Subscription Shares”) to a subsidiary of NatWest Group plc (“NatWest”) so that they hold 16.66% of the enlarged share capital of PTSBGH as of Completion. The issued share capital of PTSBGH following the admission of the Subscription Shares will be 545,589,119 ordinary shares of €0.50 each.
Eamonn Crowley, Permanent TSB Chief Executive, said:
“This is a transformational day for Permanent TSB as we work towards our ambition of being Ireland’s best personal and small business bank.
We extend a warm welcome to the 56,000 mortgage customers and our new colleagues who are joining us today and we want to assure them that we will give them a best-in-class mortgage offering and colleague experience, underpinned by a high-quality service and great people.
Today is a step-change for the Bank because we are growing our mortgage book by approximately 40%. Together with our imminent acquisitions of Ulster Bank’s SME and asset finance businesses and 25 of its branches, we are generating greater scale and becoming a much stronger competitive force in Irish retail banking, with many more personal and SME customers, a branch presence in even more communities nationwide, and a significantly larger platform for future growth.
We will use this greater scale to bring even better offerings to our personal and business customers, winning new business with competitive, innovative, customer-friendly products and services, and fulfilling our purpose of building trust with both new and existing customers every day.
I want to acknowledge the huge efforts put in by so many people throughout Permanent TSB in making this transaction a reality. In addition, I thank the Minister for Finance and his officials; our wider shareholder base; Ulster Bank and its parent NatWest; and the regulatory and competition authorities for the support they have shown for the transaction.”
Source: Company Press Release