18th Feb 2021 07:56
(Alliance News) - NatWest Group PLC is gearing up to gradually withdraw from the Republic of Ireland, with the aim of freeing up capital and moving completely to the UK market, the Financial Times reported on Thursday.
The FTSE 100-listed lender - formerly known as Royal Bank of Scotland - is expected to announce the plans when it reports on its annual results on Friday. Its Northern Irish business will not be affected.
This move follows a review of the business which began in 2020. NatWest's Ulster brand has 15% of the Irish mortgage market, nearly 20% of small and medium-sized enterprises business lending, and a loan book of about EUR20 billion.
NatWest has been under pressure from Irish authorities to ensure the mortgage and business loan books are sold to active lenders to maintain competition in the market.
According to the FT, analysts believe NatWest could free as much as EUR1.6 billion in excess capital by leaving Ireland, where lenders are required to hold more capital than international peers after huge public bailouts in the wake of the financial crisis.
The withdrawal will mark the second major restructuring to be announced by Chief Executive Alison Rose since she took over in late 2019. In early 2020, NatWest announced it would drastically shrink the size of its investment banking unit.
It is also currently in talks to sell part of its Adam & Co private banking arm and fold its remaining business into its larger Coutts business, the FT reported, citing an individual familiar with the plans.
https://www.ft.com/content/27e1f8fe-cb23-4e5b-8281-dfe4ef38b5b9?segmentId=bf7fa2fd-67ee-cdfa-8261-b2a3edbdf916
By Ife Taiwo; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Natwest