Ulster bank decision

Having announced a loss of just under £1.5 billion for 2013 earlier this year, the beleaguered Ulster Bank appears to have shifted from one crisis to another. It did, though, post a quarterly profit of £17 million for the first quarter of 2014 – its first since 2009.

Ulster Bank is the largest bank in Northern Ireland and the third largest in the Republic of Ireland. It suffered badly in the property crash and has been the worst performing part of the Royal Bank of Scotland (RBS).

IT problems have also damaged credibility among customers and there has been much speculation in the financial press as to its future. RBS plans to make a decision by the end of the summer. Its Chief Executive, Ross McEwen, has indicated that Ulster Bank’s operations in Northern Ireland will become more integrated into the main RBS UK business as there as this would create “meaningful synergies in terms of investment, costs and customer experience”.

However, in the Republic, McEwen has said that the bank is “too small” to challenge Bank of Ireland and Allied Irish Bank and it may be merged with another banking operation.