Ulster Bank chief defends closure engagement process

Last year Ulster Bank announced plans for the brand's phased withdrawal from the Irish banking market

Ulster Bank’s Chief Executive, Jane Howard has defended the phased winding up the organisation's presence in Ireland, stating that “many key milestones” have been met to date, when she addressed the Oireachtas Finance Committee earlier today (Wednesday, May 18).

Ms Howard was joined at the Committee meeting by Ulster Bank’s Director of Corporate Affairs Elizabeth Arnett and our Head of Corporate and SME Banking, Olaf Fitzsimmons.

'Significant, sustained progress'

Some 15 months ago (February 2021) Ulster Bank announced plans for the brand's phased withdrawal from Ireland and since then, ms Howard said “we have made significant, sustained progress”.

“At every step, we have kept the Committee updated and have engaged with a wide range of stakeholders. This progress has been guided by a number of principles and commitments, made to our customers and colleagues.”

Among those commitments, Ms Howard cited a minimisation of job losses and to support all colleagues with training and development; a preference to deal with strategic banking counterparties, where possible, and to help customers move to a new bank as safely and as seamlessly as possible.

She stated that “a lot has happened” since February 2021 and “we have met many key milestones, all of which are in line with our commitments and have required significant effort from our colleagues, and for that I am deeply grateful.”

Among the major developments, is a binding agreement entered into by Ulster Bank with AIB for the sale of a portfolio of performing commercial lending and the transfer of approximately 280 colleagues. On April 28 last, the Competition and Consumer Protection Commission announced their decision to approve this transaction.

On April 29 also, NatWest Group announced they have entered exclusive discussions with AIB for the sale of Ulster Bank’s performing tracker (and linked) mortgage portfolio.

A binding agreement was also entered into with Permanent TSB for the sale of Ulster Bank's performing non-tracker mortgages as well as performing loans in our micro-SME business; Lombard Asset Finance business and 25 Ulster Bank branch locations. As part of this transaction, which is still subject to regulatory approval, approximately 450 colleagues will transfer to PTSB. “Our transactions with AIB and PTSB mean colleagues keep their jobs in the banking sector; mortgage customers move to a full-service bank; and they ensure a continuity of credit which is key to sustaining a business.”

Ulster Bank do not anticipate closing any of its network of 88 branches in the first half of 2022.

Ulster Bank will eventually close its remaining three branches in Co Cavan, as well as others in Monaghan Town, Longford, Mullingar and Navan. Only former Ulster Bank branches in Ballyconnell and Ballyjamesduff will be saved, cherry-picked as among 25 locations to be traded to Permanent TSB as part of a new deal struck.

Ulster Bank previously shut branches in Belturbet, Killeshandra, Kilnaleck, and a part-time operation in Swanlinbar in 2013, along with the bank’s branch in Castlepollard.

The following year branches in Clones and Castleblayney in Co Monaghan; Granard in Co Longford and Manorhamilton, Co Leitrim, also closed.

Then in 2017, the lender closed two more branches locally - this time in Arva and Cootehill.

Six-months notice

Ulster Bank has written to announced the details of their plans, providing customers and the industry with almost six-months’ notice to prepare for changes; and have agreed a new Colleague Agreement with the Financial Services Union which includes enhanced redundancy terms.

With the focus of the Oireachtas committee meeting on the movement of current and deposit account customers to new providers, Ms Howard said that Ulster Bank has been “very thoughtful about this” and have “engaged extensively” with stakeholders, including regulators throughout this time. “We wanted to strike the right balance between allowing ample time for customers to make a considered choice and then move their accounts, and for the other providers and Direct Debit Originators, or DDOs, to prepare. We are conscious that giving too much time could inadvertently prompt inaction, which would not be in the best interests of our customers.

“We started our Choose, Move, Close campaign last year, in October, when we announced the details of our plans, providing customers and the industry with almost six-months’ notice to prepare even before we commenced issuing letters to customers in April 2022. We very deliberately announced that while customers did not have to take action at that point, they would eventually have to close their accounts. Making this statement allowed us the opportunity to start a very important conversation. This frontrunning allowed customers, the industry, the DDOs and other stakeholders time to prepare for the formal start of our letters to customers.”

Supports

Such measures included outreach to 30,000 older customers with a direct phone call from our local branch team and an engagement programme with organisations that represent older customers and customers in vulnerable situations such as Age Action and Safeguarding Ireland.

“We understand that giving customers ample support is as important as giving them ample time to carry out this process. And whilst many customers will not need to come into an Ulster Bank branch, our branches will remain open throughout this process to ensure those customers who wish can come directly to us for face-to-face help. We have also offered to the industry the opportunity to be physically present in our branches and space on our website to help customers open accounts and

“I’m delighted that we will start to see that support available in branches this month. We have also launched comprehensive online Customer Support Hubs for Personal and Business customers which are updated at every milestone.”

She said the movement of customers to other banking providers is an “important step” in the phased withdrawal of Ulster Bank from the Irish market, and “we recognise that for our customers, especially those who have banked with us for decades, choosing and moving to a new provider requires effort, time, and support. Reflecting our unique footprint and history in Ireland, we have a distinct customer base so the plan that we have put in place for this task is in response to that. We are taking a responsible and prudent approach which includes regular monitoring and evaluation of the progress throughout this process. It is a priority for us that we do the right thing by our customers and colleagues as we support our customers to avail of an alternative financial provider. I thank the members of the Committee and we are happy to take questions.”