NWG Natwest Group Plc

By Sabela Ojea

NatWest Group PLC said Friday that with its subsidiary Ulster Bank Ltd, it has entered into a legally binding agreement with Permanent TSB Group Holdings PLC as part of its phased withdrawal from Ireland.

The U.K. bank said the agreement is for the sale of performing non-tracker mortgages, performing micro-SME [small and medium-sized enterprise] loans, the subsidiary's asset-finance business and a subset of its branch locations.

The sale includes around 7.6 billion euros ($8.61 billion) of gross performing loans as at June 30 and 25 branch locations, Natwest said.

In return, the bank will receive newly issued ordinary shares equivalent to a stake of 16.66% of the enlarged share capital of PTSB, the bank added.

The phased withdrawal from the Republic of Ireland is expected to be capital accretive to NatWest Group, the lender said.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

December 17, 2021 03:04 ET (08:04 GMT)

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