Ulster Bank will amalgamate its operations in the Republic into one trading company, Ulster Bank Markets Ltd, which will be renamed Ulster Bank Ireland Ltd.
The amalgamation will take effect from October 1st, 2001, after which the company will manage around two-thirds of the assets of the Ulster Bank Group.
"If you look at our business in the Republic of Ireland at the moment, we have several bank licences and what we're really trying to do is rationalise these," said Mr Paddy McMahon, deputy group chief executive.
"We're pulling all of the Republic of Ireland business together and putting it under that corporate umbrella which will be called Ulster Bank Ireland Ltd. We'll just have a single bank licence."
Under the new corporate legal structure, the bank's network of around 100 branches, which are currently controlled from head office in Belfast, will be incorporated in the Republic. Although the Central Bank of Ireland will be the supervisor for Ulster Bank Ireland Ltd, the UK Financial Services Authority will continue to be the lead supervisor for the Ulster Bank group, which will continue to be managed on an all-Ireland basis.
Mr McMahon said the changes would have a positive impact on the bank's bottom line but did not give a figure. "We're looking for more administrative and more capital efficiencies," he said. But he said the revised structure would not affect staff numbers. "It will have no impact in regard to staff. They will continue to be employed by the group on the same terms and conditions they currently enjoy and we confirmed that to the relevant parties," said Mr McMahon.
Standard & Poor's said it expected Ulster Bank Ireland Ltd would have the same A+/Stable/ A-1 rating as its parent, Ulster Bank Ltd. "This will reflect the bank's ability to maintain good earnings, efficiency and asset quality, together with continuing good capitalisation."
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