Ulster Bank may take four years to cover costs, says RBS

‘We’re not giving up on Ireland but it’s going to take time’ – outgoing RBS chief executive

Ulster Bank reported its operating profit slumped to €26m in the first half of the year from €100m a year earlier. Photograph: Nick Bradshaw/The Irish Times

Ulster Bank reported its operating profit slumped to €26m in the first half of the year from €100m a year earlier. Photograph: Nick Bradshaw/The Irish Times

Royal Bank of Scotland (RBS) executives have said it could be another four years before the group’s Ulster Bank unit in the Republic will be making enough money to break even on the cost of its own funding – a decade and a half after the financial crisis.

Outgoing RBS chief executive Ross McEwan told analysts on a call last week that it will be “another three to four years” before Ulster Bank is covering its cost of capital. A company is not able to start making an acceptable return for investors until it is making enough money to cover the cost of its equity and debt funding.

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