Takeover suits Ulster Bank - Quigley

Ulster Bank could not have wished for a better outcome than for Royal Bank of Scotland to win the takeover battle for National Westminster Bank, according to chairman, Sir George Quigley.

Commenting on the 6 per cent rise in Ulster Bank's pre-tax profits to €269 million (£212 million) in 1999 yesterday, Sir George, said the change of ownership should bring huge benefits to it.

"Now that the dust is settling, commentators are paying more attention to its European dimension, through its links to Banco Santander and to Societe Generale, and also to Royal Bank's connections with CGU, which is also spreading its wings," he stated.

Sir George said that, while it was still relatively early days, its association with Royal Bank of Scotland should provide a new springboard for the Ulster Bank to expand its presence in the Irish market.

The bank is currently in discussions with several bidders for its Ulster Bank Investment Managers subsidiary but the bank refused to disclose any details. The subsidiary, which has €7.4 billion under management, is expected to fetch at least £100 million.

Ulster Bank has also made an unspecified provision for potential tax liabilities arising out of the Dail Committee of Public Accounts (PAC) inquiry into DIRT evasion through bogus non-resident accounts in the 1980s and 1990s. He said it would be impossible to estimate the scale of such liabilities until the Revenue completed its "look back" audit.

Based on its evidence to the PAC inquiry, and factoring in any potential penalties and interest that could apply, Sir George said its potential liability would not be material to its business.