Business

Tuesday 25 July 2017

Ulster Bank becomes first major bank to pay dividend since crash

Gerry Mallon, Chief Executive, Ulster Bank. Picture by Shane O'Neill Photography.
Gerry Mallon, Chief Executive, Ulster Bank. Picture by Shane O'Neill Photography.
Michael Cogley

Michael Cogley

Ulster Bank Ireland is to become the first major bank to pay out a dividend since the financial crash.

The bank announced this morning that it is to repay €1.5bn to its parent company Ulster Bank Limited (UBL) next Wednesday, November 30. UBL will in turn pay the full amount to its parent company National Westminster Bank, which is a subsidiary of Royal Bank of Scotland (RBS).

Ulster has received approval from both the Central Bank of Ireland and the European Central Bank for the payment, which will eat into the £15bn (€17.6bn) it owes to its parent.

Ulster Bank Ireland will have a tier one capital ratio in excess of 24pc. The institution said it will remain in a strong capital position after the payment.

Ulster Bank chief executive Gerry Mallon said the announcement signals "a very important milestone" for the company.

“Ulster Bank remains very well capitalised with a strong balance sheet and is well-positioned to continue to support customers’ ambitions through our excellent products and service.”

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