TIDMFAP
RNS Number : 2354Q
Ulster Bank Ireland DAC
17 February 2023
17 February 2023
Ulster Bank Ireland DAC
Ulster Bank - Annual Report and Accounts and Pillar 3 Report
2022
Ulster Bank Ireland DAC ( " UBIDAC " ) today announces the
publication of its 2022 Annual Report and Accounts.
Ulster Bank Ireland Designated Activity Company ('UBIDAC', the
'Bank' or the 'Company') is a wholly-owned subsidiary of NatWest
Holdings Limited ('NatWest Holdings'). The ultimate holding company
is NatWest Group plc ('NWG' or the 'ultimate holding company').
The 'Group' or 'UBIDAC Group' comprises UBIDAC and its
subsidiary and associated undertakings.
The 2022 Annual Report and Accounts for Ulster Bank Ireland DAC
is available on NatWest Group plc's website at
https://investors.natwestgroup.com/reports-archive
We have also published the 2022 Pillar 3 report which is also
available on our website.
Both reports are also published on UBIDAC's website at
https://digital.ulsterbank.ie/globals/about-us/corporate-information/financial-results.html
For further information, please contact
Investor Relations
Alexander Holcroft
+44 (0) 20 7672 1758 (UK)
17 February 2023
For the purpose of compliance with the Disclosure Guidance and
Transparency Rules, this announcement also contains extracts from
the Report of the Directors on Principal Risks and Uncertainties
and Going Concern assessment which are contained in the Annual
Report and Accounts 2022, in full unedited text. Page and note
references in the text refer to page and note numbers in the Annual
Report and Accounts 2022.
Principal risks and uncertainties
Set out below are the principal risks and uncertainties which
may adversely affect the Group.
Risks and uncertainties arising from the Group's withdrawal from
the market
The Bank has entered into legally binding agreements for the
sale of the majority of its performing Commercial and Personal loan
books (the 'Sales Transactions'). During the financial year and up
to the date of this report, significant progress has been made with
respect to these transactions, with material portions of agreed
assets having been successfully transferred. Completion of the
remaining elements of the Sales Transactions is subject to a number
of risks and uncertainties some of which are beyond the control of
the Group. These include: satisfying relevant conditions precedent,
executing transactions in a timing and manner aligned to regulatory
expectations and other transaction execution risks and
uncertainties, including purchasers' technology and operational
capability to accept large volumes of customer onboarding
(including scaling of relevant platforms). Accordingly, the Sales
Transactions may not complete on acceptable terms in the timescale
envisaged or without incurring additional costs.
The Bank also continues to explore potential transfers of its
remaining business and assets. Whether any transfers are agreed and
ultimately completed will depend on a variety of factors, such as
the willingness and ability of purchasers to complete the transfers
on acceptable terms, including raising any necessary financing when
needed; purchasers' technology and operational capability to accept
large volumes of customer onboarding (including scaling of relevant
platforms) and continuing customer service; and obtaining any
necessary regulatory or other approvals.
Whilst significant progress has been achieved, the Group's
withdrawal from the market is expected to take a further number of
years and will continue to expose its business to risks and
uncertainties, albeit reducing in significance over time. These
remaining risks include reputation, costs, people, operational,
pricing outcomes on remaining non-contracted loan sales, regulatory
compliance, management bandwidth and counterparty and supplier
support as the Group completes its withdrawal from the market.
The Board will review and consider these risks and uncertainties
in seeking to achieve appropriate implementation of the phased
withdrawal strategy. The Group's capital and liquidity positions
remain strong to underpin this strategy.
Potential adverse impact of continued economic uncertainties on
phased withdrawal implementation
Uncertainties and volatile economic conditions associated with
sustained inflationary pressures and rising interest rates, the
Russian invasion of Ukraine, supply chain frictions and the
residual effects of COVID-19, may have a significant impact on the
cost of implementation of the remainder of the Group's phased
withdrawal strategy. Additionally, the risk of continued high
inflation combined with labour market constraints and associated
cost of living risks may adversely impact the credit quality of the
Group's remaining loan portfolio, resulting in additional
impairment charges and/or adversely impacting the number of
potential counterparties interested in buying the remaining assets
not yet agreed for sale, or the value realised for those
assets.
Risks arising from customer remediation in respect of legacy
issues
In 2021, the Group materially concluded actions required as part
of the CBI's Tracker Mortgage Examination. However, some of the
Bank's customers have lodged tracker mortgage complaints with the
Financial Services and Pensions Ombudsman (FSPO). The Bank is
challenging three recent FSPO adjudications in the High Court. The
outcome of that challenge on those and related complaints is
uncertain and may have a materially adverse impact. Furthermore,
there is a risk that throughout implementation of the phased
withdrawal process further issues may be identified that require
remediation.
Risks arising from the implementation of EU Intermediate Parent
Undertaking requirements
Under Article 21b of the EU Capital Requirements Directive,
NatWest Group, as a third-country group with two or more subsidiary
banking undertakings established in the EU, must create a single
(or in certain circumstances, with European Central Bank
permission, dual) intermediate parent undertaking (IPU) structure.
The implementation of this requirement, by the compliance date of
30 December 2023, creates additional operational risk for the Group
due to the parallel implementation of the phased withdrawal
strategy. The Board is supporting NatWest Group in its IPU
implementation and regularly assesses its impact on the phased
withdrawal programme.
Other risks and uncertainties
The Group remains vulnerable to risks and uncertainty in the
external economic environment, including persistent weakness in the
global economy; escalation in global trade disputes; inflation
risks; global financial market volatility; the impact of future
epidemics or pandemics and climate change. Furthermore,
unfavourable political, military or diplomatic events, including
armed conflict, state and privately sponsored cyber and terrorist
acts or threats, and the responses to them by governments and
markets, could negatively affect the Group.
Going concern
The Group's business activities, together with the factors
likely to affect its future development, performance and position,
including potential risks and uncertainties, are set out in this
report on pages 4 to 7.
The financial position of the Group, its cash flows, liquidity
position, capital and funding sources are set out in the financial
statements.
Notes 10, 11, 20 and 30 to the accounts include the Group's
objectives, policies and processes for managing its capital; its
financial risk management objectives; details of its financial
instruments and hedging activities; and its management of market,
credit and liquidity risks.
The Group's liquidity position remained strong during 2022,
evidenced by the Liquidity Coverage Ratio (LCR) of 251% at 31
December 2022 (2021 - 167%). The Group's primary source of
liquidity is from Personal and Commercial customer deposits,
supplemented when required by intergroup borrowing. The Group's
assets as at 31 December 2022 contained EUR3.8 billion of high
quality liquid assets (2021 - EUR7.5 billion). In addition, this is
supported by a EUR7 billion contingent liquidity agreement with
National Westminster Bank Plc (NatWest Bank) (2021 - EUR1 billion),
of which EUR3 billion was drawn down as at 31 December 2022 (2021 -
nil). A notable dynamic in the Bank's liquidity position during
2022 has been the outflow of EUR15 billion of Personal and
Commercial deposits, offset by proceeds received on loan sales and
the respective timing of these flows. The Bank has utilised its
contingent liquidity facility with NatWest Bank to manage the
liquidity consequences of these flows and maintain a prudent level
of head room to internal risk appetite and minimum regulatory
requirements.
The Group's capital position remained strong during 2022, as
evidenced by the CET1 ratio of 38.6% at 31 December 2022 (2021 -
27.8%).
Following the legally binding agreements for the sale of the
majority of the Commercial and Personal loan books, CCPC approval
has been obtained in respect of these transactions. Significant
tranches of assets have already been transferred to the purchasers
and it is expected that the remainder of the assets comprising
these transactions will transfer during 2023.
A widespread media campaign and direct communications to
customers advising of the closure of Ulster Bank Ireland was
initiated during the financial year. The issuing to customers of
six month notice of closure letters for substantially all current
and deposit accounts was completed in October 2022 and a
significant number of customers have already chosen a new banking
provider and moved their accounts to that new provider. In November
2022 the Bank initiated the process of freezing accounts of
customers that had received their six month closure notice in April
but had not yet taken action to move and close their account. The
remaining branch locations not covered in the PTSB sale transaction
are planned for closure in April 2023.
The directors have considered the Group's capital and liquidity
position as set out above and the results of stressed liquidity
scenarios. On those bases the directors have concluded that the
Group has the ability to continue as a going concern for the
foreseeable future.
However, within the next twelve months, virtually all new
lending is expected to cease and virtually all current and deposit
accounts are expected to be closed. On this basis, the directors
are of the opinion that they have demonstrated their intention to
cease trading. Therefore, in accordance with IAS 1, the financial
statements have been prepared on an other than going concern basis.
The directors currently have no intention to liquidate the
Company.
The adoption of the other than going concern basis of
preparation has not resulted in the departure from any of the
recognition or measurement criteria of IFRS, nor have any assets or
liabilities been reclassified as a result.
Forward-looking statements
This document contains forward-looking statements such as
statements that include, without limitation, the words 'expect',
'estimate', 'project', 'anticipate', 'commit', 'believe', 'should',
'intend', 'will', 'plan', 'could', 'probability', 'risk', 'target',
'goal', 'objective', 'may', 'endeavour', 'outlook', 'optimistic',
'prospects' and similar expressions or variations on these
expressions. These statements concern or may affect future matters,
such as UBIDAC's future economic results, business plans and
strategies. In particular, this document may include
forward-looking statements relating to UBIDAC in respect of, but
not limited to UBIDAC's future economic results, business plans and
strategies, including its: withdrawal from the market; potential
transfers of UBIDAC's business and assets; potential adverse
impacts of uncertainties on UBIDAC; risks arising from customer
remediation in respect of legacy issues; continued economic
uncertainties on phased withdrawal implementation; and risks
arising from the implementation of EY Intermediate Parent
Undertaking Requirements and risks and uncertainties arising from
other factors such as inflation, monetary and fiscal policies and
unfavourable political, military or diplomatic events, including
armed conflict, state and privately sponsored cyber and terrorist
acts or threats, and the responses to them by governments and
markets,. Forward-looking statements are subject to a number of
risks and uncertainties that might cause actual results and
performance to differ materially from any expected future results
or performance expressed or implied by the forward-looking
statements. Factors that could cause or contribute to differences
in current expectations include, but are not limited to, the impact
of the future acquisitions or divestments, the outcome of legal,
regulatory and governmental actions and investigations,
legislative, political, fiscal and regulatory developments,
accounting standards, competitive conditions, technological
developments, interest and exchange rate fluctuations and general
economic and political conditions and the impact of climate and
sustainability-related risks. These and other factors, risks and
uncertainties that may impact the above, and any forward-looking
statement or actual results are discussed in UBIDAC's 2022 Annual
Report and Accounts (including its Principal Risks and
Uncertainties). The forward-looking statements contained in this
document speak only as of the date of this document and does not
assume or undertake any obligation or responsibility to update any
of the forward-looking statements contained in this document,
whether as a result of new information, future events or otherwise,
except to the extent legally required.
Legal Entity Identifier: UBIDAC - 635400KQIMALJ4XLAD78
STG GBP5,000,000 Floating Rate Subordinated IE0004325282
Bonds
IEP GBP30,000,000 11.375% Subordinated IE0004325399
Bonds
STG GBP20,000,000 11.75% Subordinated IE0004325514
Bonds
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACSSFWSEWEDSEIE
(END) Dow Jones Newswires
February 17, 2023 03:00 ET (08:00 GMT)
Ulster Bk.11.75 (LSE:FAP)
Graphique Historique de l'Action
De Nov 2024 à Déc 2024
Ulster Bk.11.75 (LSE:FAP)
Graphique Historique de l'Action
De Déc 2023 à Déc 2024
