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RBS to commit to Ulster Bank after Treasury review | |
(35 minutes later) | |
RBS, the parent company of Ulster Bank, has reaffirmed its commitment to operating across the island of Ireland. | |
A Treasury review had been looking at whether RBS should be broken up into separate "good and bad banks". | |
Instead it will create an internal "bad bank" ring-fencing £38bn of bad assets like loans not expected to be repaid. | |
Ulster Bank also revealed it lost a further £132m in the third quarter of this year as it continues to suffer from the impacts of the property crash. | |
The bank's operating profit of £72m was wiped out by bad loan charges of £204m, it announced on Friday. | |
The performance was an improvement on the same period in 2012 when it lost £242m. | |
Ulster is the largest bank in Northern Ireland and the third biggest in the Republic of Ireland. | |
There had been speculation that it would be radically reshaped. | |
However, the bank said a Treasury review had confirmed it was "a core business for RBS and acknowledges the importance of Ulster Bank to the whole island of Ireland". | |
Despite this, Ulster Bank will be involved in a further internal review looking at its size and shape in the future. | Despite this, Ulster Bank will be involved in a further internal review looking at its size and shape in the future. |
An Ulster Bank source said this "draws a line" on speculation around RBS's commitment to Northern Ireland and the Republic of Ireland. | An Ulster Bank source said this "draws a line" on speculation around RBS's commitment to Northern Ireland and the Republic of Ireland. |
RBS remains 81% owned by the government following a massive bailout at the height of the financial crisis. | |