In a dramatic move, NatWest bank is planning to exit the Republic of Ireland. Second, that they are selling their 12% stake in Permanent TSB (PTSB), one of the two or three small Irish banks that only really does mortgages. The Irish banking licence that most recently was returned to shore, and which NatWest used for its Ulster Bank operations. This surprising move makes the bank’s decision to pull out of the Irish market even more permanent.
Just last month, NatWest gave back its Irish banking license. This decision was an important step in the bank’s long game plan to leave Ireland. The bank has since struggled to replenish itself from the aftereffects of the Irish property and banking crash. This crisis is proving to be an existential threat to its work in the tri-state area. In 2021, NatWest took the unprecedented step of fully exiting its banking operations from the Republic of Ireland. This decision was a powerful signal of their refocus on the growing, more profitable markets.
The sale of the remaining stake in PTSB is central to NatWest’s strategy. This action is one component of their strategy to shut down all business operations in Ireland. By divesting itself from this shareholding, NatWest continues to distance itself from the challenges it faced within the Irish banking landscape. PTSB’s laser-like focus on progressive mortgage lending is a direct response to the needs of the Irish mortgage market today. It is still unclear how this change might affect the future trajectories of PTSB and its peers.
Ulster Bank, owned by NatWest, was once one of the big three banks that dominated the Irish banking market. The reinstatement of the banking licence is further evidence that NatWest are committed to establishing themselves as a pillar of solidity. Instead, they are now looking to settle down in less chaotic areas. The move to leave Ireland is not only a change in tactics but rather a strategic shift to minimize losses from the company’s economic storm.
