Ulster Bank has reported lower income and profits for the three months to the end of March as it continues to prepare for an exit from the Irish market.
Ulster Bank owner NatWest said its plan for the bank remains on track, while Ulster Bank remains open for business and continues to support its customers through the transition and challenges of Covid-19.
It said that "constructive discussions" are ongoing with AIB for the sale of a €4 billion portfolio of performing commercial loans.
Talks are also continuing with Permanent TSB and "other strategic banking counterparties" about their potential interest in other parts of the bank.
Ulster Bank's total income for the first quarter fell by €8m to €142m, down 5.3% on the same time last year due to a reduction in lending volumes and fee income due to Covid-19. This was partly offset by an increase in foreign exchange gains however.
Its operating profit came to €13m for the three months to the end of March, down from €20m in the fourth quarter of 2020 but an improvement on a loss of €25m the same time last year.
The bank said its net interest margin of 1.49% was broadly stable compared with the previous quarter.
Ulster Bank said its other expenses fell by 3.6% as a result of to a 6.9% reduction in headcount and lower back office operations costs, which was partly offset by increased government levies.
It also reported a net impairment release of €14m, which it said reflected improvements in its mortgage portfolio.
During the first quarter, net loans to customers decreased by €0.2 billion, or 1%, compared with the fourth quarter of 2020 as repayments continued to exceed gross new lending of €0.4 billion.
Customer deposits decreased by €0.1 billion, or 0.5%, mainly due to a reduction in commercial balances.
It said its loan-deposit ratio remained broadly stable at 91%.
Ulster Bank parent NatWest reported a return to profit in the first quarter of 2021 after joining rivals in releasing some of the cash it had set aside to cover expected bad loans due to the pandemic.
