Permanent TSB said today it has completed a deal to buy Ulster Bank's "Business Direct" loan book after the transfer of about 3,200 loan accounts to the bank.
The Business Direct unit is the performing micro-SME loan book of Ulster Bank.
The purchase of Business Direct is part of a broader transaction with Ulster Bank.
The deal includes the transfer of €5.2 billion performing non-tracker residential mortgages last November and the transfer of 25 former Ulster Bank branch locations in January.
The transfer of a further €900m of performing non-tracker residential mortgages, and the Lombard asset finance business, is expected to take place in the second quarter of 2023.
The loan book comprises loans with a value of about €165m. Permanent TSB said its business lending will increase in size by about 200% when the SME loans and the established asset finance business is incorporated.
In a statement, Permanent TSB said that 28 Ulster Bank employees who were assigned to the Business Direct loan book have now transferred to Permanent TSB under the Transfer of Undertakings Regulations (TUPE).
Over 250 Ulster Bank employees have now transferred to Permanent TSB as part of the deal between the two banks so far.
Permanent TSB said it will write to the customers connected to the migrating Business Direct loan book in the coming weeks to provide them with comprehensive information about the transfer.
Eamonn Crowley, Permanent TSB's chief executive, said today marks another significant step for the bank as it completes the migration of Ulster Bank's micro-SME loan book and welcomes more new staff to the bank.
"Growing business banking is a fundamental part of our ambition of being Ireland's best personal and small business bank," Mr Crowley said.
"Through the acquisition of these 3,200 new customer relationships, we will demonstrate our commitment to providing a best-in-class business banking offering, supported by excellent service from a team of highly experienced and dedicated people," he added.
Permanent TSB shares were lower in Dublin trade today.
