AIB Group PLC AIB - CCPC clearance tracker mortgages acquisition (7100M)

TIDMAIBG

RNS Number : 7100M

AIB Group PLC

13 January 2023

13 January 2023

AIB Group plc receives CCPC clearance for the acquisition of Ulster Bank's performing tracker mortgages

AIB Group plc confirms and welcomes the receipt of competition clearance from the Competition and

Consumer Protection Commission (CCPC) on 13 January 2023 for the acquisition of a circa EUR5.7 billion Ulster Bank performing tracker (and linked) mortgage portfolio.

In line with previous guidance, the Group expects a CET1 reduction of circa 60bps reflecting increased risk-weighted assets of circa EUR2.5 billion in relation to the portfolio. The acquisition was priced at 95.15% of par value and is expected to be enhancing to RoTE in 2023. The transaction and customer migration are expected to complete by H1 2023.

AIB Group plc Chief Executive, Colin Hunt, commented:

"We set out our new medium-term targets in December 2022 and as we start the year we continue to make progress on the execution of our strategy. Receipt of CCPC approval is another important milestone in the Group's transformation and follows the acquisition of Ulster Bank's corporate and commercial loans which are in the process of migrating to AIB Group plc. We look forward to welcoming these new customers from Ulster Bank as well as the many more new customers we are pleased to welcome to the Group as the Irish banking landscape evolves. I would like to acknowledge the huge efforts and thank everyone who has worked on this significant transaction involving c. 47,000 customers and c. EUR5.7 billion of mortgages."

AIB Group plc will issue its 2022 full year financial results on 8 March 2023.

-ENDS-

For further information, please contact:

 
 Niamh Hore / Siobhain Walsh                 Paddy McDonnell / Graham Union 
 Group Investor Relations                    Media Relations 
 AIB Group plc                               AIB Group plc 
 Dublin                                      Dublin 
 Tel: [phone]     Tel: [phone] 
 email: [e-mail]                  email: [e-mail] 
                   [e-mail]                     [e-mail] 
 

Forward Looking Statements

This document contains certain forward looking statements with respect to the financial condition, results of operations and business of AIB Group and certain of the plans and objectives of the Group. These forward looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward looking statements sometimes use words such as 'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'may', 'could', 'will', 'seek', 'continue', 'should', 'assume', or other words of similar meaning. Examples of forward looking statements include, among others, statements regarding the Group's future financial position, capital structure, Government shareholding in the Group, income growth, loan losses, business strategy, projected costs, capital ratios, estimates of capital expenditures, and plans and objectives for future operations. Because such statements are inherently subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking information. By their nature, forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward looking statements. These are set out in Principal risks on pages 28 to 30 of the Annual Financial Report 2021 and updated on page 37 of the Half-Yearly Financial Report 2022. In addition to matters relating to the Group's business, future performance will be impacted by the direct and indirect impacts of the COVID-19 pandemic, the direct and indirect consequences of the Russia-Ukraine War on European and global macroeconomic conditions, the impact of higher inflation on customer sentiment and by Irish, UK and wider European and global economic and financial market considerations. Any forward looking statements made by or on behalf of the Group speak only as of the date they are made. The Group cautions that the list of important factors on pages 28 to 30 of the Annual Financial Report 2021 is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and events when making an investment decision based on any forward looking statement.

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 [e-mail] 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

ACQSFFFEDEDSEFF

(END) Dow Jones Newswires

January 13, 2023 07:15 ET (12:15 GMT)