Agricultural loans are among the portfolio of commercial loans bought by AIB from Ulster Bank, AIB has confirmed.

In a brief statement to Agriland, a spokesperson for AIB said:

“AIB has confirmed the acquisition of €4.2 billion of Ulster Bank corporate and commercial loans.

This is to further a previously announced non-binding Memorandum of Understanding between AIB and Ulster Bank's parent firm NatWest Group - which has now moved to a legally-binding agreement.

This was struck back in February when Ulster Bank announced its phased withdrawal from the Irish market.

In a statement providing an update on the matter today (Monday, June 28), Ulster Bank said:

This remains subject to regulatory approvals which are likely to take a number of months, the bank added.

It was noted that there is no immediate change for customers, and Ulster Bank "remains open for new and existing business for all customers".

Ulster Bank chief executive Jane Howard said: “Today’s binding agreement represents a significant update on our phased withdrawal and, although it remains subject to regulatory approvals, I am confident that we are with AIB, delivering a good solution for our performing commercial loan book customers. While we await approval, there remains no change for customers.

"We will continue to work with our colleagues and their representatives to manage this process in a fair and responsible manner.

“Talks continue with Permanent TSB Group Holdings plc among other strategic banking counterparties on other elements of the phased withdrawal," the chief executive concluded.