Permanent TSB has announced that it has completed the acquisition of the residential mortgage business of Ulster Bank in Ireland.

The bank said that it has materially completed the acquisition of Ulster Bank’s performing non-tracker residential mortgage business.

The acquisition comprises non-tracker mortgage loans with a value of €6.2 billion, with €5.2 billion being migrated over to Permanent TSB and the remainder, around €1 billion in value, expected to migrate in the second quarter (Q2) of 2023.

The bank said it welcomes approximately 56,000 new residential mortgage customers. Its mortgage book is expected to increase in size by around 40%.

113 Ulster Bank employees have transferred to either Permanent TSB or its service partner Pepper Finance, and a further 230 additional Ulster Bank employees will be entitled to transfer “in due course”, according to the bank.

Permanent TSB is also acquiring 25 Ulster Bank branches. Customers of these branches are encouraged to take action to open a new account with the bank before these branches cease operating as Ulster Bank branches in January.

Commenting on the completed acquisition, Eamonn Crowley, Permanent TSB chief executive, said: “This is a transformational…as we work towards our ambition of being Ireland’s best personal and small business bank.

“We extend a warm welcome to the 56,000 mortgage customers and our new colleagues who are joining us today and we want to assure them that we will give them a best-in-class mortgage offering and colleague experience.”

The acquisition has also been welcomed by Minister for Finance Paschal Donohoe.

The minister said: “This transaction is a hugely positive development for Permanent TSB, its customers, staff, and other stakeholders, as it enables the bank to strengthen its position in the Irish banking market and position itself for future growth.”

As a result of this deal, the state’s shareholding in Permanent TSB has reduced from 74.9% to 62.4%.

The minister said: “The state has made good progress this year in delivering on its policy to returning our three banks to private ownership.

“With today’s announcement, out stake in Permanent TSB has reduced from 74.9% to approximately 62.4%, and I remain very supportive of Permanent TSB in may capacity as shareholder,” he added.