Ulster Bank seeks permission from Central Bank of Ireland for paying RBS

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Ulster Bank has applied to the Central Bank of Ireland for green signal to use some of its surplus capital to make a payment to Royal Bank of Scotland, its parent company.

This would be the first repayment by Ulster Bank to RBS of the £15 billion bailout that it got after the 2008 global financial crash.

In an exclusive interview with Business This Week, Gerry Mallon, the new chief executive of Ulster Bank in the Republic, said it is hoping to pay a €1 billion-plus sum this year to RBS and re-establish a regular stream of dividends after that.

“We’ve made our application to the Central Bank for that [payment] to be made,” added Gerry. “It’s down to the regulators. We think we’ve got quite a lot of capital.

“We have too much and everybody agrees that we have too much so we want to start some of the process of freeing it up,” Mr Mallon said, adding that his “aspiration” was to make a payment to RBS this year.

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The author Paul