permanent tsb Group - Significant progress on Ulster Bank transaction

Davy Research
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The signing of the Memorandum of Understanding is a significant milestone in the acquisition of the customer loans and assets of Ulster Bank Ireland. The proposed transaction will add significant loan assets, capabilities and customer numbers and will extend the franchise footprint. Crucially, with the exception of equity to be issued to NatWest (up to 20% of enlarged share capital), no additional equity will be required for the transaction. We reiterate our view that the transaction represents a once in a generation opportunity to add scale, substantially increasing earnings and returns to merit a re-evaluation of the investment case.