RBS 2004 Annual Report Download - page 45

Annual Review and Summary Financial Statement 2004
Divisional review
43
Ulster Bank is the third largest bank
in Ireland. During 2004 Ulster Bank
completed the acquisition of
First Active, which strengthened its
position in the Republic of Ireland
and enhanced its capabilities in
mortgages. As a result of organic
growth and the acquisition of
First Active, Ulster Bank’s total
income increased by 28% to
£743 million.
 Ulster Bank achieved strong growth in both
personal and business customers. It now has
1.5 million personal and business customers.
 Average loans to customers grew by 72%,
while average customer deposits grew by 35%.
Excluding First Active, average loans to customers
grew by 27%, and average customer deposits by 8%.
 A principal reason for the growth in lending
was rapid expansion of the combined mortgage
book. In the Republic of Ireland, mortgage sales
across the Ulster Bank and First Active brands
increased by 60%. In Northern Ireland, Ulster Bank
increased its mortgage sales by over 30%.
 Ulster Bank continued to expand its credit
card business. Ulster Bank is now the leading
provider of credit cards in Northern Ireland and
is growing rapidly in the Republic of Ireland.
 Ulster Bank achieved strong growth in
commercial lending in both the Republic of Ireland
and in Northern Ireland. Notable transactions
included the first Public Private Partnership for the
regeneration of a central Dublin public housing
complex, and the financing of Tynagh Power, one
of the largest deals of its type in Ireland in 2004.
 2004 was a very successful growth year
for Business Centres in the Republic of Ireland,
demonstrating the strength of the operating model.
Its loan book increased by 43% driven by
drawdowns which were up 65% on 2003.
 Various innovative products were introduced
during 2004. Ulster Bank launched U First Gold,
a premium current account with a range of financial
and lifestyle benefits, and an award-winning switcher
mortgage service. First Active launched tracker
mortgages and 100% mortgages for professionals.
 Ulster Bank has worked closely with
Manufacturing to plan and implement the integration
of First Active. In connection with this, the IT
platforms supporting both Ulster Bank and First
Active will be converted to RBS’s main IT platform
which already supports both the Royal Bank of
Scotland and NatWest.
Awards
 The Ulster Bank Switcher Mortgage –
Top Home Loan
The Sunday Tribune
 The Ulster Bank Zinc Card –
Top Credit Card
The Sunday Tribune
 Ulster Bank’s Aimhigher campaign was
recognised with a special citation for Corporate
Social Responsibility
Ireland President’s Awards