The deal includes €7.6bn of loans, the majority being non-tracker mortgages, as well as micro SME loans, an asset finance business and 25 out of 88 Ulster Bank branches. About 500 to 600 staff are expected to transfer according to the agreement.
“There is no immediate change for Ulster Bank customers”, the group statement said.
In return, NatWest will receive cash and a 20 per cent stake in PTSB.
Alison Rose, NatWest Group chief executive, (pictured) said: “In line with our strategy of a phased withdrawal from the Republic of Ireland, this is a significant update in the form of a non-binding memorandum of understanding with PTSB.
“It builds on the recently announced sale of the majority of Ulster Bank’s commercial banking business to Allied Irish Bank,” Rose added.