Royal Bank ofScotland Group Plc's Ulster Bank Ltd. would be allowed to pursue potentialacquisitions in Ireland, if the unit cleans up its own business first over thenext 12 months, The Irish Independent reportedOct. 6, citing RBS CEO Ross McEwan.
McEwan told the news source that he would like to grow thebank's business in Ireland, but not at all costs. He noted that the plan is tocreate long-term value for shareholders.
"I've said to the team here … once you've proved to methat you've got a really good bank running here again, I'm happy to look atassets that may fit," McEwan reportedly said.
Permanent TSBGroup Holdings Plc and KBC Group NV's KBC Bank Ireland Plc could be Ulster Bank's potentialtargets, with a decision on the future of KBC's Irish unit to come later in2016, according to the report.
Ulster Bank Ltd. operates in the Republic of Ireland asUlster Bank IrelandDAC.
Meanwhile, McEwan also said that RBS has been working withU.S. officials to settle MBS issues in the U.S. The lender's will $120 million to the U.S.state of Connecticut to resolve an investigation into its underwriting of RMBSin the run-up to the 2008 financial crisis.