Ulster Bank’s planned integration with Permanent TSB is likely to be nipped in the bud due to the complex IT structure of Ulster Bank, say industry sources.
As told to Independent. ie, Ulster Bank’s matrix IT system poses a potential challenge to integrate it with the overall RBS group system, which would make it nearly impossible to migrate customers over to the Permanent TSB system – and vice versa.
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If both lenders move forward to build a new banking platform, it would cost ‘hundreds of millions,’ the sources told the independent.ie, adding that the TSB has invested nearly 1bn on a banking platform, and is no more in a position to spend such a huge amount again.
The publication has reported that Ulster Bank may need to be restructured further if it merges with Permanent TSB. The merger may also force Irish lender to cut jobs and shut down many branches.
Ulster Bank owner RBS has appointed Morgan Stanley and PwC to find parties who could help to recapitalize the bank before merging it with an incumbent Irish bank.
It is believed that Warburg Pincus, CVC, KKR and Permira are among those approached to inject cash into the bank to boost its balance sheet.
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