Royal Bank of Scotland will continue Ulster support, responds to stress test success

The Royal Bank of Scotland (RBS) is rumoured to firmly back Irish counterpart Ulster Bank after a recent upswing in value, despite reports that RBS was looking to “seek a sale or outside investment”, according to the Sunday Telegraph.

The bank’s chief executive Ross McEwan has hinted that he would like to keep one foot in Belfast while the country is experiencing its unexpected property market revival.

An industry insider told the Telegraph: They kept hold of it in the bad times, why wouldn’t they hang on to it in the good times?”

Ulster Bank witnessed a £2.5bn drop in profits over the last two years, but will benefit by approximately £300m from reversing loan impairments in the three months to September, RBS admitted last month.

RBS passed the EU stress tests that were released today by the European Banking Authority, along with other partly state-owned banks including Lloyds Banking Group, HSBC and private bank Barclays.

The firm will release its third-quarter results 31 October.