Bank of Scotland Launches Internet Mortgage Drive in the Netherlands, NatWest Evaluates Ulster Bank Offers

Strategic Insights -

Bank of Scotland is set to launch a new drive to sell cheap mortgages over the Internet in the Netherlands, as the company continues to expand its presence in the eurozone. This move marks the bank's second attempt to directly sell home loans in the region, following its successful phone-based operation in Ireland, which offers interest rates as low as 3.69%. Meanwhile, NatWest is evaluating offers for its Ulster Bank subsidiary, which has been valued at around £1.7 billion. Several Irish banks and the Netherlands' ING are believed to be among the front runners to acquire the Belfast-based bank.

Key Takeaways:

  • Bank of Scotland will launch a drive to sell cheap mortgages over the Internet in the Netherlands, marking its second eurozone target for direct selling of home loans.
  • The Dutch Internet operation, a joint venture with local partner Radobank, is expected to offer even keener interest rates than Bank of Scotland's Irish phone-based operation.
  • NatWest is evaluating offers for its Ulster Bank subsidiary, with several Irish banks and the Netherlands' ING among the front runners to acquire the Belfast-based bank.
  • Ulster Bank has been valued at around £1.7 billion and does 60% of its business in the Republic of Ireland.
  • The Takeover Panel rules will force NatWest to wait until Bank of Scotland's hostile bid has run its course, unless a deal is tied up by November 22.
  • Royal Bank of Scotland has been ordered to say by December 3 whether it will bid for NatWest, following a widely expected counter-bid.
  • The Office of Fair Trading has extended the period for considering whether or not to refer Bank of Scotland's bid for NatWest to the Competition Commission until December 3.

Statistics:

  • £1.7 billion: the market value of Ulster Bank
  • 60%: the proportion of Ulster Bank's business conducted in the Republic of Ireland
  • 3.69%: the lowest interest rate offered by Bank of Scotland's Irish phone-based operation
  • £21.5 billion: the value of Bank of Scotland's hostile bid for NatWest
  • $1.8 billion (£1.1 billion): the additional cash raised by Royal Bank of Scotland in the US bond market

Sources:

  • "Bank of Scotland to launch internet mortgage drive in Netherlands, as NatWest evaluates Ulster Bank offers"
  • "NatWest to weigh bids for Ulster Bank as deadline looms"
  • "Royal Bank of Scotland raises $1.8 billion in US bond market"
  • "Office of Fair Trading extends period for considering Bank of Scotland's bid for NatWest"