The British bank announced in February that it would wind down Ulster's 20 billion euro loan book as Chief Executive Alison Rose slashes underperforming parts of the state-owned lender after it swung to a loss in 2020. Shares in larger domestic rivals Allied Irish Banks (AIBG.I) and Bank of Ireland (BIRG.I) were both also up by almost 5%, while NatWest rose 2.5%. Shares in PTSB, which had 14 billion euros worth of mainly mortgage loans at the end of 2020 and now has 76 branches nationwide, were up 15.6% at 1.41 euros by 1345 GMT. 'I think the deal is very good for existing shareholders because in effect they will get the benefit of an enlarged bank without having to put in any more capital and NatWest obviously see the value in it (taking a stake) as well,' PTSB Chief Executive Eamonn Crowley told reporters. PTSB said it did not envisage requiring new equity, meaning the Irish state would not need to top up its current 75% holding. On top of receiving a cash consideration, NatWest will take a stake of up to 20% in the enlarged share capital of PTSB. The deal includes 25 of Ulster Bank's 88 branches and 7.6 billion euros ($8.94 billion) of gross performing loans, 7 billion of which relate to non-tracker mortgages, as well as performing micro-SME loans and its asset finance business, NatWest said as its Irish exit gathered pace on Friday.

DUBLIN, July 23 (Reuters) - Britain's NatWest Group (NWG.L) agreed to sell assets from its Irish arm to Permanent TSB (IL0A.I), a move the mortgage lender and analysts described as a 'once in a generation opportunity' for PTSB that caused its shares to soar.

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