Mr. Jim Brown:

I am joined by my colleagues, Ms Ellvena Graham, head of SME banking, and Mr. Andrew Blair, chief credit officer. I thank the committee for the opportunity to provide an update on Ulster Bank's progress in the areas outlined in the committee's invitation. I will go through our introduction quickly and then respond to any specific topics that the committee wishes to discuss.

Ulster Bank is the number three bank in the Republic of Ireland and the number one bank in Northern Ireland, building substantial market share in a number of key areas including the SME sector. We have a clearly defined strategy based on building a really good bank for our customers and at the same time addressing our legacy issues. We expect to return to profitability this year.

We fully recognise the importance of the SME sector to the economy. SMEs play a vital role in its recovery and supporting SMEs is a core part of our focus. Our Republic of Ireland lending book to businesses is approximately €6.7 billion and while we support the broad spectrum of businesses, we are specifically focused on the agrifood, exports and the professional and private sectors. There are two main aspects of our SME operations: new business lending and development, and supporting SMEs in financial difficulty. We have €1.2 billion set aside for new business lending in 2014. This is open to all businesses who are seeking finance to support their growth plans. Every proposal is different and individually assessed against sensible, straightforward, criteria. The first quarter of 2014 has seen a strong start to the year. We held a series of ten dedicated town hall sessions for SMEs across the country and we have been very visible in the market with a strong "open for business" message.

We are well positioned, we have a strong pipeline of business, we are growing market share and we look forward to expansion into the SME market as both demand and the economy improve.

We have also recently restructured our business to respond to customer behaviours. We are enhancing our online and telephony capabilities and are creating customer contact hubs in key locations while at the same time returning business relationship managers to the branch network to better support our customers. We also have a substantial number of relationship managers specifically seeking new business opportunities. We have also introduced new accreditation programmes for our people which ultimately ensures they better understand our customers' needs and, as a result, serve them well.

Separately, we have a number of initiatives in place to support enterprises through all stages of development. This includes financial packages such as our business start-up, early stage growth and agri packages, in addition to our business achievers sponsorship programme and many other networking events. We are also the lead banking support for Small Business Can, a dedicated website that allows business to network and share issues with their peers. These initiatives continue to prove both popular and effective within the sector.

As I have said, we are also working with SME businesses in financial difficulty. Legacy issues tend to be complex and can include elements of property speculation that remain a drag on many businesses. In the Republic of Ireland we have 300 people dedicated to working in this area. Our ultimate aim is to return viable businesses to profitability using a wide range of options and, in the process, save jobs. It is our experience that early intervention and engagement with our customers is essential to ensuring we can assist the business back to financial health. This strategy is working.

In conclusion, let me reiterate that Ulster Bank is fully committed to supporting businesses and growth in the economy. We have a clear strategy. We are making strong progress towards becoming a simple, more efficient and sustainable bank - a really good bank - for our customers. Supporting SMEs is a core part of our focus. I thank the committee and am happy to take questions.