Mr. Paul Stanley:

Yes. Quite a number of Deputies and Senators raised the question of capital and risk weighted assets, and they are one in the same. The high level of risk weighted assets drives the amount of capital. It is not just Ulster Bank that is required to keep, but other banks in the domestic market as well. As one of the Deputies said, those levels are certainly higher than in the UK and, indeed, higher than many countries in Europe as well. That impacts obviously on a shareholder's return on capital. I pointed out that the BPFI issued a report last week, and a number of members will probably have seen it or been through it, that highlights the causes of the difference and shows the comparisons across Europe. I suggested to the Chairman that it is probably worth, through the BPFI, getting more in-depth feedback on the issues there and what is happening. It certainly is a feature of the levels of returns not just with Ulster Bank but indeed other Irish banks in the market here.

There was a reference to the dividend paid and it is probably worth clarifying this point. On the €3.5 billion of dividends that have been paid back to the shareholder, and the Deputy is quite correct about the level paid back, as I have described previously when I have been in front of the committee, those are not related really to the levels of profit that the bank is generating. A point was made by Ms Howard earlier that the levels of profit are very low. Again, one of the highlights from the previous committee meeting was that the 2% or 2.3% returns on equity and the levels of profit the bank is making did not drive those dividend payments. What drove those redistribution payments was the €15 billion of capital that came in from UK taxpayers into Ulster Bank to stabilise the bank during very difficult times. Helpfully, the amount of capital that was needed in that regard, as it has turned out, is probably less than was anticipated at the time. Those excess levels of capital are what will allow that distribution to take place, not the actual earnings of the bank itself. I have said this before when I have been in with the committee, so just to clarify that.