Mr. Eddie Cullen:

I am managing director of Ulster Bank's commercial banking division in the Republic of Ireland. I am joined by my colleague, Dr. Ailish Byrne, our senior agricultural adviser.

I welcome the opportunity to provide members of the joint committee with an update. I will focus briefly on the role Ulster Bank plays in the economy and specifically the importance of the agriculture sector to our business. Dr. Byrne will then cover the support we provide for the sector, focusing on the dairy sector.

Ulster Bank is the third largest bank in the Republic of Ireland and the only full service foreign owned bank operating in this market. Our market share in retail and commercial banking is approximately 14%, while our total lending to business at the end of quarter three of 2015 stood at approximately €6.5 billion. The improved economic and market sentiment and higher demand for credit that has emerged in recent years have continued strongly into 2015. As we noted in our recent quarterly financial update, we have seen an almost 60% increase in business lending volumes this year. We firmly believe that for the economy to continue to recover, it is essential that there be competition in the banking market. We are determined to provide that competition across all of the sectors in which we operate.

Agriculture and the wider food and drink sector are key components of our business and today account for approximately 20% of our total business lending, with the agriculture sector specifically accounting for 12%. Our banking relationships in these sectors start with the many farmers who bank with us, through to artisan food producers up to the largest multinational food manufacturing businesses. Our relationships with these customers stretch back decades in many cases.

Our strategic ambition is to be the number one bank for customer service and we wish to sensibly grow our market share. We are focused on making Ulster Bank a customer centric bank that is simpler, more agile and one that offers an appealing alternative to the dominant players in the market.

We are supporting Irish businesses not only with funding but also in looking at their wider financial and business planning needs. Examples include our online mentoring platform for small business that has more than 20,000 registered users - SmallBusinessCan.com and BusinessWomenCan. Our annual business achievers awards which take place next week acknowledge business success and reward companies that have displayed determination and innovation across the island. This year we have seen a very significant increase in entries in both the agriculture and food and drink categories. We have dedicated proposition and specific sector support teams for a range of business sectors, including agriculture and food and drink. Uniquely, as part of RBS, we are able to leverage the bank's international reach, while delivering a strong local presence. An up-to-date practical example of how we are trying to make a difference for our customers is our support for 25 of our small and medium enterprise food producing customers in assisting them to take space at the "I believe in Christmas" market at CHQ in the IFSC which starts this week. This will be a great opportunity for some of our customers to showcase their products.

We recognise the importance of agriculture to the economic and social fabric of the country. It has been and always will be a core part of our business. As such, it is important that as the economy recovers, the development and growth of the agriculture sector be focused, structured and strategic. We understand the sector and are committed to supporting both individuals and enterprises from farmyards to large corporates. We recognise that lending must be responsible and fully based on the ability of farmers to generate cash flow to repay debt. We take a long-term view of agricultural lending, recognising the inherent volatility in farming due to weather events and fluctuating commodity prices.

I will now hand over to Dr. Byrne who will provide some further detail on the range of supports we have in place for the sector.