<b><i>Sunday Times</i></b>: RBS mulls merging ailing Irish unit with rival

|By:, SA News Editor

RBS (RBS) is considering merging its Ulster Bank with a rival after being unable to stem the massive losses at the Irish unit or to find a buyer, the U.K.'s Sunday  Times newspaper reports.

Ulster Bank has generated £2.5B of losses over the past two years despite accounting for under 4% of RBS's balance sheet. In 2013, the business also racked up 20% of RBS's bad debt charges.

The thinking is that combining Ulster Bank with the likes of Permanent TSB or the Irish subsidiaries of Danske Bank or KBC could allow the larger company to cut costs and challenge Ireland' leading players.