Ulster Bank chief executive, Mr Martin Wilson, has announced a restructuring of its Irish operations, merging many of its activities in Northern Ireland with those in the Republic.

The bank is to create a separate retail and business banking division which will operate alongside Ulster Bank Capital Markets.

The retail and business banking operations will be split into two units, with each focusing on their defined customers base and will be headed by Mr John McNally. The bank's regional director of its northern region, Mr Gerry Simms, will become director of the retail banking arm and will be responsible for the Ulster's branch network throughout the island of Ireland.

Mr Richie Boucher, regional director of its operations in the Republic, will take on the role of director of business banking with responsibility for business lending in the Republic and the North of Ireland. He will also lead the bank's inward investment team and the invoice discounting companies. Mr Bernard Kingston, chief executive of Lombard & Ulster, will retain responsibility for Lombard & Ulster companies in Ireland. Mr Robert McKay, chief executive of Lombard & Ulster Limited, becomes regional general manager of Ulster's retail banking operations in the northern region.

The Ulster Bank Capital Markets division will be headed by Mr Paddy McMahon. This division will encompass Ulster Bank Group Treasury, Ulster Bank Investment Division, NCB Stockbrokers and the private clients business Cunningham Coates. It will also include a specialised corporate and institutional lending unit which will serve larger corporate customers and incorporate the bank's specialised finance business at Dublin's International Financial Services Centre.

Speaking to The Irish Times, Mr Wilson said the bank is "absolutely committed" to NCB Stockbrokers, the firm which recently lost a number of key personnel. Ulster Bank is currently recruiting staff and expects to have a new team in place within the coming weeks, he said.

Mr Wilson also stressed that its parent, National Westminster, is not in talks with anyone about selling Ulster Bank. It has been suggested it may be interested in selling its Irish operations with groups such as Irish Life & Permanent likely to be interested in acquiring them. "Nothing has changed. NatWest is not interested in selling Ulster Bank," Mr Wilson said.