Loan business: Ulster Bank and First Active have different types of loan business which Royal Bank of Scotland will now hope to use to its advantage in this market.

Ulster Bank has 113 branch outlets in the Republic and also has nine sub-offices which have reduced opening hours.

It has a mix of corporate and personal clients with the greater being business banking. It lends to small and medium-sized businesses as well as to large corporate clients.

In recent times, the bank has been aggressively pushing its business in the small and medium-sized business area and in the property and investment sector.

First Active is more involved in personal banking although it has had a number of unsuccessful ventures into lending to the commercial sector. Last April, it appointed a receiver to two Galway construction firms to which it had loaned €28 million.

The bank has successfully grown its market share in the mortgage market in recent years. Yesterday the two banks said their combined mortgage business would make them the second-largest player in the sector although this may not be the case. Ulster Bank and First Active combined have 15 per cent of the market.

Mortgage market sources say Irish Permanent/TSB has approximately 25 per cent of the market fBank of Ireland group has 20 per cent plus and AIB is estimated to have 16-17 per cent.