In the 1830s Belfast had a population of 60,000. It was a growing port with a prosperous linen trade, yet it had few banks. Most of Ireland's banks were based in Dublin a full twelve hours away by stage coach. Ulster Banking Company was therefore conceived and set up by Belfast businessmen to meet the region’s need for a reliable local bank. It opened for business for the first time on 1 July 1836 in Waring Street, at the commercial heart of Belfast.

From the outset the new bank issued its own banknotes and was determined to open branches in all of Ulster’s main trading towns. Within a year it had eight branches - at Antrim, Armagh, Ballymoney, Cootehill, Downpatrick, Lurgan, Portadown and Enniskillen - and had appointed correspondent banks in London, Liverpool, Birmingham, Dublin and the United States of America.

During the next two decades eleven more branches were established in Ulster. Many of the bank’s customers were engaged in the booming Ulster linen trade, enabling it to flourish despite the effects of the devastating Potato Famine.

In 1860 Ulster Banking Company opened not only an impressive new head office in Waring Street, but also its first branch outside Ulster, at Sligo. These were signs that the new bank had a lot more growing to do. A big change of direction came in 1862, when the bank surprised its Belfast rivals by opening an office in Dublin, at College Green. Previously the bank had relied on its Dublin agent, Bank of Ireland, to watch over its affairs in the city but it was now much better placed to protect and expand its business.

Meanwhile the expansion of the northern branch network continued apace. Over the next twelve years Ulster Bank opened a further 24 successful branches. The rapid growth of the bank prompted the adoption of limited liability and the change of name to Ulster Bank Ltd in 1883.

The Dublin business proved profitable. A couple more city centre branches had already been opened in Baggot Street and Camden Street, when the bank's splendid new premises on College Green were unveiled in 1891. Ulster Bank also began to push out from Dublin into the south, establishing branches during the first few years of the new century in Wexford, Kingstown (later Dun Laoghaire), Cork, Waterford and Limerick.

By the outbreak of the First World War Ulster Bank was in an extremely competitive position. Measured in terms of its branches, deposits, assets and profitability it was out-performing its rivals. It even continued to open new branches throughout the war. Nonetheless the war years were difficult, with government controls and staff shortages. Many of the bank’s officials served in the forces, prompting Ulster Bank to employ women for the first time in 1915.

In 1917 consolidation in the UK banking sector, combined with the uncertainty created by the political upheaval which followed the Easter Rising, prompted Ulster Bank to seek amalgamation with London County & Westminster Bank of London. Terms were quickly agreed. Ulster Bank retained the same name and continued to be run quite independently by an advisory committee in Belfast.

After the war the turbulence, bank boycotts and raids which accompanied the 1922 establishment of the Irish Free State caused problems, but the political settlement of 1925 ushered in a period of greater stability. From the late 1920s Ulster Bank began to establish new products and services. A foreign department was established in 1926, thrift deposit accounts offered to small savers from 1928 and executor and trustee services provided from 1933. Nonetheless, Ulster Bank's growth was held back after 1929 by the effects of the world depression and the collapse of the Belfast linen and shipbuilding industries.

During the Second World War Ulster Bank was once again subject to government restrictions. Many staff enlisted and a number of Belfast branches were extensively damaged during air raids. However, as prosperity replaced austerity in the postwar years, Ulster Bank began to innovate, pioneering personal loans in Ireland in 1958 and opening Ireland's first drive-in bank in 1961.

During the 1960s many branches were renovated and new ones opened, particularly in the expanding residential suburbs of Belfast and Dublin. Ulster Bank became the first Irish Bank to introduce cash dispensers, open airport branches with extended trading hours and offer an early cheque guarantee card. The bank began to advertise widely and a new logo featuring an entwined U and B was adopted. During these years Ulster Bank also entered some entirely new fields, including unit trust management, hire purchase and factoring.

In 1968 Ulster Bank's parent bank, Westminster Bank, joined with another high street giant, National Provincial Bank, to create National Westminster Bank - the fifth largest bank in the world. The new bank's three-arrowheads brand mark was immediately adopted by Ulster Bank. The change in ownership ushered in a period of development for the bank and in 1969 Ulster Bank's profits exceeded £1 million for the first time.

During the 1970s the bank was inevitably affected by the troubles. Many branches were damaged by bombs - 55 in 1971 alone - and staff faced challenges in their day-to-day work. Nonetheless the bank continued to move forwards, diversifying into computer services and investment and offshore banking. It also introduced the new Access credit card scheme and mobile banks in rural areas. A larger head office was opened in modern premises in Donegall Place, in Belfast’s central business district.

In 1975 the group's involvement in hire purchase was considerably extended when it acquired the Irish interests of Lombard Bank and North Central Finance (both subsidiaries of National Westminster Bank). Meanwhile, the slogan 'the friendly bank' was adopted by the retail bank to underline its enduring commitment to great customer service.

The 1980s witnessed continuing progress. Technological advances allowed all the bank's branches to go online for accounting by 1983. In 1980 the 'Henri Hippo' savings scheme was launched. Its huge success raised awareness of the bank across Ireland and prompted the later introduction of further products and services for children and students.

In 1989 the bank launched the Ulster Bank Visa card. Later ATMs began to be provided in non-branch sites - Ulster Bank had the largest number in Ireland by 1995 - and it was the first bank in Ireland to issue the Switch debit card. Throughout the 1990s expansion of the branch network also continued, particularly in the Republic of Ireland.

Ulster Bank was well-placed to take advantage of the opportunities offered by the economic boom in the Republic of Ireland – ‘the Celtic Tiger’ – from the late 1990s. Prestigious new head office premises were opened in the Republic of Ireland at George's Quay, Dublin, in 1997 and in Northern Ireland at Donegall Square East, Belfast, in 2000.

Following the acquisition of National Westminster Bank by The Royal Bank of Scotland Group in 2000, Ulster Bank continued to operate independently within RBS. During 2001 Ulster Bank Group simplified its legal structure by transferring its banking business in the Republic of Ireland to Ulster Bank Ireland Limited in accordance with the Central Bank Act 1971. The following year it successfully met the challenges posed by the introduction of the Euro to the Republic.

Meanwhile, although stockbroking interests purchased by Ulster Bank in the 1990s were disposed of, growth continued. In 2003 First Active plc, Ireland's oldest building society, was acquired and continued to operate as separate brand. In 2005 Ulster Bank’s brand was changed to adopt the RBS daisy wheel.

Since October 2008 the crisis in financial markets, and deteriorating economic conditions across the world, have weakened many financial services organisations. Ulster Bank is no exception. In response to the changing market conditions, the bank has acted quickly and decisively to identify what went wrong and put plans in place to rebuild the success of the business.

During 2009 a major restructuring programme has taken place across the island of Ireland to ensure that Ulster Bank’s business is better aligned with the new environment. From early 2010 the bank will move to a single brand in the Republic of Ireland with the full merger of First Active into Ulster Bank.

As part of the RBS group, Ulster Bank is in a privileged position to have the support of the UK taxpayer while it works to rebuild its business. That privilege exists because of RBS group’s central role in the UK economy and society. Ulster Bank remains firmly focused on the needs of its customers and will ensure that it provides both business and personal customers with the highest standards of service and a commitment to do what it takes to retain their trust and loyalty.