Royal Bank of Scotland's chief executive Ross McEwan has given a clear signal that he plans to retain ownership of Ulster Bank in the Republic.

"That market has been going well," Mr McEwan said in a questions and answers session with Bernstein Research in London. "If you look at just Dublin alone, the property prices are up 23 per cent over the last 12 months, which has helped us. But also the commercial property prices are lifting as well...

"But that's still a little bit of unfinished business yet to come out. But we are seeing a path for Ireland and what we do with that business, which is positive."

Last month, The Irish Times revealed that RBS was preparing to commit to Ulster Bank following a strategic review that considered a sale or merger of the business.

It is expected to provide clarity of its intentions when third quarter results are published on October 31.

Mr McEwan added: “Ireland is still be to answered for. We are down the path on that. My preference has been to hold onto that business.”

Ulster Bank returned to profit in the first half of this year.