Ulster Bank owner Royal Bank of Scotland (RBoS) has said the group is ready to seize any acquisition opportunities in Europe.
In an interview with French daily Les Echos, Sir Fred Goodwin said consolidation of the European banking sector will accelerate in the coming years, as larger US banks begin looking to expand in Europe.
He said RBoS will take a proactive role in this consolidation but added that he does not believe that hostile takeovers lead to sufficient value creation.
Mr Goodwin also said RBoS aims to expand its business in China, but will avoid investments in either Latin America or Africa. "These markets are too volatile," he said.
RBoS will also keep out of investment banking, since this could lead to conflicts of interest with other operations, Mr Goodwin said.
He refused to comment on whether RBoS was looking for a new partner in Spain, following the merger of Banco Santander Central Hispano, which holds just over 5 per cent of RBoS, with Abbey National.