Minister Noonan welcomes Permanent TSB’s FY14 results and plans to raise capital from private sources

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  • Permanent TSB’s pretax losses have reduced by 93% (€620 million) to €48 million
  • Impairment write-backs of €42 million compare favorably to an impairment charge of €929 million in 2013
  • New mortgage lending of €429 million was achieved, up 105% from €209 million in 2013
  • Permanent TSB has announced the deleverage of €3.2 billion of non-core UK buy-to-let loans and €1.5 billion of non-core Irish CRE loans
  • Permanent TSB has received approval in principle for its restructuring plan
  • Permanent TSB to raise capital from private sources to repurchase €400 million CoCo instrument and fully address the capital shortfall identified in the ECB’s Comprehensive Assessment 

 

Welcoming Permanent TSB’s plans to raise capital from private sources, the Minister for Finance, Michael Noonan T.D stated:

“The plans announced today by Permanent TSB to raise capital from private sources are the first step in returning the bank to private ownership and will allow the State to recoup approximately €400 million of the €4 billion invested during 2011/2012 in Irish Life & Permanent (now Permanent TSB).

DG Comp’s approval in principle of the restructuring plan and the significant progress announced today in deleveraging its non-core portfolios underpins the bank’s viability and provides further clarity to potential private equity and institutional investors in the capital raise process.

It is expected that the capital raise will protect existing minority shareholders as much as possible, including allowing them to invest on the same terms as new investors.”

Commenting on the details of Permanent TSBs results, Minister Noonan stated:

“Permanent TSB has made strong progress since the new management team was appointed in 2012. I welcome the vast improvement Permanent TSB has made in reducing the levels of arrears, particularly Homeloan greater than 90 day mortgage arrears, which have reduced by 7,055 accounts or 33% from peak levels in late 2013. Further work is required to ensure the progress made during 2014 is sustained.

Permanent TSB is also providing much needed competition in the Irish Banking sector, and the new mortgage lending levels of €429 million in 2014 highlight this.”

 

Ends

11 March, 2015