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PERMANENT TSB has welcomed the government and Troika’s approval for its restructuring plan which will see its loan portfolio split and the creation of a separate Asset Management Unit.
Under the plan, which PTSB says it will submit to the European Commission by the end of June, the bank’s loan book will be divided into performing and non-performing loans.
The bank says it will ‘carve out’ a viable bank from its current business: “The plan will create a viable, customer focused and competitive retail bank capable of resuming normal lending into the Irish market.”
The group’s UK operation will continue as a stand-along unit within the overall group with a loan book of around €7.1 billion. PTSB’s loan book will be around €14.2 billion, and the new asset management wing AMU will have a book of around €12.5 billion.
‘Viable bank’
The bank’s chief executive Jeremy Masding said in a statement that it is “clear that within the current business, there is the potential to develop a customer focused, profitable and competitive player in the Irish market.”
Speaking about the latest Troika review of Ireland’s bailout agreement today, Finance Minister Michael Noonan said that PTSB has the makings of a sound, profitable, retail bank and it would be a tragedy if it is not made profitable again.
“The objective of this plan is to create a viable retail bank focused on lending into the Irish economy,” he said.
Fianna Fáil’s finance spokesperson Micheal McGrath TD said that the bank’s restructuring provides an opportunity to introduce a reduction in the interest rate the bank is charging on its standard variable rate mortgages.
“The penal interest rate being charged is crippling thousands of ordinary Permanent TSB customers around the country, who are effectively trapped because they can’t transfer their mortgage to other banks,” he said today.
“If Permanent TSB is to become a viable, retail bank meeting the needs of the economy, it will need the goodwill of its existing customers and of wider society. It is in the bank’s interest to address the anomaly of its standard variable rate and to give some much needed relief to hard pressed families.”
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And dump its financial crap on the taxpayer. But oh no we couldnt have mortgage write downs for regular home owners. The cost of this alone would probably give back financial control to thousands of people who made much less investment error than the so called professionals.
Exactly ! How much will this buy out cost us this time ?
Hopefully they now reduce their SVR by 1.5-2% so that I can spend some of my hard earned cash on myself and family
Hopefully the PTSB will now lower their disgraceful SVR to the same amount as the other state owned bank AIB.. this bank has got some amount of help from the government its the least they could do for us…
It’s a nice thought, but in reality PTSB don’t give a flying f€ck about the mortgage customers being screwed on their SVR and neither do the government.
I’d love to be proven wrong on this but I won’t be holding my breath and I say that as one of those customers.
So will the Government do the same for me? Take my debts, leave me with my assets and money and I can live happy ever after?
How worst off could we be if we just left these banks which are no different than any business, go under?
Move the trackers to IBRC or the “formerly known as Anglo” bank .. The same bank FG said they’d disband if we voted them in. Will they reduce the SVR now as it was kept high to pay for the costly trackers. Will it be trackers which are 0.5% -1% above ECB rate and still performing or just those in arrears? Either way the taxpayer is straddled with the burden while the bank can massage its books to look profitable.
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