Permanent TSB to cut branches

Permanent TSB is to close branches, reorganise its head office and cut operating expenses as it restructures the bank.

Chief executive Jeremy Masding is appearing before the Oireachtas Committee on Finance, Public Expenditure and Reform to outline the bank’s plans, updating the committee on its separation from the Irish Life insurance business. Progress on splitting the institution into a good bank and bad bank to manage bad loans is also on the agenda.

A full restructuring plan will be announced within a week, he said.

Committee chairman Alex White said the meeting wanted to raise the issue of the bank's high variable interest rate with Mr Masding.

"While Permanent TSB did cut its variable mortgage interest rate earlier this month, the rate remains relatively high, and we will be interested in finding out what impact this rate is having on mortgage arrears, and if the interest being charged to customers on variable rate mortgages is subsidising loss-making tracker loans," he said.