Permanent TSB to increase lending fivefold
Permanent TSB has promised to increase its personal lending targets fivefold in 2013 to €450 million, up from €90 million last year.
Group chief executive Jeremy Masding said the bank’s lending capacity in key product areas such as mortgages, personal loans and credit cards would all increase this year.
The bank plans to lend €350 million in mortgages, €100 million in personal lending, including car loans, and €5 million in new credit card finance.
Mr Masding said the bank’s ability to finance new lending followed the doubling in size of its deposit book to approximately €12 billion over the past few years and “significant progress” in its restructuring plans during 2012.
“We will continue to increase our provisions linked to historic lending but they are in line with the scenario laid out in our restructuring plan and we’re making great progress in implementing that plan,” he said. He said the bank’s restructuring plan meant it wouldn’t have to wait until it had worked through its impaired loan accounts, a process that would take “many years”, before it could lend again.
“Our restructuring plan is based on a twin-track approach whereby we return to lending into the Irish economy at the same time as we continue to work through the legacy issues of impaired loans and arrears.”
Mr Masding said “bank’s make money by lending so it’s imperative that we return to sustainable, sensible and profitable lending as soon as practicable and we are committed to doing so this year.
“Our key aims are to re-establish Permanent TSB as a significant third player in the Irish banking market and to return to profitability in 2016. We are well on our way to achieving those targets.”