Permanent TSB ‘turning a corner’ as loans division returns to profit

€100m of loans approved already this year, with €70m drawn down

Jeremy Masding group chief executive of Permanet TSB. “Our key message is that Permanent TSB bank is turning the corner.”

Jeremy Masding group chief executive of Permanet TSB. “Our key message is that Permanent TSB bank is turning the corner.”

Thu, Mar 27, 2014, 01:00


The customer-facing part of State-owned Permanent TSB bank is now back in profit, its chief executive Jeremy Masding said yesterday.

“Our key message is that Permanent TSB bank is turning the corner,” he said, referring to its so-called strategic business unit, which offers loans and other products to customers.

He said the bank’s asset management unit, which is handling loan arrears, would become profitable in late 2015 or early 2016 while the group as a whole (including its non-core assets) would not return to the black until 2017.

The Welshman also moved to dispel what he said was a “myth” that PTSB is losing hundreds of millions of euro on its Irish tracker mortgages.

“This is not true. The funding drag associated with trackers . . . is about €75 million. Of course, it’s a loss I’d much rather not have but it’s a fraction of the figures bandied around.”


External solutions
He disputed reports that “some form of external solution” to trackers needed to be found for PTSB. “We have always operated on the basis that we’re the people to manage and fund the tracker book that the bank wrote in the past.

“We can do it . . . we’ll quantify the cost, we’ll live with it and we’ll still make the bank profitable.” Mr Masding also told a media briefing there were no issues around the approval of its restructuring plan by the European Commission. This was first submitted in 2012 but has yet to be given the green light.

“We continue to have positive engagements with the relevant authorities and we expect the plan to be agreed in due course.”

He said PTSB has made good progress in its return to lending in Ireland.

About 58,000 new current accounts customers were signed up in the year to mid-March and it has lent €270 million over the past 12 months.


Mortgage arrears


He said the bank has approved loans of €100 million already this year, with €70 million drawn down to date.

On mortgage arrears, Mr Masding said long-term solutions have been offered to 21,700 customers, with 15,700 accepting. Of this, 7,000 split mortgages have been offered, with 4,500 accepted.

Mr Masding received a salary of €400,000 in 2013, up from €353,000 in 2012. This reflected the fact that 2012 was his first full year with the bank. His overall package declined by €3,000 to €457,000 last year.

Mr Masding received €57,000 in pension payments and taxable expenses last year, down from €107,000 in 2012.

Finance director Glen Lucken was paid €445,000 last year, comprising a salary of €375,000 and other payments of €70,000. Chairman Alan Cook received €188,000 compared with €200,000 in 2012. The aggregate remuneration of non-executive directors fell by €78,000 to €510,000.