Your business this week: Permanent TSB on right course and business as usual at INM
Plus Irish retail sales, ICG results and overseas travel
Permanent TSB: First half results on Wednesday. Photograph: Alan Betson
Results: Aralez Pharmaceuticals.
Indicators: German business climate, current conditions, expectations (Aug).
Indicators: Irish retail sales (Jul); Euro zone loan growth and money supply (Jul); German import prices (Jul); US consumer confidence (Aug).
Results: Permanent TSB, Guess.
Indicators: Irish overseas travel (Jul); UK house prices (Aug); German consumer confidence (Sep); US mortgage applications and rates (Aug), pending home sales (Jul), GDP (Q2).
Permanent TSB appears on right track
Permanent TSB reports first half results on Wednesday when virtually all discussion about the lender continues to be around non-performing loans.
The bank, still 75 per cent State owned, appears to be on the right financial course. Late last month details emerged of plans to sell its controversial Project Glas portfolio to Start Mortgages at a price of about €1.3 billion. It includes about 10,700 NPLs, including thousands of owner-occupier mortgages.
In a note ahead of the results, Davy said it expected H1 profitability to be relatively in line with that of last year (about €45 million), meaning the near-turn focus remains firmly on residual NPLs.
“The sale of €2.1 billon of residential mortgage NPLs is to conclude in H2 and it is guided to reduce PTSB’s NPL ratio from 25 per cent to 16 per cent (€3bn),” Davy said. “This implies at least a further €0.1 billion of underlying NPL reduction during Q2, similar to that achieved in Q1.”
The bank’s share of new mortgage flow rose to about 14 per cent by the beginning of the year.
Earlier this month, it was announced that group commercial director Mark Coan is to leave the bank at the beginning of October.
Indicators: Euro zone business confidence (Aug), service sentiment (Aug), consumer confidence (Aug), consumer inflation expectations (Aug), economic and industrial sentiment (Aug); UK consumer credit (Jul), lending to individuals (Jul), mortgage lending and approvals (Jul); German unemployment (Aug), inflation (Aug); US personal income and spending (Jul).
Results: Independent News & Media.
Indicators: Euro zone inflation (Aug), unemployment (Jul); UK consumer confidence (Aug); German retail sales (Jul).
Business as usual at INM pending court decision Management at Independent News & Media (INM) are still awaiting a decision by the High Court on whether to grant the Office of the Director of Corporate Enforcement (ODCE) permission to place investigators in its offices.
The controversy surrounding revelations of a major data breach at the media company rumbles on but elsewhere it must remain business as usual – interim results are due on Friday – in order to maintain operations in a continually turbulent media environment.
Results for 2017 published last March showed a decline in profits of almost 32 per cent with advertising, circulation and distribution revenues all down.
At that stage chief executive Michael Doorly said the numbers were a reflection of the “major challenges” facing the industry and signalled a full review of operations including how it might charge for its digital content. Access to the INM website is currently free in a digital era in which various revenue models have been tested by media outlets.
Mr Doorly noted a need to win the business of a younger generation of news consumer more likely to accept the idea of paying for online subscriptions.
In 2017, as internal disputes engulfed the company, leading to the departure of former chief executive Robert Pitt, the newspaper publisher saw pre-tax profits fall by 31.8 per cent to €28.5 million, down from €41.8 million in 2016.