Business Irish

Wednesday 24 May 2017

UK lawyer is new Permanent TSB chairman

Lender Permanent TSB. Photo: Collins
Lender Permanent TSB. Photo: Collins

Gretchen Friemann

Permanent TSB, has named top UK lawyer Robert Elliott as its new chairman ahead of its annual results presentation in Dublin today.

The bank confirmed Mr Elliott, a veteran financial restructuring litigator, who spearheaded a £12bn rights issue for Royal Bank of Scotland in 2008, will succeed Alan Cook at the end of March.

While the leadership change had been flagged six months ago, the news provided a fillip to PTSB's shares, which closed up 5c to €2.80.

The appointment comes as PTSB - still majority-owned by the taxpayers - attempts to navigate a period of transition, as it grapples with legacy issues from the financial crisis as well as steer a path to further growth.

PTSB returned to profitability for the first time since 2007 at the end of June. But that milestone is likely to be reversed by the impact of a £2.29bn loan-book sale to the US private equity fund, Cerberus Capital Management, in November.

In a recent note to clients Goodbody stockbrokers predicted PTSB will post a pre-tax loss of €155m but argued its underlying business will return a profit of €188m.

Regulatory costs and the bank's ability to gain market share are also likely to be under scrutiny.

The bank's ceo Jeremy Masding described Robert Elliott, as one of the outstanding lawyers of his generation" with "an exceptional expertise in banking".

Elliott appointment also reinforces the number of UK bankers in the upper echelons of PTSB.

Alan Cook and Mr Masding are also from the UK.

Irish Independent

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