Sunday 11 December 2016

PTSB boss says no executives at fault over tracker controversy

Published 10/03/2016 | 02:30

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

The head of Permanent TSB has said he could find no evidence of negligent behaviour by current executives at the bank after a mortgage scandal that saw dozens of people lose their homes.

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Jeremy Masding said about 90pc of cases have been resolved, with payments made to customers so far totalling about €40m.

The Central Bank is currently probing all banks to see if they wrongly took tracker mortgages from customers, in the wake of serious mistakes unearthed at Permanent TSB in August last year.

When customers opted to fix their mortgages they had expected to return to their low-priced trackers, but were denied this option.

"I could find no evidence of any negligent or wilful behaviour of any of the team that remains at PTSB," Mr Masding said yesterday.

"The CBI (Central Bank of Ireland) tracker review has started and that is a much more deep and longer review. At this moment in time, I have no reason to believe that my answer will change."

Mr Masding said €140m had been set aside to deal with the tracker issue, with €40m of this paid out to customers last year.

The remainder is a provision for what the Central Bank inquiry may require, plus the residual 10pc of affected cases.

"The net amount of that is what we think may or may not be paid depending on the outcome of the 10pc and the CBI tracker review," Mr Masding said.

He announced yesterday that the bank had returned to an underlying profit last year of €26m. This was before costs totalling €460m were taken into account.

The bank recorded mortgage lending growth of just 2pc last year and lending growth overall of 6pc. Mr Masding said he was confident that the bank's customer loan draw-downs would improve.

Irish Independent

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