Tuesday 12 December 2017

Mortgage lender Permanent TSB laying off 250 staff, shutting branches

Permanent TSB on St Stephen's Green in Dublin
Permanent TSB on St Stephen's Green in Dublin
Charlie Weston

Charlie Weston

MORTGAGE lender Permanent TSB is laying off 250 staff, shutting branches and boosting its efforts to collect loan arrears.

The bank said the restructuring moves were part of plan to get back to a situation of making a profit again by 2016.

The group also announced plans to reorganise its head office and said it wants to reduce operating costs by 10pc.

It will reconfigure itself into three business units: Permanent TSB, an asset management unit and its UK mortgage loan business, CHL.

The asset management unit is being used to take over €12.5bn of loss-making tracker mortgages and other loans that are not profitable, with this unit eventually to be sold or moved to another bank.

Permanent TSB, which currently operates 92 branches across Ireland, said that it was closing16 branches, with another two branches to become self-service locations.

It added that is closing one of its Dublin city centre branches, but it will invest in a nearby branch to create a flagship site in the capital.

The bank said it intended to implement its restructuring programme “as a matter of urgency”.

It intends to launch a voluntary severance scheme based on three weeks’ pay per year of service plus statutory entitlements, it said.

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