Permanent TSB has completed the "milestone" sale of its remaining loan book in the UK as the bank finishes its deleveraging programme.
The deal will allow the bank, which the Government has a 75pc stake in, to focus on the Irish retail and SME market. The deleveraging programme was a core condition of the bank's Restructuring Plan agreed for the group by the European Commission.
PTSB is selling £2.29bn (€2.56bn) worth of loans to an affiliate of Cerberus Capital Management. Last year a Cerberus affiliate acquired around half of the CHL loan portfolio as well as the associated legal entity, Capital Home Loans Ltd.
The agreement announced today compromises of the total balance of the residual book of the bank's former UK subsidiary, Capital Home Loans.
Morgan Stanley advised on the deal, which is set to net around £1.95bn in proceeds from the sale. The bank said the profit from the sale will be used to reduce its debt.
Chief executive Jeremy Masding described the deal as a "milestone event" for the group.
"Its completion in the coming weeks will conclude the very ambitous deleveraging programme of some €8.4bn which was set out for the Group under the Restructuring Plan agreed with the European authorities.
"Perhaps most importantly, it will complete our pivot to the Irish retail marketplace and allow us to focus exclusively on growing our commercial position in key segments of the market here. That is now our overriding priority, as Ireland’s only pure domestic retail and SME bank.”