Permanent TSB 'turning a corner,' pre-tax losses down to €668m
LENDER Permanent TSB is turning a corner, chief executive Jeremy Masding said today, announcing the company's 2013 results.
"Our key message is that permanent tsb bank is turning the corner. I’m delighted to be able to confirm that the permanent tsb Strategic Business Unit – effectively our customer-facing business – is now trading profitably,” he said.
He also said the lender has had no contacts with Ulster Bank about any possible tie-ups or mergers with the focus on returning his own bank to profit, he told reporters.
The bank continues to make losses on its so called non-core units.
Improving market conditions mean the bank will look to sell off its boom era Irish commercial property loans linked to builders and developers in the near term, he said.
In the mortgage market the banks said it believes arrears have peaked in both Irish residential mortgages and buy to let loans.
Pre-tax losses were down to €668m from €919m, the company said.
The lender also announced impairment charges on loans and advances to customers of €927m, up 5pc.
Exceptional items hit €309m - Permanent TSB added that this figure included the impact of the wind-up of the defined benefit pension schemes and restructuring costs.
The lender said this reflected changes in the Group’s impairment provisioning methodology which included the implementation of the May 2013 CBI guidelines and the outcome from the Balance Sheet Assessment.
At the end of last year, a balance sheet assessment carried out at the request of the Central Bank said the lender needed to do more to address problem loans.
While the assessment did not indicate that PTSB would need further capitalisation, it will undergo rigorous stress tests later this year as part of the European Central Bank review.