Wednesday 24 April 2019

Permanent TSB to pull over 4,000 homes from loan sale

Photo: Stock Image
Photo: Stock Image

Charlie Weston & Ellie Donnelly

PTSB has confirmed that it is withdrawing around 4,300 homes linked to performing split mortgages from its €3.7bn sale of distressed loans.

The move was first reported in today’s Irish Independent.

The number of properties now included in the sale is approximately 11,200, down from 18,000 originally.

With a split mortgage what is owed is divided in two. Repayments on a portion of the loan are put on ice until a future date, with agreement with the homeowner to make payments on a portion of the loan.

The deals are offered to those who are unable to meet full payments, with the arrangement reviewed at set periods.

Commenting on the decision, Jeremy Masding, CEO of Permanent TSB, said that since the launch of the Project Glas loan sale there had been some developments including engagement with the Regulatory Authorities on the treatment of split mortgages and "the emergence of solutions which could enable us to maintain the day-to-day relationship with the account holders."

"Therefore, we have decided to withdraw mortgages linked to about 4,300 homes valued at aroundy €0.9bn from the Project Glas sale process."

"We will continue our engagement on the regulatory classification of these mortgages and, at the same time, we will explore different options including ones that enable us to maintain the day-to-day relationship with the account holders," Mr Masding said.

During the first three months of 2018 non-performing loans at the bank reduced by 2pc or €0.1bn to €5.2bn, the bank confirmed in a trading update ahead of its AGM today.

New mortgage lending at the bank grew by a massive 63pc year-on-year as the overall mortgage market grew by 22pc. As a result the bank’s market share of mortgage drawdowns increased to 14pc.

Describing the business performance as continuing to “trend positively in line with expectations,” the volume of new leading of €300m was up 60pc year-on-year when compared to the first three months of 2017.

Meanwhile the bank reported a slightly weak net interest margin of 1.76pc, which the bank said was impacted by a reduction in income from treasury assets.

While the banks proforma transitional common equity tier 1 ratio decreased to 15.9pc, compared to 17.1pc at 31 December 2017.

Overall the bank said that its customer deposits remain stable at €16.9bn, and in line with December 2017 figures.

Gross loans at 31 March 2018 amounted to €20.4bn, reducing by €0.2bn, or 1pc, from December 2017, as repayments and redemptions exceeded new lending, together with the reduction in non-performing loans.

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