The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksIL0A.L Share News (IL0A)

  • There is currently no data for IL0A

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Ireland's PTSB operating profit falls on impairment charge

Wed, 14th Mar 2018 08:20

By Padraic Halpin

DUBLIN, March 14 (Reuters) - Full year underlying profits atIreland's permanent tsb (PTSB) fell 65 percentyear-on-year as the bank took a higher impairment charge aheadof a controversial sale of non-performing loans (NPLs).

The bank's 3.7 billion-euro sale of a portfolio includingsome 14,000 home loans sparked vocal political opposition lastmonth and possible legislative changes to protect borrowers ifloans are sold to non-banking entities.

PTSB has come under particular pressure from Europeanregulators to cut its high level of NPLs and said on Wednesdaythat they had fallen by 600 million euros to 5.3 billion,representing a slightly lower 26 percent of its total book.

It has targeted a reduction of NPLs to below 10 percent ofits loan book by 2021 or sooner.

"I understand of course the view point of people who haveeither criticised us or have a different perspective," PTSBChief Executive Jeremy Masding told the Newstalk radio station.

"Since 2012 we have used all the options available to us.We're not short of managerial focus nor compassion, what we'renow short of is options."

The 75 percent state-owned mortgage lender reported apre-exceptional operating profit of 65 million euros, down from188 million euros a year ago. In 2016 it clawed back 65 millioneuros from money put aside for bad loans whereas it booked animpairment charge of 48 million euros last year.

Shares in the bank were 4.6 percent lower at 1.85 euros by0815 GMT.

New lending surged by 74 percent in that period, increasingthe bank's share of the mortgage market to 12.6 percent from 9.1percent in 2016, within striking distance of the 13-17 percentlevel it targeted to capture by the end of 2018 when re-listingon the stock exchange three years ago.

PTSB's core Tier 1 capital ratio stood at 15.0 percentversus 15.3 percent as of the end of September under fullyloaded Basel III industry rules.

The bank said the strong capital base gave it the capacityto manage down its NPL ratio but that it will have to carefullymanage any impact from the execution of the NPL strategy.

"Real progress is being made on new lending volumes and NPLdeclines, with capital also holding up well, but there are stillconcerns over asset quality given the higher impairment charge,"Investec Ireland analyst Owen Callan said.(Reporting by Padraic HalpinEditing by Keith Weir)

More News
No IL0A.L news headlines at present.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.