IL0A.L Regulatory News (IL0A)

10 November 2021

PERMANENT TSB GROUP HOLDINGS PLC

SALE OF LOAN PORTFOLIO

Permanent TSB plc ("PTSB", the "Bank"), a wholly owned subsidiary of Permanent TSB Group Holdings plc has agreed the sale of a loan portfolio (the "Portfolio") to Morgan Stanley Principal Funding, Inc. ("Morgan Stanley").

Morgan Stanley intends to securitise the Portfolio following completion of the acquisition next year (2022). Neither the sale nor the securitisation of the Portfolio will have any impact on the terms and conditions of individual loan accounts. Existing terms and conditions are unaffected by this transaction, and will continue to apply.

As has been the case with previous loan sale and securitisation transactions undertaken by the Bank, all customers whose loans are included in this transaction will continue to have the same regulatory protections under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA) after the sale.

The loans within the Portfolio will continue to be serviced by PTSB for a period of up to six months. At the end of this period, legal title and loan account servicing will transfer to Pepper Finance Corporation (Ireland) DAC trading as Pepper Asset Servicing ("Pepper"), which is regulated by the Central Bank of Ireland (CBI).

This transaction will increase the Bank's transitional Common Equity Tier 1 (CET1) Ratio by c. 60 basis points once fully completed. This transaction also alleviates the negative impact of calendar provisioning associated with this Portfolio and reduces the Bank's NPL ratio.

Details of the Portfolio and Transaction:

The transaction involves the sale of a pool of loan accounts linked to 1,222 borrowing relationships (a borrowing relationship can be a single borrower or two or more joint borrowers).

In total the Portfolio has a gross balance sheet value of c. €390 million. Loans to the value of €223m (57%) were originated as Home Loan (PDH) products and loans to the value of €167m (43%) were originated as Buy-to-Let (BTL) products.

98% of loans are categorised as non-performing by reference to regulatory definitions.

The remaining 2% comprise loan products which originated pre 2009 and which are no longer available to new customers. Typically these are Interest Only or Part Capital & Interest loans where the borrower and the Bank have failed to agree a plan which will ensure the repayment of the outstanding balance (often the original amount which was borrowed) at the end of the agreed loan term.

Post Transaction Loan Servicing:

The terms and conditions of individual loan accounts, including any "Alternative Repayment Arrangements" agreed between customers and Permanent TSB remain unchanged and will continue to apply post the transfer to Pepper. The Bank is writing to all customers, whose loans are included in the transaction, to inform them of this development.

The Bank continues to work with its residential mortgage customers who are in arrears to implement sustainable solutions. These include restructuring loan repayments, payment breaks and Mortgage to Rent. Over 48,000 mortgage customers, including over 38,000 home loan customers have availed of these solutions.

Customers can contact our dedicated team on 021 6014710. Our lines are open from Monday to Friday 9am until 5pm (excluding public holidays).

Ends

Note on forward-looking information:

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group undertakes no obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.