Permanent TSB Completes Second Major Transaction To Reduce Further Its Non-Performing Loan Ratio

29 Nov 2018



Permanent TSB Completes Second Major Transaction To Reduce Further Its Non-Performing Loan Ratio




Thursday 29th November 2018




·       Permanent TSB (“PTSB”) has today completed Project Glenbeigh, its second major transaction to reduce its Non-Performing Loan (NPL) ratio.



·       This transaction involves the sale of a pool of NPLs through a securitisation. The mortgage loans involved are linked to 6,272 borrowing relationships (a borrowing relationship can be a single borrower or two or more joint borrowers).  All bar 133 of the borrowing relationships are secured by PDH loans. The securitisation vehicle in this transaction is Glenbeigh Securities 2018 – 1 DAC.



·       The mortgage loans have a gross value of c €1.3 billion and a net book value of c €0.91 billion.



·       The nature of this securitisation, and the transfer of mortgage loans is similar to a loan sale.

·       The resultant impact on customers is that, after the transfer date (circa 6 months from now), their loan will no longer be serviced or owned by PTSB.



·       The loans will continue to be serviced by Permanent TSB for a period of up to 6 months.

·       Permanent TSB will continue to be the contact point for customers during this period.

·       NPLs included in the securitisation are considered non-performing by reference to regulatory definitions.  These loans have been restructured and, are operating in line with restructuring arrangements agreed between PTSB and the relevant account holders.

·       After completion of the transfer, Pepper Finance Corporation (Ireland) DAC (Pepper Ireland) will hold legal title to the loans.  In addition, it will act as servicer and administrator handling all of the day-to-day management of these loans.

·       All of these customers will continue to be covered by the protections of the Central Bank’s consumer protection codes and regulations.

·       The terms of the existing restructuring arrangements, including alternative repayment arrangements agreed between customers and PTSB, will be unchanged.  This will remain the case if customer circumstances do not change

·       PTSB has received confirmation from Pepper Ireland that post-transfer, when an arrangement is up for review, Pepper Ireland will engage with customers to review their individual situations, will work with them to understand if their circumstances have changed (i.e. improved or dis-improved) and, where possible, identify the best long term sustainable solution in a way that is right for their situation.



·       PTSB is writing to all customers whose loans are included in the transaction to advise them of this development.   We are opening a dedicated phone line for customers who have any queries on receipt of our letter.



·       Customers can contact us on our dedicated phone line at 1890 500 223 or 021 601 3855. Our lines are open from Monday to Friday 9am until 8pm (excluding Bank Holidays) and Saturday 9am until 1pm. We will extend our opening hours on Saturday 01st  December and Saturday 08th  December until 5pm. In addition, we will extend our weekday opening hours until 10pm up until Friday 7th December.



     Further information for customers is available on the PTSB website (




Comment by Permanent TSB Chief Executive Jeremy Masding:


“This transaction enables Permanent TSB to reduce its Non-Performing Loan

ratio  and,  to  ensure  it  can  grow  and  compete  in  the  years  ahead.  Whilst  this  has  been  a necessary step, we have sought to ensure that the protections of customers will be maintained as part of this transaction.



In respect of the loans which are included in this transaction, the terms of any Alternative Repayment Arrangement agreed by the relevant account holders with Permanent TSB form part of the Terms and Conditions of the loans and will therefore continue to apply to the loan.



Pepper Ireland is regulated by the Central Bank of Ireland and all statutory codes of conduct relevant to these loans will continue to apply, meaning that all existing consumer protections will remain in place.



The successful conclusion of this transaction reinforces the solid progress we are making in both reducing the NPL ratio and, strengthening the Bank’s ability to provide strong and much-needed competition in the Irish Retail and SME Banking market”.




The Chief Executive of Permanent TSB and the Chief Executive of Pepper Ireland have today jointly written to the Chairman of the Joint Oireachtas Committee on Finance, Public Expenditure and Reform and Taoiseach to outline the details of the transaction and to confirm their willingness to meet with the Committee to discuss the transaction if it wishes them to do so.

Loan Breakdown


Borrowing Relationships                                                                    


Loans linked to 6,272 Borrowing Relationships [Note: A borrowing relationship may be a single borrower or two or more joint borrowers).

Of Which

-   6,139 Borrowing Relationships secured by PDH loans

-   133 Borrowing Relationships secured by BTL loans

 Treatment Types In Place


4,046 are in Split Mortgage Treatments with a warehouse amount due at the end of the term.


2,226 are in Part Capital and Interest (PCI) Mortgage Treatments which have an outstanding principal sum due at the end of the term.



Further Information


    Citibank is the Arranger and Lead Manager for this transaction.




    The transferred NPL portfolio has a gross balance sheet value of c €1.3 billion and a net book value of c €0.91 billion.  The NPL portfolio carries a risk weighing of c €0.91 billion.  In the year to December 2017, the portfolio generated an operating income of c €4 million.  At completion, the Bank will receive a consideration of c €0.89 billion.  The proceeds will be used for general corporate purposes.


    This transaction, together with Project Glas (which was announced in July), when completed, is expected to reduce the NPL ratio for c26% at 1 January 2018 to less than 10%.  The Glenbeigh transaction is expected to increase Common Equity Tier 1 (CET 1) ratio by c .30 basis points on a transitional basis, subject to regulatory approval.





Issued on behalf of Permanent TSB by Gordon MRM




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