PTSB Announces Sale Of Non-Performing Loans

31 Jul 2018

Following a competitive sale process, Permanent TSB (“PTSB”, “the Bank”) has agreed to sell a Non-Performing Loan (“NPL”) portfolio (“Glas”) to the retail credit firm Start Mortgages DAC (“Start Mortgages”), supported by LSF Irish Holdings 97 DAC, both affiliates of the Lone Star Funds. Start Mortgages has been authorised by the Central Bank of Ireland since November 2008 and will become the servicer of the loans when the transaction completes later this year. PTSB was advised on the transaction by EY and Mason Hayes & Curran. 


The portfolio has a gross balance sheet value of c.€2.1 billion and a net book value of c.€1.3 billion. In the year to December 2017, this loan portfolio generated operating income of c.€8 million. At completion, PTSB will receive cash consideration of c.€1.3 billion. The proceeds will be used for general corporate purposes.


This transaction will reduce the overall NPL ratio at PTSB from c.25% to c.16% and increase the Common Equity Tier 1 Ratio by c.200bps.


Speaking today, Jeremy Masding, Chief Executive of PTSB said that protections which exist for homeowners transfer with a loan when it is sold. Mr Masding said that “Customers will continue to be afforded the protection of existing regulatory protections after the transfer”. 


In addition, Mr Masding commented that the Bank remained committed to reducing its NPL ratio to single digits in the near term, saying: “reducing NPLs is a necessary step for us to take to complete the rebuilding of PTSB as a viable, competitive lender.”


Glas Portfolio Characteristics


Contains non-performing loans linked to a total of c.10,700 properties made up of 3,300 Buy-To-Let Properties and 7,400 Private Dwelling Houses (‘PDHs’). PDHs are primarily made up of: 


  • 2,500 classified as accounts deemed “Not Co-Operating”
  • 3,850 classified as accounts which have refused treatments or where the account has failed to operate in line with the agreed ‘Treatment’
  • Average arrears time of loans in the portfolio is 3.5 years (days past due) 
  • Average arrears value of loans in the portfolio is €28,800
  • Average value of a loan in the portfolio is approximately €175,000



Further Information:


  • PTSB has reduced its NPLs by c. 70% (including the Glas portfolio) since 2013
  • PTSB has offered long term treatments to over 40,000 customers on a case-by-case basis based on individual circumstances
  • PTSB continues to engage with customers in default by various means including Mortgage-To-Rent schemes
  • PTSB is committed to delivering on its NPL reduction strategy in line with the European average as per regulatory guidelines whilst protecting capital

PTSB will now begin contacting relevant customers to inform them that their loan(s) are being transferred, and to confirm that existing legal and regulatory protections continue to remain in place.





For media queries, please contact:


Ray Gordon 
Gordon MRM



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.





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