Dáil Éireann Debate, Wednesday - 5 November 2014
24. Deputy Pearse Doherty asked the Minister for Finance when the EU Commission will make a decision on the restructuring package for Permanent TSB and his plans for the bank following the ECB stress tests. [41741/14]
View answerThe Permanent TSB restructuring plan submitted in Autumn 2013 is now outdated and is in the process of being updated for both recent positive financial and operational performance in 2014 and the results of the Comprehensive Assessment. My officials have been in discussions with the European Commission over recent weeks and they expect Permanent TSB to formally lodge an updated restructuring plan shortly.
Separately Permanent TSB will submit a Capital Plan to the ECB by 9 November 2014 detailing how they propose to meet the capital shortfall arising in the Adverse Stress Test scenario of the Comprehensive Assessment.
As the Deputy is aware Permanent TSB is an important bank in a highly concentrated Irish market and has 13% market share of both retail deposits and mortgage lending.
While no restructuring plan has been approved, Permanent TSB has made significant progress in delivering key elements of the Restructuring Plan submitted over the last year and the business is being managed structurally in the way envisaged in the plan. Permanent TSB has made steady progress on returning to operating profitability, has significantly de-risked its balance sheet through a sale of a tranche of its UK mortgage portfolio and the sale of Springboard Mortgages and has reduced 90 day plus mortgage arrears by c 25% year-to-date.
Permanent TSB continues to work to enhance the value of our investments through the continued delivery of the restructuring plan. The current strategy is for Permanent TSB to be an independent bank, competing within targeted segments of the retail banking market, and I will continue to support the board and management in the delivery of that strategy.
