PTSB records net loss of €54m for first six months of year

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Digital Desk staff

Permanent TSB (PTSB) slid into loss for the first six months of the year as the mortgage bank reported a €54 million net loss for the period.

This was compared to a €21 million profit for the same period in 2019, according to its interim report published today.

The bank has set aside €75 million to cover an expected surge in bad loans as customers struggle with the Covid-19 economic crisis.

“As customers embraced the Government imposed lockdown, the bank saw new business volumes and transactional banking activities reduced to levels lower than the bank has seen in recent years,” said group chief executive Eamonn Crowley.

He added that volumes have increased again as the economy has reopened.

“The severity and duration of the Covid-19 pandemic and its impact on the economy remains unpredictable,” he said.

“However, I am confident of the bank’s ability to remain resilient, to continue to support our customers, colleagues and communities building on our well established franchise in the Irish market.”

Payment breaks

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Due to the pandemic, 10,500 PTSB mortgage holders have availed of temporary payment breaks, with a total €1.6 billion or 10 per cent of the bank’s total mortgage book subject to mortgage breaks.

Half of borrowers on this initial three-month payment break are not availing of a three-month extension according to the bank.

PTSB’s new lending reduced by €600 million, or 16 per cent, in the first six months of the year as the pandemic took hold.

However, the bank is optimistic about its activity levels – though new lending is expected to be around 40 per cent lower than in 2019, PTSB said “the reopening of the economy, recent declines in unemployment data, the resilience of the housing market and a Government Stimulus Programme now in place, shows more encouraging indicators than previously anticipated.”

Capital has been assessed under a range of scenarios and remains “well above the Bank’s minimum regulatory requirements”.

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