PTSB restructuring to include branch closures
Permanent TSB are to announce a restructuring plan within the next week which will include branch closures and other changes.
Chief executive of the bank Jeremy Masding has told an Oireachtas Committee on finance, public expenditure and reform that the bank will announce a plan that will reduce the number of branches in the country, reorganise the bank’s head office and reduce operating expenses.
Masding stressed that “customer impact will be minimised by the changes” and that the Troika “had made it very clear that time is of the essence and that they will be reviewing progress on this plan when we next meet them in October.”
However, he has sent a warning shot to staff that there is "no other option" but to accept the plans being put forward, adding that the bank was in a perilous position after reporting a loss of nearly half a billion euro for last year.
"Let me be very clear on this - we considered all the alternatives including the outright closure of the bank, an alternative which all agreed could lead to a significant destruction of value for the taxpayer."
In terms of mortgage rates, Masding said that he did not rule out further rate cuts but said that they would be dependent on the bank’s ability to reduce the costs the bank faced particularly in respect of funding.
“The cost of deposits in this market is expensive,” he said. “If it reduces, and I hope it does, I believe we’ll be able to reduce our variable rates further. That’s how a rational banking system works. We won’t proactively chase down mortgage rates.”
