Permanent TSB Offloads Non Performing Loans

12 Sep 2019 | 02.37 pm

Permanent TSB Offloads Non Performing Loans

C.2,000 mortgages sold to Lone Star vulture fund

12 Sep 2019 | 02.37 pm

Permanent TSB has agreed to sell a Non-Performing Loan portfolio to Start Mortgages, an affiliate of the Lone Star Funds.

The bank said the portfolio consists of 1,932 borrower relationships, comprising 1,422 Private Dwelling Homes and 510 Buy To Lets. Start Mortgages will commence servicing the loans in early 2020.

The sold portfolio has a gross balance sheet value of €506 million and a net book value of €274 million. Following the completion of this sale, the NPL ratio at Permanent TSB will reduce from c. 10% to c. 7%.

The bank said that all loans included in the sale are categorised as non-performing, adding that the loans will continue to be covered by the protections of the relevant Central Bank consumer codes and regulations.

Chief executive Jeremy Masding (pictured) stated: “It is important to note all customers will continue to be afforded existing regulatory protections after the transfer and that Start Mortgages is required to honour the terms and conditions of the Restructure Agreements or Alternative Repayment Arrangements in place for customers included in this sale.’’

PTSB was advised on the transaction by EY and law firm Mason, Hayes & Curran.

 

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