Permanent tsb to plug ?855m shortfall
Tue, 28th October 2014

Permanent tsb to plug €855m shortfall

By Matthew Ord, Digital Staff Writer

Dublin-headquartered permanent tsb has confirmed it is finalising plans to raise capital from international investors after a stress test carried out by the European Central Bank (ECB) identified an €855m shortfall.

Tsb is in "advanced planning" with Deutsche Bank to raise the capital a part of its response to the tests.

Chief executive Jeremy Masding said the group has "already addressed more than 80 per cent" of the €855m shortfall.

"The tests were based on our position at the end of December last and we’ve made huge progress since then on a number of fronts so we’ve already provided for over 80 per cent of the shortfall that the ECB identified," said Masding.

"We look forward to bringing international investors on board now to raise the remaining amount which will leave the bank fully in line with the ECB requirements."

The bank has confirmed that the result of the stress tests will have no effect on the day-to-day operations of the bank and no impact on customers.

Masding added: "The tests confirm that permanent tsb has more than enough capital to meet what the ECB describes as a baseline scenario and has made the right provisions for dealing with bad loans (the Asset Quality Review/AQR).

"Customers are unaffected by these tests and are not required to do anything as a result of today’s news."

category Ireland  |  source Insider Media