Permanent TSB Group Holdings PLC Sale of Non Performing Loan Portfolio (3487W)
July 31 2018 - 8:15AM
UK Regulatory
TIDMIL0A TIDM73HR
RNS Number : 3487W
Permanent TSB Group Holdings PLC
31 July 2018
This announcement contains inside information under Article 17
of Regulation (EU) 596/2014.
PERMANENT TSB GROUP HOLDINGS PLC
SALE OF NON PERFORMING LOAN PORTFOLIO
Following a competitive sale process, Permanent TSB plc ("PTSB",
"the Bank"), a wholly owned subsidiary of Permanent TSB Group
Holdings plc, has agreed to sell a Non Performing Loan ("NPL")
portfolio ("Glas") to the retail credit firm Start Mortgages DAC
("Start Mortgages"), supported by LSF Irish Holdings 97 DAC, both
affiliates of the Lone Star Funds. Start Mortgages has been
authorised by the Central Bank of Ireland since November 2008 and
will become the servicer of the loans when the transaction
completes later this year. PTSB was advised on the transaction by
EY and Mason, Hayes & Curran.
The portfolio has a gross balance sheet value of EUR2.1 billion
and a net book value of c.EUR1.3 billion. In the year to December
2017, this loan portfolio generated operating income of c.EUR8
million. At completion, PTSB will receive cash consideration of
c.EUR1.3 billion. The proceeds will be used for general corporate
purposes.
This transaction will reduce the overall NPL ratio at PTSB from
c.25% to c.16% and increase the Common Equity Tier 1 Ratio by
c.200bps.
Speaking today, Jeremy Masding, Chief Executive of PTSB said
that protections which exist for homeowners transfer with a loan
when it is sold. Mr Masding said that "Customers will continue to
be afforded the protection of existing regulatory protections after
the transfer".
In addition, Mr Masding commented that the Bank remained
committed to reducing its NPL ratio to single digits in the near
term, saying: "reducing NPLs is a necessary step for us to take to
complete the rebuilding of PTSB as a viable, competitive
lender."
Glas Portfolio Characteristics:
-- Contains non-performing loans linked to a total of c.10,700
properties made up of 3,300 Buy-To-Let Properties and 7,400 Private
Dwelling Houses ('PDHs'). PDHs are primarily made up of:
o 2,500 classified as accounts deemed "Not Co-Operating"
o 3,850 classified as accounts which have refused treatments or
where the account has failed to operate in line with the agreed
'Treatment'
-- Average arrears time of loans in the portfolio is 3.5 years (days past due)
-- Average arrears value of loans in the portfolio is EUR28,800
-- Average value of a loan in the portfolio is approximately EUR175,000
Further Information:
-- PTSB has reduced its NPLs by c. 70% (including the Glas portfolio) since 2013
-- PTSB has offered long term treatments to over 40,000
customers on a case-by-case basis based on individual
circumstances
-- PTSB continues to engage with customers in default by various
means including Mortgage-To-Rent schemes
-- PTSB is committed to delivering on its NPL reduction strategy
in line with the European average as per regulatory guidelines
whilst protecting capital
PTSB will now begin contacting relevant customers to inform them
that their loan(s) are being transferred, and to confirm that
existing legal and regulatory protections continue to remain in
place.
Ends
For further information, please contact:
Eamonn Crowley Rajesh Manirajan Ray Gordon
Chief Financial Officer Head of Investor Relations Gordon MRM
eamonn.crowley@permanenttsb.ie rajesh.manirajan@permanenttsb.ie ptsb@gordonmrm.ie
+353 1 669 5354 +353 1 669 5622 +353 87 241 7373
Note on forward-looking information:
This Announcement contains forward-looking statements, which are
subject to risks and uncertainties because they relate to
expectations, beliefs, projections, future plans and strategies,
anticipated events or trends, and similar expressions concerning
matters that are not historical facts. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors, which may cause the actual results, performance or
achievements of Permanent TSB Group Holdings plc or the industry in
which it operates, to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. The forward-looking statements referred
to in this paragraph speak only as at the date of this
Announcement. Permanent TSB Group Holdings plc undertakes no
obligation to release publicly any revision or updates to these
forward-looking statements to reflect future events, circumstances,
unanticipated events, new information or otherwise except as
required by law or by any appropriate regulatory authority.
This information is provided by RNS, the news service of the
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END
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