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PERMANENT TSB HAS confirmed today that it has failed the latest European Central Bank (ECB) stress test.
An €855 million shortfall has been identified in the Irish bank. It is the only Irish bank out of the 25 eurozone banks that failed.
In a statment this morning, the bank siad that it is finalising plans to raise capital from international investors to support the maintenance of prudent capital buffers and profitable growth.
The group confirmed that it has already “provided for” over 80% of the shortfall identified in ECB tests on the back of both progress made in 2014 and the Group’s existing Contingent Convertible notes.
They said that they are in advanced planning with international investment bank, Deutsche Bank, to raise capital from international investors in the coming months.
Group Chief Executive Jeremy Masding said the Group has already addressed over 80% of the €855 million shortfall that the ECB said identified.
Masding said:
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% of the shortfall that the ECB identified. 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.
On customers, Masding said: “Customers are unaffected by these tests are are not required to do anything as a result of today’s news.”
PTSB now has two weeks to submit capital plans to the ECB.
The Central Bank of Ireland said the results of the stress scenario show all Irish based institutions meet the ECB requirements to have, under the baseline scenario, at least 8% common equity tier one capital through to end-2016.
In the adverse scenario, which requires banks to hold 5.5% common equity tier one capital, AIB, Bank of Ireland, Merrill Lynch and Ulster Bank meet the requirements.
“PTSB balance sheet does not meet the threshold set in the adverse scenario. PTSB has outlined its capital plan to the ECB and Central Bank. This includes a set of actions it intends to undertake to address the shortfall arising in this hypothetical adverse scenario,” said the Central Bank.
The ECB audit shows 25 banks failed capital requirements and that banks’ assets must be adjusted by €48 billion. The ECB says the banking audit should “boost confidence”.
Originally posted 11:23am.
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Instead of the show of stress testing..could the ecb not tackle the mortage rates across the eurozone..how can a bank be allowed charge up to 4.5/5% from a base rate of .15..
And then theres the long term fixed mortages available on the continent..some fixed as low as 2/3%for the duration of the mortage..why do we only adopt the terms that cost us money as opposed to the ones that might benefit..
Just listened to that Masding Guy what are -
“assessmen” and, “shoawrfaw” – can he not talk proper or wha’ may (mate) ?
It is not certain banks that the EU should be troubled about, but individual economies.
France has a debt of 2.5 trillion euros (100% debt-GDP ratio), while Italy is even more.
Both are on the verge of bankruptcy.
And how can the economies of Latvia and Lithuania match those of Germany and Sweden?
Each country has an individual financial mindset and culture.
The EU is a very different animal to what it set out to be and is getting ever more entwined.
The federal dream is turning into a nightmare, but the bureaucrats plough on until it explodes.
It’ll take more than a tin hat and hiding under the bed to avoid the fallout.
” For a year (1998/1999) he worked on secondment from Barclays with the Cabinet Office in the UK. ” ..straight off Jeremy Masding’s profile on the Permanent TSB website – I’d say queen Elizabeth is “purring” …..
The only ‘human’ bank left in the country too! Never had a problem with PTSB.
That’s not fair – The pension fund of A.I.B. is the only pension fund in the country that is solvent after Michael Noonan and co. put one billion of Taxpayers money into it and they working for the state seeing as it now owned by the State – that was very “human” of Mike was it not ?
Sarcasm, I take it.
‘human’ bank They are almost fully automated.
Well said Notnews.
Our local branches are like an amusement arcade with all the machines.
Still paying a huge staff bill though courtesy of Joe taxpayer.
Would be cheaper on the taxpayer in the long run to give them all a few hundred grand severance pay each and shut down this white elephant black hole for good.
In fairness to Noonan he knows how to look after all his pensions.
The greedy buga.
Should have stayed a Building Society – the banking system is crooked as we know. Bank of Ireland still licensed to operate by Bank of England even in 2014. What’s that about in an ‘independent’ Ireland, Bejabers? The people were sold to the devil.
Time to break out the Vaseline and assume the position yet again……………
Make in missionary and think only of Ireland.
A pathetic joke of a “bank”.
The “bank” that gave all 7 billion of it’s savers money to the corrupt/criminal Anglo (thus playing their part to bust the entire country and sentence generations to debt slavery).
A “bank” that swindles the mortgage customers (that bailed it out) out of their trackers.
The “bank” that increased the interest rates on their standard variable rate customers (that bailed it out) to over 6%.
When the taxpayer was being mugged to pay for PTSB’s corruption and recklessness,
PTSB was busy swindling 1000’s of the very same taxpayers out of their tracker rates,
not to mention jacking their Standard Variable Rate up to over 6% forcing 1000’s of their customers into arrears.
If that weren’t bad enough they opened their own subprime lender called Springboard to shovel out their reckless loans even faster.
They are still perpetuating their crimes today.
Our local branch is staffed with nothing more than a couple of slot machines and a few embarrassed staff shuffling around sheets of paper pretending to look busy on front of the CCTV cameras.
The local credit unions do far more business these days.
In fact a lot of ex bank staff who were let go, have gone begging to the local credit unions for jobs.
I hope that they loose their smug, glib attitudes and bad habits if they are taken on.
They received 4 billion (and counting) in banker dole pilfered from the pockets of the working poor.
In the name of giving Joe Public “A Functioning Banking System”.
What a lie.
What a disgusting lie.
Red thumbers.
Your thoughts please?
Pigs can’t type Harry they can only push a button with their tails as they keep their snouts in the trough fulltime !
There the only bank with free fees. So rather than being gauged by all the other banks I’m happy with PTSB. This result was expected and reported on for the last few weeks.
A lot of our credit unions have no fees and provide ATMs, Online Banking, Direct Debits etc.
Managed by conscientious, competent, people (including many) volunteers,
who don’t try to screw you over on interest rates,
who don’t recklessly gamble with your savings,
who don’t give preferential treatment to their cronies,
who don’t bust their institutions,
who don’t bust the country,
who don’t sentence generations to debt slavery.
etc etc etc.
In 2009 PTSB conned 1000′s of it’s customers out of their trackers.
Customers who were mugged to bail out PTSB.
Some of these customers took their cases to the financial ombudsman and won.
PTSB kept appealing this ruling all the way to the high court, where PTSB lost.
PTSB is now dragging these cases through the high court.
PTSB pays no heed to the financial ombudsman or the high courts of this country.
Pay up PTSB.
Pay up on your scam.
You’re driving your vulnerable customers over the edge.
They might have free current accounts, but try get your money back off them when you open a deposit account with them. It’s a joke, they are rude and arrogant. The small print, which I read, is unbelievable, but then they have different small print, if it’s an online account you opened, which they don’t tell you about. They expect you to know there is a difference in how you open a deposit account. I ain’t a banker, but it’s a sweet way to charge you 300 or so euro to close your account, which you only earned 100 in interest on. I’ll never recommend them to anyone. Go to rabo or kbc. Much much friendlier.
Oops! Sure don’t worry, we’ll just pip a letter in the post and explain to Kenny that the Irish public will have to provide the shortfall.
It was the Irish public who in theory caused the shortfall.
Ronan it was the banks dangling very cheap money in front of our faces that were to blame and a lame regulator, who was just counting the days to retirement and pension
We all had a part to play however the Irish people accept no responsibility.
The professional money managers have yet to take responsibility. Stop blaming the little people.
“We all had a part to play however the Irish people accept no responsibility”
What a load of crap. I never bought a house or took out excessive loans yet I will more than likely never be able to return to Ireland after having to leave in 2010.
Did you not hear Jason Ireland is saved , austerity is over – there are even jobs in Donegal for graduates – they will be filled by 20/20 – so just park your life in whatever country you are in for six years and then you can come back to Donegal – one thing though – beware of falling windmills ! – I kid you not !
The regulator wasn’t lame……he was totally flacid!!!!!
“We all had a part to play however the Irish people accept no responsibility.” Will you kindly shut your trap. If you bought a house at a ridiculous price like an idiot, only you are to blame for your stupididty. I didn’t, so leave out the collective “we” Ape.
For every reckless borrower, there is a reckless lender. However the reckless lenders have allegedly professional Banking Licences, they have criteria, they can say no and they were & allegedly are still regulated.
If its not fit for purpose close it down or are these “stress tests” just another way of sucking more money out of the people.
Could we give that bondholders plan a go now? We bottled it last time
What’s this we business paleface – we are not Enda and Michael Noonan
This is the profile of the PTSB Chairman of the Board – Alan Cook .
Alan is a Fellow of the Chartered Insurance Institute (UK) and has extensive experience in financial services and public service in the UK and elsewhere. He is an experienced Chairman, Non-Executive Director and successful financial services general manager with strong people skills and experience of leading large scale change in both the private and public sectors. He is a former Managing Director of the UK Post Office, where he transformed the loss making organisation back into profit through cost reduction and growth in personal financial services. He is a former Chief Operating Officer of Prudential (UK and Europe) and a former Chief Executive of National Savings and Investments (the Government agency responsible for raising finance for the UK Government through the retail savings market). He is also a former Non-Executive Director of the Office of Fair Trading and the Financial Ombudsman Service. Alan is the current Deputy Chairman of Sainsbury Bank plc and the Chairman of the Highways Agency in England and a Non-Executive Director of the UK Department of Transport and of Metlife Europe Ltd. Alan also volunteers his time as Chairman of the University of Bedfordshire and Chairman of Action for ME, the leading UK Charity supporting those suffering from ME/CFS.
……..It’s great to back in old Blighty again !
And this is Jeremy Masding – Group Chief Executive Officer -
Jeremy is an experienced career banker having worked with Barclays Bank in a variety of different roles between 1984 and 2007. These roles included branch banking, international banking and in head office as a Director of Strategy Development. In later years, he was a Board Director of Barclaycard, responsible for UK consumer finance. For a year (1998/1999) he worked on secondment from Barclays with the Cabinet Office in the UK. More recently, Jeremy has been Chairman of the Richmond Group (2010-2012), an independent loan broker and lender, and Group Chief Executive of Central Trust plc (2007-2009), a specialist loan broker and lender. Jeremy is an Associate and Fellow of the Chartered Institute of Bankers and holds an MBA from Manchester Business School.
And this is Glen Lucken Group Chief Financial Officer
Glen is a Fellow of the Institute of Chartered Accountants in England and Wales (FCA) and an Associate Member of the Association of Corporate Treasurers (AMCT). He also has a degree in chemistry from Imperial College. Glen is an experienced CFO with knowledge and expertise in a wide range of sectors including retail and consumer financial services, credit and store cards, banks and building societies. He has previously held senior finance and operations positions in Abbey National, Lloyds Banking Group, Barclaycard and OneSavings Bank. Glen’s experience has been particularly valuable in his role as Chairman of the Group Assets and Liabilities Committee. Before his appointment as Group Chief Financial Officer in January 2013, Glen acted as interim Chief Financial Officer in permanent tsb since July 2012.
Dominic Dodd – Independent Non- Executive
Dominic is an experienced Non-Executive Director and Board Chairman. He is currently Chairman of the Royal Free London NHS Foundation Trust, a UK University teaching hospital. He was formerly an Executive Director of the Children’s Investment Fund Foundation, one of Europe’s largest philanthropic foundations. Prior to this he was a Managing Partner of Marakon Associates, an international strategy consulting firm, where he advised Chief Executives and top management on growing long-term value. In his capacity as Chairman of the Royal Free London, he is also a Director of UCL Partners, Europe’s largest academic health science system. Dominic’s unique experience is of particular benefit to the Board in terms of strategy formulation.
Emer Daly is next on the list – Independent Non – Executive
Emer is a Fellow of the Institute of Chartered Accountants and has worked in senior roles with PricewaterhouseCoopers and AXA Insurance. She is currently a Non-Executive Director of Friends Provident International Ltd (“FPI”) based in the Isle of Man and Lombard S.A., based in Luxembourg and also chairs the Audit Risk and Compliance Committee of both companies. FPI and Lombard represent the international division of the UK life assurance Group, Friends Life Group plc. Emer is also Chairman of the Board of the Dublin Dental University Hospital, a member of the Department of Foreign Affairs Audit Committee and lectures in Risk Management in the UCD Graduate Business School. She was previously a Non-Executive Director of Eirgrid plc where she chaired the Audit Committee and Pensions Committee and was a member of the Remuneration Committee. She was also a Non-Executive Director of Payzone plc and chair of its Audit Committee. She was a member of the Property Registration Authority and of the Audit Committee of the Department of Justice and Equality. Emer brings her extensive skills and expertise in accounting and risk management to the Board and her past experience is of particular benefit as chair of the Audit Committee.
Ken Slattery again – Independent Non- Executive
Ken is a Fellow of the Institute of Bankers and a member of the Institute of Directors. He has wide-ranging experience of the Irish Financial Services landscape having worked with the Bank of Ireland Group for over 40 years. During his time with BOI he held a number of senior management positions including Director of Operations at BOI Corporate Banking and more recently as Head of Payment and Electronic Services. During this latter role, Ken was responsible for the development, delivery and management of Internet Business Banking and Electronic payments across the BOI Group. Following retirement from BOI in 2006, Ken has broadened his knowledge and experience through Non-Executive Director positions with a number Irish and Northern Ireland Government departments, including Chair positions on Audit and Risk Committees. During this time he has also maintained his exposure to financial services through his directorship with Realex Financial Services where he was chair of the Company’s Audit and Risk Committees until August 2013. Ken’s general banking experience compliments the existing skillset of the Board and his prior experience as Chair of Audit and Risk Committees in both the public and private sector has been of particular benefit to the deliberations of the Audit Committee.
Julie O’Neill – another Independent Non-Executive
Julie served as Secretary General of the Irish Department of Transport from 2002 until 2009 and in a public service career spanning 37 years, worked in strategic policy development and implementation with eight Government Departments. She is now an independent strategic management consultant and a Non-Executive Director at Ryanair plc. She is also a board member of the Sustainable Energy Authority of Ireland and the Irish Museum of Modern Art. She chairs the Audit Committees of Trinity College Dublin and the China Research Group at the Institute of International and European Affairs. She is also a member of the Institute of Directors. Julie brings a wide range of economic and social policy experience, as well as extensive administrative and managerial experience to the deliberations of the Board.
Richard Pike – Another Independent Non- Executive
Richard has extensive experience of working with financial institutions throughout the world, assisting companies in managing enterprise risk more efficiently while addressing local regulatory guidelines and standards. He is currently Senior Market Manager, EMEA at Wolters Kluwer Financial Services and has previously worked in various senior banking, insurance, credit and market risk roles at ABN AMRO, Bain, COMIT Gruppe and Quay Financial Software. He has analysed, designed and managed the development of core treasury and enterprise risk management systems for large financial institutions, including UBS, Citibank, Schroders and Unicredito. In 2009, Richard was recognised as a “Top 50” Face of Operational Risk by Op Risk & Compliance magazine and was a contributing author to two books on risk management. He is also a board member of the Enterprise Ireland /IDA funded Governance, Risk and Compliance Competence Centre which focuses on research in the area of Financial Services Governance, Risk & Compliance. Richard brings a different dimension to the Board, related to his in depth knowledge of Enterprise Risk Management systems together with access to his extensive network of banking and regulatory contacts in both the Irish and international marketplaces.
This is the profile of PTSB.
Gives away all of the banks customers (€7 billion ) savings to a buster than bust Anglo Irish Bank, with no guarantee that it would ever be returned.
Played a key role in bringing in the bankruptcy of Ireland, mass emigration of native population, and the €400 billion
penury bank guarantee.
Set up Springboard a reckless subprime lender who now has over 75% of its mortgages in arrears.
Set up PTSB direct an aggressive Buy To Let department so that they would no longer have to pay mortgage brokers.
Introduced poisonous high ltv mortgages for the BTL market.
Mugged the taxpayer for 4 Billion Euro (and counting)
Conned and abused the customers who bailed it out by scamming them out of their trackers (proven in high court)
and jacking up their standard variable rate to over 6%.
PTSB still stands over all of the above.
Runs terrible hypocritical “back to basics” “we are here to help” advertisement campaign to rub salt into it’s disgruntled customers wounds.
etc etc etc.
Final Independent Non- Executive – David Stewart (not the guy from the Eurythmics)
David has over 20 years board level experience in Financial Services. Until March 2014, he was Chief Executive of the Coventry Building Society, having previously held the positions of Finance Director and Operations Director. Before joining Coventry Building Society in 2002, he worked for 10 years at DBS Management plc, holding a variety of positions including Group Chief Executive. David was Chief Executive of Coventry Building Society throughout the entire period of the financial crisis, having been appointed in 2006. During this period, the Society performed strongly, more than doubling in size and retaining its “A” grade credit ratings. Key to this performance was the consistent implementation of a prudent and focused business model focusing on traditional savings and mortgages. A graduate of Warwick University and a qualified Chartered Accountant, David brings retail banking and leadership experience to the board.
And the final one from the PTSB website and the first with a fada in his name – Company Secretary -
Ciaran Long – the fada is over his last “a”
Appointed Company Secretary in May 2004 and acts as secretary to each of the board committees. An actuary and an employee of Irish Life since 1969, he has held senior executive positions in both the life and pensions businesses and is a former general manager and director of the Corporate Life business. Most of his time with Irish Life has been spent in the pensions area and he is the company appointed trustee in each of the staff pension schemes. Ciarán is a former director of the Retirement Planning Council and is a former member of the Pensions Board.
Only joking about Old Blighty – sure isn’t the bank owned by the Irish taxpayer – bet I had ye worried there for a while – Go on Michael Noonan ya good thing !
Sweet dreams are not made of this!
Or their classic album – 1984 (for the love of Big Brother)
Did ye see that – The Museum of Modern Art is mentioned in one of the profiles above – Come back john McNulty – all is forgotten – l.o.l. !
I see a gap for John Tierneys impending promotion
He might get the job of removing the asbestos exhibition !
Who am I to disagree .
Well thank Jehovah for that! At last, someone else who rates 1984, it was a brilliant album. The profiles of the PTSB were good. All tossers of course. What is our wee country coming to?
Here comes the iou from tsb to joe public.
“Bank Bailout,” Anybody?
Anyone with deposits in this bank should be worried.
Government bailouts are a thing of the past.
Bail-ins are the future.
Remember Cyprus.
The bank has a value, the government own 99% of it. They will sell one to fill the gap. Problem sorted
Give them more money…. It really is ‘Back to basics’ then…
Yeah but do you know what a tracker mortgage is Caoimhe ? – that is the question !
Nobody has proposed giving them any more money.
Then they will go to the wall !
No they won’t. The “shortfall” is just an emergency buffer that they’re required to have, is based on their position in December 2013 so It doesn’t take count of the recent acceleration in recovery, and has practical no bearing on their business.
Also, they’ve already secured 80% of it.
And you can’t catch Ebola by sitting on a bus with somebody.
But half of what they have already sourced is from government fund?
The shortfall is an interesting problem. Quinn Insurance had just such a shortfall and look what happened to them. They were effectively bankrupted over it and eventually sold to Liberty Insurance. Will the same happen to PTSB? Not likely as the previous owners are circling with ready cash to buy it back for a song. What a joke. It would be funny except that it’s on us.
Maybe Peter Darragh Quinn will buy it from his base in the North , or maybe Seanie Fitzpatrick who isn’t bankrupt anymore as far as I know – even though he was for the ould Trial might still have that well in Nigeria that he can recapitalise and buy P.T.S.B.
Exciting times ahead in the world of banking I feel !
Going out on a limb here and I’d say fees will be introduced. All those who made the switch may be in for some disappointment
Its pay rise and bonus time all round for the management !!!!! Same circus different clowns ….
Oh then, will they just offer some shares to the ‘general public’ and will this share ‘offering’ be oversubscribed? Yes, it will and bit by bit the muppets who sank this country into a mire of debt will buy back the self-same companies that they bankrupted and we rescued. And all for a song. Corruption knows no end, does it?
Yes there are to late for excuses
Another gang of joker bankers
Just shows how incompetent there financial dept is , what planet are these jokers on
Was that not for the period of 2013-2014
have your say