Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
PERMANENT TSB HAS reported annual losses of €424million for 2011.
The after-tax loss is an increase of more than €100million on the previous year, when the retail bank lost €321million.
The figures emerged in the bank’s annual report as the lender warned of a “further significant deterioration” in the number of borrowers in arrears. It set aside €1.4billion to cover losses on mortgages – more than three times the figure for 2010.
Before impairment charges and other adjustments, the bank had an operating loss of €65million. In 2010 it ran an operating profit of €51million.
The lender – part of Irish Life and Permanent plc – said the decline in results was due to increased costs of €76million from the bank guarantee, and restructuring costs.
It reduced its loan-to-deposit ratio significantly since 2010, from 249 per cent to 227 per cent.
Chairman Alan Cook said the bank had made “considerable progress in preparing the business for the future”. He continued:
A key challenge for the business and for our customers is arrears and we are working hard to manage this situation with our customers and with other stakeholders.
Cook said Permanent TSB was “strongly capitalised”, and he was confident the bank “will return to sustainable levels of profitability over the coming years”.
To embed this post, copy the code below on your site
Good for them! I used to work for them, and they are complete and utter scumbags…
The Ryanair of banking…..
Ryanair is a profitable company that isn’t leeching off the taxpayer.
Perhaps Aer Lingus would be more comparable.
Profit should not be the only considered factor in a companies operation, to the detriment of working environment, consumer relations, advertising standards, public perception, staff turnover etc etc.
It is possible to be profitable and ethical, in fact it is good for business.
@Gerard
Yes it is possible to be both ethical and profitable, just look at Google. Just not necessary. We shouldn’t force ethics on them (not that you’re saying we should).
I truly feel we should have let those banks collapse. It wouldn’t have taken long for someone to set up another bank. One that was solvent.
Wouldn’t it be lovely if it was as simple as that?
Anyways, I reckon we’ll see the end of free banking at PTSB sometime this year.
€424million ?
Ohh well done guys.
How many more years are you gonna conveniently be ”breastfed” by the taxpayer…
at the same time you give them no service.
(a bit like our ”unbiased” media)
God be with the good old days of your ex boss Denis Casey…
when Seanie could ring him up and get a sub of €7.5 Billion with a few days notice.
all under the ”recommendation” of our fine Financial Regulator, Pat Neary.
Where is Dennis and Pat now by the way?
In ”Big Fat Pension” ”Private Citizen’sland” with Bertie and Cowen?
Far from the clutches of the bought out Irish Media PR Machine.
By the way.
Where are all the fat profits Permanent TSB made in the boom times?
Any chance of splitting some of them with your new owners, the taxpayer?
The lost almost half a billion euro but yet they upgraded a huge amount of offices last year
Hardly surprising this shower have so many Mortgages in arrears given the fact they are charging the highest variable rate interest at the moment, its scandalous when compare to rates being charged by other institutions.
ah sure it’s grand, we the people will take of any losses with the forthcoming oxygen tax
Still seeing a steady stream of colossal losses and ‘provisions’ for future losses coming from all the banks. Yet the government believes debt discounting should be reserved only for the banks and not their customers. On top of that the new bankruptcy procedures may as well have been written by the banks. Surely there is something immoral in such a small country when the banks who set the property market on fire still call all the shots?
The banks are charged to be covered by the government guarentee. I suppose you could liken it to an insurance scheme
I believe they are charged in the region of 800 million euro a year, if this is right then the only reason ptsb made a loss was because they payed the government so much.
What ever happened to the 4 billion they lodged in anglo and was returned.
There was always going to be a problem when you put a bucket travel shop operator in charge of a bank.
Close the thing down now service is terrible the staff not much better.
Could be worse.
What would the costs associated with the bank guarantee be? Maybe I’ve misunderstood that altogether, but I thought that was a guarantee made by the government, with no obligations on the part of the banks?
Good!
Amazing to think that a goverment supported company is allowed to charge over 2% more then any other bank in the country on mortgages and as a direct result arrears are 25% higher then any other bank and losses are incurred but they are allowed do what they like still !!!
I can’t say imagine surprised with their statement. Due to their overselling of tracker mortgages they have decided to hit their variable rate mortgage holders with such high interest rates that they are pushed into arrears by the bank themselves. So not only have they created their own mess they have actively made their situation worse. They don’t really care though because they know that they can still keep recklessly trading and just go to the government for free cash that we all have to pay for at no cost to them either financially or otherwise.
O’Alan Cook
Thou art not to be so cute, a la CIA Director Robert Gates, who did not know about arms for hostages and drug running to fund the Iran-Contra Scandal.
The true extent liabilities can be seen by searching in Google for ‘Fagan Hanna Devrajan’
A Chara
Supergrass
have your say