PTSB takes on Northern Rock deposits

PERMANENT TSB has agreed a deal to acquire the €650 million-plus Irish deposit book of British lender Northern Rock as it seeks to improve its stretched funding position and ensure a standalone future.

Permanent TSB, the banking arm of Irish Life and Permanent, which has been effectively nationalised in the face of a €4 billion capital hole, did not detail the cost of the acquisition.

The Northern Rock deal comes six months after & PTSB acquired €3.6bn in deposits from Irish Nationwide Building Society in a bid to lower its loan-to-deposit ratio, which is the highest in the industry.