TSB impairment provisions rise €1bn

Impairment charges at Permanent TSB are likely to have increased by €1bn during 2011, the bank’s management said last night.

Management at IL&P Holdings said impairment provisions — what is set aside to cover loan losses — at its retail banking arm, are expected to total around €1.4bn for 2011; with the increase almost entirely down to a significantly deteriorating residential mortgage book.

Permanent TSB’s total impairment provisions for 2010 came to a mere €420m in comparison.