Permanent TSB awaits EC approval for plan to split bank into three units

Permanent TSB is still awaiting approval from the European Commission for its restructuring plan, which would see the bank split into three units: a good bank, an asset management unit, and a division to manage its UK operations.

Chief executive Jeremy Masding is adamant the core bank can emerge as a viable entity and play a role in the economic recovery. To this end, he faces many formidable challenges. Securing approval from the Commission is obviously the first essential step.

The asset management unit is responsible for managing the portion of its mortgage book in arrears. However, possibly the biggest challenge facing the bank is what to do with its mostly loss-making €15bn tracker mortgage book, which is also in the asset management unit.