PTSB likely to tap private investors before AIB

Permanent TSB is likely to tap private investors before AIB early next year, though there is little chance that both state-owned banks will weigh on each other’s prospects of raising equity, according to analysts.

PTSB — which is 99.2% Government-owned — failed the “adverse scenario” in the ECB stress tests, which exposed a capital shortfall of just under €855m.Its CEO, Jeremy Masding, said the bank had already plugged 80% of this shortfall. It has hired the investment bank, Deutsche Bank, and Davy Stockbrokers, to advise it on its options.

AIB, which is 99.8% state-owned, comfortably passed the ECB’s comprehensive assessment, which consisted of an asset quality review and stress tests. The move is likely to accelerate the timeframe for the Government to partially offload AIB back into private ownership.