Permanent TSB outlines risks to potential investors

Permanent TSB Group has warned potential investors that a return to profit may be at risk from political pressure to cut interest rates and a potential British exit from the EU.

PTSB may be forced to lower its existing 4.5% standard variable rate on mortgages because of mounting political, regulatory, or competitive pressure, the bank said in a 132-page capital-raising document obtained by Bloomberg News.

State-owned PTSB is seeking to sell €400m of equity and €125m of so-called additional tier 1 bonds to shore up its capital after failing European stress tests last year.