Permanent TSB shares slide 10% amid calls for rate cuts

Shares in Permanent TSB, which is majority-owned by the Government, slumped over 10% yesterday adding to huge losses for the mortgage lender in the last four trading sessions, as politicians stepped up pressure for Irish lenders to cut their variable home loan rates.

PTSB is directly in the firing line because it is a specialist mortgage lender and therefore much more exposed than competitors Bank of Ireland and AIB to potential erosion in earnings from lowering mortgage rates.

The share price slump came despite PTSB, in a trading update, saying it was still profitable, but that a delay in selling the rest of its UK loan book amid uncertainty over Brexit will weigh.