PTSB shares drop 14% on bad loans

Shares in Permanent TSB plunged by as much as 16% yesterday as the bank reported a 55% annualised drop in first half net profit.

It also all but confirmed it would not meet its 2019 target of recommencing dividend payments and warned of the prospect of rising home repossessions due to its “unsustainably high” level of non-performing mortgage loans.

At 28% of its loan book, PTSB has the highest level of non-performing mortgage loans of any of the Irish banks. It wants to reduce that to less than 10% over the medium term, roughly meaning four to five years.