Permanent TSB sells buy-to-let portfolio to Citibank

The portfolio is worth around €1.2 billion

Permanent TSB are selling their Buy-To-Let mortgages portfolio to Citibank London. Picture:  Denis Scannell

Permanent TSB has agreed the sale of a portfolio of performing Buy-To-Let mortgages to Citibank London.

Permanent TSB will sell around 3,700 Buy-To-Let loan accounts to Citibank London, the UK branch of the United States company.

The loan accounts are linked to about 3,400 “borrowing relationships” (a single borrower or two or more joint borrowers) and have an average balance of €375,000.

Permanent TSB said the loans predominately consist of interest only repayment terms, are classified as performing from a regulatory perspective and have an average remaining term of 10 years.

The portfolio has a gross balance sheet value of €1.4 billion, a net book value of €1.2 billion and an overall risk weight intensity of 80%.

No loan accounts that received a payment moratorium due to Covid-19 are included in the transaction.

Permanent TSB said the portfolio will continue to be serviced by PTSB for a period of up to six months. At the end of this period, legal title and loan account servicing will transfer to Pepper Finance Corporation (Ireland). The sale of the portfolio will have no impact on customers, Permanent TSB added.

Permanent TSB Chief Executive Eamonn Crowley said the transaction will increase the Bank’s transitional Total Capital Ratio by 2.1%.

Mr Crowley added that it will strengthen the bank's balance sheet and provide the resources "to compete in our core markets of personal mortgages, personal lending and SME lending."

“All applicable terms and conditions continue to apply, meaning that customers will be afforded the same consumer protections upon completion of the transfer. Like Permanent TSB, Pepper is regulated by the Central Bank of Ireland and is required to comply with consumer protection legislation when dealing with customers.” The Bank is today writing to all customers, whose loans are included in the transaction, to inform them of this development.

Citibank has a significant presence in Ireland spanning 55 years and employing around 2,500 staff.