Permanent TSB (PTSB) has not ruled out further non-performing loan sales, while it deserves to be fined over the tracker mortgage scandal, its chief executive has said.

Permanent TSB’s current level of non-performing loans is “really, really dangerous for Ireland” and could cost the taxpayer significantly if there is a shock to the economy, the bank’s chief has warned.

The Central Bank has expressed its growing exasperation with Irish banks, and has hinted at imposing individual fines and claw backing pay of top Irish bank chiefs if they fail to come into line following their handling of the €1bn tracker mortgage overcharging scandal.

Permanent TSB says it still has no option but to sell thousands of home loans despite giving out over a billion euro in new lending.

Finance Minister Paschal Donohoe is to bring forward a range of measures tomorrow aimed at forcing banks to fully compensate thousands of customers wrongfully removed from their tracker mortgages.

The tracker mortgage scandal will, “without a shadow of a doubt”, affect more than 30,000 customers before the authorities get to grips with the matter, far higher than the 15,000 currently estimated by the Central Bank.

Up to 10 more customers of Permanent TSB have lost their homes on top of the 22 already known from the fallout of the tracker mortgage scandal, while KBC Ireland had said it has still not contacted many customers wrongly put on more expensive 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.

Permanent TSB has pledged a renewed focus on tackling its huge level of non-performing loans, as the mortgage lender delayed paying a dividend until 2019.

Shares in Permanent TSB, which have shed more than half their value this year, rose to their highest level since before the UK referendum, as pressure appeared to ease for it to quickly dispose of a large UK loan book worth £2.3bn (€2.74bn).

Permanent TSB has announced its first after-tax profit in nine years.

Permanent TSB has seen a rise in new mortgage applications since the turn of the year, saying its well-documented home loan overcharging scandal has not damaged its business.

Some 90% of the 1,372 cases identified in Permanent TSB’s Mortgage Redress Programme have been compensated to the tune of €40m, with that figure likely to increase to €45m to €50m when the further 10% of instances are dealt with.

Three senior managers at Permanent TSB yesterday apologised for the failures of the bank in not informing customers about their mortgage rights.

Government intervention on standard variable-rate mortgages is a middle-class plea bargain that contradicts Central Bank policy on curtailing credit, a leading analyst has claimed.

State-owned Allied Irish Bank has defended relief given to mortgage holders and said its customer base is growing and that it is dropping interest rates.

Bank chiefs are set to be quizzed today on how they propose to offer families with variable rate mortgages a reprieve or otherwise face the threat of Government action.

The chief executive of Permanent TSB has told an Oireachtas committee reviewing the conduct of the banks that PTSB is not ripping off its customers by charging too much for its standard variable mortgage rates.

Senior debt advisers say the last of the senior bank chiefs to appear in front of the Finance Committee puts the contentious issue of home owners paying high standard variable rates firmly back in the Government’s court.

Permanent TSB has completed its €525m capital raise, which values the business at €2bn and lowers the Government’s shareholding in the bank to 75%.

Permanent TSB has initially priced its new share offering at a range of €3.90 to €4.50 per share which should value the company at around €2bn.

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.

A High Court challenge has been launched against plans by Permanent TSB to raise €400m through a share placing to institutional investors ahead of listings on the London and Dublin stock exchanges.

The Government is expected to only dispose of 20%-25% of its stake in Permanent TSB, rather than the 40% originally envisaged.

Permanent TSB will launch the first public share sale by an Irish bank since the financial crisis later today with a €400m offering, a source close to the matter said, in a key test of investor appetite for the sector.

A clearer picture of how Permanent TSB will look post-restructuring should become visible in the next few weeks, management said yesterday.

Permanent TSB is not in a healthy enough financial position at present to be able to lower its interest rates for standard variable mortgage holders, the bank’s management said yesterday.

Permanent TSB plans to raise €525m of capital to bolster its balance sheet after failing European stress tests last year.

Permanent TSB is on track to secure European Commission approval for a restructuring plan, according to a person with knowledge of the matter.

Permanent TSB Group Holdings Plc may raise as much as €400m in a share sale, according to a person with knowledge of the matter, more than double the amount signalled by the lender last month.

US billionaire Wilbur Ross, who made a €500m profit buying shares in Bank of Ireland at the height of the country’s financial crisis, has ruled out investing in Permanent TSB, the only Irish lender to fail European stress tests last month.

In the past, the relationship between interest rate movements and property bubbles was pretty straightforward: Central banks lowered rates to stoke economic activity.

The number of Permanent TSB mortgage holders who will face repossession is set to increase in the coming years, the bank’s head of asset management confirmed yesterday.

The Department of Finance has no plans to change the status of deferred tax assets even though it could greatly boost the value of AIB and, to a lesser extent, Permanent TSB.

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.

There will be no further call on the Irish taxpayer to bail out the banks following the results of the ECB stress tests, which showed that Permanent TSB failed one part of the comprehensive assessment.

In an ideal, almost impossibly functional world, it might have been best if all Irish banks had passed the ECB post-crisis health check.

One of Ireland’s leading banks has moved to reassure its 1.3 million customers after it failed a major European health check.

Irish state-owned mortgage lender Permanent TSB (PTSB) has appointed Deutsche Bank to advise it on its future return to private ownership, the bank said yesterday.

Permanent TSB customers in mortgage arrears who agree to a voluntary sale of their home will have to pay 20% of the shortfall of what they owe before they can qualify for a debt write-down.

Permanent TSB made a group-wide profit of €4m before bad debt charges and exceptional items for the first six months of the year. 

Operating losses (before exceptional items) at Permanent tsb fell 62% to €171m in the first half of this year, compared to €449m in the same period in 2013.

Permanent TSB Group Holdings Plc, the bailed-out Irish lender, has hired Morgan Stanley to sell its commercial real estate and subprime residential mortgage loan books, with a combined face value of about €2.6bn.