Bank profits up 33% after sale to vulture funds
Bailed-out permanent tsb reveals cash boost
ZOMBIE bank Permanent TSB which recently sold thousands of family homes to vulture funds yesterday reported a 33% jump in first-half profits.
The taxpayer bailed-out lender’s pre-tax profit jumped to €57million when compared with the same period last year.
Its controversial sale of almost 11,000 mortgages to a vulture fund for €2.1billion at the end of last month, which could lead to thousands of evictions, isn’t included in the results.
Despite the rise in profits the PTSB’S share price dropped after a risk review of its mortgage loanbook by the European Central Bank.
It also emerged in the six months to the end of June its operating expenses increased by €14million to €158million.
It is understood most of this is accounted for by cash put aside to cover issues from the tracker mortgage scandal which saw PTSB and other banks overcharge customers resulting in some losing their homes.
The increase in profits was driven by a 50% jump in new lending to €585million –with mortgage lending up 51% and consumer lending up 42%.
Commenting on the results, chief Jeremy Masding said: “Whilst our underlying business continued to show progress, we have also made significant progress in reducing the level of NPLS [non-performing loans] following the announcement of a €2.1billion sale at the end of July.
“In addition, we continue to maintain capital levels comfortably above the required regulatory minimum which positions us well for investment, profitable growth and the continued reduction in NPLS over the medium term.”
PTSB has been desperately trying to reduce its exposure to NPLS and focus on providing services for consumers and small and medium-sized businesses.
But the way it has gone about the sale of more than 10,000 mortgages, including 7,400 on family homes, has caused outrage and is set to be challenged when the Dail returns.
The move, which also involved 1,050 mortgage holders who have engaged with the bank and are currently paying their loans, prompted the Irish Mirror to launch a campaign to stop the sale.
labour Deputy Jan o’sullivan yesterday branded the homeless crisis “unacceptable” after it was revealed 9,891 people were in emergency shelters last month.
Government data also showed 3,867 youngsters were among those without a permanent roof over their heads.
And Focus Ireland said four families became homeless every day in Dublin last month.
Ms O’sullivan described the statistics as “unacceptable”.
She said: “This week thousands of children will be going back to school and writing stories of how they spent their summer holidays.
“For 3,867 children this will be a very bleak exercise as they will have spent their summer break in emergency accommodation.
“If you are one of the 3,867 children in homeless services you will think back to how you have spent your summer in often unstable accommodation, you haven’t neighbouring children to play with, you are probably sharing one or two rooms with the rest of your family, with no room to play, nowhere to go out and kick a ball or ride a bike.
“Many parents hope they can bring their children to a hotel for a summer break either at home or abroad, not as a place to live.”
The figures came as a High Court injunction ordered activists to leave a building in Dublin city centre they were occupying as part of protests calling for more social housing.
While the number of adults living in hotels, bed and breakfasts and family hubs in July was down 24 from the previous month there were 43 more youngsters homeless.
Sinn Fein TD Eoin O Broin claimed the latest Government figures proved the housing crisis is “deepening”.
He added: “The July figures show the number of homeless stands at 9,891.
“This represents an annual increase of 21%.
“In July there were 24 additional homeless families in Department of Housing-funded emergency accommodation.
“The number of families accessing emergency accommodations services was 1,778.
“This is 349 more families than the same month last year. This is an increase of 24%.
“The number of homeless children has increased again despite a tiny dip last month. In July there were 3,867 children in emergency accommodation, an increase of 43 on June. This represents an annual increase of 30%.”
Focus Ireland said the Government is “failing to get on top of the crisis” as it revealed 122 families with 270 children became homeless in Dublin in July.
The charity added this is the single highest monthly total in six years.
Mr O Broin said: “The Government has decided to plough ahead with its failing policies instead of admitting they are on the wrong track.”
On Tuesday, Housing Minister Eoghan Murphy told how he expected the figures to show an increase.
He was criticised for his remarks when asked by RTE’S Miriam O’callaghan if he believed the homeless total would reach a record high.
Mr Murphy said: “Hitting 10,000 doesn’t tell us anything that hitting 9,000 didn’t tell us, which is that we have a very serious crisis.”
Parents hope to bring kids to a hotel for a break, not as a place to live
jan o’sullivan yesterday