PTSB will consider selling more of its €3bn ‘bad’ mortgages to vultures

PERMANENT TSB will consider selling more bad mortgages to vulture funds, its chief executive said.

Jeremy Masding said he recognised that people had concerns about such sales, but added that the bank was under orders from European regulators to reduce the amount of bad loans on its books and had to consider all its options. It still has €3bn of bad loans on its balance sheet.

“I would understand the viewpoint of people who have criticised us. But I don’t share it. Every option available to me has consequences, but I’m guided by my job. And my job is to implement the right option for the taxpayer, and our other shareholders, that satisfies the board and the regulatory requirements,” he told reporters yesterday.

The bank announced last month that it was selling €2.1bn of bad loans to an affiliate of the massive investment fund Lone Star, in a transaction codenamed Project Glas. Ulster Bank and KBC Bank Ireland have also recently announced large loan sales.

Mr Masding acknowledged that the Project Glas portfolio would probably have included some loans that hadn’t gone bad.

That’s because some individual borrowers may have taken out a mix of loans, some of which were good and some of which had gone bad. He said the regulatory rules allow borrowers to be classified as non-performing as a whole.

The bank has been looking to ramp up its digital offering and has introduced the ability to apply for, and draw down personal loans on its app.

The State owns 75pc of Permanent TSB.