Permanent TSB reports its first post-crash full year operating profit

The bank has paid out some €40m through its mortgage redress scheme

Permanent TSB Bank has announced profits before exceptional items of €26m for the year to the end of December, its first such underlying profit performance since 2007 and a turnaround from comparative operating losses of €39m during the previous year.

Exceptional or once-off costs, principally related to losses on the sale of commercial and residential mortgage loans in the UK brought overall losses for the year to €425m – up four-fold on the prior year.

New lending increased during the year by 6% but the bank says it’s not satisfied with the 2% increase in gross mortgage lending and has amended its suite of mortgage products in what it calls an increasingly competitive market impacted by limited housing supply.

Underlying profitability was also enhanced by a significant reduction in costs including lower legal and professional fees, some of which were linked to last Spring’s stock market flotation of 25% of its shares. The State continues to hold a 75% stake.

There was a reduction of more than 20% in residential mortgages over 90 days in arrears though these still represent 9% of the bank’s overall home loan assets.

Last Summer, the bank identified close to 1,400 former tracker mortgage customers who had not been provided with sufficient information about their opportunity to return to tracker rates, some of whom subsequently lost their homes.

This morning the bank says that approximately 90% of these cases have been fully redressed though they are aware that at least 30 customers are likely to take legal proceedings.

Chief executive, Jeremy Masding spoke to Newstalk this morning, he stressed that the bank is committed to "doing the right thing" for "customers who were harmed," and added that the bank has already paid out approximately €40m - with 10% of the redress cases yet to be dealt with.

Mr Masding said that it is crucial for customers with outstanding issues to make contact with the bank.