Permanent TSB recorded a €1m profit for first half of 2015 this is its first profit since before the 2008 crash - but this has been overshadowed by the announcing of a major compensation programme for mortgage customers.
Newstalk understands that the average redress to Permanent TSB customers is expected to amount to €22,400.
In addition, they will be paid an average compensation sum of €3,200 each.
The bank is also expected to receive a fine of up to €5m – the maximum amount possible – under the Central Bank’s enforcement legislation.
A statement from the Central Bank says:
"Permanent TSB have agreed to implement a major redress and compensation programme (Mortgage Redress Programme) to address the detriment suffered by 1,372 impacted Permanent TSB and Springboard customer accounts."
The Central Bank adds that the consequences of these failures have included, "mortgage overpayments; mortgage arrears; legal proceedings; and in certain cases loss of ownership of properties, including some homes."
Payments may run as high as €50,000 to owner-occupiers and €25,000 for buy-to-let customers.
This relates to customers who broke from fixed rate mortgages early, and wanted to return to their tracker rates.
Up to 61 homeowners who were impacted lost their properties - up to 22 of these cases could have avoided if it wasn't for these failings.
The bank has issued and apology - and will write to affected customers over the next two weeks.
The Central Bank’s Director of Enforcement, Derville Rowland, said: “The Central Bank considers the failures identified by Permanent TSB and Springboard to be very serious and their consequences to be completely unacceptable."
"Our first priority has been to address the customer detriment by requiring Permanent TSB to put in place a customer focussed redress and compensation programme."
Results
The bank has also released its half year results one day early, and reported a profit of €1m - it's first post-crash profit.
In the same period in 2014 it made a loss of €171m but it has seen its income rise, and costs fall over the last 12 months.
The bank's balance sheet is however weighed-down by a €432m cost for exceptional items - this "primarily included losses on deleveraging and repurchase of the Contingent Convertible Capital Notes" from the State.
