Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Permanent TSB is playing an important role in providing much needed finance to our housing market. While the management and board of the bank have further work to do in addressing legacy issues, the bank is making good progress and has a strong franchise that can prosper in a growing economy.

The good progress made is demonstrated by the bank’s trading performance in 2017 with key highlights including a recorded profit in the first half of the year, the first since the onset of the financial crisis. In addition, the market expects the bank to record a profit for the full year of 2017. In its third quarter trading statement, the bank reported continued momentum in new lending which increased by 64% year-on-year. This has translated into an increase in the bank’s residential mortgage share to 11.9% at the end of September. This is up from a market share of just over 9% across the full year of 2016. Other key highlights in the bank’s third quarter trading statement included the opening of over 30,000 current accounts, an increase of 16% year-on-year; and an increase in capital ratios with a fully loaded common equity tier 1, CET1, ratio of 15.3% compared to 14.9% at the end of 2016.

The Deputy is aware that the Government does not see itself as a long-term investor in the banking sector. Accordingly, the Government’s policy is to return fully each of the banks in which the State has a shareholding to private ownership. Officials in my Department monitor the performance of Permanent TSB, its share price and equity markets more generally on an ongoing basis to determine the next sensible opportunity to realise value from this investment.

It is important to point out that exiting our investment in Permanent TSB in a sensible measured way which will optimise value for our citizens could take a number of years. I do not propose to set out a rigid timeline for disposal.

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