Results 11,321-11,340 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Mr. O'Sullivan's answer to question 4 of the questionnaire in September on PDH long-term solutions, was that there were 6,279 split mortgages.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Just to clarify, there were 6,300, and 4,300 of them are in Project Glas. Is Mr. O'Sullivan saying that of the balance, some have not met the terms and are in Project Glas but are deemed to be in the untreated bundle?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Are there some where the terms are being met but the bank is not proposing to sell them, even though they are NPLs in accordance with the SSM regulatory definition?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: How did the bank arrive at that decision that some would go and some would stay, even though they have the same status from a regulatory perspective?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: I am conscious that other colleagues wish to contribute as well. The bank did not answer the question in the questionnaire about the level of provision it has made in respect of the €3.7 billion portfolio it intends to sell but from looking at the bank's annual financial statements, details are given of provision coverage, so for PDH loans the rate is 43%. That is as a percentage of...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: I am extrapolating from the figures published in the bank's annual financial results.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: I want to tease out this issue finely because I know that there are capital implications associated with carrying NPLs.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: In terms of loss recognition, the bank has provided for a loss of close to 50% for the Project Glas portfolio. If it sells the entire portfolio as it is at a haircut or discount of less than 50%, it would be releasing a profit back into its income statement. If it sells at a haircut or discount of more than that figure, it will be booking an additional loss. Is that correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: From what Mr. Crowley is saying, the capital implications are the more significant for the bank. I imagine it will not sell the portfolio at a discount of anything like 50%, given the appreciation in property values and so on. While a profit will be released back into the income statement, it seems that the bank is more motivated by the capital implications.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Depending on the final price achieved for the portfolio, the bank could be releasing a very significant profit back into its income statement, perhaps in the order of hundreds of millions of euro, or perhaps €1 billion, depending on the extent of the discount at which the portfolio is finally sold. That is quite an attractive proposition for the bank which will make a hefty profit...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: It will only be a loss if the bank sells for less than 50 cent in the euro.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Mr. Groarke cannot say that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: If we take the blended or composite figure, apply what has been reported as PTSB's provisioning for buy-to-lets and principal dwelling homes, PDHs, to the mix of Project Glas, we arrive at a figure of approximately €1.8 billion, or 48% or so.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: I would like to add to that question. Can Mr. Masding clarify at what point in the process the bank is likely to be advised legally that it has an obligation to proceed because so many parties have expressed an interest, invested resources and engaged in the process? At what point is the bank likely to be told that it cannot terminate the Project Glas portfolio sale?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: My question was about the point at which the legal advice would be that the bank had gone beyond the point of no return and must complete the process. What is Mr. Masding's understanding of where that point is in the process of a portfolio sale?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Very late in the process.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Does Mr. Masding have any advice for customers who suspect they are in the basket of Project Glas?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Can the witness clarify that if another bank purchases these loans at a discount they will not be deemed to be NPLs on its books?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Apart from the split mortgages, are there any other restructured loans where the terms of the restructure are being met that are included in Project Glas?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Proposed Sale of Non-Performing Loans to Private Investment Funds (Vulture Funds): Permanent TSB (22 Mar 2018)

Michael McGrath: Okay, they have been restructured and are meeting the terms of the restructure but are in the-----