PERMANENT TSB GROUP HOLDINGS PLC Statement by permanent tsb Group Holdings plc.
Headline: Group progresses deleveraging agenda of non-core assets with sale of Springboard Mortgages Limited (Springboard)
Wednesday 22 October 2014. permanent tsb Group Holdings plc has confirmed that as part of its ongoing deleveraging programme of non-core assets, it has agreed the sale of the mortgage loan book owned by Springboard and, subject to regulatory approval, Springboard Mortgages Limited itself. A competitive sales process, managed by external financial advisers, was undertaken over two phases since July 2014.
The transaction is expected to complete following certain regulatory approvals and other consents and is considered a Substantial Transaction under the ESM Rules of the Irish Stock Exchange.
Springboard, a wholly owned subsidiary of the Group, owns a book of typically non-conforming mortgages linked to properties in Ireland and serviced by HML. Springboard was closed to new business in 2009. The mortgage loan book comprises gross assets of approximately €468 million, €350 million of which are non-performing. In their audited accounts for the year ended 31 December 2013, Springboard reported a profit of c. €3.2million.
Springboard has agreed to sell its mortgage loan book to Mars Capital Ireland No.2 Limited (Mars Capital ). While the financial details of the transaction are not disclosed, the impact on the Group's profit and loss account and Core Equity Tier 1 Capital Ratio will be positive. In addition, at 30 June 2014, the impact of the sale would have reduced the Group's non-performing loans by c 4% and the Loan to Deposit ratio by c 1%. The proceeds from the sale will be used to further reduce the Group's funding requirements in line with the Group's ongoing restructuring of its balance sheet.
Commenting on the transaction, Group Chief Executive, Jeremy Masding said; "This transaction completes an important part of our planned deleveraging programme and, importantly, it also confirms the adequacy of our provisioning methodology. Non-conforming lending does have a limited role to play in a mature mortgage market, but it was not appropriate for us as at this time as we focus on our rebuilding task."
Mars Capital has confirmed that it will comply with the terms of the Central Bank of Ireland's Code of Conduct on Mortgage Arrears.
Ciarán Long
Group Secretary
Media Contact
Gordon MRM
ptsb@gordonmrm.ie
Contact: Ray Gordon
Mobile: + 35387 2417373
This information is provided by RNS
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