Tuesday, August 19 10:14:41
Results for ptsb this morning show that it is making progress with mortgage arrears with a fall of 18pc in arrears greater than 90 days since it peaked in autumn 2013.
The bank said that around 88pc of its customers in greater than 90 day arrears are in, or have been offered, a sustainable restructure, which would save the family home from repossession.
It cut its first-half underlying loss by 62pc, the results show, and posted a E171 million loss, with impairment charges on loans falling to E148 million, a third of the level reported a year ago.
"2014 is set to mark an important milestone as the year in which we will report a sharp improvement in underlying losses for the first time since 2008," Chief Executive Jeremy Masding said in a statement.
"The economic and commercial environment continues to improve and this provides an increasingly positive backdrop to the execution of our strategy."
The 99pc state-owned lender is seeking approval from European authorities to split itself and move bad assets off its balance sheet but is still awaiting a decision on a revised plan submitted to the European Commission last year.
The core "good bank" reported an operating profit of E3 million in the first half, PTSB said.
Unlike its more diversified rivals, PTSB's profitability is dragged down by expensively funded loss-making tracker mortgages that follow the European Central Bank's low interest rate and make up two thirds of its loan book.
As a result, the bank's net interest margin - measuring the profitability of its lending - rose a touch to 0.88pc, less than half the level of market leader Bank of Ireland.
Its proportion of homeowners in arrears for more than 90 days fell again to 13.7pc, from 14.9pc in December, while buy-to-let mortgage arrears fell to 15.5pc.
Ahead of stress tests by the European Central Bank later this year, PTSB's core Tier 1 capital ratio, a measure of financial strength, fell slightly to 12.7pc.
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