Mortgage arrears on the rise at Permanent TSB

Mortgage arrears on the rise at Permanent TSB

The number of people in arrears on their mortgages with Permanent TSB has increased by almost 2% in the first half of 2012.

The bank today reported a loss after tax of €566m for the first six months of the year.

A large portion of that is down to residential mortgage arrears, with 13.2% of the bank’s mortgage portfolio now in arrears for 90 days or more.

When houses bought as an investment are included the percentage of residential mortgage arrears rises to 14.1%, also an increase on the second half of 2011.

The €566m after tax loss allows a provision for bad debts of €437m, an increase of €92m on the same period last year and largely due to losses on commercial property mortgages.

The operating loss from core activities was €21m a fall of €5m from the first six months of 2011.

Permanent TSB CEO Jeremy Masding said that the figures highlighted the challenge facing the bank and pledged to invest in certain areas such as finance and asset management in the bank as well as the branch closures outlined earlier this year.

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