Belfast Telegraph

Mortgage losses triple for Permanent TSB

Permanent TSB in the Republic has set aside €1.4bn (£1.16bn) in bad loan provisions after it reported that mortgage losses were three times higher in 2011 than the previous year.

The lender also reported a loss of €424m (£352m) for 2011.

Permanent TSB issued a statement in February warning about the record losses and the bank is now setting aside money in all cases where mortgage holders are more than 90 days behind with repayments, in line with new Central Bank guidelines.

It has also taken account of an expected bigger drop in house prices - 55% below peak levels, compared with its previous 43% estimate. The bank is the subject of ongoing negotiations between Dublin, the EU, the International Monetary Fund and the European Central Bank.