permanent tsb announces details of a restructuring plan

• permanent tsb bank announces details of restructuring plan
• CEO – “We face significant challenges; however, we are very confident about our future prospects once this restructuring plan has been implemented”

permanent tsb bank has briefed staff on restructuring plans which are designed to create a smaller, profitable “new” permanent tsb bank by 2016 and secure the future of the bank as an efficient, competitive and customer focused bank. The restructuring follows intensive engagement with the Troika and the submission of a detailed viability plan by the bank to the European Commission. It is intended to introduce the restructuring as a matter of urgency.

As part of the restructuring plans, the bank will:

• Reorganise its operations through three discrete business units:
  • permanent tsb
  • Asset Management Unit
  • CHL (its UK mortgage loan business)
• Reorganise the bank’s Head Office.
• Reconfigure its branch network as follows: 16 of the current 92 branches will close; 2 additional branches will become self-service locations and we will close a further Dublin City Centre branch but invest significantly in a nearby branch to create a flagship City Centre site.
• Invest in core banking areas including Collections and Open 24.
• Reduce total staff numbers by up to 250 FTEs (Full Time Equivalents). The bank will launch a Voluntary Severance Scheme based on 3 weeks’ pay per year of service plus statutory entitlements.
• Reduce operating costs by approximately 10% to reflect the smaller business of the new permanent tsb.

Speaking today, Jeremy Masding, the recently appointed Chief Executive of the bank, said that the overriding objective was to secure a viable future for a core banking business within permanent tsb bank while minimising losses from the bank’s challenged loan book;

Our objective is to carve out a viable, efficient, competitive and customer focused permanent tsb bank from within the current group. We believe that such a bank can make a positive contribution to the Irish banking landscape and is the best way of protecting the taxpayer’s investment in our business. We face significant challenges; however we are very confident about our future prospects once this restructuring plan has been implemented.