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  • permanent tsb confirms that it is finalising plans to raise capital from international investors to support the maintenance of prudent capital buffers and profitable growth
  • Group confirms that it has already “provided for” over 80% of the shortfall identified in ECB tests on the back of both progress made in 2014 and the Group’s existing Contingent Convertible notes (CoCos)

permanent tsb Group Holdings plc has confirmed that it is in advanced planning with international investment bank, Deutsche Bank, to raise capital from international investors in the coming months.

The Group said it will undertake the capital raising programme as part of its response to the publication today of the results of Stress Tests held on European banks by the ECB. Group Chief Executive Jeremy Masding said the Group has already addressed over 80% of the €855 million shortfall that the ECB said identified when they applied the extreme, Adverse Scenario to the Group’s Balance Sheet at the 31 December 2013.

Speaking today, Mr. Masding said:

The tests were based on our position at the end of December last and we’ve made huge progress since then on a number of fronts so we’ve already provided for over 80% of the shortfall that the ECB identified. We look forward to bringing international investors on board now to raise the remaining amount which will leave the bank fully in line with the ECB requirements.

The bank has confirmed that the result of the Stress Tests will have no effect on the day-to-day operations of the bank and no impact on customers; Mr. Masding said:

The tests confirm that permanent tsb has more than enough capital to meet what the ECB describes as a baseline scenario and has made the right provisions for dealing with bad loans (the Asset Quality Review/AQR).

On customers, Mr. Masding said;

Customers are unaffected by these tests are are not required to do anything as a result of today’s news.

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