State-controlled Irish bank Permanent TSB is to farm out the management of its commercial loans to banking services firm Certus, insiders confirmed this week.
The arrangement will be formally announced within weeks.
Permanent, which is Ireland’s biggest residential mortgage provider at €36bn, has a relatively small commercial loan book of €2bn, which has been provided both for property and general business loans. It now classifies its commercial loans as “non-core”.
A spokesman for Permanent said that the main reason that the commercial loans were being given to someone else to manage is that Permanent’s expertise was in consumer loans rather than to businesses.
It is no longer making commercial loans.
The Permanent is 98.2% owned by the Irish Government as a result of a €4bn bailout.
david.harris@estatesgazette.com
