According to the current chairman of Permanent TSB the bank is currently not in the position to consider reducing mortgage interest rates for standard variable customers.
Chairman Alan Cook made the annoucement whilst he was addressing the bank’s annual general meeting in Dublin recently, Mr Cook told board members that the bank is not yet making money but they are nearly profitable. The news comes after the bank revealed that their pre tax loss was at €48m; down from €668m the previous year.
The banks current Shareholders were told that the bank currently requires new investment capital but they are looking to raise the €525m needed from private investors. Permanent TSB have said that they were encouraged by the interest shown by potential international investors. Although Mr Cook claimed that the cost of borrowing for PTSB still remains high and as a result it would not be able to consider reducing variable interest rates on current mortgage holders.
Mr Cook told shareholders that the bank has been in contact with both the Minister for Finance and the Central Bank about the issue.