The state-owned lender will need to raise €1bn to plug a financial gap after failing a stress test, it has emerged today.
It is understood that this will have no impact on customers, nor does it represent any threat to the institution itself.
A previous tax payer-funded loan of €400bn in the form of ‘contingent funds’ will go some way to bridge the capital shortfall, it has been reported.
Permanent TSB will also be allowed to write-up the value of many of its property assets, based on the general recovery of prices and the wider economy since December 2013, when the probe was carried out.
A deal with Deutsche Bank for outsourcing investment opportunities is expected to bring in another €300m.