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Permanent TSB Group Holdings PLC on Friday said that it has agreed the sale of a second and final tranche of a non-performing loan portfolio to Mars Capital Finance Ireland DAC. The Dublin-based lender said the deal is part of a consortium arrangement with Mars Capital and certain funds managed or sub-advised by Apollo Global Management Inc. The transaction follows the sale of a first tranche of non-performing loans to Mars Capital in July 2024. The non-performing portfolio has a gross balance sheet value of €76 million, Permanent TSB said, with an overall risk weight intensity of around 63%. It is made up of 490 loan accounts secured on 455 properties. The accounts are linked to 410 borrowing relationships. Permanent TSB said around 55% of the loans are tracker loans, with 10% fixed rate and 35% variable rate. The loans within the portfolio will continue to be serviced by Permanent TSB for up to six months. At the end of this period, legal title and loan account servicing will transfer to Mars Capital. Permanent TSB said the deal will increase its total capital ratio by around 10 basis points once fully completed. It said the transaction alleviates the negative capital impact of regulatory calendar provisioning associated with the portfolio, which based on existing risk weights and capital requirements is equivalent to €500 million of new lending. The transaction reduces Permanent TSB’s non-performing loan ratio to around 1.4% on a pro forma basis, which it said it 40 basis points lower than the European average of 1.8%. Shares in Permanent TSB were down 0.6% at €3.14 on Friday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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