Finance minister welcomes PTSB sale plan
The Minister for Finance has welcomed an announcement from Permanent TSB (PTSB) that it has begun a formal sale process aimed at finding a new long-term owner.
Paschal Donohoe said that he was aware of the announcement from the country’s third-largest bank and was supportive of it.
The State still owns 57% of PTSB – its last remaining stake in an Irish bank after the financial crisis of 2008.
Consolidation in banking sector
In a statement to the stock market this morning (30 October), PTSB said that it had concluded that it was in the best interests of the bank and its stakeholders to identify a new long-term owner.
It said that there had been “a significant increase” in demand for its shares from international investors and referred to “a backdrop of increased consolidation activity” in the European banking sector.
“PTSB is an important part of the retail banking market and wider Irish economy, and its continued sustainable growth is critical to ensuring competition in the market and providing choice to consumers,” the company said, adding that its operations, products, and services would not be affected by the announcement.
William Fry appointed
Minister Donohoe said that the Government believed that a return to full private ownership was in the long-term interests of PTSB and citizens in general.
“The State’s investment in PTSB was made during the financial crisis to safeguard the stability of the banking system and protect depositors,” he stated.
“A sale of the State’s investment would be consistent with the objective of recovering taxpayer funds that were used to rescue the Irish banks and deploying these to more productive purposes,” he added.
The Department of Finance has appointed William Fry as legal adviser on the sale process.