Permanent TSB (PTSB) has completed the sale of a second and final tranche of a non-performing loan (NPL) portfolio to Mars Capital Finance Ireland DAC, with a gross balance sheet value of €76 million. The portfolio covers around 490 loan accounts secured against 455 properties and linked to 410 borrowing relationships, which may include joint borrowers.

Approximately 55% of the loans are tracker mortgages, with the remainder split between fixed rate (10%) and variable rate (35%) loans. All loans in the portfolio are classified as non-performing. PTSB emphasised that this sale is separate from its formal NPL sale process announced last month.

As with previous transactions, customers will retain the same protections under the Consumer Protection Code and the Code of Conduct on Mortgage Arrears. PTSB will continue servicing the loans for up to six months, during which borrowers can continue to access existing mortgage products and services, subject to terms and conditions. After this period, legal title and servicing will transfer to Mars Capital, which is regulated by the Central Bank.

The transaction is expected to boost PTSB’s Total Capital Ratio by around 10 basis points once completed and reduce its half-year non-performing loan ratio to approximately 1.4% on a pro forma basis, below the European average of 1.8%. The bank does not anticipate further NPL sales in the near term.

PTSB will notify affected customers individually in the coming days and has published a dedicated FAQ section on its customer support hub to assist with queries.

Read the full article to understand how this move strengthens PTSB’s balance sheet and reduces risk exposure.