Sale of EUR215m tranche of CHL loans

permanent tsb Group continues deleveraging of non-core assets

Announces sale of €215 m tranche of CHL loans

Price achieved is 40% above prices offered in 2012

Friday 26th September 2014. permanent tsb Group plc has confirmed that as part of its ongoing deleveraging programme of non-core assets, it has closed the sale of Project Liverpool; a tranche of loans held by its UK subsidiary, Capital Home Loans Limited (CHL). The tranche comprised €215 million of loans secured against Buy-to-Let properties in the UK.

Price 40% above prices offered two years ago:

A spokesman for permanent tsb Group has told the media/market at 4pm today that while the financial details of the transaction are confidential, the price achieved was 40% above the offers which were submitted for the portfolio in 2012 when it was previously offered for sale. The identity of the purchaser is not being disclosed.

The spokesman said that the transaction vindicated the decision to suspend the sales process which began originally in 2012; "The prices available in 2012 simply didn't justify the sale of these assets at that time. The uplift in pricing which we've now achieved confirms that we are best placed to manage these assets out over time and in a way which secures the best return for the bank and the taxpayer."

Sale in line with Group's strategy to deleverage non-core assets:

The spokesman said the sale of this tranche of UK based loans was part of the Group's strategy of deleveraging non-core assets as it refocuses its activities on creating a profitable, competitive retail focussed bank in Ireland; "We're making strong progress on our core bank in Ireland and we're complimenting that by deleveraging non-core assets in the UK and Ireland. This is another significant step on that journey."

The spokesman confirmed that the sales process for Springboard, which is part of the Group's deleveraging programme, was continuing.

CHL:

CHL is a subsidiary of permanent tsb bank. It manages a loan book of approximately €7 billion of mortgages secured against Buy-to-Let properties in the UK. As part of the transaction CHL will continue to service the Project Liverpool loans under a separate commercial arrangement.

Issued on behalf of permanent tsb Group by:

Gordon MRM

[email protected] Contact: Ray Gordon Ph: + 353872417373