PTSB has said its chief financial officer, Nicola O’Brien, has handed in her notice and plans to leave “in the coming months to take on a new role”.
The bank did not say where Ms O’Brien, who has been in the position for the past two years and with PTSB since early 2017, is moving to.
The announcement comes at a time when Ms O’Brien has been involved in a big project to reduce the perceived riskiness – or risk-weighting – of its mortgages and the amount of expensive capital that must be held against them.
Analysts estimate PTSB could also free up €270 million of expensive capital on its balance sheet as a result of the work, subject to regulatory approval.
Every €100 of mortgages the bank issues has a so-called risk weighting of about 40 per cent, against which it must hold capital, compared to an average of 25 per cent for its two larger rivals. The high risk-weighted assets density is a result of the bank’s experience of the arrears crisis following the financial crash, when as much as 28 per cent of its mortgages were non-performing.
The move also comes as PTSB and AIB remain subject to executive pay restrictions introduced during the financial crisis. All three remaining Irish banks, including Bank of Ireland, in which the State no longer holds shares, are also effectively prohibited for paying bonuses in excess of €20,000 to employees.
Ms O’Brien also played a key role in PTSB’s acquisition of billions of euros of loans from Ulster Bank, as part of the UK-owned bank’s exit from the Irish market.
PTSB said that Ms O’Brien has stepped down from the group’s board with immediate effect, in accordance with existing governance arrangements, as she prepares to leave in the coming months.
“Nicola has played an important role in supporting the bank on its journey to grow and diversify its business,” said Eamonn Crowley, chief executive of PTSB. “I wish to acknowledge the commitment she has shown to the bank throughout her tenure and wish her every success in her future career.”
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