Permanent TSB expects to return to profit at the "back end of 2016", its chief executive Jeremy Masding told the Oireachtas finance committee today.
Replying to a question from Fianna Fáil’s finance spokesman Michael McGrath, Mr Masding said it could be “earlier if the economy keeps growing at the rate it is”.
Mr Masding said its recent so-called pre-deal roadshow was about reintroducing the PTSB story to the investment community, given that it has not had any engagement since the days of its predecessor, Irish Life & Permanent plc.
“The first stage is about telling our story,” Mr Masding said, adding that the roadshows were about gauging a “level of interest” rather than discussing pricing or what stake in the bank might be sold.
PTSB is seeking to raise about €200 million from external investors, in part to close the capital gap identified by the recent stress tests run by the European Central Bank.
The ECB identified a capital hole of €855 million but PTSB has already closed that gap by more than 80 per cent. Mr Masding said the gap is now €100 million to €150 million.
The Irish Times has learned that PTSB met with 45 investors on its roadshows in London, New York and Boston in recent days.
In response to questions from Sinn Féin's Pearse Doherty, Mr Masding said any sale of equity to external investors would "naturally involve some dilution" of the State's 99.2 per cent holding.
Mr Masding said the board of PTSB is leading the engagement process with capital markets, with advice from investment bank Deutsche Bank. He said it was "very important" to keep the Minister for Finance Michael Noonan "at arm's length" during its engagement with investors so as "not to compromise him".
Mr Masding said he would seek to bring the “best deal” possible to Mr Noonan for his approval, most likely at the end of the first quarter of 2015. PTSB has until July 26th next year to raise the necessary capital identified in the ECB tests.
“If he [MR NOONAN]chooses to sign off [ON THE DEAL]he chooses to sign off on it,” Mr Masding added.
Mr Masding said he would also have to engage with the bank’s minority shareholders, who collectively own 0.8 per cent of the institution.
The PTSB chief said it would submit its revised restructuring plan to the European Commission in the next couple of weeks. This will be the bank's third attempt to have the plan approved by the commission with Mr Masding saying he has a "higher level of confidence" that the latest plan will be approved by Brussels.
PTSB was bailed out by the State in 2011 and is in receipt of €2.7 billion from taxpayers.
