PTSB ptsb at the Oireachtas Finance Committee at 2 pm today

Thanks for the reminder. I won't be able to view it but any updates o nthe site will be greatly appreciated however I'm near certain there will be no change in their position regarding the discounted trackers
 
Masding
Shane O'Sullivan
Breege Timoney Product Assurance Director
Declan Dolan- Group Treasurer


Tracker examination
No material change in the past 15 months
Dec 17 - 1979 accounts eligible for redress
Now 1983

1950 redressed so far .
14 customers have not accepted the payment
19 have left the jurisdiction

We are not aware of any cohorts outside the programme which the Central Bank thinks should be included

We have been asked if any individual has been made accountable?

We have found no evidence that the failure to disclose was planned or deliberate.

But we are subject to an enforcement exercise by the CB

NPLs

Project Glas completed and Glenbeigh well advanced

It was complex to achieve NPL derecognition

The ratio is down to 10% which is still three times the average so we will continue to work to reduce them.

No consent no sale bill
We oppose it

Mortgage rates
We have overhauled our fixed rates for new customers
We will review the products for existing customers

Pricing of legacy current accounts
Our objective is to maximise value for shareholders while delivering value to customers

We introduced a product three years ago which is prize winning.

But our legacy accounts need to be changed.
 
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Michael McGrath

NPLs. Where do you need to get to to satisfy the European authorities? And when do you need to get there?

Masding: The average is 3.5% . We now have the second or third lowest NPLs of the Irish banks.
We expect natural cures and a significant increase in Mortgage to Rent.
But not ruling out loan sales

We think 2 to 3 years to get to 3.5%.

We are nearer the end to our positive economic cycle than the beginning, so we don't want to be exposed.

McGrath: You sold 13,000 family home mortgages. Can you give any assurance to your existing home loan mortgages that they won't be sold.

Masding: No, I can't give that assurance.

McGrath: You are still treating existing customers less favourably

An existing customer is paying

Why do you continue to punish your existing customers who have been loyal?

Masding: I have to balance the value we offer to our customers with remaining sustainable

Any SVR customer can switch to MVR

We have .... fixed rate products for our existing customers.

But we are not there yet

McGrath: But a MVR customer is paying 1/2% more

On fixed rates, the difference is up to 0.85% between existing and new

You are the only bank to restrict customers from benefiting from a lower LTV.

You should move on this before you are forced to by the CB.

Masding We are aligned in principle with you

McGrath: 27% of your customers are 34,000 accounts are paying 4.5%

Masding: We use every public forum to highlight that they can get reductions by changing to the MVR
 
We are big fans of MTR


We have 23 MTRs done

We have an additonal 14 lined up behind that.

We have 150 to 200 who are engaged in the process
 
Pearse Doherty

€130m has been spent as of the end of 2018
+€35m extra has been provided

You have 181 cases before the Ombudsman for people who are unhappy

There are three or four residual areas which we have set aside money for

Will that €35m cover the fine you are expecting from the Central Bank?

ptsb: That is our best estimate

Masding: We expect to be fined and we should be fined. As regards the scale, we will engage with the CB and the fine will be as it should be.

Pearse: Surely the CB will decide the fine?

Masding: By mature conversation we mean that we will put all the facts before the Central Bank. It's not a negotiation.

Pearse: Has the board commissioned an investigation into what went wrong?

Masding: Yes, there was a report commissioned. And based on those facts, as far as we can see there was no deliberate decision. But as it's subject to an enforcement investigation, we can't.

Pearse: BoI submitted a report to the Central Bank.

Did you send the report to the Central Bank and Dept of Finance

Masding: Yes to CB. No to Dept of Finance - they are a shareholder and not a regulator

Pearse: Has anyone been fired?

Masding: Since 2012 the whole management team is new.

Pearse: Padraic Kissane has been pushing the margin issue. A shining light.
Are you happy you have resolved this in a customer-centric way.

Masding: 1374 came from the original ptsb problem and about 600 extra from the general tracker review
5% of our customers were affected. Most of our customers are still on trackers.

Pearse: The issue that affects me is that you have a new management team. I have a long memory. You were in charge when you were still chasing people in arrears who were entitled to get trackers back. One case discussed.
 
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Pearse: You have 5 customers on fixed rates of 9.1% - 10 year contracts. I presume that there are many others on 7% and 8%.


Masding: We fund a fixed rate at a point in time. A customer buys certainty. Since then, rates have fallen. We couldn't have predicted that. I remember mortgage rates much higher than 9%. I hear what you are saying.

Pearse: What is the penalty for breaking out?

Masding: I couldn't calculate that off the top of my head.

[I took a phone call and missed a bit]

Something to do with scorecards in the branch staff to earn commission.
 
In relation to the 181 people that have already complained to the PS&PO, do we have any idea of the reasons for these complaints? In other words, what are the likely groupings of complainants?

How can these complainants join forces (perhaps within their respective categories). Wouldn't they be stronger if they could share information, resources, experiences, etc. with each other?

For example, when complainant 10 of a particular cohort has an arbitration meeting with PTSB, wouldn't it be great to know the experience of the other previous complainants. PTSB will have this info...…..shouldn't the mortgage holders be similarly informed??
 
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