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Start Mortgages picking up Permanent TSB loan portfolio
Posted on Friday, 13 September 2019 15:05
Ireland-headquartered retail credit services provider Start Mortgages DAC has signed on the dotted line to pick up a non-performing loan portfolio from Dublin-based banking player Permanent TSB.
Under the terms of the transaction, the buyer will pay EUR 264.00 million in cash for the assets, which have a gross balance sheet value of EUR 506.00 million and a net book value of EUR 274.00 million.
The loan portfolio in question is known as Glas Tranche II and generated net interest income of around EUR 6.00 million in the year to December 2018.
Permanent TSB has earmarked the proceeds of the sale for general corporate purposes.
Zephyr, the M&A database published by Bureau van Dijk, shows that Permanent TSB’s most recent asset sale was announced in August 2015, when it agreed to offload UK-based home buy-to-let mortgages provider Capital Home Loans to Cerberus European Investments.
No financial details of that transaction were disclosed.
Permanent TSB describes itself as a significant provider of retail financial services in the Irish domestic banking market, with an offering which includes current accounts, retail, corporate and institutional deposits, residential mortgages and term loans, among others.
The firm recorded total operating income of EUR 210.00 million in the six months ended 30th June 2019, compared to the EUR 234.00 million generated during the first half of last year.
Underlying profit for the two periods stood at EUR 42.00 million and EUR 73.00 million, respectively.
There have been 2,815 deals targeting providers of credit intermediation and related activities announced worldwide during 2019, of which four were worth in excess of USD 20,000 million, according to Zephyr.
Of these, the most valuable took the form of an acquisition as Fidelity National Information Services agreed to pick up Worldpay for USD 43.00 billion.
This was followed by Fiserv’s USD 39.00 billion takeover of First Data, while SunTrust Banks and Total System Services were targeted in deals worth USD 28.09 billion and USD 21.50 billion, respectively.
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