Seeing the PTSB garden as rosy is a Masding mirage

Move along now, nothing to see here, was the message from Jeremy Masding yesterday on rumours of Permanent TSB's difficulties.

He closed his media presentation on another set of dire results from PTSB by “debunking myths” about the State-owned bank, which is being propped up by €2.7 billion worth of taxpayers funds.

The “funding drag” from its loss-making tracker mortgage book is €75 million, not the hundreds of millions being peddled by certain media. Rejoice ye all.

And this ace mortgage problem-solver doesn’t need an external solution for the trackers. Oh no, he can sort out this problem all by himself.

Just as well, really, because there doesn't appear to be one on offer from the European Central Bank, the only entity that could realistically provide a funding solution.

As for the European Commission’s approval of its restructuring plan, which has been knocking around for some time now, have no fears.

He continues to have “positive engagements” with the “relevant authorities” and expects the plan to be agreed in “due course”. Sorted.

'Peddling myths'
Stress tests? Pah. He doesn't know the parameters of the tests yet but he's mighty confident the bank's capital buffers can withstand whatever the ECB throws at it later this year.

One reporter with a Sunday newspaper, who is soon to change careers, challenged Masding’s narrative, saying he felt “insulted” by the suggestion that journalist have been peddling myths abouts its tracker book.

Unlike Alan Shatter, Masding offered an immediate apology for any insult caused.

From a taxpayer’s point of view, we should hope that Masding is right on all these points. It would certainly be nice to get some of our money back.

There was much made yesterday of the bank having turned a corner and being back in the game with lending and current accounts.

This is something of a mirage. The new current account customers are largely migrating for the free banking. It’s hardly the most profitable of business models.

Many of them were Danske customers and had to find a new home.

The €270 million in new lending over the past 12 months is less than Masding originally predicted and is really a drop in the ocean.

Its market share is increasing but is partly because ACC and Danske have folded their tents and Ulster Bank has yet to decide its future here.

'Dreamland'
If things are now so rosy in the PTSB garden, why is the Minister for Finance Michael Noonan talking about his desire for a third banking force and making eyes at Ulster Bank and its parent, Royal Bank of Scotland?

It might yet come to pass that PTSB is part of this arrangement.

Masding said he doesn’t “live in dreamland”. Neither do taxpayers. They’ve yet to be convinced that PTSB has a long-term viable future and can repay its bailout money. And that’s no myth.