Permanent TSB (PTSB) has set aside €75m to deal with loan losses due to the economic uncertainty caused by COVID-19 restrictions.

In its results for the first half of 2020, the bank said it was taking a “prudent approach” to its loan portfolio. The €75m figure, up from €5m a year earlier, includes the future impact of 10,500 mortgage payment breaks, as well as payment breaks for other loans.

Opening up

Overall, the bank reported a pre-tax loss of €57m. Chief executive Eamonn Crowley said that, in the second quarter of the year, the bank saw new business volumes and banking activities fall to levels not seen in recent years.

“But we are pleased to say that volumes have increased again as the phased approach to opening up the Irish economy emerges,” he added.

Lending

Total lending in the first half of the year was down 16% from a year earlier, while mortgage lending fell 14%.

PTSB’s mortgage payment breaks were linked to €1.6 billion worth of loans - 10% of its total gross loans. It said half of these loans no longer required a payment break. The maximum COVID-19 payment break is for six months.

The results also show that the bank spent €4m during the COVID-19 restrictions on measures to keep its services going in a safe and secure way.