Irish Life & Permanent (IL&P) is set
to sell its car loan and agricultural leasing business run by
Permanent TSB Finance.
There are reports the two could be sold
separately with the car loan book worth €500m, spread across loans
of a minimum €4,000, and the leasing operation worth €100m,
financing agricultural machinery to farmers, local authorities,
landscape gardeners and sports clubs.
Go deeper with GlobalData
The move comes as IL&P seeks to separate
its insurance and banking business by the end of the first quarter
of 2012.
IL&P is the Republic of Ireland’s largest
provider of private pensions and mortgages and was one of the
largest suppliers of motor finance during Ireland’s economic
pinnacle.
Although it had been the only major Irish
lender to avoid an initial government bail-out, IL&P became
99.5% owned by the state in July 2011 following the supply of
€2.7bn of emergency funds.
The sale comes as the business prepares for
the first three months of 2012, which is considered the busiest
time for new-car sales in the Republic.
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By GlobalDataLast month’s collapse of IL&P’s proposed
sale of its insurance arm Irish Life, attributed to eurozone
uncertainty, saw the government shore up the company’s balance
sheet with a further €1.3bn.
IL&P has been recovering since suspending
its shares from the Irish stock market in March after falling 44%
in a day.
richard.brown@vrlfinancialnews.com
