Permanent TSB (PTSB) has made a noteworthy decision by appointing Scott Rankin, who previously held the position of deputy head of the Department of Finance unit responsible for managing the State’s interests in bailed-out banks. Mr. Rankin will assume the position of head of the investor relations division within the bank.
In 2009, Mr. Rankin, a former banking analyst, became the first private sector employee to join the Department of Finance during the peak of the banking crisis. He was previously employed by the National Treasury Management Agency and was subsequently seconded to the department.
It has been reported that Mr. Rankin is currently on gardening leave and is expected to formally join PTSB, which is still 57 per cent state-owned, during the autumn. This timing allows for a minimum three-month cooling-off period, and the finalization of paperwork for his move is still pending. Neither the Department of Finance nor PTSB have provided immediate comments on this latest appointment.
This announcement of Mr. Rankin’s appointment comes at a time when Taoiseach Simon Harris has initiated a series of meetings with both banks and non-bank lenders to discuss interest rates and the general banking landscape. Among those he met were AIB chief executive Colin Hunt and PTSB chief executive Eamonn Crowley, and the meetings were reportedly positive and constructive.
During his tenure at the department, Mr. Rankin provided advice on various EU State-aid restructuring plans for bailed-out banks. He played a pivotal role as a banking adviser during the Irish negotiation team’s discussions with the International Monetary Fund and EU on the State’s 2010 bailout. He also represented the State during recapitalization talks with Bank of Ireland, AIB, and the former Irish Life & Permanent (now PTSB).
For over a decade, Mr. Rankin has served as the deputy head of the bank shareholding and financial advisory division, working under the division’s head, Des Carville. He was instrumental in PTSB’s initial public offering (IPO) in 2015, as well as the larger IPO of AIB two years later. Additionally, he managed the Government’s sale of a 5 per cent stake in PTSB a year ago.
Mr. Rankin is an experienced economist and had previously worked as the head of financials research at Davy from February 1994 to October 2009. Notably, he made headlines two years ago when it was revealed that he is Bono’s half-brother, as it was previously believed that they were cousins.
His move to join PTSB comes at a time when the bank is seeking regulatory approval to reduce the perceived riskiness of its mortgage book. Currently, the bank assigns a so-called risk weighting of over 40 per cent for every €100 of mortgages, leading to higher capital requirements due to the arrears crisis following the financial crash.
According to reports, the State has already recovered almost €2.8 billion of PTSB’s €4 billion bailout in 2011. This includes cash received from the sale of Irish Life, share sales in the bank, redemption of bailout bonds, guarantee fees, and interest payments. The remaining stake is currently valued at just over €400 million.
With PTSB’s strategic appointment of Mr. Rankin, there is anticipation of positive developments and changes within the bank’s investor relations division. This move underscores the continued evolution and restructuring within the Irish banking sector and will likely have a significant impact on PTSB’s future operations.