Permanent TSB said today that it continues to make progress on reducing mortgage arrears in its Asset Management Unit, which manages its troubled loans.

Shane O'Sullivan, managing director of the AMU, said there were 4,357 fewer mortgage customers in arrears of over 90 days at the end of August than was the case at the start of the year - a fall of 21%.

Mr O'Sullivan said the bank had seen improvements in key indicators in recent months which continued the strong improvements seen across the portfolio of mortgages earlier this year. 

The bank's AMU received 27,500 completed 'Standard Financial Statements' between January 2013 and the end of August 2014.  

It said that about 300 completed SFSs are now being received each week, down from highs of 600 to 700.  

It also revealed that split mortgages accounted for about 26% of proposed solutions for customers who find themselves in arrears. 

Mr O'Sullivan said the bank's experience to date had demonstrated the benefits to customers of engaging with it. 

"When customers engage with the bank on their arrears they are receiving practical and workable restructurings which they understand and which they can live with. Repossession of properties is a last resort and the vast majority of our proposals see customers remain in their homes - once they engage with us on their situation," he added.