Permanent TSB has agreed the sale of its remaining loan book in the UK to an affiliate of Cerberus Capital Management. 

The bank said the deal completes the deleveraging programme which was a core condition of the restructuring plan agreed for the group by the European Commission.

A year ago a Cerberus affiliate acquired about 50% of Permanent TSB's UK loan book. 

The loan assets in the deal announced today, worth £2.29 billion, comprise the total balance of what was left of its former UK subsidiary, Capital Home Loans Limited. 

The bank said the proceeds of the sale will be used to reduce its group borrowings.  

Jeremy Masding, the group's chief executive, said today's transaction is a milestone event for the Permanent TSB Group Holdings.  

"Its completion in the coming weeks will conclude the very ambitious deleveraging programme of some €8.4 billion which was set out for the group under the restructuring plan agreed with the European authorities," Mr Masding said.

"Perhaps most importantly, it will complete our pivot to the Irish retail marketplace and allow us to focus exclusively on growing our commercial position in key segments of the market here.  That is now our overriding priority, as Ireland’s only pure domestic retail and SME bank," he added.