The chief executive of Permanent TSB (PTSB) has said a possible tie-up between the bank and another financial institution is not at the top of his agenda at present.

Jeremy Masding said that in his experience, such deals are only done when it is believed the organic alternatives have been exhausted or there is a material difference between such an option and the next best one.

As a result, he said, the reason he personally wouldn't have it at the top of his agenda at the moment is because while the data would suggest the bank has been fixed, it now needs to expand.

"We now need over the next couple of years to focus on growing the bank so that I know I can look the shareholders in the eye, including the Minister, to say this thing is motoring from an organic sense," he said after the company's AGM in Dublin.

"It is only at that time that I would believe myself that doing a deal would be appropriate in terms of driving it."

A recent research paper from stockbroker Davy suggested a merger between PTSB and Ulster Bank could have a disproportionate benefit on their combined profits.

The PTSB boss also said he thinks there is a disconnect between the intrinsic value and market price of the bank's shares, although Mr Masding said he believes that gap will close in the future.

"We have to tell the story now we have hopefully come out of the transformation element about the forward looking profitable growth of the business," he said following the bank's AGM in Dublin earlier today.

"My belief is that the market value and intrinsic value will align over time."

He said he thinks the facts would suggest management have delivered when it comes to the commercial transformation of the business.

He added that he does not think that the company has been rewarded yet for the work it has done on reducing the amount of non-performing loans on its balance sheet, which now sit at 10%.

"But at the end of the day, it is up to management to tell a value story to allow the market to catch up," he told reporters.

The illiquidity of the stock also means that the share price bounces all over the place, he claimed.

Mr Masding said he didn't want to speculate on the potential size of any Central Bank fine over the tracker mortgage controversy, or the possible timing of it.

He also said he wouldn't rule anything in or out when it comes to the further reduction of the bank's non-performing loans, adding he has no specific timings for a further loan sale.

But, he said, the scale of such a transaction that the bank might do would not be the same as last year's Project Glas and Glenbeigh sales.

He also claimed that the management team is going to have to make some tough decisions in terms of how it realigns the business, particularly around the cost base and where it makes revenue.