Dublin-based Certus has been selected by Permanent TSB to provide loan servicing for a non-core book of commercial loans worth approximately €2.5 billion.

The bank invited tenders for the work in October and Certus, an Irish company set up by the former management of Bank of Scotland (Ireland) to wind down its €29 billion loan book, was considered the most likely winner of the contract.

The services to be provided by Certus include customer and loan management. Permanent TSB will continue to manage its core residential and investment loan book directly.

Certus already provides managed and outsource services to some of the UK and Ireland’s leading banks, including Lloyds Banking Group and AIB.

”Permanent TSB is an important account for us as it’s one of the largest banks operating in the Irish market,” said Certus chief executive, Joe Higgins. “We are already a significant employer in Ireland and we hope to continue to create new jobs.”

The company, which has offices in Dublin, Belfast, Cork, Galway, Limerick, Sligo and Waterford, employs more than 900 banking professionals many of whom have significant sector expertise.

The loan book it will take on comprises borrowings linked to office, retail and industrial developments.

The State owns 99.5 per cent of Permanent TSB as a result of a €4 billion bailout.