Permanent TSB Group (PTSB) H2 2024 earnings summary

Executive summary

• Delivered strong 2024 performance with customer deposits up 5% to €24.1bn and underlying profit before tax up 8% to €180m.

• Mortgage market share recovered to 20.2% in Q4, with new lending up 19% in H2 year-over-year.

• Business banking book grew 11% to €1.1bn, SME lending up 16%, and asset finance up 4%.

• Digital transformation advanced, with 43% of new mortgages classified as green and €400m invested over five years.

• NPLs reduced to 1.8% of loans, reflecting strong asset quality and successful Glas III NPL sale.

Financial highlights

• Total income up 1% year-over-year to €672m; net interest income €612m, down 1%.

• Underlying profit before tax rose 8% to €180m; reported profit before tax doubled to €159m.

• EPS (adjusted) up 19% to €0.22; tangible net asset value per share up 5% to €3.58.

• Cost-to-income ratio deteriorated to 74% (up 8pp), with operating expenses up 5% to €531m.

• Net impairment release of €39m, with cost of risk at -18bps.

Outlook and guidance

• 2025 guidance: total income to decline low to mid-single digits, costs around €525m, risk charge of zero.

• Medium-term targets: ROE ~9%, NIM >220bps, cost base ~€500m, cost-to-income ratio 60%, cost of risk 20–25bps.

• Loan growth expected at 4–5% per annum, with business banking book targeted to grow 15–20%.

• Deposit growth expected to outpace market at 3–4%.

• Dividend distributions planned to resume in 2025, subject to capital model outcomes.