Permanent TSB Group (PTSB) H2 2025 earnings summary

Executive summary

• 2025 marked a transformational year with record lending of EUR 3.4 billion, up 31% year-over-year, and the highest lending in 18 years.

• Achieved or exceeded guidance on all key metrics, including income, costs, impairment, capital, and returns.

• Achieved €1.5bn year-over-year deposit growth (+6%) and €0.6bn increase in mortgage loan book (+3%).

• First dividend since 2008 proposed at EUR 10 million (EUR 0.018 per share), reflecting renewed financial strength.

• Regulatory approval of IRB mortgage models significantly improved competitiveness and capital efficiency.

Financial highlights

• Total income declined 3% year-over-year to EUR 655 million, with net interest income down 4% to EUR 590 million.

• Operating costs reduced by 2% to EUR 519 million, EUR 6 million below guidance and EUR 12 million less than 2024.

• Profit before exceptional items and tax was EUR 175 million, down 3% year-over-year.

• Cost-income ratio rose to 75% but improved to 74% in H2; guidance for 2026 is below 70%.

• Net impairment release of EUR 39 million, fifth consecutive year of releases, reflecting strong asset quality.

• EPS for the year was EUR 0.206; Return on Tangible Equity was 7.3%.

Outlook and guidance

• Return on Tangible Equity expected to rise above 9% in 2026 and reach 13% by 2028.

• Net interest margin guidance for 2026 is above 210 basis points, up from 203 in 2025.

• Cost-income ratio targeted below 70% in 2026 and below 60% by 2028.

• Lending growth expected to accelerate, driven by mortgage market expansion and business banking diversification.

• Cost of risk modeled to rise modestly to 20-25 basis points by 2028.