Permanent TSB Group (PTSB) Q3 2025 TU earnings summary

Executive summary

• Board, with support from the Minister of Finance, has launched a Formal Sales Process (FSP) under Irish Takeover Rules, seeking a new long-term owner for the bank.

• Achieved strong Q3 performance with growth in deposits (up 7% YoY), mortgage book (up 4% YoY), and business banking (up 11% YoY).

• New mortgage lending surged 64% YTD to €2.1 billion, with a market share over 20%.

• Operating expenses marginally lower for the first nine months, on track for €525 million full-year target.

• CET1 capital ratio at 15.5% at end-September, reflecting strong capital and liquidity positions.

Financial highlights

• Total operating income for the first nine months of 2025 decreased by 4% year-over-year.

• Net interest income declined 6% YoY, with NIM at 2.01% (vs. 2.02% in H1 2025), expected to exceed 2.00% for the year.

• Net fees and commissions up 9% YoY, mainly due to one-off factors; total non-interest income up 14% YoY.

• Cost/income ratio at approximately 77% for the first nine months.

• Customer deposits at €25.4 billion, up 5% since year-end and 7% year-over-year.

Outlook and guidance

• 2025 guidance reaffirmed; performance in line with prior communication.

• 2027 ROTE target reaffirmed at circa 9%; new 2028 ROTE target set at circa 11%.

• Dividend payments expected to restart in 2026, building to a 40% payout ratio over time.

• Cost-income ratio expected to fall below 60% by 2028, with income growth outpacing cost increases.

• NIM expected to rise above 2.3% in 2028, supported by repricing of maturing loans and deposit products.