Permanent TSB Group (PTSB) H2 2024 earnings summary

Executive summary

• Delivered strong performance in 2024, with customer deposits up 5% to €24.1bn and mortgage market share recovering to 20.2% in Q4.

• Underlying profit before tax rose 8% to €180m, with reported profit before tax doubling to €159m year-over-year.

• Significant digital transformation and investment revitalized the franchise, with 1.3 million customers and high digital adoption.

• Sustainability initiatives advanced, with green mortgages at 43% of new originations and new social partnerships.

• Loan/deposit ratio improved to 89% (down 4ppts year-over-year); CET1 ratio increased to 14.7%.

Financial highlights

• Total income up 1% year-over-year to €672m; net interest income €612m, down 1% due to higher deposit and wholesale funding costs.

• Operating expenses rose 5% to €531m, cost-to-income ratio increased to 74%.

• Impairment release of €39m, reflecting strong asset quality; NPL ratio at 1.8%, down from 3.3% at end-2023.

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

• CET1 capital ratio at 14.7%, pro forma 15.3% under Basel IV; loan-to-deposit ratio at 89%.

Outlook and guidance

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

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

• Mortgage and business banking books expected to grow 4–5% and 15–20% per annum, respectively.

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

• ROTE guidance: ~5% for 2025, ~9% for 2027; NIM expected above 2.0% in 2025.