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) to seek a new long-term owner, entering a formal offer period under Irish takeover rules.

• 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 down 4% year-on-year; net interest margin (NIM) stabilized at 2.01%, expected to exceed 2.00% for the year.

• Net interest income declined 6% YoY, while net fees and commissions rose 9% YoY due to one-off factors.

• Total non-interest income up 14% YoY, driven by non-recurring items.

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

• No impairment charge in the first three quarters; asset quality remains strong.

Outlook and guidance

• 2025 guidance reaffirmed; 2027 ROTE target of ~9% and new 2028 ROTE target of ~11%.

• ROTE expansion driven by income growth, NIM widening, cost-income ratio decline, and refinancing benefits.

• Cost-income ratio target for 2027 set at 62%, with expectations to fall below 60% in 2028.

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

• Guidance excludes potential IRB model review benefits.