Permanent TSB Group Holdings plc

Total operating income fell 3% in 2025, with net interest income at EUR 590 million, down 4%. Total operating costs were EUR 519 million, down 2% and better than the EUR 525 million guided; profit before exceptional items and tax was EUR 175 million, down 3% or EUR 5 million versus 2024; EPS was EUR 0.206; and return on tangible equity was 7.3% / just over 7%. The bank recorded an impairment release of EUR 39 million, and proposed a final dividend of EUR 10 million, or approximately EUR 0.018 per share. For 2026, management guided to NII margin greater than 210 basis points, cost-to-income ratio less than 70%, nil or 0 cost of risk, and ROTE rising to over 9% this year; medium-term targets remain ROTE around 13% by 2028, NIM of 2.3%, and cost-to-income below 60%.

Eamonn Crowley framed 2025 as a transformational year and emphasized that the bank met or exceeded guidance across income, costs, impairment, capital and returns. Strategically, he stressed deeper customer relationships, more diversified lending, and better digital execution, citing higher mortgage portal usage, stronger app ratings, and growth in business and consumer lending. His tone was confident that IRB approval materially improves competitiveness and gives PTSB more flexibility in how it competes, while noting the bank is still constrained from discussing the sale process in detail.

Barry D'Arcy focused on the mechanics behind the year’s results: operating income was down 3% because margins compressed from lower ECB and mortgage rates and higher average deposit costs, but H2 stabilized with revenue up 3% versus H1. He highlighted costs of EUR 519 million, down 2% and below guidance, with regulatory charges of EUR 25 million and 329 FTEs reduced; the voluntary severance scheme should deliver about EUR 21 million of annualized savings, with less than half recognized in 2025. On capital and asset quality, he cited a EUR 39 million impairment release, provisions down to EUR 320 million or 1.4% of loans, CET1 of 15.9% reported and 17.5% pro forma after IRB and the loan sale, and a strong MREL ratio of over 36%.

Analysts pressed on 2026 deposit costs, the impact of IRB on the Ulster mortgage portfolio, mortgage market share, capital returns, and whether costs can fall further. Management said deposit rates on older higher-rate term products are rolling off, current term rates are 2%, and the bank will keep close watch on deposit pricing while following the market. On Ulster, Barry said the portfolio is paying down quickly and IRB work there is still a work in progress; on mortgage share, Eamonn said PTSB is comfortable with about 20% in a growing market and is not chasing share, but has more optionality now. On capital returns, management said the first dividend is a signpost rather than a run-rate and that no further distributions are planned during the ongoing formal sales process.