Permanent TSB says annual profit down but reports "real progress"

(Alliance News) - Permanent TSB Group Holdings PLC on Thursday reported decreased profit and net interest income for 2025, but also announced its first dividend in nearly two decades.

Pretax profit declined to EUR128 million in 2025, from EUR159 million in 2024. Underlying profit was EUR5 million lower at EUR175 million.

Interest income edged down to EUR878 million from EUR899 million, while net interest income decreased to EUR590 million from EUR612 million.

The Dublin-based lender's net interest margin narrowed to 2.03% from 2.20%, and its return on tangible equity decreased slightly to 7.3% from 7.5%, although this was still above its 6.5% ROTE in 2023.

"At PTSB we made real progress in 2025, strengthening our position in the Irish retail banking market," Chair Julie O'Neill commented. "In 2025, the Board approved an integrated strategic plan, a multi-year strategy incorporating business, financial, change, and workforce plans, designed to drive sustainable growth and transformation across the bank with a strong focus on securing customer interests.

"We have seen positive progress delivering on this strategy as demonstrated by the financial and business outcome for 2025."

PTSB also proposed its first final dividend to shareholders since 2008, this one of 1.835 euro cents per share.

Looking ahead, O'Neill commented: "Of course, a material development in 2025 was the announcement by the bank that it had commenced a formal sale process...We will provide a further update to the market when appropriate.

"As we look to the future and despite much global uncertainty over the last year, the Irish economy has continued to demonstrate its resilience to external shocks underpinned by strong economic growth, labour market and household deposit dynamics."

PTSB's annual report follows changes to its ROTE guidance, announced in late January, after its application to use new internal ratings-based mortgage models was approved.

It said forecast total risk-weighted assets would be lower by an estimated 10% by the end of 2028 when compared to its medium-term plan. Factoring this in, it forecast a 2027 return on tangible equity of more than 10%, up from around 9% before, with the target for 2028 raised to 13% from 11%.

Shares in PTSB were 4.8% higher at EUR3.26 each in London on Thursday afternoon.

By Emma Curzon, Alliance News reporter

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