2016 Supervisory Review and Evaluation Process

13 December 2016

PERMANENT TSB GROUP HOLDINGS PLC

2016 Supervisory Review and Evaluation Process

The Group has been notified by the European Central Bank of the outcome of its 2016 Supervisory Review and Evaluation Process ("SREP") which will be effective from 1 January 2017.

The decision requires that the Group maintains a Common Equity Tier 1 ("CET 1") ratio of 9.2% and a Total Capital ratio of 12.7% until 31 December 2017 on a transitional basis.

The CET 1 ratio of 9.2% consists of a Pillar 1 Capital Requirements Regulation ("CRR") requirement of 4.50%, a Pillar 2 Requirement ("P2R") of 3.45% and a Capital Conservation Buffer ("CCB") of 1.25%. 

The Total Capital ratio of 12.7% consists of a Minimum Own Funds CET1 requirement of 9.2% and a Minimum Own Funds Tier 1 and Tier 2 CRR requirement of 3.5%.

Pillar 2 Guidance ("P2G") is not publicly disclosed under the advice of the European Central Bank.

The 2016 SREP requirement compares to the Group's transitional CET1 ratio of 17.1% and a Total Capital ratio of 18.8% at 30 September 2016 after adjusting for the effect of the sale of residual non-core UK assets completed in November 2016.

The Maximum Distributable Amount threshold has been set at 9.2% on a CET1 basis.

In addition, the 2016 SREP decision advises that the Group is prohibited from paying out dividends to shareholders.

Separately, the Group has recently been designated as an Other Systemically Important Institution ("O-SII") by the Central Bank of Ireland. As a result, the Group's capital requirement will increase by 0.25% in 2019 and 0.50% in 2020 to be held in the form of CET1 capital.

Both the SREP capital requirements (including the prohibition on payment of dividends) and O-SII buffers are subject to annual review.

Ends

Note on forward-looking information:

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group undertakes no obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.