2017 Supervisory Review and Evaluation Process

21 December 2017

PERMANENT TSB GROUP HOLDINGS PLC (the "Bank")

2017 Supervisory Review and Evaluation Process

The Bank has been notified by the European Central Bank of the outcome of its 2017 Supervisory Review and Evaluation Process ("SREP") which will be effective from 1 January 2018.

The decision requires that the Bank maintains a Common Equity Tier 1 ("CET 1") ratio of 9.825% and a Total Capital ratio of 13.325% until 31 December 2018 on a transitional basis.

The CET 1 ratio of 9.825% consists of a Pillar 1 Capital Requirements Regulation ("CRR") requirement of 4.50%, a Pillar 2 Requirement ("P2R") of 3.45% (unchanged from the current year) and a Capital Conservation Buffer ("CCB") of 1.875% (reflecting a further year's phase-in).

The Total Capital ratio of 13.325% consists of a Minimum Own Funds CET1 requirement of 9.825% and a Minimum Own Funds Tier 1 and Tier 2 requirement of 3.50%.

The 2017 SREP requirement compares to the Bank's transitional CET1 ratio of 17.5%[1] and a Total Capital ratio of 18.7%1 at 30 September 2017.

In addition, the 2017 SREP decision advises that the Bank is prohibited from paying out dividends to shareholders.

Separately, the Bank has recently been de-designated as an Other Systemically Important Institution ("O-SII") by the Central Bank of Ireland. As a result, the previously guided O-SII capital requirement of 0.50% by 2020 does not apply to the Bank.

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.