75WP.L Regulatory News (75WP)

Embargo: 07.00am, Tuesday 19 August 2014:

permanent tsb Group Holdings plc publishes Financial Results for the six months ended 30 June 2014

Headlines:

Ø Operating Loss Before Exceptional Items falls 62% to €171m (H1 2013: €449m)

Ø Underlying Operating Profit (Pre-Impairment and non-recurring items) at €4m for the Group and €13m for the Core Bank (Core Bank: ptsb Strategic Business Unit and AMU). 

Ø Impairment charges fall 65% to €149m (HI 2013: €430m)

Ø Mortgage lending increases 362% to €180m. Mortgage market share now running at 13%

Ø 14% fall in the number of customers in arrears of more than 90 days (since December 2013)

Ø Offered over 24,000 treatments for mortgage customers in arrears; over 80% of customers in arrears are engaging with the Group

Group Chief Executive Jeremy Masding comments:

Overall: "2014 is a key year for permanent tsb. The Group's underlying losses are down significantly and the permanent tsb Strategic Business Unit, effectively our customer facing business, recorded an operating profit of some €62m".

On arrears: "We've made huge progress on the arrears problem. The number of customers in arrears over 90 days is down 14%. Of those in arrears over 80% are engaging with us and we're delivering sustainable, affordable treatments."

On funding: "We've cut our reliance on ECB funding by two thirds from the peak and we have grown our customer deposits".

On mortgage lending: "We've rebuilt our market share from a low of 1.6% to a very credible 13%".

Key Figures:

Further Commentary:

permanent tsb Group Holdings plc ("the Group"), the holding company of permanent tsb plc, has published its results for the six months ended 30 June 2014.

The results show a significant improvement in key performance indicators including a 62% fall in the Operating Loss before Exceptional Items (June 2014 €171m) and a 65% fall in Impairment Charges in the period to €149m. 

The figures also highlight that the Net Interest Margin (excluding ELG fees) stood at 0.88% at end June 2014 versus 0.82% at end December 2013. Net Interest Margin benefited from continued progress in reducing the Group's cost of funding and broadening its retail and corporate deposit base, whilst reducing its reliance on wholesale and system funding.

The Group also announced today that it had achieved a 13% market share for new mortgage lending in the first half of 2014. New mortgage lending amounted to €180m in the six months to June, an increase of 362% on the corresponding period in 2013.

On arrears, the Group reported that the number of customers in arrears of more than 90 days had fallen by 14% since December 2013. The Group said that it has offered treatments to 24,000 customers in arrears.

The Group also reported that over 80% of customers in arrears are engaging with the Group. Statistics published by the Group today show 88% of Home Loan customers in arrears who engage with the Group are offered treatments that result in the customer retaining ownership of their home.

As has been publicised, preparations for the introduction of the Single Supervisory Mechanism ("SSM") have commenced. In common with other banks due to see this change in regulation, the Group is undergoing a Comprehensive Assessment ("CA"). This encompasses an Asset Quality Review, a Stress Test and a Supervisory Risk Assessment specific to the CA. All banks involved in this process continue to engage with the relevant National Competent Authorities in preparing and completing these assessments. The outcome and consequences of the CA are not known and it is expected that the results will be published in the fourth quarter of 2014.

Group Chief Executive Jeremy Masding said: "These results show our strategy is working. We're building a successful Group that will be well placed to exit State ownership and recoup money for the Irish taxpayer. We're also bringing real competition to Irish consumers with innovative and attractive deposit, loan and current account products. We still face considerable challenges but we are confident we will deliver real results for our shareholders and the taxpayer."

Contact details

Glen Lucken, Chief Financial Officer

Tel: +353 1 669 5354

Ray Gordon, Gordon MRM

Tel: +353 1 6650452, mobile +353 87 2417373