IL0A.L Regulatory News (IL0A)

07:00 08 November 2018

PERMANENT TSB GROUP HOLDINGS PLC (the "Bank")

Trading Update for the Nine Months Ended 30 September 2018 (Unaudited)

Key Points:

· Business and Financial performance continues to trend in line with expectations. 

· New lending volume of €1.0 billion increased by 48% year-on-year (YoY).

· Market Share of New Mortgage Lending increased to 14.7%[1] from 13.8% in H1 2018.

· Net Interest Margin remains unchanged at 1.77% from H1 2018.

· Non-Performing Loans (NPLs) reduced further by €0.1 billion from H1 2018.

· Proforma Common Equity Tier 1 (CET1) ratio (on a Transitional basis) increased to 16.7%[2].

· Proforma Common Equity Tier 1 (CET1) ratio (on a Fully Loaded basis) increased to 13.9%[2].

Business And Financial Performance

· New Mortgage Lending grew by 49% YoY outperforming the market growth of 20%[1]. As a result, market share of drawdowns increased to 14.7%1. Whilst the mortgage market in Ireland continues to grow steadily, it remains competitive. We continue to carefully manage our offering maintaining price discipline and credit underwriting standards.

· Term Lending grew by 39% YoY.

· NIM for Q3 2018 remained unchanged from 1.77%, at H1 2018. We expect NIM to remain unchanged from this level for the full year 2018.

· Operating Expenses and Impairment trends were in line with Management expectations.

Balance Sheet

Customer Balances

· Customer Deposits of €17.1 billion were broadly unchanged from H1 2018. 86% of Customer Deposits were from Retail sources and are in line with H1.

· Performing Loans amounted to €15.3 billion marginally increased from H1 2018.

Non-Performing Loans And Properties In Possession

· NPLs reduced by €0.1 billion to €2.9 billion from H1 2018 primarily due to Cures.

· Completion of the sale of €2.1 billion of NPLs announced in July (Project Glas), continues to progress in line with Management expectations.

· We continue to manage the remainder of the NPL portfolio and are committed to reducing the NPL ratio to single digits in the medium term, as per regulatory guidelines, whilst protecting capital.

· At the end of Q3, PTSB held approximately 1,800 properties in possession. Approximately 500 were sold year-to-date to end Q3 and a further 330 were sale agreed. We expect to sell the majority of these properties through various arrangements over the next 12 months.

Capital

· Pro-forma Common Equity Tier 1 (CET 1) ratio on a Fully Loaded basis and Transitional basis increased to 13.9%[2] and 16.7%[2] respectively compared to 13.4% and 16.2% at H1 2018. This increase is mainly due to Profits earned in Q3 and a marginal reduction in Risk Weighted Assets.

· As communicated at the Interim Results, the impacts from completion of NPL sale (Project Glas) and incremental TRIM outcomes will be reflected in the capital ratios in Q4.

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 Bank 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 Bank 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.