Full Year 2025 Permanent TSB Group Holdings PLC Earnings Call Transcript
Key Points
- Permanent TSB Group Holdings PLC (ILPMF) achieved a significant milestone by proposing its first dividend since 2008, reflecting renewed financial strength.
- The bank's balance sheet grew by 6%, with a notable increase in deposits by EUR1.5 billion and a 3% growth in the mortgage book.
- The approval of IRB mortgage models is expected to enhance competitiveness and support sustainable business growth.
- The bank achieved a 10% reduction in full-time employees (FTEs), contributing to cost savings and improved operational efficiency.
- Permanent TSB Group Holdings PLC (ILPMF) maintained a strong core equity tier one capital level of 17.5% at year-end, indicating robust financial health.
- Total income decreased by 3% due to a lower interest rate environment, impacting overall financial performance.
- Profit before exceptional items and tax was EUR175 million, 3% lower than the previous year, indicating a slight decline in profitability.
- The cost-to-income ratio increased to 75%, reflecting a gap between income and cost growth.
- Exceptional items amounted to EUR47 million, higher than previously guided, including costs related to a voluntary severance scheme.
- The bank's net interest margin decreased to 203 basis points, affected by higher deposit costs and lower asset yields.
Good morning and welcome to our 2025 full year results presentation. I'm joined here today by our CFO Barry Darcy.
I'm going to cover the key highlights for 2025 and comment on the wider progress we have made through this first year of our three-year strategy. I will then take you through how we see the financial performance of the bank evolving over the next few years before handing over to Barry, who will provide a more detailed review of our 2025 results.
After this, we would be happy, we will be happy to take your questions.
So if we just turn to slide 5. 2025 was a transformational year for PTSB. The bank's balance sheet continued to grow as customers responded to the strength of our brand and product offering. We lent a total of EUR3.4 billion during 2025, and this is the highest level in 18 years, with circa 17% of this lending in the non-mortgage lending.
Our deposits increased by 6% or EUR1.5 billion. Our mortgage book grew by over 3%, and our business banking
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