Half Year 2024 Permanent TSB Group Holdings PLC Earnings Call Transcript
Key Points
- Permanent TSB Group Holdings PLC (ILPMF) reported a profit before tax of EUR 75 million, a significant increase from EUR 25 million the previous year.
- The company has grown its deposit base by over EUR 1 billion year on year, reaching EUR 23.6 billion.
- The bank's NPL ratio has reduced to 1.7%, making it the lowest in Ireland and below the European average by 20 basis points.
- Permanent TSB Group Holdings PLC was upgraded to investment grade by Fitch, which positively impacted their debt issuance.
- The company announced a new distribution policy aiming for a payout ratio of 40% over the medium term, signaling a positive outlook for shareholder returns.
- The company's mortgage market share has decreased from 23% to 13% due to a reduction in the switcher market.
- Total operating expenses increased by 20% year on year, partly due to the integration of Ulster Bank business.
- The cost-income ratio is high at 73%, although the company expects it to reduce by year-end.
- The net interest margin decreased by 2 basis points year on year, reflecting increased deposit and wholesale funding costs.
- The company faces challenges in achieving a 40% distribution payout due to current capital models being capital consuming.
Good morning, and welcome to the 2024 interim results presentation for PTSB. I'm going to do a short presentation on the strong business performance for the first half of the year, and then our CFO, Nicola O'Brien, will provide more detail with regard to our financial performance. And at the end of that, Nicola and I will be happy to take questions.
So if we just turn to page 4. When it comes to customers and the bank itself, we've delivered a strong performance so far this year with the support customers and communities across the country. And we will continue to grow diversify our business in the second half of the year and beyond.
We're proud to have grown our deposit base by over EUR1 billion year on year to EUR23.6 billion. Our deposit product portfolio remains attractive in the market. And we've launched recently leading one-year-and-six-month fixed-term deposit products, including an innovative interest-first deposit product, which is really getting traction with customers.
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