Permanent TSB Reports Profit Dip, First Dividend Since 2008, and Ongoing Sale Process

Permanent TSB Group Holdings plc (PTSB) announced a decrease in pre-tax profits and total income for the year ending December 31, 2025, but simultaneously declared its first dividend since 2008. The bank is as well continuing with a sale process initiated in October 2025, managed by Goldman Sachs.

Financial Performance

PTSB reported a profit before tax of €128 million, a 19.5% decrease from the €159 million reported in the previous year. Total income also saw a 3% reduction, falling to €655 million. The decline in profitability was attributed to a fall in interest rates, impacting Net Interest Income, which decreased by 4% to €590 million. Operating costs were reduced by 2% to €519 million.

Growth in Lending and Deposits

Despite the decrease in income, PTSB demonstrated growth in key areas. The bank lent €3.4 billion into the economy in 2025, a 30% increase and the highest level since 2007. Its market share in mortgages increased to 20%, up from 16.4% in 2024. Novel mortgage lending soared by 39% to €2.9 billion, while total new lending jumped by 31% to €3.4 billion. Customer deposits rose by 6% to €25.6 billion.

Workforce Reduction and Dividend Announcement

PTSB reduced its workforce by over 300 employees, representing a 10% decrease to a total of 2,918, through a voluntary severance scheme and natural attrition. The scheme is expected to generate annual savings of approximately €21 million. The bank announced a final dividend of €10 million, marking the first dividend payout since 2008. As the State remains the majority shareholder, the Exchequer will primarily benefit from this dividend.

Ongoing Sale Process

The bank initiated a sale process in October 2025, with Goldman Sachs handling the proceedings. CEO Eamonn Crowley stated that the process is ongoing and subject to takeover panel rules, limiting his ability to provide detailed commentary. There is currently no deadline for completion of the sale or a decision to withdraw from the process.

Share Price Reaction

PTSB shares experienced an increase in value in Dublin trade following the announcement. As of March 5, 2026, the share price was 3.230 EUR, up 0.94% from the previous day’s close.

Source: Investing.com UK, Stockanalysis.com