PTSB still plans return to dividends in 2026 as loans and deposits grow
Customer loans grew by 4 per cent in the year to €22.2 billion the end of June, while deposits rose by 7 per cent to €25.2 billion. Still, underlying pretax profit fell by 38 per cent to €51 million as net interest income declined and operating expenses grew.
The bank said it filed an application wiith the Central Bank at the end of May to reduce the perceived riskiness of its mortgage book, which would free up expensive capital on its balance sheet.
Bank of America analysts have estimated PTSB could release up €270 million of capital on its balance sheet as a result of a recalibration of its so-called risk-weighted asset (RWA) models. RBC Capital Markets estimates it could release a little over €200 million.
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'Our guidance for 2025 remains unchanged, as does our intention to restart dividend payments to our shareholders next year, subject to financial position and required approvals,' said chief executive Eamonn Crowley. 'While certain financial metrics are lower versus the previous year, this is in line with management expectations given the more challenging interest rate environment we are operating in.'
The bank said it still expects to cut about 300 jobs over the course of this year, through a voluntary redundancy scheme and natural attrition. The severance scheme 'is at an advanced stage', it said. Staff numbers at the end of June were 3,085, down 162 or 5 per cent compared with the end of December.
UK banking giant NatWest sold its remaining 11.7 per cent stake in
PTSB
two weeks ago for €126 million as it seeks to draw a line under its involvement in the Republic's banking sector.
The UK banking group received an original 16.7 per cent stake in PTSB in late 2022 as part payment for
Ulster Bank
loans it sold to the Republic's smallest remaining domestic bank. It subsequently sold down part of the stake two years ago.
While the Irish Government has an agreement in place with NatWest that allows both to sell shares at the same time as the UK lender, Minister for Finance Paschal Donohoe decided not to sell down taxpayers' 57 per cent interest earlier this month.
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