Permanent Tsb Group Holdings Plc · EURONEXT:PTSB
Permanent Tsb — FY2024 Earnings Presentation
35 slides from Permanent Tsb's earnings presentation, Mar 4, 2025
Slide 1: Annual Results 2024 cover
NICOLE TO REPLACE WITH 2024 4th March 2025
Slide 2: Annual Results 2024
Annual Results 2024 Eamonn Crowley, Barry D’Arcy, CEO CFO 2
Slide 3: Contents
Contents 1 2 3 4 Business Update Financial Strategy & Medium Appendix Performance Term Outlook 3
Slide 4: Full Year 2024 Highlights
Full Year 2024 Highlights Business +5% 16.4% +11% +€1.2bn YoY -2.8ppts YoY +€0.1bn YoY Performance Deposit Growth New Mortgage Business Banking Market Share Book1 Financial €672m €180m 7.5% Performance +1% YoY +8% YoY +1.0% YoY Total Income Underlying Profit2 RoTE3 14.7%4 0.3%6 89% Balance Sheet +0.
Slide 5: Irish Economy Remains Very Strong
Irish Economy Remains Very Strong Labour Market (%) Household Debt 180 120% 106% 159 160 100% 5.8% 140 5.4% 120 80% 4.5% 4.5% 97 91 104 100 65% 3.5% 80 60% 2.4% 60 40% 1.4% 1.3% 40 20% 20 0 0% 2023 2024 2025e 2026e 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Unemployment Rate Employment G
Slide 6: New Lending down 7%, up 19% YoY in H2
New Lending down 7%, up 19% YoY in H2 Total New Lending (€bn1) New Mortgage Lending (€bn) & Market Share2 (%) 2.8 2023 2024 2.6 19.2% 16.4% 1.4 0.2 1.3 0.1 0.2 0.2 1.0 0.1 0.2 0.7 2.3 2.1 FY23 FY24 FY23 FY24 Mortgage SME Term AF H1 H2 New Personal Term Lending (€m) New Business Banking Lending (€m)
Slide 7: Investments now Yielding Results
Investments now Yielding Results Customer Outcomes1 Online Mortgage New Digital Mortgage Drawdowns via Online Portal +87% Front End Portal (€543m) Nearly €400m New Business Savings & Deposits via €410m invested in the Digital Channels last 5 years Customer Account Exposure YoY Due -64% To PTSB Prote
Slide 8: Contents
Contents 1 2 3 4 Business Update Financial Strategy & Medium Appendix Performance Term Outlook 8
Slide 9: Income Statement – Underlying Profit up 8%
Income Statement – Underlying Profit up 8% Income Statement (€m) FY24 FY23 YoY % Key Messages Net Interest Income 612 620 (1%) • Total Operating Income up 1% to €672m Non-Interest Income 60 48 +25% • Operating Expenses €531m up 5% YoY Operating Income 672 668 +1% • Regulatory Charges reduced to €33m
Slide 10: Net Interest Income €612m, down 1%
Net Interest Income €612m, down 1% Net Interest Income Movement (€m) NIM% Key Messages • Lending income up 13% due to higher average loan volumes 2.32% 2.20% and yields 35 • Treasury income also up significantly (+30%) due to a larger 740 730 720 710 86 700 investment book and higher yield 690 680 6
Slide 11: Lending Income – Key Drivers
Lending Income – Key Drivers 25.0 Performing Mortgage Book1 by Product 19.6 19.7 Key Messages 20.0 18.5 3.0 2.5 • Fixed rate products represented 69% (€13.6bn) of the performing 15.0 3.9 2.7 3.6 mortgage book at year end and accounted for 85% of new lending in 2024 2.0 • Variable rate products repre
Slide 12: Net Interest Income & Margin Outlook
Net Interest Income & Margin Outlook Net interest income to reduce in 2025 (€m) Key Messages NIM% • Positive NII drivers: new lending; fixed rate mortgages 2.20% >2.0% refinancing onto higher rates; interest rate swaps on wholesale funding 660 650 640 630 • Negative NII drivers: higher balances of t
Slide 13: Net Fees and Commissions up 31%
Net Fees and Commissions up 31% A significant increase in H2’24 (€m) Key Messages • Fees and commission earned from current account operation, 60 55 60 home (Allianz) and life insurance (Irish Life) sales and investment products 50 50 42 • Current Account fee increase from €6 to €8 per month from Ap
Slide 14: Operating Expenses – In Line With Guidance
Operating Expenses – In Line With Guidance FY24 FY23 YoY Key Messages Cost Base Analysis €m €m % • Total Operating Costs €531m, +5% YoY in line with guidance Staff Costs1 235 213 10% • Cost/Income Ratio2 of 74%; up 8ppts YoY reflecting higher resource Other Costs 181 164 10% costs in customer servic
Slide 15: Impairment Release of €39m with COR -18bps
Impairment Release of €39m with COR -18bps Impairment Release/(Charge) (€m) Expected Credit Loss FY24 FY23 FY22 Key Messages ECL stock movement1 34 (8) 24 • Fourth year in a row of impairment releases. Impairment Other P&L Items 5 10 7 releases represent strong underlying asset quality and P&L Impai
Slide 16: Funding & Liquidity – Deposit Growth of c. 5%
Funding & Liquidity – Deposit Growth of c. 5% Total Funding Profile (€bn) 27.6 28.7 2.4 2.5 Key Messages 2.2 2.1 1.5 1.3 • Total deposit growth of 5% in 2024 9.3 9.2 • Current account balances broadly flat, as customers chose to move to term • Retail term deposit balances rose from €2.2bn to €4.2bn
Slide 17: Capital Ratios & Risk-Weighted Assets
Capital Ratios & Risk-Weighted Assets CET1 Ratio Movement1 (%) RWAs Key Messages €11.5bn €11.5bn €11.0bn • Fully Loaded CET1 ratio 14.7% at Dec’24; +0.7% YoY2 16.5% o Profit after tax +1.4% 15.5% +0.7% o Glass III loan sale completion +0.4% 14.5% +1.4% -0.4% -0.3% +0.4% -0.4% o AT1 coupons (-0.4%) 1
Slide 18: IRB Model Review
IRB Model Review Risk-Weight Densities Key Messages EAD RWA Avg. Risk • PTSB’s IRB mortgage model was submitted in 2017 when non- Dec’24 performing loans were at a peak level. The profile of the portfolio has (€bn) (€bn) Weight % substantially improved following deleveraging and loan growth in Total
Slide 19: Contents
Contents 1 2 3 4 Business Update Financial Strategy & Medium Appendix Performance Term Outlook 19
Slide 20: PTSB – Ireland’s Challenger Bank
PTSB – Ireland’s Challenger Bank Prime position to provide much-needed competition in Irish market • Ireland, the fastest growing economy in Europe • Excellent demographics and public finances • End of Irish deleveraging phase • Huge undersupply of homes Highly Attractive Market • Highly concentrate
Slide 21: Our Business Strategy 2025-27
Our Business Strategy 2025-27 Our Purpose Working together to build trust with our customers and communities Our Ambition To become Ireland’s best personal and business bank through exceptional customer experiences Who we serve Focused on meeting more of the Focused on Micro, Small and Medium- needs
Slide 22: Delivery Through Five Value Streams
Delivery Through Five Value Streams Deepening Customer Relationships, Diversifying Income, Differentiating Through Customer Experience While Driving Continuous Operational Efficiencies and Prudent Cost Management Manage my Money Grow & Run my Strengthen the Own my Home Transform the Bank (Incl. Paym
Slide 23: Strategic Business Transformation (SBT)
Strategic Business Transformation (SBT) Addressable Costs 2024 (€m) Key Messages • PTSB’s cost base needs to be right sized safely and in a manner that 531 protects growth opportunities 540 • Our SBT programme has identified sustainable cost initiatives using a 530 520 510 top down and bottom-up app
Slide 24: Strategy Delivery - Revenue and Cost Outcomes 2025-27
Strategy Delivery - Revenue and Cost Outcomes 2025-27 Revenue Cost • Protect and Grow Mortgage Franchise – market for new • Operating Expenses to reduce to c. €500m with Cost/Income mortgage lending to grow 25%-30%1 by 2027 Ratio to fall to c. 60% – enabled by Strategic Business Transformation • Exp
Slide 25: Guidance and Medium-Term Targets
Guidance and Medium-Term Targets 2025 2027 RoTE c. 5%1 RoTE c. 9% Returns First Distribution based Increased Capital Return on 2025 Performance NIM2 > 2.0% Income Total Income down NIM > 2.2% Low to Mid-Single Digit % c. €525m c. €500m Operating Expenses Exceptional Costs of €25m Cost/Income Ratio c
Slide 26: Contents
Contents 1 2 3 4 Business Update Financial FY24 & Medium Term Appendix Performance Outlook 26
Slide 27: Five Year Income Statement
Five Year Income Statement €m FY24 FY23 FY22 FY21 FY20 Net Interest Income 612 620 362 313 341 Other Income 60 48 47 48 34 Total Income 672 668 409 361 375 Total Operating Expenses (Before Exceptional Items) (531) (504) (395) (345) (323) Operating Profit / (Loss) 141 164 14 16 52 Impairment (Charge)
Slide 28: Interest Income Analysis
Interest Income Analysis Average Balances (€bn)1 Yields (%) Interest Income (€m) FY24 FY23 FY24 FY23 FY24 FY23 Tracker 3.0 3.6 5.3% 5.1% 158 180 Fixed and Variable 16.8 16.3 3.3% 2.9% 559 474 Consumer Finance 0.3 0.3 10.0% 10.4% 31 31 SME / CRE 1.1 0.8 5.7% 5.1% 64 38 Treasury Assets 6.5 6.0 2.3% 2.
Slide 29: Interest Expense Analysis
Interest Expense Analysis Average Balances (€bn)1 Cost of Funds (%) Interest Expense (€m) FY24 FY23 FY24 FY23 FY24 FY23 Current Accounts 9.3 9.3 0.0% 0.0% - - Retail Deposits 12.9 12.0 0.8% 0.2% 107 25 Corporate Deposits 1.4 1.1 2.4% 1.6% 32 18 Wholesale Funding 2.5 2.5 5.7% 4.5% 147 114 System Fund
Slide 30: Five Year Balance Sheet
Five Year Balance Sheet Dec’24 Dec’23 Dec’22 Dec’21 Dec’20 Total Loan Book (net) 21.4 21.5 19.6 14.2 14.2 Treasury Assets 6.5 5.3 5.3 6.7 5.9 Other Assets 1.0 1.0 1.0 1.3 0.8 Total Assets 28.9 27.8 25.9 22.2 20.9 Retail Deposits (incl. Current Accounts) 22.7 21.7 20.6 17.7 16.3 Corporate & Instituti
Slide 31: Asset Quality
Asset Quality Loans and Advances to Customers Dec‘24 Dec’23 (Measured at Amortised Cost) €m €m Residential mortgages: 19,539 19,557 Home Loans Buy To Let 464 749 Total Residential Mortgages 20,003 20,306 Commercial 493 437 Consumer Finance 553 499 Finance leases and hire purchase receivables 466 446
Slide 32: NPLs & NPAs breakdown
NPLs & NPAs breakdown Stage 3 Analysis Finance leases and hire 31-Dec’24 Home Loan Buy-To-Let SME/ Commercial Consumer Finance Total purchase receivables €m €m €m €m €m €m NPL is < 90 Days 113 29 17 6 4 169 NPL is > 90 Days and < 1 year past due 55 10 - 4 2 71 NPL is 1-2 years past due 34 11 2 2 1 5
Slide 33: Regulatory Capital
Regulatory Capital Dec’24 Dec’23 Transitional Fully Loaded Transitional Fully Loaded €m €m €m €m Risk Weighted Assets 11,494 11,494 11,546 11,546 Common Equity Tier 1 1,684 1,684 1,647 1,616 Additional Tier 1 368 368 368 368 Tier 1 Capital 2,052 2,052 2,015 1,984 Tier 2 Capital 291 291 290 290 Total
Slide 34: Forward Looking Statements
Forward Looking Statements This document contains forward-looking statements with respect to certain of the Permanent TSB Group Holdings plc’s (the ‘Bank’) intentions, beliefs, current goals and expectations concerning, among other things, the Bank’s operational results, financial condition, perform
Slide 35: Thank You
Thank You End of Presentation Copyright © 2024. Permanent TSB Group. All rights reserved. 35 Confidential!
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