Permanent Tsb Group Holdings Plc · EURONEXT:PTSB

Permanent Tsb — H1 2013 Earnings Presentation

26 slides from Permanent Tsb's earnings presentation, 2013

  1. Slide 1: 2013 Half Year Results

    permanent tsb Jeremy Masding Glen Lucken | an Group Chief Executive Group Chief Financial Officer permanent tsb back to: basics

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements 2 A number of statements we make in our presentation and in the accompanying slides will not be based on historical fact, but will be “forward-looking” statements within the meaning of the US Private Securities Litigation Reform Act of 1995. Actual results may differ mater

  3. Slide 3: Agenda

    Agenda 3 1 • Group Chief Executive’s Review 2 • Financial Review 3 • Asset Quality 3& Arrears 4 • Recap & Priorities 5 •Q&A 2013 Half Year Results 3

  4. Slide 4: Group Chief Executive's Review

    4 Group Chief Executive’s Review Jeremy4 Masding 2013 Half Year Results 4

  5. Slide 5: H1 2013 – Encouraging Progress

    H1 2013 – Encouraging Progress 5 Bank Plus Two strategy now firmly in place  The Bank - PTSB SBU – is proving its relevance and is on a pathway to viability  Return to mortgage market – beginning to gain traction  Launches very competitive assault 5 on current account market  Continues gathering

  6. Slide 6: H1 2013 – Encouraging Progress

    H1 2013 – Encouraging Progress 6  The Plus Two are performing in line with expectations –  AMU has proposed long term solutions to 5,000+ customers  2,888 accepted by end June  Non-Core operations (CHL and CRE) being managed in line with expectations 6  Restructuring Plan  Update recently subm

  7. Slide 7: H1 2013 – Encouraging Progress

    H1 2013 – Encouraging Progress 7 Financial Performance – firmly in line with Restructuring Plan  Reduction of Group losses from €565m to €141m flattered by technical accounting issues (pension write back)  Modest improvement in Group Operating Loss before Exceptional Items – despite conservative a

  8. Slide 8: Financial Review

    8 Financial Review Glen Lucken 8 2013 Half Year Results 8

  9. Slide 9: Group Income Statement

    Group Income Statement €m H1 2013 H1 2012 Change % 9 €m Total Operating Income 119 115 3% Operating Expenses (138) (135) 2% Pre-Impairment Loss (19) (20) 5% Impairment Charges (430) (437) 2% Underlying Loss (449) (457) 2% Before Exceptional Items Exceptional Items (Net) 318 (130) - Loss Before Taxat

  10. Slide 10: Segmental Performance

    Segmental Performance 10 €m H1 2013 H1 2012 ptsb AMU Non-Core Group Group Underlying Loss Before (€39m) (€329m) (€90m) (€449m) (€457m) Exceptional Items NIM 0.95% 0.19% 0.14% 0.82% 0.76% Loans to Customers €14.5bn €6.7bn €9.0bn €30.2bn €32.9bn Total Assets €22.0bn €6.8bn €9.3bn €38.1bn €43.8bn Good

  11. Slide 11: Total Operating Income

    Total Operating Income 11 €m H1 2013 H1 2012 Net Interest Income (Before ELG) 156 166 ELG Fees (63) (81) Other Income 26 30 Total Operating Income 119 115 11  NIM increased to 0.82% in H1 2013 from a trough of 0.66% in H2 2012  ELG fees reduction due to withdrawal of the scheme in March 2013  Fun

  12. Slide 12: Operating Expenses

    Operating Expenses 12 €m €151m €135m €138m 12  Movements in OpEx reflect significant underlying changes in the Group’s cost structure. Since H1 2012, the Group has invested in the AMU which employs circa 250 people.  Notwithstanding this, staff costs reduced by €2m from H1 2012 and by €10m from H2

  13. Slide 13: Impairment Charges

    Impairment Charges €m Impairment Charges PCR % 13 H1 2013 H1 2012 Change % H1 2013 H2 2012 ROI Mortgages - HLs 236 130 82% 36% 34% - BTLs 102 124 18% 58% 50% UK Mortgages 11 12 8% 30% 28% CRE 72 138 48% 64% 66% Consumer 8 30 73% 103% 101% Total Group 429 434 1% 48% 45% 13  Impairments on ROI HLs in

  14. Slide 14: Capital

    Capital 14 14  Core Tier 1 Ratio of 15.7% (Basel II basis) with 5.2% buffer to the CBI minimum of 10.5%  Risk Weighted Assets (RWA) reduced by €0.3bn 2013 Half Year Results 14

  15. Slide 15: Funding

    Funding Balance Sheet Metrics H1 2013 H2 2012 Balance Sheet Metrics H1 2013 H2 15 2012 €bn % Wholesale Funding: Funding Mix: Monetary Authorities 7.8 10.7 Deposits 55% 45% Market 7.8 9.6 Long-Term Debt 30% 33% Short-Term Debt 15% 22% Deposits: 100% 100% Retail 13.7 13.5 LDR 157% 191% Corporate 5.5

  16. Slide 16: Conclusion

    Conclusion 16  NIM increased to 0.82% from a trough of 0.66% in H2 2012, 0.95% in ptsb SBU Rebuilding  Operating costs broadly in line with H1 2012, further Profitability actions taken to manage costs down  Impairments remain elevated but outlook stabilising  ptsb SBU approaching breakeven  Str

  17. Slide 17: Asset Quality

    17 Asset Quality 17 Jeremy Masding 2013 Half Year Results 17

  18. Slide 18: AMU Progress

    AMU Progress 18 18 2013 Half Year Results 18

  19. Slide 19: Asset Quality: Total Portfolio Composition

    Asset Quality: Total Portfolio Composition 19 Total Portfolio Composition 100% OTHER €0.5bn 90% CHL €6.9bn 80% CRE €2.2bn 70% ROI BTL 60% €6.5bn 50% 19 €33.8bn* 40% 30% ROI HL €17.7bn €3.9bn 20% 10% 0% Composition of Loan Portfolio (% of € values) * Excludes provisions of €3.6bn 2013 Half Year Resul

  20. Slide 20: Group: €33.8bn

    Group: €33.8bn 20 20  Early arrears reducing  Overall arrears growth slowing  Impairment charge reduced  PCR improved: PCR of NPLs increased by 3% to 48% in June 2013 2013 Half Year Results 20

  21. Slide 21: ROI BTLs: €6.5bn

    ROI BTLs: €6.5bn Early Arrears % - Cases 0-90 days in arrears Default % - Cases over 90 days in arrears 21 8.0% 25.0% % of cases in default % of cases in default 7.0% 20.0% 6.0% 5.0% 15.0% 4.0% PTSB 3.0% 10.0% Industry Excl PTSB PTSB 2.0% Industry Excl PTSB 5.0% 1.0% 0.0% 0.0% Jun-12 Sep-12 Dec-12 M

  22. Slide 22: ROI Home Loans: €17.7bn

    ROI Home Loans: €17.7bn Early Arrears % - Cases 0-90 days in arrears Default % - Cases over 90 days in arrears22 7.0% 16.0% 6.0% % of cases in default % of cases in default 14.0% 5.0% 12.0% 4.0% 10.0% 3.0% 8.0% PTSB 6.0% 2.0% PTSB Industry Excl PTSB 4.0% 1.0% Industry Excl PTSB 2.0% 0.0% 0.0% Jun-12

  23. Slide 23: Forbearance Treatments – ROI HLs and BTLs

    Forbearance Treatments – ROI HLs and BTLs For the six months to Offered 23 Accepted H1 2013 H2 2012 30 June 2013 (so far) Total Forbearance including Long Term Treatment Cases Total Long Term Treatments - HLs (# of Cases) 15,432 14,308 - HLs (# of Cases) 3,289 1,823 - HLs (€m) 2,257 2,136 - HLs (€m)

  24. Slide 24: ROI Tracker Mortgages

    ROI Tracker Mortgages 24 • As at 30 June, 58% of ROI Trackers were allocated to PTSB SBU 24 • ptsb SBU will generate pre-provision profit in 2014 • Profitability will improve as core product margins widen and new lending builds up • ptsb SBU can grow through organic core product flow (and transfers

  25. Slide 25: Recap & Priorities

    25 Recap & Priorities 25 2013 Half Year Results 25

  26. Slide 26: H1 2013 – Recap & Priorities

    H1 2013 – Recap & Priorities 26  Encouraging Progress on ‘Bank Plus Two’ strategy  Shape and potential of the “Good Bank” is beginning to emerge Recap  Overall Group financial performance in line with Restructuring Plan  Good traction developing on mortgage restructurings 26  NIM  Continued dr

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