PTSB has reported lower profits and income for the six months to the end of June due to what it called the “more challenging interest rate environment” in which it is operating.
The results were in line with the bank’s expectations and its shares ended higher in Dublin trade today.
PTSB said its profit before tax sank by 75% to €19m from €75m the same time last year, while its operating profits fell by 17% to €51m from €62m as net interest income declined and operating expenses grew.
Its operating income for the six months dipped by 4% to €322m from €336m.
The bank said its net interest income – the difference between what the bank earns on loans and pays on deposits – fell by 7% to €288m as the effects of lower interest rates on its margin offset higher average interest earning assets.
Its Net Interest Margin was 2.02%, down from 2.27% the same time last year.
The bank said it expects to return to making shareholder distributions next year – subject to financial position and required approvals.
It said it expects to return to making shareholder distributions next year – subject to financial position and required approvals.
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PTSB said its voluntary severance scheme is at an advanced stage and when combined with natural attrition, it expects a reduction in staff numbers of about 300 this year.
This severance scheme will generate annualised cost savings of about €19m a year and the bank said an exceptional charge of €29m associated with the scheme was recognised in the first half of the year.
Staff numbers at the end of June were 3,085, down 162 or 5% compared with 3,247 at the end of December.
For full year 2025, PTSB said it remains on track to meet its cost target of €525m.
The lender said its total gross loans rose to €22.2 billion in the first half of 2025, an increase of about 2% year to date and almost 4% year-on-year.
Its new mortgage lending of €1.3 billion marked a jump of 84% on last year.
PTSB said its share of new mortgage drawdowns in the six month period was over 20%, up significantly on the figure of 13.5% the same time last year. It noted that green mortgage lending accounted for 43% of all new mortgage loans.
Meanwhile, customer deposits rose by 7% to €25.2 billion in the six month period, while new lending in Business Banking grew by 23%.
The bank said its asset quality remains strong and it recorded a nil charge in the income statement for the first half. Its non-performing loans were little changed at €387m – representing 1.8% of gross loans.
Eamonn Crowley, TSB’s chief executive, said he was pleased with the bank’s performance delivered in the first half of 2025.
“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,” he said.
“We have made great progress in providing customers with much-needed competition with new mortgage lending up 84% year on year and new Business Banking lending up 23%. This progress is also evident in our book growth, with deposits up 7%, our mortgage book up 3% and our Business Banking book up 14%,” he added.
He also said there is a strong market appetite to invest in PTSB, as can be seen from the success of NatWest’s recent share disposal which marked another important step towards normalising the composition of the bank’s shareholder base.
“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,” he added.
Speaking on Morning Ireland, Mr Crowley said the bank’s share price is up 40% so far this year, and there was a significant amount of demand for Nat West shares.
“There was a number of investors who have come onto our share register who are interested in the long term value of the bank and they see the value in the PTSB going forward,” he said.
The state still has a 57% stake in the bank, but according to Mr Crowley it is a matter for the Minister of Finance to decide if and when they sell that.
The Government invested €3.9 billion into PTSB during the financial crisis, and has to date recovered €2.7 billion.
“My focus is on trying to drive value in the bank and bring real competition into the market as one of the three pillar banks,” its CEO said today.
