Permanent TSB hails Irish economy as operating income climbs

Permanent TSB Group Holdings PLC on Friday said trading conditions "remain positive", as it noted that the Irish economy was "resilient."

The Dublin-based bank, which is subject to a takeover bid, reported total operating income rising 7.0% in the first nine months of 2026, with net interest income up 9.0% and operating costs down 2.0%.

The bank's net interest margin improved to 2.14% from 2.01%, while its cost-to-income ratio fell to 70% from 77%.

Gross customer loans increased by more than 4.0% year-on-year to EUR23.4 billion, supported by a 10% rise in new mortgage lending, a 16% increase in new business banking lending and a 90% surge in new personal term lending.

Customer deposits rose 2.0% to EUR25.8 billion, while its pro-forma common equity tier one capital ratio stood at 17.9%, compared with 17.5% at the end of 2025 on a like-for-like basis.

The bank said it remains on track to deliver a return on tangible equity exceeding 9.0% in 2026.

Its proposed sale to Vienna-based lender Bawag Group AG is progressing as planned, with completion expected in the fourth quarter of 2026 or first quarter of 2027, subject to court and regulatory approval.

Looking ahead, the firm said: "Trading conditions for the bank remain positive underpinned by a resilient Irish economy. Our strategy is working and we are committed to supporting the financial needs of our customers and contributing to the communities we serve, while striving to provide greater competition in the Irish banking market."

It added that it remained confident about its prospects for the rest of 2026, and reconfirmed that it is on track to record a return on tangible equity over 9% for the year, higher than 7.3% in 2025.

Permanent TSB shares were 1.0% higher at EUR2.98 each on Friday morning in Dublin, while trading 3.3% lower at EUR2.90 each on Friday in London.

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