Permanent TSB posts higher profit but sees 2025 income decline
Permanent TSB Group Holdings PLC on Tuesday reported higher earnings for 2024, while forecasting a decline in total income for the year ahead amid falling interest rates.
The Dublin-based financial services provider, in which the Irish government holds a 57% stake, said pretax operating profit for 2024 doubled to €159 million from €79 million the year before. Diluted earnings per share surged to 21.7 euro cents from 4.5 cents.
Total income edged up 0.6% to €672 million from €668 million, while net interest income slipped 1.3% to €612 million from €620 million. The bank’s net interest margin came in at 2.2%, down from 2.3%.
Chief Executive Officer Eamonn Crowley said the bank is seeing ‘continued organic growth’ and announced a refreshed business strategy for 2025-27, focused on diversifying income and driving efficiencies.
For 2025, Permanent TSB expects total income to decline by a low- to mid-single-digit percentage, with a net interest margin of more than 2.0%. By 2027, it aims for a margin exceeding 2.2%.
The bank’s common equity tier 1 ratio improved to 15% at December 31, up from 14% a year earlier. Customer deposits rose 5% to €24.1 billion.
Looking ahead, the lender expects to resume shareholder distributions next year, subject to financial conditions and regulatory approval.
Shares in Permanent TSB were up 4.0% at €1.57 in London on Tuesday afternoon.
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