Ireland's Permanent TSB 2025 profit hit by lower interest rates; plans first div since 2008

Permanent TSB group

05/03/2026 07:16

Overview

Ireland bank's 2025 total income fell 3%, with net interest income down 4%

Company's new lending up 31%, with mortgage lending rising 39%

Company announced first proposed dividend since 2008

Outlook

Company expects 2026 NIM to be greater than 2.10%

Permanent TSB aims for 2026 cost/income ratio below 70%

Bank raises 2027 RoTE target to over 10% post IRB model approval

Result Drivers

MORTGAGE GROWTH - New mortgage lending increased by 39%, with market share rising to approximately 20%

IRB MODELS APPROVAL - Approval of new IRB mortgage models marked a strategic milestone, enhancing competitiveness

COST REDUCTION - Operating costs reduced by 2% due to voluntary severance and strategic business transformation

Company press release: ID:nRSE3971Va

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Net Interest Income
EUR 590 mln
FY Adjusted Pretax Profit
EUR 175 mln
FY Net Interest Margin (%)
2.03%
FY Pretax Profit
EUR 128 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy."

Wall Street's median 12-month price target for Permanent TSB Group Holdings PLC is €3.18, about 0.8% below its March 4 closing price of €3.20

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)