Ireland's Permanent TSB Q1 operating income rises on higher margins

Permanent TSB group

08/05/2026 07:09

Overview

The Irish retail bank's Q1 total operating income rose 10% yr/yr

Net interest margin increased to 2.13% from 2.03% a year earlier

Previously announced recommended takeover offer by BAWAG Group remains under review

Outlook

Permanent TSB expects full-year NIM to exceed 2.10%

Bank maintains cost/income ratio target of less than 70% for the year

Permanent TSB expects new mortgage market share of about 20% for the year

Result Drivers

HIGHER NET INTEREST MARGIN - Co said net interest income rose due to higher margins and increased average interest-earning assets, helped by lower deposit rates and maturing mortgages rolling onto higher rates

LENDING GROWTH - New business banking lending rose 18% and new personal term lending more than doubled, supported by a major overhaul of personal loans last year

COST CONTROL - Underlying operating costs rose 1% as payroll savings and tighter supplier management offset inflationary pressures

Company press release: ID:nRSH5020Da

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Interest Margin (%)
2.13%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "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 €3.09, about 6% above its May 7 closing price of €2.91

The stock recently traded at 11 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.)