REG - Permanent TSB Group - Approval of IRB mortgage models

Permanent TSB groupAnnouncement

21/01/2026 07:00

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RNS Number : 6796P  Permanent TSB Group Holdings PLC  21 January 2026

This announcement contains inside information under Article 17 of Regulation
(EU) 596/2014. Upon the publication of this announcement, this inside
information is now considered to be in the public domain.

 

21st January
2026
 

Permanent TSB Group Holdings plc

Approval of IRB Mortgage Models

Permanent TSB Group Holdings plc ("PTSB" or the "Bank") has been notified by
the Central Bank of Ireland that its application to use its new IRB Mortgage
Models (the "Models") has been approved. The Models were submitted to the
Central Bank on 30(th) May 2025 and will become operational from 30(th)
January 2026.

 

The new Models will reduce the Bank's risk weighting on its total residential
mortgage portfolio from a previously reported 36.4% at end June 2025 to a
pro-forma c. 32.8%. Excluding mortgages on the standardised approach, the
reduction in risk weight intensity for the IRB Home Loan book equates to c. 5
percentage points.

 

Pro-forma for the impact of the new Models, PTSB's total risk weighted assets
(RWAs) at the end of June 2025 would be lower by c. €0.7 billion reducing
from c. €10.9 billion to c. €10.2 billion. This would translate to an
increase in the Bank's CET1 ratio from the previously reported 15.5% at end
June 2025 to 16.6% on a pro-forma basis releasing the equivalent of c.
€0.1bn in capital. This is comfortably above PTSB's total CET1 requirement
of 10.69%.

 

Pro-forma impact on CET1 from new IRB mortgage Models

                               June 2025  Pro-forma June 2025
 CET1 capital (€bn)            1.7        1.7
 Risk weighted assets (€bn)    10.9       10.2
 CET1 (%)                      15.5%      16.6%

 

Looking forward, the application of the new Models will materially reduce the
capital intensity of PTSB's new mortgage lending. Therefore, the capital
benefit will increase over time as the Bank grows its new lending volumes -
forecast total RWAs will be lower by an estimated c. 10% by end 2028 when
compared to our Medium-Term Plan. Factoring in this lower path for RWAs, the
Bank has made a preliminary estimate of the impact on its 2027 and 2028
ROTE 1  targets as follows:

 

Impact on medium term ROTE targets

       Old ROTE targets  Adjusted ROTE targets
 2027  c. 9%             >10%
 2028  c. 11%            c. 13%

 

As the implementation of the new Models has generated a once-off capital
benefit and will also improve PTSB's annual capital generation, the Board will
now assess the impact on the Bank's ICAAP and Medium-Term Plan. We will update
the market further on this at our 2025 full year results scheduled for 5(th)
March 2026. In light of positive trading conditions, these financial results
are expected to close ahead of current market expectations.

 

As previously indicated, PTSB also expects to recommend a final dividend to
shareholders this year to be paid out of 2025 earnings, subject to financial
position and the required regulatory and other approvals. Today's announcement
does not have any implications for the quantum of this distribution. The
implications for the Bank's future distribution capacity will be considered as
part of our assessment of the Bank's ICAAP and Medium-Term Plan.

 

 

PTSB CEO Eamonn Crowley said:

 

"Today's announcement is an extremely positive outcome for PTSB which reflects
our strategy, prudent credit risk approach and strong asset quality. It is a
significant milestone in our ongoing transformation, strengthening our
position as a competitive force in the Irish market and enabling further
growth and sustainable returns for our shareholders. I want to acknowledge the
very constructive engagement with the Central Bank of Ireland throughout this
intensive process."

 

***

 

Analyst conference call

 

Eamonn Crowley, CEO and Barry D'Arcy, CFO, will host a conference call today
at 10.00 Irish Time/GMT for 30 minutes. To participate in the Conference Call,
register using the link below:

https://www.netroadshow.com/events/login/LE9zwo3jjZpK8ohlGwptIQ8ml5fuERVor7j
(https://url.de.m.mimecastprotect.com/s/ZymBCqQOqrU8oMXRSZfQHETL1p?domain=netroadshow.com)

Alternatively, operator Assisted Dial-In:

Ireland (Local): +353 1 691 7842

Ireland (Toll-Free): +353 1800 816 490

United Kingdom (Local): +44 20 3936 2999

United Kingdom (Toll-Free): +44 808 189 0158

Global Dial-In Numbers
(https://url.de.m.mimecastprotect.com/s/7bxjCr2Prvs8GB26SzhYH48CiE?domain=netroadshow.com)

Access Code: 834008

Please dial in 5-10 minutes prior to the start time using the number and event
password above. Press *1 to ask a question, *2 to withdraw your question, or
*0 for operator assistance.

Replay Details:

United Kingdom (Local): 020 3936 3001

United Kingdom (Toll-Free): 0808 304 5227

Access Code: 978685

 

Ends

 

For Further Information Please Contact:

Scott
Rankin
                Triona Carroll

Head of Investor
Relations
                Corporate Affairs and Communications

Email: scott.rankin@ptsb.ie (mailto:scott.rankin@ptsb.ie)
 
                Email: triona.carroll@ptsb.ie
(mailto:triona.carroll@ptsb.ie)

Phone: +353 87 001
0504
                Phone: +353 87 069 6348

 

 

Note on Forward-Looking Information:

This announcement contains forward-looking statements, which are subject to
risks and uncertainties because they relate to expectations, beliefs,
projections, future plans and strategies, anticipated events or trends, and
similar expressions concerning matters that are not historical facts. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual results, performance or achievements
of the Bank or the industry in which it operates, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. The forward-looking statements referred to in
this paragraph speak only as at the date of this announcement. The Bank
undertakes no obligation to release publicly any revision or updates to these
forward-looking statements to reflect future events, circumstances,
unanticipated events, new information or otherwise except as required by law
or by any appropriate regulatory authority

 1  Return on tangible equity is profit attributable to shareholders (excl.
all exceptional items) divided by notional equity (average RWAs * CET1 of c.
14%)

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