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Permanent TSB Group Holdings PLC on Thursday said it is putting itself up for sale against a ‘robust’ backdrop of consolidation in Irish banking. The Irish government, which holds the majority of shares in the Dublin-based lender, agreed with the board that finding a new owner is in Permanent TSB’s best interests. Permanent TSB shares rose 20% to €2.90 on Thursday morning in London. The bank described itself its position as ‘compelling’, noting ‘a significant increase in appetite for its shares from international investors.’ It has appointed Goldman Sachs International as adviser to the sale process. This comes after Edinburgh-based peer NatWest Group PLC sold its stake in Permanent TSB, which framed the move as progress in ‘normalising’ its ownership structure. The 11.7% holding was worth approximately €137.4 million when NatWest announced the sale in July. The Irish state did not participate in the NatWest sale. The Minister for Finance of Ireland owns and controls 57.4%, according to Permanent TSB’s 2024 annual report. Irish Finance Minister Paschal Donohoe noted on Thursday: ‘The state’s investment in PTSB was made during the financial crisis to safeguard the stability of the banking system and protect depositors. A sale of the state’s investment would be consistent with the objective of recovering taxpayer funds that were used to rescue the Irish banks and deploying these to more productive purposes.’ Chair Julie O’Neill called the sale process ‘a positive development for PTSB and evidence of the bank’s position of strength in the Irish retail banking market.’ ‘If successful, this FSP would result in the exit of the state’s last remaining shareholding in the Irish banking sector and, most importantly, return capital to the state and taxpayers,’ O’Neill added. In a trading update released Thursday, Permanent TSB noted a 4% decline in operating income over the nine months that ended September 30, compared with the previous year. The net interest margin was 2.01% against 2.23% a year earlier. Total gross loans were €22.4 billion as of September 30, up 4% on-year, while customer deposits were 7% ahead of the previous year at €25.4 million. The lender’s total operating expenses were ‘marginally lower’ than a year prior, it said, backing an annual cost target of €525 million. In 2024, total operating expense, excluding exceptional items and other non-recurring items, came to €531 million. Permanent TSB reported a ‘strong’ common equity tier one ratio of 15.5% at the end of September, versus 14.8% a year earlier. The bank reaffirmed its 2027 goal for a 9% return on tangible equity and added a medium-term target of 11% for 2028. ‘Our guidance for 2025 remains unchanged, as does our intention to restart dividend payments to our shareholders next year, subject to financial position and required regulatory and other approvals,’ noted Chief Executive Eamonn Crowley. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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