In This Article:
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Deposit Base: Increased by over EUR1 billion year on year to EUR23.6 billion.
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Mortgage Market Share: 13.5% for the year, with a 60% increase in pipeline over the last eight weeks.
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Asset Finance and Business Lending: Grown by EUR180 million, three times last year's amount.
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Profit Before Tax: EUR75 million, up EUR50 million from last year's EUR25 million.
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Net Interest Income: Increased by 4% year on year.
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Impairment Release: EUR20 million, with a cost of risk of 19 basis points.
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NPL Ratio: Reduced to 1.7%, 1.6% lower year on year.
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Total Operating Expenses: Up 20% year on year.
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Cost-Income Ratio: 73%, expected to reduce by year-end.
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Pro Forma Loans: EUR20.7 billion, 1% higher year on year.
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CET1 Ratio: Pro forma CET1 at 14.9%, grown by 90 basis points year to date.
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Total Operating Income: EUR336 million, increased by EUR13 million or 4% year on year.
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Net Interest Margin: 227%, 2 basis points lower than the prior year.
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Performing Loan Book: EUR20.7 billion as of June 30, 2024.
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Customer Deposits: Account for 89% of total funding as of June 24, 2024.
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Liquidity Coverage Ratio: Increased to 232% compared to 220% at December 23.
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Loan-to-Deposit Ratio: Decreased to 90%.
Release Date: August 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Permanent TSB Group Holdings PLC (ILPMF) reported a profit before tax of EUR 75 million, a significant increase from EUR 25 million the previous year.
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The company has grown its deposit base by over EUR 1 billion year on year, reaching EUR 23.6 billion.
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The bank's NPL ratio has reduced to 1.7%, making it the lowest in Ireland and below the European average by 20 basis points.
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Permanent TSB Group Holdings PLC was upgraded to investment grade by Fitch, which positively impacted their debt issuance.
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The company announced a new distribution policy aiming for a payout ratio of 40% over the medium term, signaling a positive outlook for shareholder returns.
Negative Points
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The company's mortgage market share has decreased from 23% to 13% due to a reduction in the switcher market.
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Total operating expenses increased by 20% year on year, partly due to the integration of Ulster Bank business.
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The cost-income ratio is high at 73%, although the company expects it to reduce by year-end.
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The net interest margin decreased by 2 basis points year on year, reflecting increased deposit and wholesale funding costs.
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The company faces challenges in achieving a 40% distribution payout due to current capital models being capital consuming.