Permanent TSB Reports 2024 Results, Outlines Refreshed Strategy
Why we think this is good
Permanent TSB delivered a solid set of 2024 results, with an 8% increase in underlying profit and continued organic growth in its balance sheet. While there were some margin pressures and cost increases, the bank outlined a clear strategy and medium-term targets that appear achievable. The overall performance and strategic direction suggest the company is well-positioned to continue growing and competing effectively in the Irish banking market.
Key Points
- Underlying Profit Before Tax up 8% to €180 million
- Total Income up 1% to €672 million
- Net Interest Margin declined to 2.20% from 2.32%
- Operating Expenses up 5% to €531 million
- Cost Income Ratio increased to 74%
- Strong capital position with CET1 ratio of 14.7% (15.3% pro-forma)
- Announced refreshed 3-year business strategy and medium-term targets
Summary
Permanent TSB Group Holdings plc reported a solid set of 2024 financial results, with an 8% increase in underlying profit before tax to €180 million. The bank saw continued organic growth in its balance sheet, with deposits up €1.2 billion and new SME lending up 28%. However, the bank faced some margin pressures, with net interest margin declining to 2.20%. Operating expenses also increased by 5%, leading to a higher cost-income ratio of 74%.
The bank outlined a refreshed 3-year business strategy focused on deepening customer relationships, diversifying income, and differentiating through customer experience. It also set new medium-term targets, including a NIM above 2.2%, operating costs around €500 million, and a cost-income ratio around 60%. The bank's capital position remains strong, with a CET1 ratio of 14.7% (15.3% pro-forma).