Press Releases

Comment by Eamonn Crowley, Chief Executive:

“PTSB continued to record strong momentum in the third quarter, with income year to date up 7% while our operating costs reduced by 2%. The Bank’s strategy is delivering, with growth in our loan book running at over 4% while our core mortgage business has gained momentum as the year has progressed. I am particularly pleased with the contribution coming from our Business Banking and Personal Lending segments which are both markets where we have huge potential.

The Irish economy continues to perform well notwithstanding heightened global uncertainty and volatility, and year to date we have recorded a modest impairment write-back. Meanwhile our funding and capital positions remain strong and put us in an excellent position to support further growth in economic output.

Finally, the Bank’s proposed sale to BAWAG is progressing as planned with completion expected in Q4 2026/Q1 2027 subject to court and regulatory approval.”

KEY HIGHLIGHTS

(all comparisons 9 months to Sept 2026 vs. 9 months to Sept 2025 unless stated)

• Total Operating Income up 7%
• Net Interest Margin of 2.14%, up 13bps
• Total Operating Costs 2% lower
• Cost/Income Ratio of 70%, 7 ppts lower
• Asset Quality remains strong and we recorded a 6bps write-back
• Total Gross Loans increased to €23.4 billion, up over 4% year-on-year (YoY)
• New Mortgage Lending up 10% and market share of c. 20¹%
• New Business Banking Lending (SME and Asset Finance) up 16%
• New Personal Term Lending up 90%
• Customer Deposits rose to €25.8 billion, up 2% YoY
• CET1 was 17.9%² on a pro-forma basis at end September 2026

FINANCIAL PERFORMANCE

(all comparisons 9 months to Sept 2026 vs. 9 months to Sept 2025 unless stated)

Income

Net interest income for the first nine months increased 9%, reflecting both higher margins and higher average interest earning assets. The net interest margin (NIM) for the period was 2.14%, up 13bps. The increase in NIM reflects the impact of a lower average cost of deposits, while the two 0.25% increases in ECB rates since June also contributed positively in the third quarter.

Net fees and commissions were unchanged, while other income was lower relative to the prior period which had significant gains from foreign exchange and hedging activities.

Operating Costs

Total operating costs reduced 2% in the first nine months while regulatory charges were unchanged.  The Bank’s cost/income ratio was 70% down from 77% in the prior period.

We continue to prioritise cost optimisation, with savings generated from a lower headcount, tight management of supplier costs and change spend helping to offset the impact of inflationary pressures. The number of employees (Full-Time Equivalent) at the end of September 2026 was similar to the level at year-end but 3% below that in September 2025.

Exceptional costs were €11 million in the period, unchanged on their level at the end of June.

Asset Quality

Asset quality remains strong and the Bank recorded an impairment write-back equivalent to 6bps of loans in the first nine months. This reflected the continued strength of underlying customer performance and the implementation of new IFRS9 impairment models for our Business Banking books.

Non-performing loans at end September 2026 were 1.3% of gross loans (1.4% at December 2025) and our overall credit performance is stable with no signs of deterioration.

BALANCE SHEET & BUSINESS PERFORMANCE

Customer loans

Total gross customer loans on the balance sheet rose to €23.4 billion at end September 2026, up €0.8 billion year to date and over 4% YoY. This was driven by our core mortgage book which has gained momentum as the year has progressed. Our share of new mortgage business was c. 20% in the first nine months and we have a strong pipeline heading into Q4.

Meanwhile, we continued to make strong progress in diversifying our income, with new lending in Business Banking (SME and Asset Finance) up 16% and growth in the book of 12%. In recent weeks, we also launched a new Personal Contract Plan (PCP) product for the car finance market which further expands our addressable market and will support our growth ambitions in the years ahead.

Finally, new personal term lending remained strong. This contributed to growth in our personal term lending book of 43%.

Funding and liquidity

Customer deposits rose to €25.8 billion at end September 2026 (Dec 2025 €25.6 billion) and were up 2% YoY. Current account balances increased in the first nine months and within our retail savings book, there was some movement away from term towards demand and notice accounts.

A loan to deposit ratio of 89% and liquidity coverage ratio of 214% at end September 2026, provide the Bank with a strong liquidity position and a secure funding source for future growth in our loan book.

As previously indicated, we are reviewing our issuance requirements over the coming years in light of our very strong MREL position and planned sale to BAWAG, subject to the required approvals.

Capital

The Bank's common equity tier 1 (CET1) ratio at end September 2026 remains strong at a pro-forma 17.9% under our new approved IRB mortgage models. This is comfortably above our regulatory minimum and compares with 17.5% at end December 2025 on a like for like basis. The Bank's leverage ratio at end September 2026 was 6.5%.  

OUTLOOK

Trading conditions for the Bank remain positive underpinned by a resilient Irish economy. Our strategy is working and we are committed to supporting the financial needs of our customers and contributing to the communities we serve, while striving to provide greater competition in the Irish banking market.

The Bank remains confident about its prospects for the rest of the year and as previously guided, is on track to record a RoTE³ in excess of 9% for 2026.

- Ends -