PTSB posts €75m pre-tax profit in first half of 2024
Cfo Nicola Ceo & Eamonn Crowley O'brien Ptsb
PTSB posted a €75m pre-tax profit in the first six months of this year, underpinned by a high interest rate environment and growing mortgage market share, the bank said on Thursday.
The group's pre-tax profit rose by €50m compared to the first six months of last year, however, underlying profit fell by 4% in the same period.
Total operating income rose by 4% to €336m. PTSB's net interest income rose by 4% to €311m compared to the previous year, with the bank benefitting from the European Central Bank's slower-than-expected easing of interest rates.
The bank's net interest margin, however, fell two basis points to 2.27%, with the bank cutting mortgage interest rates three times this year.
The ECB has finally embarked on an interest rate reduction roadmap after two years of aggressive monetary tightening, albeit at a gradual pace, with the regulator announcing a 0.25% reduction in June this year. Markets are forecasting just one more reduction by the end of the year.
Despite growth in revenue, a 20% rise in operating expenses led to a slip in underlying profits, which fell to €82m, down by €4m on the same period in 2023.
The bank's customer deposits rose by €1bn totalling €23.6bn in the first six months of 2024.
PTSB said it would resume dividend payments with a modest distribution and build towards a payout ratio of about 40% of attributable profit through the medium term
“We have delivered a strong performance in the first half of 2024 as we continue to further grow and diversify our business," said chief executive of PTSB, Eamonn Crowley. "
He added that PTSB is focused on "ensuring that we remain a strong and resilient competitor in the Irish retail banking market," noting its recent sale of non-performing loans to Mars Capital which he said would "support up to €2bn of lending into the Irish economy."
Despite a reduced switcher market, Mr Crowley said the bank saw "positive trends" in its mortgage market share between April and June, now standing at 13.5%, with recent mortgage rate reductions driving a "strong pipeline for the remainder of the year."
"We remain confident that the acquisitions and investments we have made, and continue to make, are putting us in a strong position to continue to further grow and diversify our business and deliver sustainable returns for our shareholders over time," Mr Crowley concluded.
PTSB is the second of Ireland's three pillar banks to report half-year earnings, with Bank of Ireland reporting €351m surge in profits on Wednesday, totalling €1bn.
AIB is expected to report its half-year earnings on Friday.