Masding Hails 2018 as “Transformational Year” and confirms that PTSB has now formally exited its EU Restructuring plan

2018 FULL YEAR RESULTS FOR THE TWELVE MONTHS ENDED 31 DECEMBER 2018

Permanent TSB Group Holdings plc (“PTSB”, “the Bank”) today reports its annual results for 2018.

Key Points:

• Profit Before Exceptional Items and Tax of €94 million, an increase of 45% year-on-year
• Total new lending volumes increased by over 40% to €1.5 billion compared to 2017
• 15.1% Residential Mortgage Market Share, up from 12.6% in 2017 and 9.6% in 2016
• Net Interest Margin (NIM) reduced marginally by two basis points to 1.78% from 1.80% at year-end 2017
• Non-Performing Loans (NPLs) reduced by 68% from €5.3 billion in 2017 to €1.7 billion at 31 December 2018 with NPL ratio now at 10%
• The Bank has strong funding and liquidity positions with System Funding now reduced to zero
• Proforma Fully Loaded Common Equity Tier 1 (CET1) ratio of 14.0% following the completion of the NPL transactions in February 2019, which included the closure of Project Glas
• As agreed between the State and the European Commission, the Bank has now fully exited its 2015 EU Restructuring Plan

Jeremy Masding, Chief Executive, said:

“2018 was a transformational year for Permanent TSB. It was a year in which the Bank exited its Restructuring Plan, demonstrated its profitability, grew market share further and dealt decisively with its legacy NPL issue. In addition, the Bank eliminated the last of its System Funding that, at one stage in 2011, made up approximately 40% of its resources.

Accordingly, the Bank proved, beyond doubt, it is a viable, well capitalised, competitive Retail and SME banking player and, that its underlying business and franchise are strong.

As we move into 2019, notwithstanding the geopolitical uncertainties mainly caused by Brexit, we remain positive. We believe we have a clear vision and strategy, and we are on the right path towards building an organisational culture that will deliver sustainable shareholder value and right customer outcomes”.