PTSB has proposed its first dividend since 2008 after growing loans and deposits last year, even though underlying pretax profits dipped almost 3 per cent amid declining interest rates.
The planned dividend payout amounts to only €10 million – or 1.835 cents per share – making it a symbolic gesture and another step on the bank’s return to normality as it seeks a new owner.
“I am also delighted to announce a proposed final dividend, the bank’s first since 2008, which reflects the scale of our transformation and the renewed strength of PTSB,” said chief executive Eamonn Crowley. It results in a dividend yield of less than 0.6 per cent.
Underlying pretax profit declined to €175 million as net interest income fell 4 per cent to €590 million and the bank’s net interest margin – the difference between the average rates at which the bank funds itself and lends to customers – declined to 2.03 per cent from 2.20 per cent.
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Looking ahead, PTSB sees its interest margin improving to 2.10 per cent this year and gradually widening to 2.3 per cent in 2028. It also forecasts that its cost-income ratio will fall below 60 per cent by that end of the period from 75 per cent last year.
[ Simon Harris should take the private equity money for PTSB and runOpens in new window ]
The Irish Times reported last week that the bank is targeting late March for second-round takeover offers, with Austrian banking group Bawag and New York investment firm Centerbridge Partners said to be among parties still circling the State-controlled bank.
Lone Star, the Texas-based private equity giant led by Irish passport holder John Grayken, also counts among those that committed resources to assessing a PTSB offer. However, it is not clear whether it remains in the mix. Goldman Sachs is running the sale process for PTSB.
Crowley did not offer any commentary on the sales process in the annual results statement.
“2025 was a transformational year for PTSB. The bank’s balance sheet continued to grow as customers responded to the strength of our brand and product offering,” he said.
“Deposits increased by 6 per cent, our mortgage book grew by over 3 per cent, and our business banking (SME and Asset Finance) portfolio rose by 9 per cent. Revenues returned to growth in the second half of the year as interest rates stabilised.”
