State-controlled PTSB puts itself up for sale
Shares in PTSB have surged over 20% after the State-controlled bank announced it has put itself up for sale.
The bank said its operations, products and services will not be affected by the move, and it will continue to support and service customers as normal.
The board said it believes launching a so-called Formal Sales Process (FSP) could identify a new long-term owner of the bank, which could be beneficial for shareholders, customers and workers.
In recent months, the bank said it has seen a significant increase in appetite for its shares from international investors.
“Given the robust economic backdrop and increased investor appetite in PTSB shares, the board is of the view that now is the right time to seek a new long-term owner for the bank that will enable PTSB to unlock its potential for further growth and scale,” said Julie O’Neill, Chair of PTSB.
“If successful, this Formal Sales Process (FSP) would result in the exit of the State’s last remaining shareholding in the Irish banking sector and, most importantly, return capital to the State and taxpayers,” she added.
PTSB is Ireland’s third largest bank. The state completed the sell-off of its shareholding in Bank of Ireland in 2022, and in AIB in June this year.
The State still holds a stake of 57.4% in PTSB. Minister for Finance Paschal Donohoe said he is supportive of the sales process.
“The State’s investment in PTSB was made during the financial crisis to safeguard the stability of the banking system and protect depositors,” he said in a statement.
“A sale of the State’s investment would be consistent with the objective of recovering taxpayer funds that were used to rescue the Irish banks and deploying these to more productive purposes,” he added.
News of the commencement of the Formal Sales Process (FSP) came as PTSB issued a trading update this morning.
This showed the bank’s total operating income was 4% lower in the first nine months of the year, compared to the same time last year.
However, its deposit book has grown 7%, its mortgage book is up 4% and its business banking book is up 11%.
“Our new mortgage lending year to date is up 64% to €2.1 billion and we expect revenue growth to return in the coming quarters as we benefit from continued loan growth and improved margins,” said Eamonn Crowley, Chief Executive of PTSB.
“Operating expenses were marginally lower for the first nine months and are on track to reduce to our full year target of €525 million.
“In addition, our liquidity and capital positions remain strong, with our CET1 ratio at 15.5% at the end of September,” he added.
The bank’s guidance for 2025 remains unchanged, and it still plans to restart dividend payments to shareholders next year.
Shares in PTSB are higher in Dublin trade this morning.
Article Source – State-controlled PTSB puts itself up for sale
