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Permanent TSB Gp Hld (283)

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Wednesday 26 March, 2014

Permanent TSB Gp Hld

Commentary on Full-Year Results

RNS Number : 2333D
Permanent TSB Group Holdings PLC
26 March 2014
 



 

Commentary and update on permanent tsb Group Holdings plc Financial Results for the year ended 31 December 2013.

-    After-tax loss of €261m (2012: loss of €996m).  [Operating loss pre-exceptional items of €977m (unchanged from 2012)]

 

-    Approximately  58,000 new current account customers signed up between launch of new free banking account in April 2013 and mid-March 2014 (40,000 signed up in 2013)

 

-    €270m lent in new mortgages between market re-entry in 2013 and mid-March 2014 (€200m lent in 2013); strong pipeline of new business

 

-    Over 12,000 long-term solutions for mortgage customers in arrears agreed

 

Group Chief Executive Jeremy Masding comments

"Our key message is that permanent tsb bank is turning the corner. I'm delighted to be able to confirm that the permanent tsb Strategic Business Unit - effectively our customer-facing business - is now trading profitably."

 

On deposits: "We continue to manage the funding side of the balance sheet in a proactive and professional manner.  The combination of an increase in the retail, corporate and institutional deposit base and a tentative return to the capital markets demonstrates that we are both strengthening the Group's balance sheet and reducing our over dependency on system funding". 

On the successful current account switching campaign: "We've opened approximately 58,000 new current accounts since we launched our new offering last April. Customers are seeing the value we're providing and they're voting with their feet to ditch their old bank and the fees they don't need to pay."

On mortgage lending: "We lent over €200 million to people to buy their homes - about three times as much as we did in 2012. We've also lent a further €70m so far in 2014.That's a clear sign that we're a bank that's alive and kicking - lending actively and competing vigorously in the market as we should be."

On arrears: "Our sense at this stage is that arrears have peaked in both the Irish Home Loan and Buy To let portfolios." 

On the results: "There's still some distance to travel but we are making real progress. The balance sheet is stronger and the bottom line is improving. We're getting our income up and our costs down and we're delivering on the commitments we've made."



Key Figures:


2013 €m

2012 €m

Note on

2013 versus 2012

Loss After Tax

(261)

(996)

Impacted by one-off items relating to pensions and tax

Loss Before Tax

(668)

(919)

€309m net benefit from  exceptional items

Operating Loss Before Exceptional Items And Impairment Charges

(48)

(86)

Improved underlying performance

Impairment Charges

(927)

(883)

Charge takes account of Central Bank's new guidelines

Operating Loss Before Exceptional Items

(977)

(977)

Improved operating performance offset by bigger impairment charge

Net Interest Margin

0.82%

0.72%

Excluding government guarantee fees

 


31 Dec 2013

31 Dec 2012

Total Capital Ratio

14.8%

20.5%

Core Tier 1 Capital Ratio

13.1%

18.0%

Loans To Deposit Ratio

150%

191%

 

Embargo: 10.30am Wednesday 26 March 2014: permanent tsb Group Holdings plc ("the Group"), the holding company of permanent tsb bank, has published its results for the year ended 31 December 2013. The results record a loss before tax of €668m. This figure includes provisions for impairment of €927m and net exceptional items of €309m (positive).

The operating loss for the year, after impairments but before exceptional items, was €977m. This figure was the same as the corresponding figure for 2012.

The figures show the Group recorded impairment charges of €927m in 2013, compared to a figure of €883m for 2012. The Group's impairment charges take account of new Central Bank guidelines issued during 2013

The figures also highlight that the Net Interest Margin (excluding ELG scheme costs) stood at 0.82% at December 2013 versus 0.72% a year earlier.

Net Interest Margin benefited from continued progress in reducing the Group's cost of funding and broadening its retail and corporate deposit base, whilst reducing its reliance on wholesale and system funding.

 

Group Chief Executive Jeremy Masding said: "We've successfully completed the first big task that faced us - laying the foundations for a successful banking group. 

Our next challenges will be to return to profitability, exit State ownership and return value to the Irish taxpayer.

We have delivered on our promise to both shareholders and the taxpayer to fix the organisation.  We can now kick on hard towards generating market returns by providing much needed competition in the Irish retail financial services marketplace."

 

Ciarán Long

Group Secretary

 

Contacts For further information

Ray Gordon / David Clerkin

Gordon MRM

[email protected] / [email protected]

+353 87 241 7373 (RG)

+353 87 830 1779 (DC)

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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