Ireland's Permanent TSB Q3 income rises on mortgage and business lending

Overview

• Ireland bank's Q3 YTD total operating income up 7% yr/yr

• Company's total operating costs fell 2% for the first nine months

• Loan book grew over 4% yr/yr, driven by mortgage and business lending

Outlook

• Permanent TSB expects 2026 RoTE to exceed 9%

• Company says trading conditions remain positive, supported by resilient Irish economy

Result Drivers

• HIGHER NET INTEREST INCOME - Co attributed increased net interest income to higher margins, lower average cost of deposits and recent ECB rate hikes

• COST OPTIMISATION - Co said lower headcount and tighter supplier cost management helped reduce operating costs

• IMPAIRMENT WRITE-BACK - Co said modest impairment write-back was due to strong customer performance and new impairment models

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Permanent TSB Group Holdings PLC is €3.09, about 4.6% above its October 29 closing price of €2.95

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 28 - Bank of Ireland's total income rises 6% YTD, raises net interest income forecast

• Oct 29 - Lloyds shares drop on muted third quarter results as higher taxes loom

• Oct 28 - BNP Paribas beats Q3 profit forecasts, unveils €1.3 billion share buyback

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)