PTSB puts itself up for sale as State considers final bank exit
PTSB said it has seen a significant increase in appetite for its shares from international investors, along with unprecedented demand for its recent Green Tier 2 issuance, adding that this was against a backdrop of increased consolidation activity in the European banking sector.
Irish pillar bank PTSB has put itself up for sale.
The bank’s board confirmed the start of a formal sale process on Thursday, saying it is “now in the best interests” of the lender to seek a long-term buyer.
Minister for Finance Paschal Donohoe, the bank’s largest shareholder, said PTSB had made “great progress in building a strong, competitive franchise in the Irish retail banking market,” adding that the move presented the State with an opportunity to exit its final remaining shareholding in an Irish bank.
The State currently owns 57% of PTSB.
“The State’s investment in PTSB was made during the financial crisis to safeguard the stability of the banking system and protect depositors. 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," Mr Donohoe said.
“The State has and continues to be very supportive of PTSB, and the Government believes that it is in the long-term interests of PTSB and citizens in general that the Bank be returned to full private ownership.
However, Mr Donohoe noted there is no guarantee the formal sale process will lead to an offer or completed transaction.
PTSB said it has seen strong interest in its shares from international investors, along with record demand for its recent Green Tier 2 bond issuance, amid increased consolidation across the European banking sector.
The bank has appointed Goldman Sachs International as its financial adviser for the formal sale process.
If the sale process does not result in a transaction on acceptable terms, PTSB said it will continue to execute its current strategy and medium-term goals.
In 2011, PTSB, formerly Permanent TSB, received a €4bn bailout and has so far repaid €2.75bn, much of it from the €1.3bn sale of its former Irish Life pensions and life assurance unit.
The State’s remaining stake is worth about €730m.
The bank said its operations, products, and services remain unaffected by the announcement, and that it will continue to support customers as normal.
“PTSB has fundamentally transformed itself and built a sustainable business model that is competing very strongly in the Irish personal and business banking markets. Notwithstanding this success, there is a significant market opportunity for the Bank to increase further its presence and share of the Irish retail banking market," said chair Julie O’Neill.
"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."
"If successful, this sale process 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. It is a positive development for PTSB and evidence of the Bank's position of strength in the Irish retail banking market."
"PTSB customers are not impacted by the FSP, and our team of dedicated colleagues will continue to support and service customers as normal.”
The announcement coincided with the publication of the bank’s third-quarter 2025 financial results, which CEO Eamonn Crowley said reflected a “strong performance.”
Gross loans rose 4% year-on-year to €22.4 billion by the end of September.
PTSB said it grew its deposit book by 7% and its mortgage book by 4%.
"Our new mortgage lending year to date is up 64% to €2.1bn and we expect revenue growth to return in the coming quarters as we benefit from continued loan growth and improved margins," Mr Crowley said.
The bank’s net interest income for the first nine months fell 6% as lower interest rates reduced margins, offsetting growth in average interest-earning assets.
PTSB reaffirmed its 2025 guidance, targeting a return on tangible equity of 9%. Mr Crowley also reiterated plans to restart dividend payments to shareholders next year, subject to the bank’s financial position and regulatory approval.
"We are also confident of our ability to deliver sustainable returns for our shareholders as evidenced by our updated return on tangible equity," Mr Crowley added.
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