ieExplains: What the potential PTSB sale means for you and your mortgage

The State is the majority owner of the bank

The pillar bank, which is one of three financial institutions that make up the domestic banking market, has more than 1.3m customers and holds a 20% share of the Irish new mortgage market. 

State-controlled pillar bank PTSB has announced that it is putting itself up for sale as it looks to secure a new long-term buyer.

The company announced on Thursday that it was now "in the best interest" of the bank to sell, commencing a formal sale process with financial advisors Goldman Sachs International.

The pillar bank, which is one of three financial institutions that make up the domestic banking market, has more than 1.3m customers and holds a 20% share of the Irish new mortgage market. 

So, what does the commencement of a formal sales process mean for PTSB and how will this impact customers?

Why is PTSB putting itself up for sale?

The bank, formerly known as Permanent TSB, has undergone a series of strategic changes in recent years, saying that it now has "a compelling strategic position within the highly attractive Irish banking market."

The third-largest bank in Ireland also 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. This, it said, is against a backdrop of increased consolidation activity in the European banking sector.

PTSB is also largely controlled by the Irish Government, who own a 57% stake in the bank as a result of its bailout in 2011. 

In the fallout of the financial crisis, PTSB received a €4bn bailout from the State to protect depositors and help stabilise the banking system. So far, PTSB has repaid €2.75bn, a large portion of which came from the €1.3bn sale of its former Irish Life pensions and life assurance unit.

The State’s remaining stake is worth around €730m, with Finance Minister Paschal Donohoe noting that the sale of PTSB would help recover taxpayer funds that were used to rescue the Irish banks, allowing them to be deployed to more productive purposes.

Is the bank in trouble?

The bank has undergone significant changes in recent years, benefiting extensively in 2022 and 2023 from a high-interest-rate environment as a result of rising rates from the European Central Bank (ECB).

The ECB's aggressive monetary policy campaign saw PTSB's net interest income rise by more than 70% to €620m. In 2023, PTSB's underlying profit jumped to €166m from €45m, which was also helped by the Ulster Bank transaction which saw PTSB acquire €6.75bn in loans from the former bank.

Since then, however, interest rates have been largely reduced by the ECB, with PTSB being dogged by low returns ever since due to its scale, as it remains significantly smaller than its two largest competitors, AIB and Bank of Ireland. PTSB must also hold higher levels of expensive capital relative to loans than its larger peers, a hangover from the financial crisis, adding to its cost base.

In July, PTSB saw its profits fall by almost 75% in the first six months of 2025 as falling interest rates offset gains in mortgage lending. Pre-tax profits fell to €19m between January and June, down from €75m in the same period last year.

On Thursday, PTSB CEO Eamonn Crowley said the bank's net interest income has fallen by 6% so far this year, but that new mortgage lending remained strong and was up by 64% in the year to date.

How will the sale process impact customers?

PTSB has said that its operations, products and services are unaffected by this announcement, and that it will continue to support and service customers as normal.

The formal sale process is expected to take some time, with any party interested in submitting a proposal required to enter into a non-disclosure agreement and standstill arrangement with the bank before being permitted to take part in the process.

PTSB said it will update the market regarding the formal sale process in due course, but confirmed that it was not in discussions with or in receipt of an approach from any potential offeror at the time of the announcement.

"PTSB customers are not impacted by the formal sale process, and our team of dedicated colleagues will continue to support and service customers as normal," chair of the bank Julie O'Neill said on Thursday.

Who are the potential buyers?

PTSB has 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.

This, in addition to the wider backdrop of consolidation across the continent, could mean a European investor or an international buyer seeking to grow their European footprint. 

It is also possible that, given its recent arrival in the Irish banking market, Spanish lender Bankinter might be looking to further expand its Irish footprint, with PTSB offering the bank an opportunity to build scale and secure a major spot in a highly concentrated banking market. 

Given that the Irish State still owns a large stake in PTSB, and other major shareholders may be open to a sale, there could also be scope for private capital to take over.

There is also the possibility, as Finance Minister Paschal Donohoe stated, that no offer could be made, or no transaction will be completed as a result of PTSB's formal sale process.