PTSB chief says sale price will decide how much bailout money State recoups

PTSB begins a formal sale process, with the Government poised to sell its remaining stake and recoup bailout funds

PTSB chief financial officer Barry D'Arcy and chief executive Eamonn Crowley. 

The chief executive of PTSB has said the final sale price of the bank will “determine what the State will get back” in terms of recouping the money invested following its bailout in the aftermath of the financial crisis.

On Thursday, the board of PTSB announced the start of a formal sale process, saying it was “now in the best interests” of the lender to seek a long-term buyer. The move was supported by Finance Minister Paschal Donohoe.

It is the last remaining bank part-owned by the State, with the Government fully exiting its stake in AIB earlier this year.

In 2011, PTSB — formerly Permanent TSB — received a €4bn bailout and has so far repaid about €2.8bn, a large portion of which came from the €1.3bn sale of its former Irish Life pensions and life assurance unit.

Following the sale announcement, PTSB’s share value rose by more than 21% to about €2.85 per share. The State, through the Minister for Finance, currently owns 57.4% of PTSB shares, now valued at about €893m.

PTSB chief executive Eamonn Crowley said the company had seen a “significant increase in appetite for its shares from international investors”, and the formal sale process would enable the bank “to have conversations with potential bidders on a confidential basis.”

He said there was no statutory timeline for the process but, if it proceeds as planned, “the board would publicly announce the identity of a successful bidder and the terms of their offer during the first half of 2026.”

"It's currently expected any recommended offer would be for the entire issued share capital of PTSB, and that offer would then be subject to shareholder approval and applicable registry consent,” Mr Crowley said.

At a €2.85 share price, the market capitalisation of the bank is just over €1.55bn.

If PTSB is sold at the current market price, the State will not recoup its full investment in the bank.

When asked about this, Mr Crowley said: “Whatever sales price we achieve at the end of this process will determine what the State will get back”.

Mr Crowley added that the bank had not received any approaches to buy it before the announcement.

When asked whether a new owner could cut costs, close branches, or reduce staff, Mr Crowley said he could not speculate on what any future owner of the bank might do.

PTSB has appointed Goldman Sachs International as financial adviser for the sale.

If the process does not result in a successful transaction on acceptable terms, the bank said it will continue to deliver on its medium-term strategy and objectives.

The bank said its operations, products, and services remain unaffected by the announcement and that it will continue to support and serve customers as normal.