PTSB increases reveneues ahead of vote to sell to Austrian lender

Shareholders will vote tomorrow on board recommendation to accept €1.6bn

The deal would value PTSB as €1.6bn based on an all-cash offer of €2.97 a share.

PTSB increased revenues and its loan book in the first half of the year as it looks to complete its sale to Austrian lender BAWAG ahead of a vote on the sale by shareholders tomorrow.

In a trading update, PTSB said underlying profit before tax was up 34% to €68m, with revenues of €344m up 7%, its loan book up 4% and deposits up by 2%.

In April, the PTSB board agreed the terms of a transaction with BAWAG to acquire the entire issued share capital of the pillar bank. An EGM takes place tomorrow where shareholders will have the opportunity to consider and vote on the board's recommended offer.

The deal would value PTSB as €1.6bn based on an all-cash offer of €2.97 a share.

The State still owns more than 57% of the bank following its bailout during the crash. The Minister for Finance said it backs the sale deal. 

"We look forward to engaging with shareholders at the Scheme Meeting and EGM on July 30th where shareholders will have the opportunity to consider and vote on the Board recommended offer," PTSB CEO Eamonn Crowley said.

Net interest income was €313m, up 9%, reflecting both higher margins and higher average interest earning assets, the bank said.

PTSB said it also continues to benefit from a roll-over of maturing fixed-rate mortgages onto higher prevailing rates.

Total gross loans rose to €22.9bn, up 4% while its mortgage book was up 3%. PTSB now has a 19% shar of new mortgage drawdowns.

PTSB said its guidance for the full year remains in line with prior announbcements. "The Irish economy has remained resilient in recent years, underpinning our business and we remain confident that our strategy can continue to deliver for customers, shareholders and our other stakeholders, while supporting greater competition in the Irish banking market."