PTSB’s rosier outlook means dividends no longer a pipedream

  • 📰 IrishTimesBiz
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 77%

Ireland Headlines News

Ireland Latest News,Ireland Headlines

PTSB’s much rosier outlook means dividends no longer a pipedream via IrishTimesBiz

Permanent TSB chief executive Eamonn Crowley at the bank’s headquarters in Dublins St Stephens Green. Pic for Finance Photograph: Alan Betson/The Irish TimesPermanent TSB, allowed by indulgent governments and regulators to limp along for much of the past decade because it was simply too much of a hassle to pull the plug, is now on a path to the previously unthinkable: paying investors a regular dividend.

However, the phased purchase of €6.8 billion of Ulster Bank non-tracker mortgages, small business loans and an asset finance portfolio over the next 12 months — which will increase PTSB’s loan book by as much as 50 per cent — and the start of a cycle of official interest rate hikes have completely changed the outlook for the bank.

He had good reason. At the time, PTSB was projecting that it would be making operating profits in the region of €200 million and delivering an RoE of 5 per cent by 2024, rising gradually to about 9 per cent over the “medium term”. PTSB has been blocked by regulators from paying a dividend since its €4 billion bailout more than a decade ago.

However, the bank’s new and dramatically improved profitability guidance suggests Crowley could have a strong case to put to regulators to have the dividend blocker lifted in 2024There is no chance that dividends will be paid out on any profits made this year, as earnings will be driven by an accounting manoeuvre. As PTSB is buying the Ulster Bank assets at a discount to their fair value, it will be booking the difference as a “badwill” gain, or what’s sometimes referred to as negative goodwill.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in İE

Ireland Latest News, Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The JOE Friday Pub Quiz: Week 305 | JOE.ieIt's that time of the week, folks!
Source: JOEdotie - 🏆 31. / 51 Read more »

JOE Gaming Weekly - Stray has the highest user-review score of 2022 so far | JOE.ieJOE Gaming Weekly - Stray has the highest user-review score of 2022 so far
Source: JOEdotie - 🏆 31. / 51 Read more »

JOE Gaming Weekly - Stray has the highest user-review score of 2022 so far | JOE.ieJOE Gaming Weekly - Stray has the highest user-review score of 2022 so far
Source: JOEdotie - 🏆 31. / 51 Read more »

The JOE Music Quiz: Week 114 | JOE.ieA brand new JOE Music Quiz arrives tomorrow, so don't miss out on another change to conquer our latest one
Source: JOEdotie - 🏆 31. / 51 Read more »

A historical drama starring Saoirse Ronan is among the movies on TV tonight | JOE.ieA historical drama starring Saoirse Ronan is among the movies on TV tonight
Source: JOEdotie - 🏆 31. / 51 Read more »

WATCH: Brad Pitt on why there needs to be an Oscar for Best Stunt | JOE.ieWe chatted to Brad Pitt and his Bullet Train co-stars about the crazy stunts in their huge new blockbuster
Source: JOEdotie - 🏆 31. / 51 Read more »