Annual Results 2015 For the 12 months ended 31 December 2015 Annual - PowerPoint PPT Presentation

Annual Results 2015 For the 12 months ended 31 December 2015 Annual Results 2015

Forward Looking Statements A number of statements we make in our presentation, and in the accompanying slides, will not be based on historical fact but will be “forward - looking” statements within the meaning of US Securities legislation. The words "expect", "anticipate", "intend", "plan", "estimate", "aim", "forecast", "project", "target", "goal", "believe", "may", "could", "will", "seek", "assume" and similar expressions (or their negative) identify certain of these forward-looking statements. These forward-looking statements are statements regarding Permanent TSB Group Holdings plc's (the “Group's") intentions, beliefs or current expectations concerning, among other things, the Group's results of operations, financial condition, liquidity, prospects, growth, strategies and the banking industry. The forward-looking statements in this presentation are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Forward-looking statements involve inherent known and unknown risks, uncertainties and contingencies because they relate to events and depend on circumstances that may or may not occur in the future and may cause the actual results, performance or achievements of the Group to be materially different from those expressed or implied by such forward looking statements. Many of these risks and uncertainties relate to factors that are beyond the Group's ability to control or estimate precisely, such as future global, national and regional economic conditions, levels of market interest rates, credit or other risks of lending and investment activities, competition and the behaviour of other market participants, the actions of regulators and other factors such as changes in the political, social and regulatory framework in which the Group operates or in economic or technological trends or conditions. Past performance should not be taken as an indication or guarantee of future results, and no representation or warranty, express or implied, is made regarding future performance. The Group expressly disclaims any obligation or undertaking to release any updates or revisions to these forward-looking statements to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based after the date of this presentation or to update or to keep current any other information contained in this presentation. Accordingly, undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this presentation. Permanent TSB Group Holdings plc undertakes no obligation to update the forward-looking statements contained in this presentation. Forward-looking statements made in this presentation relate only to events as at the date on which they are made. The securities referred to in this presentation have not been, and will not be, registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act. This presentation should be considered with the Group’s Annual Report for 2015 and all other relevant market disclosures, copies of which can be found at the following link: www.permanenttsbgroup.ie/investor-relations Annual Results 2015 1

Agenda Progress & Strategy 3 Financial Performance 9 Summary & Outlook 25 2015 Annual Results 2015 Annual Results 2

Progress & Strategy Jeremy Masding Group CEO Annual Results 2015 3

Delivering Financial Performance Profit / (Loss) Before Net Interest Cost Income Impairment Exceptional Items (Charge) / Write-Back Margin Ratio¹ 112bps ( € 35m) € 26m 84% FY14 ( € 39m) FY14 90bps FY14 126% FY14 € 42m CET1 € 6.1bn Loan to 125% 15.0% Ratio NPLs Deposit (Fully Ratio Dec 2014 € 8.3bn Dec 2014 138% Dec 2014 12.4% Loaded) Non- € 3.8bn € 12.3bn € 4.92 TNAV 2 3 Core RWAs Per Loans Share Dec 2014 € 9.3bn Dec 2014 € 14.8bn Dec 2014 € 4.86 4 (Gross) 1. Excluding Exceptional Items 2. Excluding € 0.3bn CRE Performing Loans transferred to Core Bank from 1 January 2016 3. On a Fully Loaded Basis 4. Calculated using the number of shares in issue at 31 December 2015 Annual Results 2015 4

Delivering Competition In The Irish Market Mortgage Drawdowns Personal Lending Current Accounts Retail Deposits € 3bn € 11bn € 459m € 60m 43,000 New In line with +2% YOY +40% YOY Accounts in 2015 expectations Good Momentum in SME Launch 30 Branches Extended Opening Innovative New Products Credit Cards & December 2015 Refurbished To Date Hours & Propositions Insurance 2016 New Website Launch Building On Positive Momentum The Rise of Mobile Active mobile 172% increase in Term Mobile traffic now makes Loans originating customers +20% YoY up 53% off all traffic to Online/Phone permanenttsb.ie in 2015 30% Increase in compared to 28% in 2014 www.permanenttsb.ie Mobile Payments Website traffic up 80% YOY Annual Results 2015 5

Delivering Arrears Management Solutions ROI Residential Mortgages Exceeded Mortgage Arrears Resolution Targets (MART) >90 DPD By >720 DPD By Cases Cases Meeting Terms Proposed Concluded Overall Arrears Levels¹ -21% -9% 89% 69% 94% -46% Since Peak Since Since Dec 2014 Dec 2014 Target 85% Target 55% Target 75% ROI Residential Mortgage NPLs 2,3 c.39k Assessments 1 Completed Since 2013 € 5.7bn Restructure solutions have been offered in 90% (or 35k) of 49% 55% cases 2 where an assessment has been made 70% -12% 94% of sustainable solutions are meeting the terms 3 of 45% 51% the arrangement 30% Since Dec 2014 Dec-13 Dec-14 Dec-15 1. Includes pre, early and late arrears cases 2. Includes assessments made on BTL cases where no SFS is required Treated NPLs Untreated NPLs 3. 94% are <31 DPD; 89% are 0 DPD 1. Peak : Q3 2013 2. Based on balances 3. Treated NPLs include Split Mortgages, Other Long Term and Short Term Treated Loans. Untreated NPLs include Technically Held, Loans in Closures and > 90 DPD Cases In Legal. Annual Results 2015 6

Embedding Our Purpose & Strategy We will maximise by developing a personal while operating within Our shareholder value banking relationship with the strict boundaries of Purpose over time our customers our risk appetite We set out our Strategic Priorities and Medium Term Financial Targets in our Equity Prospectus . We have presented our Corporate Strategy in the 2015 Annual Report both to Corporate Strategy express our purpose more explicitly, and to provide a construct to guide the execution of those priorities. Participation Competitive Strategy Strategy Clear Effective Building a Safe, Sustainable Maximising Competitive Arrears Stable and Profitability Non-Core Value Positioning Management Resilient Group We set out our Strategic Please find further detail on Our Relative Total Priorities page 92 of the 2015 Business Model & Strategy on Shareholder Return Equity Prospectus page 11 of the 2015 Annual Report Annual Results 2015 7

Progressing Against Our Medium Term Targets FY 2014 FY 2015 2018 Target Balance Sheet Group LDR 138% 125% <130% Group CET1 Ratio (Fully Loaded) 12.4% 15.0% >11% Income Statement Core Bank NIM 121bps 142bps c.170bps Core Bank Cost:Income Ratio 115% 78% c.50% Core Bank Underlying Cost of Risk 1 38bps (37bps) <40bps Core Bank RoE c.10.0% 2 1. Calculated excluding Provisioning Model Calibration adjustments 2. Based on Equity required for a Fully Loaded CET1 ratio of 11% Annual Results 2015 8

Financial Performance Patricia Carroll Interim Group CFO Annual Results 2015 9