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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 the US Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward looking statements. Factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to, global, national and regional economic conditions, levels of market interest rates, credit or other risks of lending and investment activities, competitive and regulatory factors and technology change. 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.

Forward Looking Statements

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Agenda

Jeremy Masding, Group CEO – H1 2014 Highlights Glen Lucken, Group CFO – Financial Performance Shane O’Sullivan, Managing Director of AMU Jeremy Masding, Group CEO – Recap and Priorities Questions & Answers

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permanent tsb in H1 2014

IMPROVED PERFORMANCE MARKET RELEVANCE INDEPENDENCE

BETTER Bottom Line BETTER Arrears Management ACHIEVING Funding Stability GROWING Market Share

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333 437 430 149 1,107 454 500

200 400 600 800 1,000 1,200 2011 2012 2013 2014

Impairment Charge (€m)

H2 H1

Sharply Improving Performance (1)

Sharply Improving Bottom Line

• Underlying performance improved €278m
• n H1 13

Sharply Improving Impairment Profile

• Impairments fell by €281m

Sharply Improving Arrears Profile

• Early and late arrears in ROI mortgages

decreasing

• Total number of cases in arrears down 14%

in H1 14

359 457 449 171 1,109 523 528

200 400 600 800 1,000 1,200 1,400 1,600 2011 2012 2013 2014

Losses (€m)

H2 H1

977 980 930 891 1,468 1,440

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• Re-establishing market position; a competitive third retail

banking force

• Well positioned as economic outlook continues to improve

and foreign owned banks retrench

• Growing customer base driven by expanding customer

proposition

• Focused OME launch planned for H2

Sharply Improving Performance (2)

Improved Performance … Meaning

• n-plan to

deliver sustainable profitability

• Economic environment continues to support business
• Arrears have peaked in 2013 and are falling
• Impairments are reducing significantly
• Non-Core deleveraging planned in H2

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…Building a Best in Class Retail Bank in Ireland

Attracting New Customers and Deposits

• Deposit balances have increased to €14.5bn

(incl. Current Accounts)

• Market share of 13%
• Current Account balances have increased by

c.€250m

• 15,524 new payroll accounts in H1

Increasing New Lending

• Mortgage drawdowns have increased to

€180m, an increase of 362% from H1 2013

• Market share of approvals of 13% from a

low of 3% in Q4 2012

• Term Lending payouts up 14% yoy to €21m

Broadening Customer Proposition

• Insurance Sales up 70% yoy in H1
• OME launch in H2

13.5 13.5 13.7 14.0 14.5

12.3% 12.3% 12.5% 12.7% 13.0%

11.8% 12.0% 12.2% 12.4% 12.6% 12.8% 13.0% 13.2% 12.8 13.2 13.6 14.0 14.4 14.8 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

Deposit Volumes (€bn) and Market Share (%)

Deposit Volumes Market Share

39 42 39 170 180

38 29 69 221 264

3% 4% 5% 9% 13%

0% 2% 4% 6% 8% 10% 12% 14% 50 100 150 200 250 300 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

Mortgages Approvals/Drawdowns (€m) and Market Share (%)

PTSB Drawdowns (€m) PTSB Approvals (€m) Share of Market Approvals (%)

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Group: Key Financial Highlights

Improving Operating Performance

• Operating Loss reduced by 61.9%
• NIM improved by 6bps; ptsb SBU NIM at

140bps

• Impairment Charges reduced by 65.3%
• ptsb SBU records Operating Profit of €3m

Strengthening the Balance Sheet

• Arrears over 90 days fallen by 14% since

Dec 13

• Customer Deposits increased to 60% of

mix

• ECB Funding reduced further by 15.9%;

halved from peak levels in 2011

• Loans to Deposit ratio down 10ppts to

141%

• Capital position remains strong at 12.7%

Key Metrics Income Statement H1 ‘14 H1 ‘13 Change Operating Loss Before Exceptional Items (171) (449) 61.9% NIM (Before ELG Fees) 88bps 82bps 6bps Impairment Charges (149) (430) 65.3% Balance Sheet Jun ’14 Dec ’13 Change System Funding €5.8bn €6.9bn 15.9% Loans to Deposit Ratio 141% 151% 10ppts CET 1 Ratio 12.7% 13.4% 0.7ppts Customer Accounts 20,545 19,511 5.3% ROI Arrears > 90 Days (#) 22,559 26,357 14.4%

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Agenda

Jeremy Masding, Group CEO – H1 2014 Highlights Glen Lucken, Group CFO – Financial Performance Shane O’Sullivan, Managing Director of AMU Jeremy Masding, Group CEO – Recap and Priorities Questions & Answers

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H1 2014 €m H1 2013 €m Change €m Change % Net Interest Income 158 156 2 1.3% Other Income 33 26 7 26.9% ELG Fees (32) (63) 31 49.2% Total Operating Income 159 119 40 33.6% Operating Expenses (181) (138) (43) (31.2%) Operating Loss Pre‐Impairment (22) (19) (3) (15.7%) Impairment Charges (149) (430) 281 65.3% Loss Before Exceptional Items (171) (449) 278 61.9% Exceptional Items (Net) ‐ 318 (318) (100.0%) Loss Before Tax (171) (131) (40) (30.5%)

• Avg. Int. Earning Assets

36,079 38,049 (1,970) (5.2%) Net Interest Margin 88bps 82bps 6bps 7.3%

Group Income Statement

• Net Interest Income increased marginally by

1.3%, despite a 5.2% reduction in Interest Earning Assets

• Steady NIM improvement of 6bps in falling

rate environment driven by lower cost of funds

• Other Income increase of 26.9% mainly

driven by one‐off gains

• ELG Fees reduced by 49.2% as result of

reduction in covered liabilities

• Operating Expenses increased by 31.2% as

a result of increased regulatory costs and

• ne‐off legacy legal and compliance costs
• Impairment Charges reduced by 65.3%

mainly driven by reduced new default flow and provision releases as restructured loans are labelled as ‘cured’

• Underlying Loss improvement of 61.9%
• Excluding one‐off items in Income and

Expenses, the Group recorded a Pre‐ Provision Profit

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Income Statement (€m) Core Bank Non‐Core Group* PTSB AMU H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 H1 2014 H1 2013 Underlying Operating Profit/(Loss) Before Impairments and Non‐Recurring Items 62 (26) (49) (22) (18) 6 4 (33) Non‐Recurring Items ‐ 14 (25) ‐ (1) ‐ (26) 14 Impairment Charges (59) (27) (42) (307) (48) (96) (149) (430) Profit/(Loss) 3 (39) (116) (329) (67) (90) (171) (449) Balance Sheet (€bn) Jun 14 Dec 13 Jun 14 Dec 13 Jun 14 Dec 13 Jun 14 Dec 13 Total Assets 20.8 21.8 6.5 6.4 9.2 9.3 36.9 37.6 Gross Loans 14.1 14.6 8.8 8.7 10.2 10.1 33.1 33.5

*Group includes unallocated adjustments which have not been attributed to the segments

Group: Segmental Performance

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Group: Net Interest Income and NIM

0.88% 0.82% 0.19% 0.20% 0.12% 0.07%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20%

NIM June 2013 Asset Pricing Deposit Funding Costs ECB Funding Costs Wholesale Funding NIM June 2014

Components of NIM

Cost of Funds decreasing at a faster rate than Asset Yields

NII and NIM

• Group NIM shows a steady

improvement of 6bps

• ptsb SBU NIM is at 140bps
• Driven mainly by reduction in overall

cost of funds

• Continuous ECB rate cuts over the last

few years driving lower asset yields Future NIM expansion will primarily reflect:

• Decreasing Cost of Funds
• Increasing new lending with higher

margins

• Refinancing the back book in

improving economic environment

• Maturity of CoCo (in June 2016)

76bp 88bp 72bp 82bp 82bp

H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

Cost of Funds Asset Yields

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Staff Costs

• Staff Costs reduced by €3m or 4%

compared to June 2013 due to changes in pension entitlements and

• ther staff benefits, and savings

achieved from VSS Other Costs

• Other Costs increased due higher cost
• f regulation and one‐off provisions

relating to legacy legal and compliance liabilities Bank Levy

• c€30m due for recognition and

payment in H2 2014

Group: Operating Expenses

€69m €66m €69m €115m

€0m €40m €80m €120m €160m €200m

H1 2013 H1 2014

Group Operating Expenses

Staff Costs Other Costs

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Impairment Charges

434 449 429 498 148

100 200 300 400 500 600

H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

Impairment Charges (€m)

Group Impairments

• Impairment Charges decreased by

€281m (65.3%) since H1 2013, driven by the fall in both early and late arrears across all portfolios

• ROI HL charge reduced by 45.8% from

H1 2013, mainly due to low levels of new defaults

• ROI BTL recorded a write‐back of

provisions of €14m as restructured loans are cured

• Consumer Finance book recorded a

write‐back of provisions of €3m due to enhanced collections performance

65%

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Deleveraging

36,402 35,042 33,995 33,769 33,089 680

30,000 31,000 32,000 33,000 34,000 35,000 36,000 37,000

H2 2011 H2 2012 H2 2013 H1 2014 Post HFS Sale

Deleveraging* (€m)

Assets reduced by €2.6bn since 2011

Deleveraging

• Continued natural net reduction of loan

assets

• Gross Loans have reduced by over

€2.6bn since 2011

• Small tranche of CRE sold in H1
• €680m of loans are formally ‘Held for

Sale’ (Springboard and a small tranche

• f CHL loans), with further asset sales

planned over time (CRE)

Held for Sale

Note: * Gross Loans at constant exchange rate

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Funding

227% 157% 151% 141% LDR%

• Continuing focus on optimising the funding

mix:

• System Funding reduced by €1.1bn or

16%; reduced to 17% of mix and more than two thirds down from peak

• €1bn growth in deposits across Retail and

Corporate channels at an improved rate (60% of mix)

• Reliance on Short‐Term Debt remains

static at 6%

• Fastnet 9 launched in December 2013 with a

yield of Euribor + 165bps%, which has since fallen to Euribor + 110bps%

• €0.8bn repaid under the LTRO programme in

2014

• LDR improved due to a combination of

deposit growth and loan book run‐down

• Continuing reduction in Cost of Funds into

2014

14.4 19.2 19.5 20.5

14.0 7.8 6.9 5.8 8.7 7.8 7.9 7.5 1.89% 1.76% 1.65%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 H2 2011 H1 2013 H2 2013 H1 2014

Group Funding Mix

Customer Deposits System Funding Wholesale Funding Cost of Funds €bn

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13.4% 12.7% 0.0% 4.0% 8.0% 12.0% 16.0% Dec‐13 Jun‐14

CET1 Ratio %

• Common Equity Tier 1

ratio under Basel III transitional basis is 12.7%; well above the regulatory minimum of 8%

• RWA – down €0.9bn

due both to reduction in loans and advances, and improvement in default probabilities as the economy recovers

Capital

16,953 16,070 15,600 16,000 16,400 16,800 17,200 Dec‐13 Jun‐14

RWA Level

€m

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€3.9bn €17.7bn 53% 19% 6% 21% 1%

Gross Loans

ROI HL ROI BTL CRE CHL Consumer

55% 25% 16% 3% 1%

NPLs

ROI HL ROI BTL CRE CHL Consumer

Group: Asset Quality

ROI HL ROI BTL CRE CHL Consumer Total Gross Loans €bn 17.1 6.4 2.1 7.0 0.3 32.9 Performing % 69% 65% 29% 95% 67% 71% NPLs* % 27% 33% 69% 3% 24% 26% Provisions €bn 1.7 1.3 0.9 0.1 0.1 4.1 PCR % 38% 60% 65% 36% 97% 48%

*Non‐Performing Loans are defined as loans which are greater than 90 days in arrears or impaired

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Group: Asset Quality ‐ ROI Home Loans

ROI HL: €17.1bn* H1 2014 H2 2013 Change Early Arrears (<90 days) 6,041 7,063 14.4% Late Arrears (90+ days) 19,009 22,452 15.3% Late Arrears % of Total Cases 13.7% 15.8% 2.1 ppts NPLs (€m) 4,681 4,526 3.4% Provision Stock (€m) 1,758 1,661 5.8% Coverage Ratio 38% 37% 1 ppt

130 154 236 201 128 50 100 150 200 250 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 Impairment Charges (€m) ROI HL

Portfolio

• 73% of ROI residential mortgages are HLs
• 57% are Trackers

Economic Environment

• CSO property price index shows a nationwide increase

in residential property prices of 12.5% in the year to 30 June 2014. Overall the national index is 43% lower than the peak in 2007. Provisioning assumptions continue to be conservative at 55% PTT

• Unemployment levels continue to decline

Performance

• Early and Late arrears continue to reduce significantly
• PCR has increased to 37.6% and remains robust
• NPLs increased due to treatments trial periods; if

assume all trials convert, NPLs/>90 Days Cases reduced by 15.3%

• Impairment Charges reduced by 36.3% since H2 2013

*Gross Loans before Impairments

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Group: Asset Quality ‐ ROI Buy‐To‐Lets

ROI BTL: €6.4bn* H1 2014 H2 2013 Change Early Arrears (<90 days) 981 1,013 3.2% Late Arrears (90+ days) 3,550 3,905 9.1% Late Arrears % of Total Cases 15.5% 16.9% 1.4ppts NPLs (€m) 2,094 2,229 6.1% Provision Stock (€m) 1,255 1,289 2.6% Coverage Ratio 60% 58% 2 ppts

124 100 102 188 ‐14 ‐50 50 100 150 200 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 Impairment Charges (€m) ROI BTL

Portfolio

• 27% of ROI residential mortgages are BTLs
• 85% are Trackers

Economic Environment

• CSO property price index shows a nationwide increase

in residential property prices of 12.5% in the year to 30 June 2014. Overall the national index is 43% lower than the peak in 2007. Provisioning assumptions continue to be conservative at 55% PTT

• Unemployment levels continue to decline
• Private rental market continued to grow in 2014

Performance

• Early and Late arrears continue to reduce significantly
• PCR has increased to 59.9% and remains robust
• Post‐Trials NPLs/>90 Days Cases reduced by 9.1%
• Write Back of €14m in H1 2014

*Gross Loans before Impairments

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Agenda

Jeremy Masding, Group CEO – H1 2014 Highlights Glen Lucken, Group CFO – Financial Performance Shane O’Sullivan, Managing Director of AMU Jeremy Masding, Group CEO – Recap and Priorities Questions & Answers

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The Asset Management Unit

• Reduce the flow of new arrears cases
• focus on early engagement and cash collection
• Engage with customers in late arrears
• agree a treatment (repayment plan) that is sustainable and affordable
• Manage the legal, property management and recoveries process
• use if no affordable and sustainable solution can be found

AMU Role

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The Asset Management Unit

Key Achievements 1. Engagement delivering real benefits

• > 80% of customers engaging
• 88% of Home Loan customers who engage are offered sustainable and affordable

treatments to retain ownership 2. Dramatic increase in restructuring deals offered

• 24,000 restructure offers made by the end of June (cumulative across HL and BTL)

3. Exceeded all Central Bank MART targets

• Offering sustainable solutions to customers in late arrears

4. Significant progress in reducing arrears levels

• Number of arrears cases down 14% during H1 2014; 17% down from the peak

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Engagement Delivers Real Benefits

Stage 1 Engagement Through SFS Stage 2 Objective SFS Assessment Stage 3 Realistic Mortgage Restructure Options Stage 4 Post-Restructure Payment

• 26,000 SFSs

completed

• On average we agree

a sustainable solution with customers within 10 working days

• For 88% of Home

Loan accounts the Bank identifies a payment arrangement that can see the customer retaining ownership

• The equivalent

figure for BTL accounts is 79%

• Where customers

work with the Bank, the vast majority receive affordable and sustainable solutions; 80% of customers accept their restructure

• ffer
• 92% of stage 3

customers successfully meeting their new mortgage payment

The Group’s focus on sustainable and affordable treatments has resulted in industry leading Arrears Management Metrics

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Sustainable Solutions

Short Term Treatments Other Options

• Term Extension
• Arrears Repayment Plan
• Part Capital and Interest with Bullet
• Split Mortgage with Bullet
• Voluntary Sale (with upfront agreement on shortfall)
• Voluntary Surrender
• Mortgage To Rent
• Insolvency
• Interest Only
• > Interest Only

Long Term Treatments

Repossessions are considered only after alternative treatments have been considered/offered or where the Borrower refuses to engage with the Bank. The Bank will continue to explore treatments that may result in a customer being removed from the Legal process.

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Source: PTSB Internal Data, CBI Data Note: *rounded to the nearest hundred

Delivering Arrears Management Performance (1)

PTSB Buy To Let: Trend significantly outperforming industry Early Arrears down to 4.2% from 6.4% in June 2012, Late Arrears down to 15.1% from 21% at peak

Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jun‐14 Industry 6.6% 6.5% 6.8% 6.2% PTSB 6.4% 5.2% 4.6% 4.3% 4.2% 2% 3% 4% 5% 6% 7% 8% % of Accounts in 1‐90 Days in Arrears

Early Arrears – BTL

Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jun‐14 Industry 16.1% 18.5% 20.7% 22.0% PTSB 19.3% 21.0% 18.8% 16.5% 15.1% 0% 5% 10% 15% 20% 25% % of Accounts in >90 days in Arrears

Late Arrears – BTL

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PTSB Home Loan: Trend outperforming industry Early Arrears down to 4.1% from 6.2% in June 2012, Late Arrears down to 12.5% from 15.1% at peak

Delivering Arrears Management Performance (2)

Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jun‐14 Industry 6.2% 6.2% 6.0% 5.3% PTSB 6.2% 5.4% 5.0% 4.8% 4.1% 2% 3% 4% 5% 6% 7% % of Accounts in 1‐90 Days in Arrears

Early Arrears – Home Loan

Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jun‐14 Industry 10.1% 11.5% 11.1% 11.0% PTSB 12.4% 13.7% 15.1% 14.9% 12.5% 4% 6% 8% 10% 12% 14% 16% % of Accounts in >90 days in Arrears

Late Arrears – Home Loan

Source: PTSB Internal Data, CBI Data Note: *rounded to the nearest hundred

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• More than 60% of “Non-

Performing” HL customers pay more than 50% of their mortgage each month

• More than 50% of “Non-

Performing” BTL customers pay more than 50% of their mortgage each month

Customers are continuing to pay what they can … … and balances in negative equity have fallen by 8% since December 2013

Improving Economics

2.5 2.3 1.5 1.4

‐ 1 2 3 4 5

Dec 13 Jun 14

Balances in Negative Equity

BTL HL

€4.0bn €3.7bn

€bn

8%

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Agenda

Jeremy Masding, Group CEO – H1 2014 Highlights Glen Lucken, Group CFO – Financial Performance Shane O’Sullivan, Managing Director of AMU Jeremy Masding, Group CEO – Recap and Priorities Questions & Answers

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On the Road to Profitability…

437 454 430 499 149 100 200 300 400 500 600 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

Impairment Charges (€m)

6.5 7.0 7.5 8.6 8.5 14.1% 15.6% 16.1% 15.9% 13.9% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% ‐ 2.0 4.0 6.0 8.0 10.0 H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

Total NPLs (€bn) and ROI Residential Mortgages in Arrears > 90 days (% of total cases)

Total NPLs ROI residential mortgages in arrears > 90days ‐457 ‐520 ‐449 ‐528 ‐171 ‐600 ‐500 ‐400 ‐300 ‐200 ‐100

Underlying losses before exceptional items (€m)

H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 0.76% 0.72% 0.82% 0.82% 0.88% 0.50% 0.55% 0.60% 0.65% 0.70% 0.75% 0.80% 0.85% 0.90% H1 12 H2 12 H1 13 H2 13 H1 14

Net Interest Margin Trajectory %

NIM H1 2012 H2 2012 H1 2013 H2 2013 H1 2014

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…Whilst Recognising and Managing the Constraints

Performance and outlook have improved dramatically; however, we are balanced about the challenges ahead…

Returning to Sustainable Economic Profitability Managing Legacy Issues Demonstrating ‘Focus’ is a form of Sustainable Advantage

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• Re-establish market position as competitive third retail banking

force

• Increase market share in lending and deposits
• Expand customer proposition and launch into SME
• Return to sustainable economic profitability
• Continue to deliver

Summary

Recap Priorities

• Losses abating for the first time since 2008
• Impairment charges reducing; arrears have peaked and are now

falling

• Strong funding position; deposit base expanding and cost of funds

falling

• Higher new lending volumes

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Agenda

Jeremy Masding, Group CEO – H1 2014 Highlights Glen Lucken, Group CFO – Financial Performance Shane O’Sullivan, Managing Director of AMU Jeremy Masding, Group CEO – Recap and Priorities Questions & Answers

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Appendix

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1 70 617 523 225 270 203 141 1,177 1,084

‐ 500 1,000 1,500 2,000 2,500

Dec 13 Jun 14

Buy‐to‐Let NPLs

>90 Days Arrears/Legal Closures Technically Held Long Term Treated Splits (Treated But Impaired)

153 1,005 979 809 219 224 501 437 2,344 1,880

‐ 1,000 2,000 3,000 4,000 5,000

Dec 13 Jun 14

Home Loans NPLs

>90 Days Arrears/Legal Closures Technically Held Long Term Treated Splits (Treated But Impaired)

NPL Analysis

• >90 Day arrears are falling….
• …but Treated Assets are making up an increasing proportion of total NPL stock which will

cause NPL stock to remain elevated.

€4,231m €4,355m €2,234m €2,088m

€m €m

€2,880m €1,351m €2,317m €2,038m €1,391m €843m €1,224m €863m

Note:

• “Technically Held” relate to assets which have not breached the standard delinquency triggers, but are classified as default, typically, through association with other defaulted assets.
• Numbers do not include Springboard Portfolio