ANN NNUAL AL RES ESUL ULTS TS 2018 For The e Year r Ended ed - PowerPoint PPT Presentation

ANN NNUAL AL RES ESUL ULTS TS 2018 ANN NNUAL AL RES ESUL ULTS TS 2018 For The e Year r Ended ed 31 Decembe ember r 2018 18 For The e 12 Months nths En Ended ed 31 December cember 2018 18

Forward Looking Statements This document contains forward-looking statements with respect to certain of the Permanent TSB Group Holdings plc’s (the ‘Bank’) intentions, beliefs, current goals and expectations concerning, among other things, the Bank’s operational results, financial condition, performance, liquidity, prospects, growth, strategies, the banking industry and future capital requirements. The words “expect”, “anticipate”, “intend”, “plan”, “estimate”, “aim”, “forecast”, “project”, “target”, “goal”, “believe”, “may”, “could”, “will”, “seek”, “would”, “should”, “continue”, “assume” and similar expressions (or their negative) identify certain of these forward-looking statements but their absence does not mean that a statement is not forward looking. The forward-looking statements in this document are based on numerous assumptions regarding the Bank’s present and future business strategies and the environment in which the Bank 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 Bank 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 Bank’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 Bank 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. Nothing in this document should be considered to be a forecast of future profitability or financial position and none of the information in this document is intended to be a profit forecast or profit estimate. The Bank expressly disclaims any obligation or undertaking to release any updates or revisions to these forward-looking statements to reflect any change in the Bank’s expectations with regard thereto or any change in events, assumptions, conditions or circumstances on which any statement is based after the date of this document or to update or to keep current any other information contained in this document. Accordingly, undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this document. www.permanenttsbgroup.ie/investor-relations 1

Agenda 2018 Progress Jeremy Masding, CEO 03 2018 Financial Performance Eamonn Crowley, CFO 11 2

Strong Business Growth And Balance Sheet Transformation 2018 Highlights • New Lending of € 1.5bn, up over 40% Growth • Mortgage Market Share of 15.1%, up from 12.6% in FY17 Profit • Underlying Profit 1 of € 94m increased by 45% • c.70% reduction in NPLs, 1.7% Capital Accretion (on Fully Loaded basis) NPLs • NPL Ratio of 10%, down from 26% in 2017 • CET1 Ratio remains well above Management and Regulatory Minimum Capital  Fully Loaded 14.0% 2 | Transitional 17.0% 2 Restructuring • The Bank has now successfully exited the 2015 EU Restructuring Plan Plan 1. Underlying Profit = Profit Before Exceptional Items and Tax 2. Post Glas completion and regulatory approval of capital treatment on Glenbeigh transaction 3

Rebuilding Sustainable Profitability Financial Performance Underlying Profit 1 Operating Expense 2 Impairment Charge Net Interest Margin € 94m 1.78% € 284m € 17m FY 17 € 65m FY 17 1.80% FY 17 € 285m FY 17 € 49m € 15.3bn Retail € 14.8bn Performing Deposits Loan Book (including C/As) Dec 2017 € 15.3bn Dec 2017 € 14.3bn € 1.7bn (10%) 14.0% 3 CET1 Ratio NPLs / NPL% (Fully Loaded) Dec 2017 € 5.3bn (26%) Dec 2017 15.0% 1. Underlying Profit = Profit Before Exceptional Items and Tax 2. Excluding Exceptional Items, Bank Levy and Regulatory Charges 3. Post Glas completion and regulatory approval of capital treatment on Glenbeigh transaction 4

> 40% Growth In Total New Lending Best First Time Buyer Mortgage 2 Customer Lending € m 2018 & 2019 Mkt (%) 1,317 Mortgage Lending 43% 20% 122 Personal Term Lending 36% Mortgage Market Share (%) 1 New Personal Term Lending 15.1 14.2 1/3 14.5 End-To-End Online 130 120 11.0 12.6 122 110 100% 100 90 80 90 9.1 70 60 61 50 FY 16 FY 17 FY 18 40 30 Applications Drawdowns FY 16 FY 17 FY 18 1. Source: BPFI Data 2. National Consumer Awards – Bonkers.ie 5

Positive Momentum In Customer & Channel Activity Active Mobile Engaged NPS 2 +12% +13% Customers Customers 1 yoy Customer Base & Loyalty 2 nd in the Market 2015 2016 2017 2018 2015 2016 2017 2018 Payment Card +14% Digital Activity New-To-Bank Mortgage yoy Transactions Customers Customer +38% 30% Activity Year on Year Of New Business • Enhanced Digital capabilities • Branch & Upgraded flagship location in Grafton Street Intermediaries • Invested in a new Branch in Drogheda and a new cashless Branch in Santry • Continued strengthening of relationship with Intermediaries • Email, SMS & Web Chat Communication Channels introduced Direct • 13% reduction in inbound calls as customers migrate to self-serve channels Banking • Enhanced Digital Offering 1. Engaged Customers refer to customers who are actively using PTSB as their main bank (13% increase between 2015 & 2018). 2. Recommendation Net Promoter Score (NPS) – it is an index ranging from -100 to 100 measuring the willingness of customers to reco mmend a company’s products or services to others based on the Red C research report commissioned by the Bank, December 2018. 6

Enhanced Digital Offering Web Users – 460K customers using the Web in 2018 460K App Users – 250K customers using the App in 2018 250K Personal Loans In App - Twice as many applications (> 10K) through the App versus the Desk Top since launch (Aug 2018) >10K Real-Time Online Mortgage Appointments 2.7K since launch (Oct 18) 2.7K Travel Note – 128K since launch, providing additional security for our customers while travelling 128K Web Chat – Providing ease of contact for our customers 7

Digital Transformation – A Key Growth Lever Transforming How We Do Business, IT Platforms And The Customer Journey Ways Of Working Technology Customer Experience   Renovation of Legacy Systems Omni-Channel Journey  Simplify our Processes   Real Time Straight Through Improved Customer  Enable with Technology Processing Satisfaction & Loyalty  Balance Agility with Stability   Leverage Data Analytics Enhanced Product Offerings  Partnering Opportunities   Fin Tech Partnerships Right Customer Outcomes 3 Year Programme Manageable Investment Growth And Efficiency 8

Rebuilding Permanent TSB 2011 – 2018 Transformation Journey € bn / % Year 2018 • LDR 227% 2011 93% • System Funding € 19.5bn / 39% 2011 Zero • Total New Lending € 0.1bn 2012 > € 1.5 bn • Mortgage Market Share c. 2% 2012 >15% • Financial Loss / Profit Loss € 1bn 2012 Profit € 94m • NIM 0.72% 2013 1.78% • NPL € 8.6bn / 28% 2013 € 1.7bn / 10% • Perf Loans Not Paying Full C&I 42% 2013 18% • Capital 11.3% 2013 14.0% • EU Restructuring Plan Entered 2015 Exited 9

Significant Progress Against Performance Priorities 2019 Performance Priorities 2018 Summary • 43% New Lending Growth Drive Improve Commit To Right Digital Sustainable Customer • Transformation Outcomes Profitability Mortgage Market Share 15.1% • Material Reduction in NPLs • Capital Well Above Management Lower Risk Develop High And Protect Performance And Regulatory Requirements Capital Culture • 2015 EU Restructuring Plan Exited 10

Financial Performance Eamonn Crowley CFO 11

Growth In Economy Supported By Housing Market Domestic GDP Labour Market Real Consumer Spending Growth Unemployment Rate 8.0% 6.8% Total Employment Growth 7.4% 8.0% 7.2% 7.0% 3.2% 3.1% 5.3% 6.0% 6.0% 4.7% 5.0% 1.6% 3.5% 4.0% 3.1% 4.0% 2.9% 2.8% 3.0% 2.0% 2.0% 1.0% 0.0% 0.0% 2017 2018 2019e 2017 2018 2019e Dec 17 Dec 18 Dec 19e Mortgage Market ( € bn) Housing Completions (000s) House Price Growth Expected 15.0 Annual Demand 12.1% >30.0 10.2 10.0 8.7 7.3 18.8 6.5% 14.4 5.0% 5.0 0.0 2017 2018 2019e 2017 2018 2017 2018 2019e 12 Source: CSO, Davy, Goodbody