LONDON: Irish lender Permanent TSB Group Holdings PTSB.I (PTSB) said on Tuesday it has begun a formal sale process, a move that could see the state sell its remaining stake and end its 17-year ownership of bailed-out banks.
The board of PTSB, Ireland’s third-largest bank, said the decision was made with the support of its largest shareholder, the country’s finance minister, and follows increased investor appetite for its shares and a backdrop of consolidation in the European banking sector.
“The Board is of the view that now is the right time to seek a new long-term owner for the Bank that will enable PTSB to unlock its potential for further growth and scale,” said PTSB Chair Julie O’Neill.
The bank has appointed Goldman Sachs International as its financial adviser for the process.
PTSB, which was rescued by taxpayers during the 2008 financial crisis, has undergone a significant transformation in recent years, returning to profitability and expanding its customer base to 1.3 million through the acquisition of assets from departing rival Ulster Bank.
In a separate trading statement, the bank reported continued momentum in the third quarter, with its deposit book growing 7% year-on-year, its mortgage book up 4%, and its business banking book increasing by 11%. Its CET1 capital ratio stood at a robust 15.5%.
Finance Minister Paschal Donohoe said a sale of the state’s investment would be consistent with the objective of recovering taxpayer funds used to rescue the banks.
“The Government believes that it is in the long-term interests of PTSB and citizens in general that the Bank be returned to full private ownership,” Donohoe said.
The bank emphasised that its operations and customer services are unaffected by the announcement and that it intends to restart dividend payments to shareholders next year.
There is no certainty that the formal sale process will result in a transaction, the bank added.