Goldman Sachs Acquires 6% Stake in PTSB

Investment bank Goldman Sachs becomes shareholder in PTSB, joining Government and entrepreneur Eamon Waters. Exciting developments in the financial sector.

Global investment bank Goldman Sachs has recently acquired a 5.8% stake in Permanent TSB (PTSB), a move that signals confidence in the long-term prospects of the Irish lender. The stake, valued at €43.4 million based on PTSB's share price, demonstrates Goldman Sachs' belief in the potential of the company. With a market capitalization of €747 million, PTSB has been majority-owned by the State since its bailout during the financial crisis, with the government holding just over 57% of the company.

Goldman Sachs disclosed its ownership level exceeding 5% in a regulatory filing last Friday, as required for investors holding more than a 3% stake in a publicly listed firm. Other notable shareholders in PTSB include Sretaw Private Equity, controlled by Irish entrepreneur Eamon Waters, which currently holds a 7% stake in the lender. Waters also has significant investments in other Irish companies such as FBD and Dalata.

Despite recent challenges, including a 45% decline in share price over the past year and a revised guidance for 2024 and 2025, PTSB reported an underlying pre-tax profit of €166 million in 2023. This growth was supported by the acquisition of former Ulster Bank loans as well as an increase in the total performing loan book to €20.9 billion, driven by business banking and consumer finance.

While new mortgage lending saw a decline, PTSB maintained a strong position in the market with a 19% share. The bank's pre-tax profit of €79 million was boosted by the inclusion of negative goodwill from the Ulster Bank acquisition, and customer deposits reached €23 billion. Despite a 25% increase in costs due to workforce expansion, the bank's cost to earnings ratio improved.

Goldman Sachs' investment in PTSB reflects a positive outlook for the Irish lender, which has shown resilience and growth in its financial performance despite market challenges. The bank's strategic acquisitions and focus on key business areas have positioned it for future success.