DAVY VIEW

A strong business performance continued into Q3 for permanent tsb Group (PTSB), with upgraded guidance on FY 2022 net interest income (NII) and solid business activity in the mortgage market and account openings. We are likely to leave our FY 2022 underlying PBT estimates unchanged following today’s update. PTSB is very well set for the years ahead, with the transformational acquisition of parts of Ulster Bank. PTSB trades at 0.48x 2023 tangible book; we don’t believe this reflects the increased profitability or return dynamics in the coming years.