Permanent TSB Group Holdings PLC · EURONEXT:PTSB
Permanent TSB — Irish Life & Permanent Group Holdings — H1 2011 Earnings Presentation
21 slides from Permanent TSB's earnings presentation, 2011
Slide 1: Interim Results 2011
PAGE 1 INTERIM RESULTS 2011: 2011 INTERIM RESULTS
Slide 2: Agenda
Agenda PAGE 2 Economic background Banking - PTSB Life & Fund management – Irish Life Life and related activities (“Life Group”) are treated as discontinued activities in the IL&PGH financial statements. The Life results presented – on an embedded value basis and additional IFRS information - a
Slide 3: Banking
Banking PAGE 3 Improved net interest margin Acquisition of deposit books Good results from LME Arrears continuing to deteriorate Increase cost of government guarantee 2011 INTERIM RESULTS Kevin Murphy : GROUP CEO
Slide 4: Bank Earnings
Bank Earnings PAGE 4 H1 11 H1 10 Change Net interest income ahead given mix of €m €m % funding and re-pricing Net interest income Net interest margin 97bps excluding cost 212 192 10 of ELG scheme (Dec 2010: 86bps) Other income 21 18 Significant increase in Government Government guarantee (94)
Slide 5: Bank Loan Arrears
Bank Loan Arrears PAGE 5 PTSB Irish Residential Mortgage Arrears Cases* PTSB Irish residential mortgages < 90 days arrears cases up 14% in H1 2011 15,000 14,771 Average residential mortgage indexed 12,921 12,000 11,500 LTV of 74% at June 2011 10,142 Total Irish residential mortgages 9,1671 9,000
Slide 6: Bank Funding Mix
Bank Funding Mix PAGE 6 June 2011 - Total €42.6n SHORT-TERM Retail deposits increase due to the DEBT acquisition of INBS deposits 8% Corporate deposits impacted by sovereign and bank ratings downgrades TERM DEBT 20% Funding ratios Jun 11 Dec 10 MONETARY Stable 51% 52% AUTHORITIES LTD 227% 249%
Slide 7: Bank Strategy
Bank Strategy PAGE 7 Recapitalisation Injection of €2.3bn equity and €0.4bn Tier 2 (contingent capital) in July Generation of Tier 1 equity from redemption / sale of Tier 2 debt Sale of life business Bank Restructuring Plan Viable business post credit losses and de-leveraging in 2015 M
Slide 8: Life & Fund Management
Life & Fund Management PAGE 8 Sales broadly in line with 2010 Risk experience positive Continued weakness in Retail persistency Strong capital position – solvency cover increased to 179% 2011 INTERIM RESULTS Kevin Murphy : GROUP CEO
Slide 9: Life Earnings – New Business
Life Earnings – New Business PAGE 9 Overall sales* y 6% H1 2011 €m ▲% Single premium life sales y 24% Retail 68 +5 Investment bonds y 39% Pension y 19% Corporate 66 (6) Annual premium life sales z 15% ILIM 137 +14 Low salary growth and recruitment Impact of budget measures Total* 271 +
Slide 10: Life Earnings – EV Basis
Life Earnings – EV Basis PAGE 10 H1 11 H1 10 Change Combined Retail and Corporate life new €m €m % business volumes flat offset by strong sales in ILIM New business 19 28 (32) Overall sales y 6% In-force • Expected return 68 68 Margins down • Persistency (13) (7) In-force earnings • Risk 9 1
Slide 11: Life Capital & Cash Flows
Life Capital & Cash Flows PAGE 11 2009 2010 H1 11 Strong capital position Surplus €313m 159% 175%* 179% Solvency margin cover 179% VIF loan repaid 243 303 Dividend of €143m paid to bank 313 S&P rating credit profile of ILA (26 Aug 2011) – ‘very strong risk-based capital 656 704 708 adequ
Slide 12: Life Strategy
Life Strategy PAGE 12 Good progress on sale of life company Maximise return for company Minimise capital requirement from tax payer / shareholders Trade sale Information Memorandum issued 2nd round in progress IPO Evaluate through September Irish Life International Sale to comple
Slide 13: Summary
Summary PAGE 13 Strong capital position Bank capital 26% Life solvency cover 179% Banking Deleveraging progressing Restructuring plan submitted Life New ownership structure 2011 INTERIM RESULTS Kevin Murphy : GROUP CEO
Slide 14: Forward looking statement
Forward looking statement PAGE 14 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
Slide 15: Additional information
Additional information PAGE 15 Page 16. Irish Life Group operating (loss) - EV basis 17. Irish Life Group variances and assumptions 18. Irish Life Group IFRS operating profit – segmental analysis 19. Irish Life Group IFRS operating profit – business line 20. Irish Life Group IFRS and EV basis result
Slide 16: Irish Life Group Operating Profit - EV Basis
Irish Life Group Operating Profit - EV Basis PAGE 16 H1 2011 FY 2010 €m €m Life assurance 53 127 Fund management 11 33 64 160 Other 5 8 Share of Associate 0 9 69 177 Investment fluctuations (46) 49 Economic variance (31) (51) VIF loan / goodwill impairment 3 (33) (Loss) / profit before Tax (5) 142 2
Slide 17: Irish Life Group Variances & Assumptions
Irish Life Group Variances & Assumptions PAGE 17 Experience Variances Assumption Changes H1 11 H1 10 H1 11 H1 10 €m €m €m €m Persistency (8) (7) (5) - Risk 9 19 - - Expenses / Other (15) 1 (4) 9 (14) 13 (9) 9 2011 INTERIM RESULTS
Slide 18: Irish Life Group Operating Profit - IFRS Basis
Irish Life Group Operating Profit - IFRS Basis PAGE 18 H1 2011 FY 2010 €m €m Life assurance 78 171 Fund management 8 16 86 187 Other 5 8 Share of associate 0 9 Total operating profit 91 204 Investment fluctuations (14) 22 Economic variance (40) (31) VIF loan financing costs (18) - Restructuring cost
Slide 19: Irish Life Group Operating Profit - IFRS Basis
Irish Life Group Operating Profit - IFRS Basis PAGE 19 H1 2011 FY 2010 €m €m Investment contracts 116 216 Insurance contracts 130 287 Fees & commission 13 25 Return on shareholder assets 10 16 Total income 269 544 Acquisition costs / expenses (161) (321) Other (17) (28) Total expenses (178) (349) Sh
Slide 20: Irish Life Group - IFRS / EV Reconciliation
Irish Life Group - IFRS / EV Reconciliation PAGE 20 H1 2011 S’Holders Total (Loss) / Equity* Profit €m €m Embedded Value basis 1,781 (5) Investment business • Value of in-force (1,154) (77) • Deferred costs & fees 228 (11) • Restatement of liabilities 63 0 Other (41) 108 IFRS basis 877 15 * net of t
Slide 21: Contact Information
Contact Information PAGE 21 Please contact our Investor Relations Department for any further information or visit our group website at www.irishlifepermanent.ie Contact details: Barry Walsh [email protected] +353 1 704 2678 Orla Brannigan [email protected] +353 1 704 1345 2011 INTER
Irish Life & Permanent Group Holdings — H1 2011 Earnings Presentation on 6ix