Investec sets PTSB share price target at third of IPO level

Bank is grappling with the impact of slow loan growth and rising costs

Investec Ireland banking analyst Owen Callan said that PTSB investment on IT and wage inflation at the bank will limit improvements to its cost-income ratio over the next five years

Investec Ireland banking analyst Owen Callan said that PTSB investment on IT and wage inflation at the bank will limit improvements to its cost-income ratio over the next five years

Investec Ireland has set a price target for Permanent TSB’s (PTSB) stock at less than a third of its €4.50 initial public offering (IPO) level four years’ ago, as bank grapples with the impact of slow loan growth, lower-for-longer central bank rates and rising costs.

“We acknowledge the continued recovery progress being made by PTSB,” said Investec Ireland banking analyst Owen Callan said, noting how the bank has lowered its non-performing loans (NPLs) since the middle of last year, with its recently-released first half figures showing its lending margins and mortgage market share are “performing well”.

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