CBI confirms removal of block on completion of latest review of the bank
PTSB has confirmed that the Central Bank of Ireland (CBI) will remove the so-called “dividend blocker” which prohibited the bank from paying dividends to shareholders irrespective of the financial performance of the bank. The removal of the block – with effect from today, 15th December 2023 – was confirmed to the bank by the CBI on the completion of the latest Supervisory Review and Evaluation Process (SREP) review of the bank.
The dividend blocker was introduced in 2016 and it meant that even in the event of a strong financial performance, the bank was not permitted to pay a dividend to shareholders.
This morning PTSB issued an RNS to the market which reads: Permanent TSB Group Holdings plc (‘PTSBGH’) has been notified by the Central Bank of Ireland (‘CBI’) of the outcome of its 2023 Supervisory Review and Evaluation Process (‘SREP’) which is effective from the date of this announcement.
The 2023 SREP decision advises that PTSBGH is no longer prohibited from paying out dividends to shareholders. On a go forward basis, PTSBGH will be required to submit an ex-ante application for a distribution ahead of any Annual General Meeting proposal by the Board for consideration and approval by the CBI.
The Board will update the market on the Company’s medium term financial targets and distribution policy during 2024.
Speaking this morning, PTSB CEO, Eamonn Crowley, welcomed the news. He said, “The removal of the dividend blocker is a landmark event for PTSB. It acknowledges the enormous progress which has been made by the bank over the past decade. It reflects the fact that PTSB now occupies a key position in the Irish banking landscape, and it significantly enhances the investment case for existing and potential investors in the bank. This progress has been hard won and I want to acknowledge the huge efforts over a long period of time by current and former colleagues who laid the groundwork for this decision.”
