permanent tsb Group

Analyst and Investor Presentation

Please refer to the important information in disclaimer on pages 105 to 106 before continuing

12 March 2015 Today’s Presenters

Jeremy Masding Glen Lucken Paul Byrne Group Chief Executive Officer Group Chief Financial Officer Group Treasurer

David Curtis Shane O’Sullivan Niall O’Grady Group Chief Credit Officer Managing Director, Director, Asset Management Unit Transaction Banking, Savings and Investments

1 The Equity Story: An Overview

• Well positioned for continued macroeconomic and banking sector recovery in Ireland

• Conservative balance sheet and strong capital position

• Legacy issues increasingly behind us

• Simple business model targeting sustained and attractive returns over the medium term

• Upside potential in the short term through pace of recovery and longer term through profitable growth

2 Order Of The Day

4

Commercial Operations

5 Funding, NIM, Trackers And 1 2 Liquidity 8 9 10 Comprehensive 3 Introduction Financial Assessment And To PTSB And Financial Targets Closing Remarks Performance Capital Plan Investment Case 6

Asset Quality

7

Arrears Management

Note: Numbers in this presentation and its Appendix may not be the sum of their parts due to rounding 3 Section 1

Comprehensive Assessment and Capital Plan Comprehensive Assessment And Capital Plan: An Overview

• SSM Outcome

‒ Provisioning levels validated by the Asset Quality Review

‒ Sufficiently capitalised in the Baseline Scenario

‒ Capital shortfall of €855m identified in the Adverse Scenario

‒ The Group’s Capital Plan is ‘Endorsed’ by the ECB/JST(a) with no major amendments

• Capital Plan

‒ At least €330m of Management Actions

‒ €525m of new capital (€400m equity(b) + €125m AT1)

‒ Use of Funds includes repurchase of State Contingent Capital Note (CCN) of €400m (ineligible instrument for Capital Plan unless converted)

(a) Joint Supervisory Team (b) Gross equity raise 5

Comprehensive Assessment: Outcome

Asset Quality Review (AQR) Baseline Stress Test Scenario Adverse Stress Test Scenario 15% 15% 15%

(0.3)%

EndAQR

- End BaselineEnd

10% - 10% 10% End Adverse ScenarioAdverseEnd Min. CET 1 Min. CET 1 - Ratio (8.0%) (4.0)% Ratio (8.0%)

13.1% 12.8% 12.8% 12.8% Min. CET 1 Scenario Ratio (5.5%) 5% 5% 5%

8.8%

CET1 Ratio vsRequirements,CET1Ratio Year CET1 Ratio vsYearRequirements, RatioCET1

CET1 Ratio vsYearRequirements, RatioCET1 (11.9)% 1.0% 0% 0% 0% 2013 AQR Impact 2013 Capital 2013 Capital Baseline Minimum Test 2013 Capital Adverse Minimum Test Available Post-AQR Post-AQR Scenario Capital Post-AQR Scenario Capital Capital Impact Impact Capital Capital Capital Buffer vs Buffer vs Buffer vs 860 812 812 145 1,232 (855) 8.0% 8.0% 5.5% (€m) (€m) (€m)

Capital Surplus in the AQR and Baseline Stress Test Capital Shortfall in the Adverse Stress Test

Note: The AQR adjusted CET1 ratio of 12.8% is the starting point for the baseline and adverse scenarios 6 Capital Plan: The Capital Plan Has Been ‘Endorsed’ By ECB/JST

Capital Plan • €855m capital shortfall in the Adverse Stress Test 10% excluded the €400m CCN which only qualifies as available capital upon conversion

8% • Capital Plan submitted to address shortfall included: – €525m of new capital, through a combination of Equity 6% Min. CET1 Ratio (5.5%) >3.1% >5.5% and AT1; and – At least €330m of capital from ‘Management Actions’

4% (2014 actual performance, asset sales, technical (Transitional) items) Resulting 2016 >1.4% Capital Post-Capital Plan 2% 1.0% • The Group’s Capital Plan is ‘Endorsed’ by the ECB/JST

Adverse Stress Test Scenario CET1 Ratio with no major amendments

0% CA Outcome Management Combination Of CA Outcome • Formal approval of the Capital Plan is subject to its Actions And New Equity And Post-Capital implementation – the Group has until July 26th to execute Technical AT1 Plan the outstanding elements of the plan; in particular, the Adjustment Capital Capital Raise Buffer/ (855) >330 525 >0 (Shortfall) (€m)

7 Section 2

Introduction To PTSB Group Organisation

Group (Net Loans: €28.2bn)

Core Bank Non-Core (Net Loans: €20.1bn) (Net Loans: €8.2bn)

‒ Full service retail bank across Current Accounts, Deposits, Mortgages, Credit Cards and Personal Loans RoI Non-Core UK Non-Core (Net Loans: €1.5bn) (Net Loans: €6.7bn)(b) ‒ Dedicated Asset Management Unit (AMU) ‒ Commercial Real ‒ Predominately CHL; a good platform for arrears management(a) Estate assets credit quality but low yield ‒ Sale of €0.8bn net loans Buy-To-Let mortgage book announced ‒ Sale of €3.5bn(c) net loans ‒ Remaining assets to be announced deleveraged over next 12 ‒ Remaining assets to be months deleveraged over next 12 months subject to minimum price thresholds

Note: Figures are net loans as at 31 December 2014 and include assets classified as held for sale. See Appendix for full explanation of Core Bank/Non-Core split and for pro-forma for sales announced in March 2015 (a) Also manages CRE Non Performing (Residential) loans which are part of Non-Core (b) FX rate of EUR:GBP 0.78 as at 31 December 2014 9 (c) €3.5bn gross (€3.5bn net) based on FY2014 figure and FX rate of EUR:GBP 0.73 as at 28 February 2015. €3.2bn gross (€3.2bn net) based on FY2014 and FX rate of EUR:GBP 0.78 as at 31 December 2014 Group Overview

Group Deposits FY2014 Financials

PBI (IoM)(a) (€bn Unless Stated) Core Non-Core Group 3% Corporate Deposits 19.8 0.6 20.4 13% Net Loans 20.1 8.2 28.2 Retail Current Retail Provisions 2.5 1.2 3.7 Accounts (ex-Current 13% Accounts) RWA 11.3 3.5 14.8 57% Equity 2.3 Institutional 14% Total Operating Income (€m) 310 (2) 308

Total Deposits: €20.4bn Total Operating Expenses (€m) (356) (33) (389) Pre-Provision Loss (€m) (46) (35) (81)

Group Loans Writeback/(Charge) Of Impairments (€m) 51 (9) 42

Non-Core Core Bank Exceptional Items (€m) 0 (9) (9) Net Loans: Net Loans: €8.2bn €20.1bn Profit/(Loss) Before Taxation (€m) 5 (53) (48)

Non-Core 29% NIM (pre-ELG Fees) 1.21% na 0.90%

Core HL Underlying Cost:Income Ratio(b) 86% nm 97% Consumer 53% Finance RoE na na (4.6)% 1% LDR 101% nm 138%

Core BTL CET1 Ratio (Transitional) 14.2% 17% Group Net Loans: €28.2bn CET1 Ratio (Fully Loaded) 12.4% Note: See Appendix for full explanation of Core Bank/Non-Core split and for pro-forma as of June 2015 (a) Permanent Bank International Limited ("PBI") is a deposit business in the Isle of Man which, while considered core to the overall business of the Group, has historically been included in the Non-Core to enable the Group to hedge its GBP foreign exchange exposure more efficiently (b) Adjusted for non-recurring items. See Appendix for more details 10

Non-Core: Focused Deleveraging Means ‘Group Will Equal Core Bank’ By The Middle of 2016

Overview Exit Strategy

• Sale of €1.5bn of gross (€0.8bn net) assets announced • €2.0bn CRE Non Performing portfolios Non-Core RoI • Management targeting a sale of remaining loans over the • €0.6bn CRE Performing portfolios next 12 months

• Sale of €3.5bn(c) of gross (€3.5bn net) assets (c.50% of the • €6.5bn CHL portfolio outstanding CHL) and the CHL underwriting platform announced (a) Non-Core UK ‒ Low LTV, predominantly Trackers • Management targeting a sale of remaining CHL assets to • €0.3bn IPI(b) closed mortgage book be agreed at no more than a 10% discount to gross assets over next 12 months

Note: Figures are gross loans as at 31 December 2014 (a) Non-Core UK also includes Permanent Bank International Limited ("PBI") deposits of €0.6bn. PBI is a deposit business in the Isle of Man which, while considered core to the overall business of the Group, has historically been included in the Non-Core to enable the Group to hedge its GBP foreign exchange exposure more efficiently (b) Irish Permanent Isle of Man (IoM) Limited; a closed mortgage book in the Isle of Man comprising €0.3bn residential loans (c) €3.5bn gross (€3.5bn net) based on FY2014 figure and FX rate of EUR:GBP 0.73 as at 28 February 2015. €3.2bn gross (€3.2bn net) based on FY2014 and FX rate of EUR:GBP 0.78 as at 31 December 2014 11

Core Bank: Focused Domestic Retail Bank Well Positioned To Grow

PTSB Overview RoI Current Account Market Share

• Focused Domestic Retail Bank well placed to capture market 36% share: 30% 17% 13% – 1 million plus customers

– 77 branches plus phone and web capability AIB BoI PTSB Ulster Note: Data is stock market share calculated based on results of polling – 2,321 FTEs Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB • Pure retail offering with full service product suite RoI Total Deposits (€bn) • Well positioned to benefit from profitable growth opportunities in 51.2 a consolidated market and increasing credit demand 37.0 19.8 19.2 • Aiming for growth to achieve 13-17% share in key products: 3.5

(a) – Current Accounts AIB BoI PTSB Ulster KBC (a) Excludes PBI deposits – Retail Deposits Source: FY2014 for PTSB, AIB and BoI; FY2013 for Ulster and KBC

– Residential Mortgage Lending RoI Gross Residential Mortgages (€bn) • Seeking to explore opportunities in: 36.3 25.6 22.9 20.1 – SME 11.3 – Consumer Finance AIB BoI PTSB Ulster KBC Source: FY2014 for PTSB, AIB and BoI; FY2013 for Ulster and KBC 12 Section 3

Investment Case Investment Themes

• Increasing demand for credit as Irish economy recovers • Full service domestic retail bank well placed to capture market share 1 Capturing Profitable Growth • Attractive front book margins • Entry into SME market via OME(a) provides potential for further upside

• NIM drag expected to be reduced by decreasing cost of funds • Funding and Liquidity expected to be strengthened by active balance sheet management 2 Managing The Legacy • Arrears Management expected to be enhanced by focus on best practice • Non-Core deleveraging plan clearly defined and under way

• Strong pro-forma capital position with potential for dividends in the future 3 Maintaining A Strong • CCN to be repurchased and capital stack normalised Capital Position • Additional capital provides buffer for future stress tests, flexibility to accelerate deleveraging and potential for additional growth

• Phase 1 cost base restructuring complete. Defined benefit pension schemes wound-up • Well provisioned asset book and improving profitability metrics across Core Bank 4 Trending To Attractive Returns • Robust management targets including a Core Bank RoE of around 10% by 2018 • Potential upside from provision releases and lower cost of deleveraging remaining Non-Core assets

Delivering Through A • Experienced and committed management team with a track record of delivering change 5 Robust Management • Strong corporate governance with supportive majority shareholder Model • Integrated approach between strategy and finance

(a) Owner Managed Enterprises; OME segment has <10 employees and either <€2m turnover or <€2m balance sheet

14 1a Capturing Profitable Growth: Strong Macro-Economics Support Increasing Demand For Credit

House Prices Market Mortgage Drawdowns

0% 22.1 (28)% 14.3 15.9 15.0 (20)% (37)% (33)% (46)% (40)% 3.9 2.5 2.6 2.5 (60)% 2013 2014 2015F 2016F 2011 2012 2013 2014 Value (€bn) Volume ('000s) Note: Data shown is the percentage fall of HPI Index from its peak Source: Goodbody (January 2015) Source: Banking and Payments Federation Ireland Unemployment Domestic Consumption

13.1% 2.0% 1.1% 11.4% 10.4% 9.3% (0.8%) (1.1%) 2013 2014 2015F 2016F 2012 2013 2014F 2015F Source: CBI Quarterly Bulletin (January 2015) Note: Growth in consumer spending Source: Ulster Bank RoI Quarterly Economic Update (August 2014) GDP Growth Business Confidence

5.1% 42%

3.7% 3.8% 21%

0.2% (11%) (8%) 2013 2014 2015F 2016F 2011 2012 2013 2014 Source: CBI Quarterly Bulletin (January 2015) Note: Based on quarterly average for the calendar year 15 Source: Quarterly Trends Survey, Irish Small and Medium Enterprises Association 1b Capturing Profitable Growth: The Group Has Scale Natural Market Share In Key Products

Growing Retail Deposit Base Growing Mortgage Lending Flow

15.0 600

14.5 500 11.1%

14.0 400 12.7% 8.3% 12.1% 11.9% 13.5 300

485 14.3 429 13.0 200

13.6 3.1% 290 13.2 12.5 100 209

81 67 12.0 0 2012 2013 2014 2012 2013 2014

Retail Deposit Volumes (€bn) Market Share (%) Mortgage Drawdowns (€m) Mortgage Approvals (€m) Market Share of Mortgage Drawdowns (%)

Note: Market share for lending is flow, for deposits is stock. Deposit volumes reflect RoI only (PBI excluded) Source: PWC/IBF Quarterly Mortgage Data, CBI Data 16 1c Capturing Profitable Growth: Business Plan Underpinned By Grounded Assumptions

Deposits Current Accounts Mortgages

Balancing Growth And Attractive Customer Pricing Strong Growth In Current Accounts Driven By Switchers Maintaining Share In A Recovering Market Gross 56.2k 3.9 >8.0(a) 2.0% 1.75% Lending 41.9k Value (€bn) 13% - 17% 1.5% 0.75% 1.30% 28.2k 11% 1.0% 0.50% 0.99% 0.5% 0.81%

0.0% Dec 13 Mar 14 May 14 Jul 14 Sep 14 Dec 14 2012 2013 2014 2014 2018E Target

Blended Market Rate Blended PTSB ROI Retail Rate Note: RoI Deposits Only Note: Figures are new accounts opened in given year Note: Mortgage Drawdowns Source: CBI Data (a) Investec (February 2015) Source: IBF Data (for 2014), Internal Management Assumptions Credit Cards Term Loans SME Increased Cross-Selling Supported By Current Account Growth Increased Cross-Selling To Existing Customer Base Capturing Credit Opportunities In A Concentrated Market

7.6k 12%

3.2k 5%

0.8k • 59% of firms say banks making it more difficult to 2012 2013 2014 PTSB Market access finance Note: Figures are new accounts opened in given year Note: Graph shows % of PTSB primary current account holders with a PTSB Source: ISME Quarterly Bank Watch Survey (December 2013) term loan compared to % of BoI, AIB or Ulster Bank primary current account customers that have a personal loan with that same bank Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB 17 2 Managing the Legacy

 NIM expansion supported by normalisation of funding costs versus peers

Legacy funding costs reducing Steadily  Improving NIM  Tracker mortgages expected to be a decreasing proportion of the loan book in future

 Growing front book at attractive margins

 System funding down two thirds from peak levels in 2011 Significantly Strengthened Funding  €5.4bn deposit net inflows since 2011 And Liquidity Position  LDR reduced to 138% from 271% peak in 2008

 c.80% of home loan customers in late arrears have provided an SFS(a) Superior NPL  c.90% of accounts with long-term treatments performing to modified terms Management  Significant cash collection on NPLs with over 50% of total bills paid(b)

 Springboard sold in H2 2014

 Sale of €1.5bn (gross) Non-Core RoI assets announced in March 2015 Non-Core Being  €222m (gross) CHL assets sold in September 2014 Addressed  Sale of €3.5bn (gross)(c) CHL assets announced in March 2015

 Management targeting sale of remaining assets by mid 2015 (RoI) and mid 2016 (UK)

(a) Detailed income and expenditure report that requires supporting documentation (b) Cash collected as % of total bill owed for the 6 months to December 2014 (c) €3.5bn gross (€3.5bn net) based on FY2014 figure and FX rate of EUR:GBP 0.73 as at 28 February 2015. €3.2bn gross (€3.2bn net) based on FY2014 and FX rate of EUR:GBP 0.78 as at 31 December 2014 18

3 Maintaining A Strong Capital Position: Indicative Pro-Forma

CRD IV Fully Loaded 4.5% 4.1% 5.5% Leverage Ratio: 2.8% 12.4% 14.3% 11.5%

(0.9)%

2014 CET1 Impact Of Announced 2014 CET1 Fully Loaded Capital Raise 2014 CET1 Fully Loaded Fully Loaded Deleveraging(a) Pro-Forma For Deleveraging Pro-Forma For Capital Raise

RWA 14.8 (1.4) 13.4 n/a 13.4

CET1 (Fully Loaded) 1.8 (0.3) 1.5 0.4 1.9

Tangible Book Value 2.2 (0.3) 1.9 0.4 2.3

• Management targeting a sale of remaining CHL and CRE loans in next 12 months – CHL subject to maximum haircut of 10% of gross assets, in addition to c.€80m expected transaction costs – CRE expected to be broadly capital neutral

Note: All figures in table are €bn. FX rate of EUR:GBP 0.78 as at 31 December 2014 has been used for above calculations (a) Impact of deleveraging announced March 2015 19 4 Trending To Attractive Returns

Core Bank RoE Target of c.10%(a) Medium-Term Targets

Representative only: not intended to portray actual contributions from each category Core Bank NIM c.1.70% c.10.0%

Core Bank Cost:Income Ratio c.50%

Core Bank Cost of Risk <0.4%

na

2014E Asset Deposit ELG Fees Legacy Cost 2018E Core Bank Backbook+ Mix/ Funding Reduction Core Bank Core Bank RoE(a) c.10.0% RoE Frontbook Pricing Costs (b) Target Margin Management

(a) RoE target based on a notional fully loaded CET1 ratio of 11% (b) Legacy Funding Costs include CCN and deposit intangibles amortisation 20 5 Delivering Through A Robust Management Model

Key Achievements Strengthened Group Functions • Strong Governance embedded: 152 – Management Committees: ExCo, ALCo, Group Risk Co, Credit etc. 114 775 657 – ‘3 Lines of Defence’ model embedded

• Strong Strategic Management Process:

– Management Agenda comprising Strategy and Performance Agenda

– Programme Management Office

– Annual Planning Process 2011 2014 FTE Group Centre Functions Opex (€m) • Strong Group Functions Note: Group Centre functions in 2011 include ExCo, Operations, IT, Credit, HR and Finance. 2011 Costs include a recharge from the Group Centre for Group Functions HR, IT, Internal Audit • Re-engaged workforce and Exco. 2014 Group Centre includes ExCo, Secretariat, Internal Audit, Operations, ERM, Strategy and Planning, HR, Finance and IT

Underpinned by an experienced Management Team who have undertaken a fundamental restructuring of the Group since early 2012

21 Section 4

Commercial Operations Context: Relaunch As An Innovative Personal Bank

Pre-2012 Post-2012

‒ Key product and service innovations

‒ Standard Product Set ‒ Started to acquire new customers and cross sell Products ‒ Limited new lending from 2008 ‒ Targeting undeveloped business areas

‒ SME not targeted ‒ SME entry strategy approved and commenced soft implementation

‒ “Back to Basics” focuses on “Easy” ways to do ‒ Brand weakened due to underinvestment Marketing banking ‒ Limited marketing activity post financial crisis ‒ Direct customer campaigns reactivated

‒ Sub-optimal branch footprint ‒ Branch network right sized and started upgrading

Distribution ‒ Outdated functionality to support online banking ‒ New digital strategy implementation

‒ No mobile offering ‒ Website redesigned, Apps launched

23 The Commercial Journey

Clear Competitive Positioning And Brand Franchise

Innovative Product And Service Design

Focused Marketing To Profitable Customers

Multi-Channel Distribution

24 Balanced Customer Base

Age Distribution Location of Customers

Dublin 76.7 Munster 32% 32% 71.6 72.5 68.0

53.8 50.2 47.7 Ulster/ 44.9 Connacht Leinster 9% (ex Dublin) 27% Note: Includes all current account customers active within the last 3 months (c.590k)

24.2 23.2 Typical First Product Bought Mortgage 16.1 16.3 7% 11.7 Term Loan 9.3 1%

Saving/ Deposit 18 – 25 25 – 35 35 – 45 45 – 55 55 – 65 65 – 75 >75 25% Male Female Credit Card Current Personal Current Account Holders (Active last 3 months) 590k 0% Account 69% Personal Current Account Holders (Payroll) 275k

Note: Figures in thousands, includes all customers Note: Includes all current account customers active within the last 3 months (c.590k) 25 Brand: Highly Regarded Franchise By Both Existing And Potential Customers

Highly Regarded Franchise Across Key Customer Metrics … … With Strong Endorsement Among Existing Customers …

Net Promoter Score Across Irish Banks Efficient 30 20 25 16 16 15 20 Helpful Fair 9 10 (6) (3) 20 0 (7) (9) (7) (10) (17) (24) (22) (17) (15) 15 (20) Traditional Reliable (30) (23) (23) (28) (27) (25) 10 (40) Q4 13 Q4 13–Q1 14 Q1–Q2 14 Q2–Q3 14 Q3–Q4 14 5 UB BOI AIB PTSB Note: Includes all current account holders aged 18+ Friendly 0 Understanding Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB

… And Excellent Potential To Attract New Customers Net New Consideration: Would Consider for any financial services product (New and Switcher customers) Transparent Flexible 40 36 36 35 35 35 32 33 30 28 30 31 34 30 31 Trustworthy Innovative 30 30 29 25 29 27 Honest 25 26 26 20 (a) Q4'13 Q4'13 – Q1'14 Q1 – Q2'14 Q2 – Q3'14 Q3 – Q4'14 Total PTSB Total Banking (ex PO & CU) UB BOI AIB PTSB

Note: Includes all current account holders aged 18+ Note: Includes all current account holders aged 18+ (a) ex Post office and Credit Unions Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB 26 The Commercial Journey

Clear Competitive Positioning And Brand Franchise

Innovative Product And Service Design

Focused Marketing To Profitable Customers

Multi-Channel Distribution

27 Innovative Product And Service Design

‒ First to market with ‘Fee-Free’(a) Current Account for payroll customers

Deposits and ‒ “Interest First” Account, a market first; “Booster Bonus” offers access and loyalty bonus. Current Accounts ‒ Automated 15 minute process covering needs analysis and account opening recommendations

‒ Only bank in market to offer a ‘Tracker Portability Mortgage’ and ‘Non-Resident Mortgage’ offering

Mortgages ‒ Improved customer experience through 15-minute 'Approval-in-Principle’

‒ Revised Managed Variable Rate (MVR) mortgage pricing structure from 2 to 5 bands to reward larger equity

‒ First bank to market with ‘Cash Secured Lending Product’ with rates discounted

‒ Car Loan product combining Hire Purchase rates with flexibility of a Personal Loan Consumer Finance ‒ Only Irish Bank with “Motorcheck” for each approved car loan

‒ 0% on credit card balance transfers for 6 months

(a) No fee on Current Account when at least €1,500 is deposited monthly, otherwise €12 monthly fee 28 Deposits: Growth Of Sticky Funds While Reducing Rates

Progress Made Deposits Balances (€bn) Yield 2014 • €14.3bn Retail Deposits 20.4 • Include €2.6bn Current Accounts 0.6 1.85% • Book size almost doubled between 2007 to 2014 2.8 1.07% 16.6 • Sticky Retail Funds 0.3 1.4 2.7 2.65% • Behavioral ahead of contractual term (51 vs 4 months) 1.8 (a) 2.6 0.04% • Risk averse older customers (71% >55 years) 2.1 • Online end to end account opening (€605m) • Growth maintained alongside rate reductions

• €2.7bn Corporate Deposits 11.1 11.6 1.78% • Front book rates continually being managed down

• €2.8bn Institutional Deposits • Expected to be significantly reduced by end 2018 2012 2014 (a) • €0.6bn PBI Deposits Retail (ex Current Accounts) Retail Current Accounts • Growth aided by market consolidation Corporate Insitutional PBI (IoM) (a) Figure for term deposit customers only Note: Volumes at period end. Yields average for the period (b) Permanent Bank International Limited ("PBI") is a deposit business in the Isle of Man which, while considered core to the overall business of the Group, has historically been included in the Non-Core to enable the Group to hedge its 29 GBP foreign exchange exposure more efficiently Current Accounts: Capturing Switchers Through ‘Fee Free’ Accounts

Progress Made Number Of Current Accounts Opened

• Launched ‘Fee-Free’(a) Current Account proposition in April 2013 as primary customer acquisition product 33k 25k 23k • Service Enhancements 16k – ‘Switcher Buddy’ Team, “Mobile Money App”, Card Personalisation, Emergency Cash H1 2013 H2 2013 H1 2014 H2 2014 • 92k new accounts opened since launch(b)

– 34% payroll, average balance €4,400 – 66% fee paying, average balance €2,600 Tapping Opportunity From Current Account Switchers – H1 2014 spike due to Danske customers

Others • Further growth potential as employment drives more payroll 38% accounts and GDP drives higher average balances

PTSB 62%

(a) No fee on Current Account when at least €1,500 is deposited monthly, otherwise Note: Market share of Current Account switchers who went through the CBI channel for H2 2013 €12 monthly fee Source: CBI 2013 data, Management Estimates (b) 92k since April 2013, 97k since 1 January 2013 30 Mortgages: Targeting A Market Share Of 13-17%

Progress Made Gross Mortgage Lending and Market Share

• RoI Residential Mortgage market recovering following collapse: 3.1% 8.3% 11.1% – Peak of €40bn in 2006, €3.9bn in 2014 (+55% on 2013) – Expected to continue despite low supply and prudential changes 4.1% 4.2% – House price recovery continuing 3.9%

• PTSB lending growth underpinned by: – New rate launches (Managed Variable Rate, Fixed Rates) – Innovative Products “Tracker Portability” and “Negative Equity Home Mover” 429 – Improved processes (15 minute Approval in Principle)(a)

• Resulting in share growth: 209

– 3% in 2012 to 11% in 2014 81 – Increasing front book yield to 4.2% in 2014 – c.50% First Time Buyers, c.40% Next Time Buyers, c.10% 2012 2013 2014 equity release and BTLs Market Share Gross New Lending (€m) Front Book Yield (Drawdowns)

(a) Mortgages 15 minutes; Personal loans 5 minutes Note: Volumes at period end. Yields average for the period Source: PWC/IBF Quarterly Mortgage Data

31 Consumer Finance: Significant Opportunity To Build Relationships

Opportunity For Growth Key Metrics

2013 2014 • Significant opportunity for low risk growth targeting existing customer base • Targeting double digit growth of balances and new lending • 5% personal loan cross sale versus 12% for other Personal Loans PTSB Gross Loans €175m €176m main banks • Product and Service Innovations: ‒ Branch AIP in 5 minutes ‒ Car Loan approval in 3 hours ‒ Same Day Payout

• Significant opportunity for low risk growth targeting existing customer base PTSB Balance €124m €110m • c.20% of current account customers have a credit Credit Cards card customers with PTSB versus market average of c.50% • Strong proposition: PTSB No. Credit 150k 149k ‒ 0% balance transfer for 6 months Cards

Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB

32 SME: Controlled Growth In Focused Segment

• Gross market balances of €21.8bn (Q3 2014) with gross lending of €1.6bn in 9M 2014

• Opportunity:

– Market growth alongside improving Irish economy

– Diminished choice due to market consolidation

– Incumbent banks less focused on this target segment

– Build on existing customer base (corporate deposits and current accounts)

• PTSB soft launched new proposition in Q4 2014 with focus on Owner Managed Enterprises (OME)(a) segment:

– Target share growth from c.2% to c.5% share across loans, current accounts, overdrafts and deposits

– Initial focus on products for low risk existing customer base

– Simple product offering supported by local service

– Cost to serve kept low by adding to and leveraging existing personal banking infrastructure

(a) OME segment has <10 employees and either <€2m turnover or <€2m balance sheet

33 The Commercial Journey

Clear Competitive Positioning And Brand Franchise

Innovative Product And Service Design

Focused Marketing To Profitable Customers

Multi-Channel Distribution

34 Campaign Message: ‘Back to Basics’

PTSB Brand Campaign

• History as trusted, respected brand

• Brand reintroduced to the market in 2013

• ‘Back to Basics’ campaign focused on simple ways to bank

• Outstanding campaign success strengthens franchise:

– ‘Impact’ rating of 60 versus Banking average of 49

– Now rated as the leading option for customers considering switching current accounts

– Highest Customer Loyalty level (87%) and lowest level of rejection (12%)

Source: RedC Brand and Ad Tracking, Q4 2014 poll commissioned by PTSB 35 Customer Campaigns: Transactional Banking And Savings Examples

Acquiring New Salaried Customers

Current Accounts Product: ‘Fee-free’ account Service: Simple switch process with dedicated switching buddy Relationship: Combined sales process at point of sale and follow up activation campaign

Targeting Existing Customers To Increase Average Product Holding

Deposits Product: Interest First, Booster Bonus Account

Relationship: Campaigns targeting customers with greatest potential value

Targeting Existing Customers

Credit Cards Product: Advertising 0% balance transfer

Relationship: At current account opening and delayed campaigns

36 Customer Campaigns: Mortgages And Personal Lending Examples

Targeting New and Existing customers

Mortgages Speed: 15 minute AIP online, phone and branch

Service: Dedicated mortgage advisor, mortgage approval valid for 10 months

Relationship: Mortgage and Home Insurance cross sale

Targeting Existing Customers

Personal Lending Speed: 5 minute AIP online, phone and branch

Service: Improved customer experience, 3 hour approval and same day payout

Relationship: Car History Check, Topaz Fuel Card Affinity

37 The Commercial Journey

Clear Competitive Positioning And Brand Franchise

Innovative Product And Service Design

Focused Marketing To Profitable Customers

Multi-Channel Distribution

38 Multi-Channel Distribution

• ‘Right Sized’ at 77 branches(a) • Network upgrade in progress (>20 branches to date) Branch North West: Donegal • Business Development through “Corporate Affinities“ 8 branches North East: • Campaign Infrastructure for expanding customer 8 branches relationship Leitrim Dublin Sligo North West : Monaghan 8 branches Cavan Roscommon • Award winning ‘Switch Buddy’ team Mayo Louth Longford Phone Dublin North • Support product sales for direct customers Meath Galway Westmeath East: 8 branches Offaly West: Kildare Dublin 8 branches Clare Laois Wicklow South: North 7 branches • Investment to support migration Tipperary Carlow South East: Digital • Upgraded internet banking platform in Jan 2015 Limerick Kilkenny Tipperary Wexford 7 branches • Digital applications such as “Mobile Money” Kerry Waterford Cork

South East: Intermediaries • Access to additional source of customers South: South West: 8 branches 8 branches 7 branches

(a) 76 branches as of 31 December 2014, new branch opened in February 2015 (b) Winner of “Best Customer Acquisition or Sales Campaign” at Contact Centre Management Association (CCMA) Awards 2013 39 Multi-Channel Distribution

Telephony Online Mobile

• Over 400k registered users with 38% • Significantly higher than average • Developed the permanent tsb Mobile banking penetration customer usage of online banking and App, nominated for Best Mobile App at joint highest levels of customer the Social Media Awards satisfaction for online banking service • PTSB customers have above average reliability(a) usage of telephone services versus • Winner of “Best Initiative in Mobile competitors(a) Payments” award at 2015 UK/Ireland • Relaunched internet banking platform Card and Payments Awards in January 2015 • Introduced the award-winning(b) ‘Switch Buddy’ team for current accounts

(a) Ipsos MORI Q3 2013 Customer Research, commissioned by PTSB (b) Contact Centre Management Association Award 2013 40 Clear ‘View Of The Future’

‘The Way We Do Things’

Future • Performance management Business • Multi-channel integration and customer migration Focus • Relationship building

• Digital Strategy implementation Future • Maintain ‘Right Sized’ footprint Focus • Ongoing centralisation and automation

Future • ‘The Way We Do Things’ culture programme Behaviour

Future • Extending opening hours in Branch and Telephone Service • Refurbishment program

Future Customer • Build on leading NPS of 15 Focus

41 Section 5

Funding, NIM, Trackers and Liquidity Funding: Rightsizing Deposits And System Funding

Significant Growth In Customer Deposits System Funding Returning To Normalised Levels

c.60% of 227% c.60% of 14.0 227% Group Funding 20.4 Group Funding(c) 20.4 191% 19.5 191% 19.5 16.6 10.7 16.6 15.1(b) 151% 15.1 151% 138% <130% 133% <130%

6.9 <15% of Group Funding 4.9

2011 2012 2013 2014 2018E Target 2011 20112012 20122013 20132014 2018E2014 Target2018E Target Customer Deposits (€bn)(a) LDR(a) System Funding (€bn) LDR

• 2011: Deposit base neglected and sub-scale with an LDR of 227% • 2011: System funding peaked in July at €19.5bn including a component of Emergency Liquidity Assistance (ELA) • 2014: Strong growth in deposit base with sustainable LDR of 138% • 2014: €14.7bn of System Funding re-paid • 2018: Core Bank LDR target of <130% • 2018: Maintain a component of System Funding at <15% of Group funding (a) Historic figures include funds placed by a government institution, comprising cash deposits and funds placed under repurchase agreements (‘Repos’). As at 2013 and 2014 the cash segment was €0.5bn and €0.4bn respectively, the Repos were €2.2bn and €1.9bn respectively, giving a total of €2.7bn and €2.3bn respectively (b) Includes inter-group deposit balance of €0.7bn (c) Includes Corporate and Institutional deposits 43 Funding: Mix And Maintenance Led

Funding: Composition

Total • Retail Deposits: Funding 40.7 33.3 (€bn) – Base is ‘right sized’ 100% 100% 100% – Maintenance with 1-1.5% organic growth per annum 1% 1% <2.5% 10% <2.5% 21% • Corporate Deposits:

– Expensive backbook tail running off, the last of which will mature in 2017 (a) c.60% 37% 61% – Volumes managed such that cost will reduce below Retail Deposits 7% • Institutional Deposits: c.20% 13% 34% – Priced away as C/A volumes increase, which are lower cost 15% <15% and more beneficial from liquidity perspective

2011 2014 2018E target mix • Wholesale Funding: – May increase (secured and unsecured) over medium term, System Funding Wholesale Funding Customer Deposits targeting c.20% of overall funding mix

Debt Securities Subordinated Liabilities

(a) Includes inter-group deposit balance of €0.7bn 44 NIM: Trending Towards 170bps

Core Bank NIM Target NIM Of 170bps By 2018

1.70%

2.66% 1.21% 1.19% 2.49% 2.49% 2.40% 0.97% 0.93% 1.05% 1.19% 1.23% Representative only: 1.73% not intended to portray actual 1.44% contributions from each category 1.30% 1.17%

H1 2013 H2 2013 H1 2014 H2 2014 Core Core Core Legacy Falling Change in Back Front Core Bank NIM Bank NIM Bank NIM Funding Cost of Deposit Book Book Bank NIM 2013 H1 2014 2014 Costs(a) Deposits Mix Run-Off Growth 2018 Core Bank Asset Yield Core Bank Cost of Funds Target Note: Figures exclude ELG fees Note: Figures exclude ELG fees • 2011/12 spread compression driven by a requirement to build scale into our deposit base • Cost of funds expected to continue to fall as the back book tail rolls off • Asset yields impacted by lower interest rate environment, in particular and as we continue to re-price to the market RoI tracker mortgages, as the ECB rate has decreased by 95bps since start of 2012 • Potential further upside from adjusting the deposit mix • NIM improvement driven by larger fall in cost of funds including cost of • Expected repurchase of CCN to contribute to reduction in legacy retail deposits, change in deposit mix and lower cost of funding costs System Funding (a) Legacy funding costs include CCN and deposit intangibles amortisation 45 NIM: Cost Of Funds Within Our Control

Group Falling Cost Of Funds Retail Rates And Spread To The Market

2.0% 1.75%

2.32% 1.5% 1.30% 0.75% 2.20% 1.0% 0.50% 0.99% 0.5% 0.81%

1.96% 0.0% Dec 13 Mar 14 May 14 Jul 14 Sep 14 Dec 14 Blended Market Rate Blended PTSB ROI Retail Rate Source: CBI Data 1.75% 1.70% Retail Rate Actions Taken 3%

2% 1.44%

1%

0% H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 Demand Notice 3m 6m 9m 12m 18m 24m 36m 60m Jun 13 Jun 14 Nov 14 Dec 14 Feb 15 Note: Figures are period average cost of funds. FY 2012: 2.26%, FY 2013: 1.85%. FY 2014: 1.57% 46 NIM: Asset Returns Improving Over Time

Core Bank Mortgage Core Bank Asset Split (FY 2014) Book Split By Type Tracker Split By Yield Fixed >1.75 Balance (€bn)(a) Average Yield (%)(b) 2% 17% Treasury Assets(c) 7.1 2.6% 1.51-1.75% Variable 6% < 1.00 34% Core Bank Loans 20.1 2.3% 44% Tracker 1.26-1.5% Mortgage Back Book 19.0 2.3% 64% 10% o/w Tracker Mortgages 12.8 1.3% 1.00-1.25% 23% Mortgage Front Book(d) 0.7 4.2% Total Mortgage Total Mortgage Tracker Deferred fees, discounts and Net Loans: €19.7bn Net Loans: €12.8bn 0.1 na fair value adjustments Core Bank WAM By Consumer Finance 0.2 9.8% Mortgage Type RoI Run-Off Upside

Non-Core Loans 8.2 1.8% 20 10.2% RoI Non-Core 1.5 3.0% 18 o/w Performing 0.6 na

o/w Non Performing 0.9 na 3.9%

UK Non-Core 6.7 1.4% 2

(a) Total 35.3 2.2% (pa) Repayments and Redemptions Tracker Variable Fixed Pre-Crisis (2008) 2014 (a) Loan balances presented are net of provisions Note: Weighted Average Maturity (WAM) in (a) RoI tracker only for 2014 of 3.9% (b) Gross Interest Income/Average Gross Loans for FY 2014 years (c) Treasury Assets include Debt Securities and Loans and Advances to Banks (d) Loans drawdown since 1 January 2012 47 Trackers: Drag Decreasing In Line With Natural Repayments And Cost Of Funds Reductions

Irish Tracker Book Tracker Margin Impact (bps) 2014

15.6 15.3 Average Customer Pay Rate 127 15.1 14.8

• ECB Repo Rate(a) (16)

• Average Fixed Spread 111

Cost of Funds (157)

Jun 13 Dec 13 Jun 14 Dec 14 Note: Dec 14 figure reflects the disposal of the Springboard portfolio (€0.5bn gross, €0.3bn net loans as of Sep-14) of which c.63% was tracker Net Interest Margin (30) • Volume of loans reduced by €0.5bn in 2014 (€0.8bn since June-13)

(a) Average ECB bank rate for the period

48 Liquidity: Significantly Improved

Liquidity Buffer (€bn)(a) • The Group has significantly improved its Liquidity Buffer by a 5.3 combination of: 4.0 – Growing unsecured liabilities

2.2 2.7 – External securitisations

0.2 – Collateral optimisation (driving down asset encumbrance)

2011 2012 2013 2014 – Deleveraging and balance sheet run down Liquidity Balances OUB (a) Includes Retained Securitisation Bonds which are eligible for use as collateral at the ECB – Cancelled €3.1bn Own Use Bond (“OUB”) in December 14

Liquidity Portfolio Composition – Redeemed the €1.4bn of MTNs that matured on 10th March 2015 Credit Line Bank Paper • Liquidity Buffer is made up of cash, cash equivalents and 4% 3% unencumbered collateral (including Basel 3 definition High Quality Liquid Assets) Irish RMBS Government 35% Bonds • Basel 3 Liquidity Coverage Ratio(b) of 160% at 2014YE 34% • Glide path towards compliance with the 2019 Basel 3 Net Stable Total HQLAs(a): €3.2bn Funding Ratio requirements

NAMA Bonds 24% Total Liquidity Buffer: €5.3bn (a) HQLAs: High Quality Liquid Assets (b) Ratio of the stock of high quality liquid assets to expected net cash outflows over the next 30 days under a stress scenario. CRD IV requires that this ratio exceed 60% on 1 January 2015 and 100% on 1 January 2018 49 Liquidity: Deleveraging Supports ‘Cash Generation’

Non-Core Loan Book Summary • Non-Core RoI includes CRE Non Performing loans RoI UK – Sale of €1.5bn gross (€0.8bn net) loans announced in March 2015 CRE CRE Non Performing Performing CHL IPI(a) Total – Management targeting a sale of remaining assets in next 12 months. Capital impact expected to be broadly neutral Gross Loans 0.6 2.0 6.5 0.3 9.3 (€bn) • Non-Core UK comprises: – Capital Home Loans (CHL); predominantly UK BTL portfolio Provisions 0.1 1.1 0.1 0.0 1.2 – Sale of €3.5bn(b) gross (€3.5bn net) assets announced in (€bn) March 2015 – Management targeting a sale of remaining assets to be agreed Net Loans (€bn) 0.6 0.9 6.4 0.3 8.2 at no more than a 10% haircut to gross assets in the next 12 months in addition to expected transaction costs of c.€80m

NPLs (€bn) - 2.0 0.2 0.0 2.2 – IPI closed mortgage book(a)

• Execution against Non-Core deleveraging plan expected to result in NPL% of Gross 0% 100% 3% 1% 23% approximately €3bn of cash being returned to the Group: Loans – Provides opportunity to re-price aggressively non-retail deposit base PCR % 9% 54% 27% 36% 54% – Potential for future acquisitions of profitable mortgage books – Available for general corporate purposes RWAs (€bn) 0.7 0.5 2.2 0.1 3.5 – Continue to build liquidity portfolio

Note: CRE Performing and CRE Non Performing both include a Residential and a Commercial Segment • CHL related secured funding costs, including the costs associated (a) Irish Permanent Isle of Man (IoM) Limited (b) €3.5bn gross (€3.5bn net) based on FY2014 figure and FX rate of EUR:GBP 0.73 as at 28 February with hedging arrangements, amount to c.€100m in 2014 2015. €3.2bn gross (€3.2bn net) based on FY2014 and FX rate of EUR:GBP 0.78 as at 31 December 2014 50

Funding, NIM, Trackers and Liquidity: Summary

• Rightsizing of deposit base and System Funding largely completed

• Improving NIM with significant further upside from CoF declines and CCN repayment

• Attractive front book margins and tracker margin impact slowly decreasing will also support asset margins

• Non-Core deleveraging expected to provide additional liquidity to manage legacy funding base

51 Section 6

Asset Quality Asset Quality: Significant Progress Has Been Made

Significant Progress In • Risk management has been strengthened (People & Systems) Addressing Legacy • AMU established in 2012 Poor Quality Portfolios • Specific strategies in place for resolution of defaulted HL and BTL portfolios

Provisioning • Core Bank provisions increased to €2.5bn Coverage Rates Are • Asset Quality Review (AQR) confirmed adequacy of the Group’s Provisions High • Despite 2014 write-back provision coverage remains stable

• Early arrears decreased by c.3ppt(a) since June 2012 for both HL and BTL • New defaults have significantly reduced Improving Asset • >90 Days In Arrears cases continue to decrease Quality • Seasoned portfolio given vintages • Low redefault rate on treated loans

• NPLs have peaked and are gradually reducing Non Performing Loans • NPL composition is changing and loss severity varies by cohort Are Improving • All NPLs are not the same

• Negative equity has decreased by over 30% since December 2013 Negative Equity • Core Bank NPL negative equity balances of €1.2bn are supported by €2.5bn of provisions

New Lending • Core Bank has returned to the market for both secured and unsecured products Exhibiting Low Arrears • Recent arrears vintages are low and improving

(a) Percentage of Total Book (see slide 79) 53 Asset Quality: Overview of the Book

CRE (€bn Unless Stated) Home Loan Buy-To-Let (Residential) Consumer Core Bank • Core Bank gross loans of €22.5bn with c.73% performing or in Accounts (000s) 134.9 22.4 1.7 189.0 344.5 early arrears (<90 days in arrears) • €16.3bn (73%) performing and €0.5bn in arrears <90 days (2)% Gross Loans 16.4 6.3 0.5 0.3 22.5 • €6.2bn (27%) classified as non performing but only 16% >90 Provision 1.6 1.1 0.2 0.1 2.5 days in arrears

Net Loans 14.9 5.2 0.3 0.2 19.9 (a) – €3.1bn in Forbearance (i.e. Treatment)

<90 Days In Arrears – €1.7bn in Legal 0.4 0.1 0.0 0.0 0.5 (Not Classified As NPLs) – €0.9bn in Closure NPLs 4.2 2.2 0.4 0.1 6.2 – €0.4bn in Untreated Loans In Forbearance 3.1 1.3 0.1 0.0 4.4 • €2.5bn provision stock equivalent to coverage ratio of 45% of o/w Performing In NPLs(b) 0.9 0.4 0.0 0.0 1.3 Forbearance o/w Non Performing In • €1.3bn loans in Forbearance and classified as ‘Performing’ (i.e. 2.2 1.0 0.1 0.0 3.1 Forbearance have been treated and no redefault for 12 months or greater and are not split mortgages) Loans In Closures 0.6 0.3 0.0 0.0 0.9

Loans In Legal Process 1.1 0.6 0.0 0.0 1.7

Note: HL and BTL in above table include CRE (Residential) loans which are classified as Non-Core. These should be subtracted from the sum of Home Loan, Buy-To-Let and Consumer to get Core Bank (a) Excludes €138m of deferred fees, discounts and fair value adjustment (b) 45% Provision Coverage Ratio (PCR) calculated as total provisions divided by NPLs greater than 90 days in arrears and/or impaired loans. Provisions divided by total NPLs is 41%

54 Building Blocks Of Asset Quality

New Lending

NPL Trends

NPL Loss Severity

Provisioning

Collateral

55 New Lending: Low Arrears To Date

All Products – NPL Trends

2.5% 12,000 Mortgage Portfolio 2012 – 2014:

• ~4,900 cases, €719m new Mortgage lending since 2011

10,000 2.0% • Low arrears trend to date. As at 31 December 2014:

– 99.9% < 90 days in arrears 8,000

No. of Funded No. of Funded Cases – 0.1% NPLs with 6 default cases 1.5% • 61.7% weighted average LTV 6,000

NPL rate (>90)rate NPL 1.0% Unsecured Portfolio 2012 – 2014: 4,000 • ~29,000 cases, €144m new Unsecured lending since 2011 0.5% 2,000 • Low arrears trend to date. As at 31 December 2014:

– 99.5% < 90 days in arrears

0.0% 0 – 0.5% NPLs with 135 default cases H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 Quarter Funded Mortgages: NPL Rate Unsecured Products: NPL Rate Mortgages: Funded No. Unsecured Products: Funded No.

Note: The spike in H1 2014 for Unsecured Products is due to Danske Bank customers switching to PTSB 56 Building Blocks Of Asset Quality

New Lending

NPL Trends

NPL Loss Severity

Provisioning

Collateral

57 NPL Trends: Fewer Defaults, More Cures And An Increasing Number of Treatments Are Reducing NPLs

New Defaults (€m) Cures (€m) As % of As % of 39.1% 35.8% 12.3% 13.1% 9.6% 14.3% NPLs(a) NPLs(a)

4,000 324 2,000 294 256 263 245 200 1,800 3,500 142 139 1,600 3,000 Q1-14 Q2-14 Q3-14 Q4-14 1,400 Q1-14 Q2-14 Q3-14 Q4 -14 2,500 1,200 1,002 2,000 1,869 1,000 1,616 800 1,500 600 540 500 1,000 861 400 500 200

0 0 2012 2013 2014 2012 2013 2014

• New defaults are slowing, mainly driven by improvement in Home Loans • Cures steadily increasing • Recent new defaults mainly reflect defaults of assets which have • 2014 cures higher than 2013 exhibited stress in the past

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE Performing and Non Performing (Residential) (a) Annual new default/cure as a % of opening stock of NPLs 58 NPL Trends: Increasing Number Of Treatments Leading To Reducing NPLs

Non-Performing Loans – Home Loan (€bn) Non-Performing Loans – Buy-To-Let (€bn) NPLs As % NPLs As % Of Gross 18% 21% 26% 27% 26% Of Gross 31% 30% 38% 38% 36% Loans Loans 6.0 6.0

5.0 5.0 4.49 4.55 4.23 4.0 1.03 4.0 3.61 1.62 3.19 0.18 0.04 2.04 1.851.98 2.47 2.43 3.0 6.0 3.0 0.01.02.03.04.05.0 2.01 0.02 1.75 0.23 1.520.95 2.471.421.01 2.43 Dec-12 Jun-13 Dec-13 Jun-14 2.24 2.04 1.98 2.0 0.02 2.0 0.23 0.95 1.01 3.42 3.46 0.99 3.15 2.93 2.38 1.0 1.0 2.01 1.75 1.52 1.42 1.25

0.0 0.0 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 >90 Days In Arrears <90 Days In Arrears But Impaired

• NPLs represent c.28% of the mortgage portfolio • HL NPLs peaked in Q2 2014 and are gradually reducing. Similarly BTL NPLs peaked in Q4, 2013 and are gradually reducing • NPLs will remain elevated for some time given regulatory and IFRS classification of treated assets

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE Performing and Non Performing (Residential) 59 Building Blocks Of Asset Quality

New Lending

NPL Trends

NPL Loss Severity

Provisioning

Collateral

60 Treatment Mix: Loss Severity Expected To Change Over Time As Treatment Mix Varies

Home Loan NPLs (€bn) Buy-To-Let NPLs (€bn)

2.5 4.49 4.55 4.23 2.47 2.43 2.24 5% 0% 3% 4% 2.0 In 16% 25% 23% 27% In Treatment Treatment 31% 35% 43% 34% 39% 41% 4% 48% 35% 7% 1.5 19% 4% 12% 20% 3% 1% 9% 2% 7% 1% 12% 10% 5% 9% 1.0 10% 6% 11% 14%

56% 0.5 48% 40% 43% 33% 39% 2.47 2.19 2.24 0.0 48%31%9%4%0% 47%13%24%7%3%5% 39%10%11%35%2%4% Dec-13 Jun-14 Dec-13Dec-14 Jun-14 Dec-13 Dec-14 Jun-14 Dec-14 >90days or Legal Closures Technically Held Short Term Long Term Treated Splits

• Increasing proportion of total NPL stock is in treatment • >90 days in arrears or Legal is reducing significantly • ‘Treated But Impaired’ i.e. Split Mortgages, are a key feature of PTSB’s approach to resolution. However, Splits results in NPL stock reported remaining elevated due to IFRS definitions • Future NPL ratio will be driven by volume of Splits, Technically Held and >90 or Legal Cases as the remainder should exit NPL over the long term Note: Technically Held relate to assets which have not breached the standard delinquency triggers, but are classified as default, typically through association with other defaulted assets. Data is for the entire RoI Residential Mortgage portfolio including CRE Performing and Non Performing (Residential) 61 Forbearance: Of The €4.5bn In Total Forbearance, €3.2bn Is Classified As Non-Performing

Home Loan in Forbearance – Non Performing Buy-To-Let in Forbearance – Non Performing

Short Term Short Term Split 5% 10% 9%

Trials Trials 15% 27% Split 46% Term Extension/ Interest Only Capitalisation 44% 9% Term Part Capital Extension/ Interest Only & Interest Capitalisation Part Capital 1% 13% 11% & Interest 10%

Total: €2.2bn Total: €1.0bn

• Splits comprise the majority of Home Loan treatments (46%) • For BTLs, given investment criteria Interest Only comprise the majority of treatments (44%) • Remaining 54% treatments, excluding interest only, will release to the performing portfolio subject to non redefault criteria • The remaining 56%, excluding splits will release to performing portfolio • Once in performing portfolio, these loans are subjected to much higher • Once in performing portfolio, these loans are subjected to much higher collective provisioning collective provisioning

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE Performing and Non Performing (Residential). Trials are loans which are still in initial 6 month trial period 62 Forbearance: Of The €4.5bn In Total Forbearance, €1.3bn Is Classified As Performing And Has A Lower Loss Severity

Home Loan In Forbearance – Performing Buy-To-Let In Forbearance – Performing

Interest Only Short Term Short Term 2% 4% 12% Trials 7% Trials 11% Part Capital & Interest Term 39% Extension/ Capitalisation 25% Part Capital & Interest 64% Term Extension/ Capitalisation 36% Total: €0.9bn Total: €0.4bn

• All Forbearance is subject to sustainability and affordability guidelines

• Performing forborne for both HL and BTL are generally lower loss severity loans

• Redefaults remain low on both portfolios to date, although seasoning data is limited

• Lower redefault trigger at >30 days and higher collective provisions applied

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE Performing and Non Performing (Residential). Trials are loans which are still in initial 6 month trial period 63 Building Blocks Of Asset Quality

New Lending

NPL Trends

NPL Loss Severity

Provisioning

Collateral

64 Provisioning Approach

0 – 90 Days >90 Days or Defaulted

PD x EAD x LGD EAD x LGD

PD (Probability of Default) EAD (Exposure at Default) – current exposure • Utilises a roll rate model (transition to >90 days past due) LGD (Loss Given Default) • Scalar (uplift factor) applied to cohorts which have exhibited distress e.g. • Index LTV is the main driver of losses, includes Fire Sales, Other Costs, forborne, prior forborne, prior default Discounting, etc RoI Residential • 12 month emergence period • Specific cases where a standard LGD (cure/collateral recovery) assessment is not appropriate, e.g. split (interest foregone), shortfall (100% of EAD (Exposure at Default) – current exposure outstanding balance), etc LGD (Loss Given Default) • Exposure >€1m, subject to manual review with collateral >€0.5m subject to • Collateral sale model with empirically based cure assumptions additional valuation haircut

EAD (Exposure at Default) – current exposure PD (Probability of Default) – based on obligor characteristics LGD (Loss Given Default) EAD (Exposure at Default) – current exposure CRE • Modelled approach for accounts <€750k (cure\collateral recovery) LGD (Loss Given Default) • A manual review generates specific provisions where exposure is ≥€750k • DCF (collateral realisation) applied to all cases assuming 4 year workout using a discounted cash flow approach; included within this are large exposures and watchlist cases

PD (Probability of Default) – Utilises a roll rate model (transition basis) EAD (Exposure at Default) – current exposure Consumer Finance LGD (Loss Given Default) – Determined from historical recovery rates • Non performing at >90 days, specifically impaired >151 days

65 Provision Release: 2014 Provision Release Supported By Combination Of Strong Operational Performance, Model Recalibration And HPI

Core Credit Impairment And Provision Impact Group Credit Impairment

Core Portfolio Write Back €(51)m H1 Out-Turn 149

2,659 150 97 44 2,544 m) Full Year Trajectory 250 € (18 ) (280) (108) Recalibration (145)

Provisions ( Provisions Recalibration Performance Performance (147) 2014 Impairment (42)

2013 HPI PTT Sale New Back Book Write-Offs Other 2014 2013 Impairment 929 (5)%(a) Parameters/ Defaults Charge Haircuts

• Core Bank provision stock levels have decreased by 4% (€115m) in 2014 driven by reduced levels of new defaults, positive portfolio performance and limited adjustment of provision parameters • Core Bank had a provision write back of €51m in 2014. Focusing on residential mortgages (main component), this had a €45m write back in 2014 compared to a charge of €730m in 2013 • Key components of Core performance are: – Reduced levels of new default in 2014 of c.55% – Reduction in IBNR given performance of c.€20m – Successful treatment of assets in default in both HL and BTL – Recalibration of Peak to Trough model with a 5% reduction (releasing c.€280m) – Model adjustments: an increase in fire sale costs on both HL and BTL and a rebalancing of repossession levels increasing provision stock by €150m

(a) Peak To Trough 66 Provision Coverage: Loan Book Adequately Provisioned

Provisions and Provision Coverage Ratio (€m) • €2.5bn provisions against €22.5bn RoI gross residential and PCR%(a) 44% 43% 44% 44% 45% consumer loans

2,750 2,714 2,659 2,658 • ECB SSM/AQR confirmed adequacy of provisioning stock as at 31 101 2,544 98 77 78 December 2013 96

1,110 1,088 1,029 1,117 934 • PCR(a) at 45% is a moderate increase from December 2013 given improved portfolio performance and modest change in provisioning parameters reflecting economic improvement

1,444 1,539 1,549 1,551 1,514

2013 Q1 2014 H1 2014 Q3 2014 2014

HL BTL Consumer Finance Note: Data is for the Core Bank RoI Residential mortgages only; excludes CRE (Residential) (a) Provision Coverage Ratio, calculated as total provisions divided by NPLs greater than 90 days in arrears and/or impaired loans 67

Upside Potential Through HPI Lens

PTSB HPI Assumptions More Conservative Than External Forecasts Sensitivity Of HPI Driven Write-Backs

(25)% Upside To (28)% HPI Curves Impact Business Plan

(30)% Business Plan Assumption (2015-16)(a) €85m (33)% (34)%

(35)% (37)% (36)% (b) (37)% ESRI – HPI €325m €240m

(40)% HPI Dec 14: (38)% (42)% (41)% Goodbody – HPI(b) €475m €390m

(45)% (44)%

HPI Index fall Index HPI fall from peak (a) Impact relates to progression from 2014 to 2016 HPI assumption while maintaining a buffer (b) ESRI and Goodbody modeled on basis of curve presented Note: Sensitivity assumes all other factors remain the same (50)% 2014 2015 2016 • Core Bank provisions are most sensitive to HPI movements Business Plan HPI Assumption (Pre Buffer) ESRI Paper Goodbody • The Group operates with a buffer to the Business Plan HPI Source: Management Assumptions, CSO HPI Index, ESRI, Goodbody (January 2015) assumption to reduce volatility – In 2014 post buffer the Group provisioned to an HPI level of (48)% • In 2014, the Group released €280m from a 5% change in peak to • The current level of HPI is well in excess of the Business Plan trough assumption for 2014 and only 2 percentage points lower than the assumption for 2016 • Conservative HPI forecasts in the Group’s Business Plan underpin the potential for provision write-backs

68 Building Blocks Of Asset Quality

New Lending

NPL Trends

NPL Loss Severity

Provisioning

Collateral

69 Collateral Coverage: NPL Negative Equity Balance Of €1.1bn Offset By €2.5bn Of Provisions

Loan Split by LTV Negative Equity Falling Cumulative Non (€m) Performing Total Cumulative As % Of Performing Total €3.8bn (7)% €3.5bn

<70% 840 5,268 6,108 6,108 26.9% (32)% 1.6 1.5 70% – 90% 700 2,956 3,656 9,764 43.0% €2.4bn

90% – 110% 1,065 2,899 3,964 13,728 60.4% 1.1

110% – 130% 1,333 2,758 4,091 17,819 78.4% 2.2 2.1 1.3 130% – 160% 1,514 2,037 3,551 21,370 94.1%

Dec 13 Jun 14 Dec 14 160% – 180% 440 180 621 21,991 96.8% Performing (€bn) Non Performing (€bn)

> 180% 508 106 613 22,604 99.5% • Rising house prices have driven improved LTVs. Negative equity balances for the overall portfolio have reduced by 37% since December 2013: Not Applicable(a) 68 43 111 22,715 100.0% – As per CSO, HPI has improved from a peak to trough fall of 46% in December 2013 to 38% in December 2014, circa 16% improvement NPL negative equity balance of €1.1bn supported by €2.5bn of existing Total 6,468 16,247 22,715(b) • provisions

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE (Residential) Note: Data is for the entire RoI Residential Mortgage portfolio including CRE Performing and Non (a) ‘Not applicable’ loans are loans where no known collateral value exists from which to derive LTV. Performing (Residential) Figures are gross loans indexed linked as of 31 December 2014 (b) Excludes €137m of deferred fees, discounts and fair value adjustment (€1m out of total €138m 70 relates to Consumer Finance)

Asset Quality: Summary

• Significant progress has been made • Asset Quality Review confirmed provisioning levels are adequate • Asset quality is improving: ‒ Strong performance in early arrears collections ‒ Fewer new defaults ‒ Increasing proportion of NPLs in treatment • NPL loss severity falls as proportion in treatment grows • Provision coverage ratios remain strong: – 2014 write-back of €280m reflects strong HPI performance – Further write-backs expected • Falling balance of negative equity more than offset by existing provisions • New lending is growing with low arrears

71 Section 7

Arrears Management AMU Overview

Overview Group Loans and Scope of AMU

• Asset Management Unit (AMU) established in 2012 by the new €1.2bn na €1.0bn €0.9bn management team to address the large volumes of defaults €31.8bn €8.3bn

• Specialist division within the Core Bank with a clear strategy focused €1.5bn on maximising the value of NPLs through: €€6.6bn0.4bn €0.2bn – Cash collections €0.4bn €0.4bn €6.2bn €0.1bn €0.1bn €0.1bn – Treatment and restructuring €23.5bn €1.9bn €1.9bn €1.9bn – Litigation and repossession

• 95% of Home Loans and 88% of Buy-To-Lets are either in a treatment or closure position(a) €4.1bn €4.1bn €4.1bn • New capability build-out has improved cash collections e.g. 54% of HL and 44% of BTL bills were collected in the 6 months to December €8.3bn 2014(b)

Group Loans NPLs Loans Managed by Core Bank Loans AMU • AMU also manages €0.4bn CRE Non Performing (Residential) loans Non Performing Performing Home Loan Buy-To-Let Consumer comprised of RoI HLs and BTLs, currently part of the Non-Core CRE Non Performing (Residential) CHL/IoM CRE Non Performing (Commercial)

loan book Early Arrears (1-90 days In Arrears)

(a) Figures as a % of total loans classified as >90 days in arrears at either 31 December 2012 or 31 December 2013 irrespective of a loan’s current classification (b) Cash collected as a % of the total bill owed. The total bill owed is adjusted for treatments and does not reflect the full original amount owed by customers. The total bill owed can include both principal and interest

73 AMU Capability Build-Out Since 2012

AMU Build-Out Key Initiatives

2012 2013 2014 • Qualified staff and enhanced technology engaged to develop value optimising Q3 Q4 H1 H2 H1 H2 solutions to manage NPLs and Early Arrears

Build ‘Contact Centre’ Review & Enhance

• New dedicated Contact Centre, Arrears Build ‘Arrears Support Unit’ Review & Enhance Support Unit and Recoveries Unit

Review & Re-build ‘Legal’ Enhance • Existing Legal and Property Management functions rebuilt Re-build ‘Property Management’

Build Recoveries • Customer strategies implemented from Q4 2012 for BTL and H1 2013 for HL. Buy-To-Let Implement & Deliver Unsecured launched in H2 2013

Define and Deliver Sustainable Home Loan Implement & Deliver Customer Strategies • Processes continuously improved to deliver better results in future cases Unsecured Implement & Deliver

Learn and Iterate

74 Investment In New Platform, Infrastructure And Process

New Infrastructure New Processes

• Mapped coherent end-to-end process with clear handoffs between teams and departments Robust • AMU platform relocated to a new fit-for- • Complications and unconventional Working Processes customer paths taken into account purpose building in Q3 2012 Environment • Processes continuously reviewed as appropriate

• Customer communications written to be clear, concise and to address needs from all channels: • Enhanced Decision Engine introduced in – Call Centre scripts Enhanced Q1 2014 – Arrears Management Unit scripts Decision • Enables customer segmentation based on Portfolio Manager scripts Engine current arrears status and determines the Clear Scripts – most appropriate collections action based • Specific customer situations accounted for: on customer reaction and engagement – How to deal with vulnerable customers? – How to deal with non-engaging customers? • Graphical User Interface and imaging

Customer Segmentation for Home Loans EXAMPLE system brings information for each call to Mapped out set of interactions with Operational • segment

No Performing

Paying Can pay Is underlying payment Yes Is loan >90 days in Recovering arrears? affordability resilient to shocks? Not Are underlying No Yes Paying payments affordable? Recovering - High risk Cannot pay Have last 3 payments customer, from a communications been met? Are reasonable payments made, one screen, providing single customer view Can pay Won’t pay can pay given affordability?¹ Yes Are savings Technology Cannot pay sufficient? Won’t pay PIA risk No Yes

Is ST treatment Implied Yes Likely recover sustainable suitable? No Unsustainable without perspective: Implied modification unsustainable Can loan be repaid? Yes No Unsustainable within ≤90% policy strong equity

Can sustainable payments What is LTV Unsustainable within Enablement Yes within policy be met? position? Enhanced >90% policy weak equity • Predictive Dialer, Dynamic Call Routing, Unsustainable outside ≤90% policy strong equity No What is LTV position? Unsustainable outside >90% policy weak equity Automated letters © Oliver Wyman 2 – 2 Automated IVR(a) and Decision Support Letters Tools have been introduced – Tailored letters – Legal proceedings communications

(a) Interactive Voice Response 75 Strategy To Maximise Value

AMU is focused on maximising the value of the Group’s arrears and defaulted RoI HL and RoI BTL Mortgages:

– For customers in early arrears: Focus on cash collections to reduce the flow of new default (>90 days in arrears) cases

– For customers in default: Engage and identify a treatment (repayment plan) that is both sustainable and affordable, seeking to keep customers in their home whilst mitigating capital losses for the Group

– For customers for whom repossession of the property is necessary: Manage the legal process to take ownership of the property, disposing of it, and then seeking recovery of any shortfall from the customer

76 Effective Process: Customers Are Moved Onto A Treatment Or Into Pre-Legal Process 3 – 6 Months After Falling Into Arrears

Approximate Time From First Missed Payment

0 – 3 Months 3 – 6 Months 6 – 12 Months 12+ Months (Day 1 – 90 in arrears)

• Customer contacted • Customer arrears – Immediate payment Account falls capitalised after 6 – Payment arrangement Customer treatment Customer monitored while 1 day into months performance – Standard Financial offer period on treatment Arrears Statement (SFS)(a) • Provision released after completed 12 months performance

Pre-Legal Customer managed through (pre-demand and Legal Process, including Follow process to Pre-Legal if demand letters, dialler Voluntary Sale to non-cooperating campaign and potential Repossession and Shortfall use of Management Debt Collection Agency)

90 – 180 days 4 – 6 year process

(a) Detailed income and expenditure report that requires supporting documentation 77 Broad Range of Treatment Tools: Best Suiting Customer Situation

• Interest Only Short Term • Capital Payment Holiday (Interest Only) Plus(b) Treatments(a) • Capital Payment Holiday (Interest Only) Minus(c)

• Split Mortgage With Bullet • Term Extension • Interest Only (Restricted to BTL, limited to 3 years Long Term Treatments(a) • Arrears Repayment Plan and re-underwritten thereafter) • Part Capital and Full Interest with Bullet • Capitalisation

• Trade Down • Mortgage To Rent (MTR)(d) Other Options • Voluntary Sale (With Upfront Shortfall Agreement) • Insolvency • Voluntary Surrender

(a) Typically offered following a thorough review of a Standard Financial Statement, including robust challenges related to lifestyle and debt prioritisation (b) Full capital payments are suspended for a period and the customer pays more than interest only (c) Capital payments are suspended for a period and the customer pays less than interest only (d) Property is sold to a housing authority by the Group and the customer becomes a tenant 78 Best In Class Arrears Performance

Early Arrears – Home Loan Late Arrears – Home Loan

Home Loan % Of Total Balance 1 – 90 Days In Arrears Home Loan % Of Total Balance >90 Days In Arrears 8% 22% 7.2% 19.9% 20.1% 6.7% 6.7% 7% 20% 17.9% 5.9% 17.3% 6% 6.9% 18% 6.3% 5.2% 16.2% 5% 5.9% 4.5% 16% 14.8% 5.4% 16.5% 16.4% 16.4% 4% 4.6% 14% 15.4% 4.2% 14.5% 3% 12% 13.7% Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Early Arrears – Buy-To-Let Late Arrears – Buy-To-Let Buy-To-Let % Of Total Balance 1 – 90 Days In Arrears Buy-To-Let % Of Total Balance >90 Days In Arrears 33.1% 10% 35% 30.8% 30.8% 32.1% 28.3% 28.9% 7.8% 7.6% 7.8% 30% 8% 7.1% 6.4% 25% 5.2% 27.0% 6% 6.7% 25.9% 20% 22.7% 23.2% 22.0% 5.5% 20.0% 4% 5.0% 4.8% 4.8% 15% 3.8% 2% 10% Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14

Industry PTSB

Note: PTSB data above is published on the same basis as the industry data and so data on this slide is not consistent with the rest of the information pack. In contrast to the rest of the pack the above data does not include shortfalls post the sale of properties which have been taken into possession (i.e. unsecured debt) but does include loans where the balances have been charged off, (transferred to an off-balance sheet recoveries ledger). There is a limited impact from the differing treatment of these two data items 79 Significant Cash Collection On NPLs: 54%(a) Of Home Loan And 44%(a) Of Buy-To-Let Total Bills Paid

Cash Collection On Home Loan NPLs(a) Cash Collection On Buy-To-Let NPLs(a)

29% Balance (€bn) Balance (€bn) HL NPLs with 41% BTL NPLs with 3.7 2.2 billing information billing information 13% Warehoused Warehoused 0.5 0.0 54% of Split Mortgages 44% of Split Mortgages 10% Total HL 13% Total BTL Bill Paid(a) Total HL NPLs 4.2 Bill Paid(a) 7% Total BTL NPLs 2.2 12% 9% 8% 13% 26%10%41%8%9%7% Total 26% 20%

Total Total Cash collected as % of due amount Cash collected as % of due amount 0% <25% <50% <75% <100% 100%≤ • Overall 55% of HL NPLs collect more than 50% cash on • Overall 57% of BTL NPLs collect more than 50% cash on scheduled scheduled payments restructured payments • 95% of HL <90 days in arrears collect 50% or more cash on • 96% of BTL <90 days in arrears collect 50% or more cash on scheduled payments scheduled payments • 33% of HL >90 days in arrears collect more than 50% cash on • 28% of BTL >90 days in arrears collect more than 50% cash on scheduled payments scheduled payments Note: The graphs show the percentage of HLs or BTLs with billing information (€3.7bn or €2.2bn) which pay a given range of the total bill owed for the 6 months to December 2014. Warehoused loans are not included in the graph as no payment is due on the warehoused portion of split mortgages. The total bill owed is adjusted for treatments and does not reflect the full original amount owed by customers. The total bill owed can include both principal and interest (a) Cash collected as % of total bill owed for the 6 months to December 2014 80 Long Term Treatment: €2.4bn of Long Term Sustainable Solutions Applied To Customer Accounts

Long Term Home Loan Treatment Mix Long Term Buy-To-Let Treatment Mix

Interest Only Capitalisation 2% 15%

Part Capital & Part Capital & Interest Term Interest 39% Extension 40% Interest Only 10% 46%

Split Split 6% Capitalisation Term 33% 8% Extension 1%

Total Balance: €1.5bn Total Balance: €0.9bn (Total Cases: 13,429) (Total Cases: 2,688) • Part Capital & Interest remains the most frequently applied treatment • Interest Only remains the most frequently applied treatment for BTL for Home Loan Customers Customers • 25% of Home Loan customers can pay full Capital Interest (in some • Approx 40% of BTL Customers are making a contribution to the capital cases with a Term Extension) balance on their loan Note: Data is for the entire RoI Residential Mortgage portfolio including CRE (Residential). Data shown based on accepted treatments post 6 month trial period, includes interest only treatments

81 Performance Of Loans With Long Term Treatments Is Positive

Number Of Days In Arrears – Home Loan Number Of Days In Arrears – Buy-To-Let

61-90 Days 61-90 Days 31-60 Days 0.7% 31-60 Days 1.1% 1.8% >90 Days 1.6% >90 Days 1.3% 3.7% 1-30 Days 1-30 Days 5.9% 5.2%

0 Days 0 Days 90.3% 88.4%

Total Balance: €1.5bn Total Balance: €0.9bn (Total Cases: 13,429) (Total Cases: 2,688)

• 90% of HL with accepted treatments not in arrears • 88% of BTL with accepted treatments not in arrears

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE (Residential). Data shown based on accepted treatments post 6 month trial period, includes interest only treatments

82 Legal: We Are Seeing Early But Positive Signs Of Customer Rehabilitation

Stages Of Litigation

c. 1,900 c. 3,400 c. 150 c. 600

Instructions Court Hearings / Rehabilitated

• c.2,800 accounts currently in the Court process • Following commencement of legal proceedings, a solicitor is required (under SLA) to continue working with the customer to ‘rehabilitate’ the account

• AMU believes rehabilitation is a beneficial process for both the Group and the customer: ‒ Customer retains their home/property ‒ Reduced NPLs and increased cash collections ‒ Provisions release where appropriate

Note: Data is for the entire RoI Residential Mortgage portfolio including CRE (Residential) as of 31 January 2015 83 Arrears Management: Summary

• AMU platform created in 2012 to bring arrears under control and effectively manage the Group’s legacy NPLs

• Since 2012 PTSB have moved from lagging to outperforming the industry in terms of arrears performance

• The focus on achieving long term sustainable and affordable solutions is paying off, with high performance levels for treated loans

• Rehabilitation is a key proposition throughout the legal process

• Building on success achieved to date and focused on the commencement of periodic treatment reviews with customers

84 Section 8

Financial Performance Financial Headlines

Group Result Operating Profit NIM

Profit Before Impairments, Non-Recurring and Pre-Tax Loss REDUCED 93% Further Progress: Exceptional Items: from €668m to €48m Group: 90bps (+8bps) Group: €8m Core Bank: 121bps (+24bps) Core Bank: €45m

Impairments System Funding Capital

System Funding down 29% €1bn reduction from 2013 CET1% of 14.2% €4.9bn at year-end, down €42m write-back in 2014 Up 1.1% on prior year from €6.9bn

86 Group Income Statement

Group Income Statement Summary • Steady NIM improvement of 18bps, despite falling ECB rates (95bps (€m) FY 2012 FY 2013 FY 2014 fall since start of 2012), driven by lower cost of funds Interest Income 1,200 973 874 Interest Expense (900) (664) (545) • ELG fees continuing to decline rapidly, reducing to immaterial levels Net Interest Income (excl ELG) 300 309 329 from 2016 as covered balances mature(c) ELG Fees (165) (105) (59) Other Income 62 48 38 • Underlying Non Interest Income stream from fee earning products is Total Operating Income 197 252 308 stable; 2012 and 2013 impacted by significant one-offs Total Operating Expenses (283) (300) (389) Pre-Provision Loss (86) (48) (81) • Increase in headline Operating Expenses largely driven by one-off Writeback/(Charge) Of Impairments (891) (929) 42 provisions for legacy legal and compliance issues and introduction of Profit/(Loss) Before Exceptional Items (977) (977) (39) the Bank Levy; underlying costs are stable Exceptional Items (Net) 58 309 (9) Loss Before Taxation (919) (668) (48) • Underlying Cost:Income Ratio is continuing to decline

Net Non-Recurring Items (24) 17 89 • Net writeback of Impairments in 2014 mainly driven by reduced new Profit/(Loss) Before Impairments, Non- (110) (31) 8 default flow and provision releases as restructured loans are Recurring And Exceptional Items recognised as ‘cured’

Key Ratios • Profit Before Impairments, Non-Recurring and Exceptional Items Group Bank NIM(a) 0.72% 0.82% 0.90% achieved in 2014. Non-Recurring Items primarily composed of one-off (b) Underlying Group Cost:Income Ratio 166% 113% 97% legal provisions. Further details in Appendix Group Cost of Risk 2.7% 3.0% (0.1)% (a) Excludes ELG fees (b) Adjusted for Non-Recurring Items. See Appendix for more details (c) €3.1bn Own Use Bond cancelled in December 2014 as per the Related Parties note in the Annual Report, the Group has a five year government guaranteed bond maturing in March 2015, on which the outstanding balance at the year end was €1.3bn, representing 47% of the Group’s total covered liabilities 87 Core Bank Income Statement: Profitable in 2014

Core Bank Income Statement Summary

(€m) FY 2013 FY 2014 • Core Bank NIM improved to 1.21% in 2014 from 0.97% in 2013, demonstrating considerable progress towards the medium term Net Interest Income (excl ELG) 287 334 target of 1.70% ELG Fees (103) (59) 48 35 Other Income • Movements in ELG Fees, Other Income and Operating Expenses Total Operating Income 232 310 driven by same factors as outlined in respect of the Group, including: Total Operating Expenses (282) (356) Pre-Provision Profit/(Loss) (50) (46) – ELG Fees reducing rapidly as covered balances mature Writeback/(Charge) Of Impairments (644) 51 Profit/(Loss) Before Exceptional Items (694) 5 – Underlying Other Income stable; 2013 includes one-off gains on Exceptional Items (Net)(a) 0 0 certain asset disposals Profit/(Loss) Before Taxation (694) 5 – 2014 Operating Expenses impacted by legacy legal provisions and introduction of Bank Levy Net Non-Recurring Items 16 91 Profit/(Loss) Before Impairments, Non-Recurring (34) 45 And Exceptional Items • Net impairment credit driven by provision write-backs in the year. Potential for further write-back outlined previously Key Ratios Core Bank NIM(b) 0.97% 1.21% • Expect return to sustainable profitability from 2016 onwards (not Underlying Core Bank Cost:Income Ratio(c) 116% 86% reliant on HPI provision write-backs) Core Bank Cost of Risk 3.0% (0.2)% Core Bank Loan to Deposit Ratio 108% 101% (a) Exceptional items in 2013 primarily comprised of gain on the wind-up of the Group’s Defined Benefit pension scheme. Split of gain attributable to Core Bank unavailable (b) Excludes ELG fees (c) Adjusted for non-recurring items. See Appendix for more details

88 Group Balance Sheet

Group Balance Sheet Summary (€bn) FY 2012 FY 2013 FY 2014 • Recovery in new lending leading to significant front book growth Cash and Bank Placements 1.7 1.4 1.9 offset by amortisation and run-off of the back book

Net Loans 31.8 29.3 27.2 • Investments include €1.3bn NAMA Bonds (2013: €2.1bn). The pace Investments 6.8 6.0 6.4 of repayments accelerated notably during 2014 such that the Agency Other Assets 0.6 0.9 0.8 is now targeting the full repayment of all senior bonds by mid 2018

Total Assets 40.9 37.6 36.3 • Included in Other Assets are Deferred Tax Assets of €0.4bn (2013: Customer Deposits 16.6 19.5 20.4 €0.4bn) System Funding 10.7 6.9 4.9

Repos 3.1 3.8 4.2 • Strong growth in Customer Deposits, such that they represented 61% of total funding at the year-end; LDR improved to 138% as a result Debt Securities 6.5 4.1 3.4 (2012: 191%) Subordinated Liabilities 0.3 0.4 0.4 Other Liabilities 1.0 0.5 0.7 • System Funding reduced by 54% in the period 2012-2014; down two Total Equity 2.7 2.4 2.3 thirds from peak levels in 2011

Total Liabilities and Equity 40.9 37.6 36.3

Key Ratios

Group Loan to Deposit Ratio 191% 151% 138%

CET1 (Transitional) na 13.1% 14.2%

LCR na na 160%(a)

(a) Calculated based on the current guidelines

89 Group Capital Position

Pro-forma For Pro-forma For FY 2014 Deleveraging Capital Raise

(€bn) Transitional Fully Loaded Transitional Fully Loaded Transitional Fully Loaded RWAs 14.8 14.8 13.4 13.4 13.4 13.4 Risk Weighting as % Total Loans 53% 53% 55% 55% 55% 55%

Share Capital, Share Premium and Reserves 2.2 2.2 1.9 1.9 2.3 2.3 Available for Sale (AFS) (0.1) 0.0 (0.1) 0.0 (0.1) 0.0 Cash Flow Hedge (CFH) 0.1 0.1 0.1 0.1 0.1 0.1 Intangibles (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) Deferred Tax Assets (DTA) 0.0 (0.4) 0.0 (0.4) 0.0 (0.4) Common Equity Tier 1 2.1 1.8 1.8 1.5 2.2 1.9 AT1 0.0 0.0 0.0 0.0 0.1 0.1 Tier 1 2.1 1.8 1.8 1.5 2.3 2.0 Subordinated Liabilities (including CCN) 0.0 0.0 0.0 0.0 0.0 0.0 Regulatory Adjustments & Tier 2 0.1 0.1 0.1 0.1 0.1 0.1 Total Capital 2.2 1.9 1.9 1.6 2.4 2.1 CET1 Ratio 14.2% 12.4% 13.5% 11.5% 16.2% 14.3% Tier 1 Ratio 14.2% 12.4% 13.5% 11.5% 17.1% 15.2% Total Capital Ratio 14.9% 13.1% 14.3% 12.3% 17.9% 15.9% CRD IV Leverage Ratio 5.1% 4.5% 4.8% 4.1% 6.1% 5.5%

• Equity capital increase and AT1 issuance will further strengthen and improve the quality of the capital base: – €400m(a) primary equity – €125m AT1 capital issuance

Note: Data is as of 31 December 2014. Pro-forma figures calculated on €400m equity raise and €125m AT1 issuance, subject to regulatory and other approvals (a) Gross equity raise

90 Section 9

Financial Targets Draft Restructuring Plan Term Sheet Commitments

SUBJECT TO FINAL DECISION BY THE EUROPEAN COMMISSION

Commitment Description

• Limit the maximum size of the Balance Sheet Balance Sheet • Deliver on Loan Treatment targets for residential NPLs, broadly consistent with CBI targets

Deleveraging • Deleverage mostly Non-Core assets within a defined realistic timeframe, subject to defined maximum haircuts

• Limits on marketing spend Costs • Manage costs so that operating expenses and CIR remain below pre-defined thresholds

• Provide Service and Customer Mobility packages to relevant competitors if the Group’s market share exceeds Competition defined thresholds Restrictions • Limit activities outside Ireland, consistent with the Group’s strategy • Commit not to deviate materially from the Group’s current activities

Acquisitions • No material acquisitions that would materially change the Group’s current business model

• The Group will limit distribution of dividends, subject to repurchase of the CoCo and such that capital is Dividends adequately maintained to deliver on the restructuring plan commitments

Business Plan Reflects Term Sheet Commitments

92 Financial Targets: Based on Conservative Macro-Economic Assumptions

CBI Forecasting Higher GDP Growth CBI Forecasting Unemployment To Fall Faster

14.0% 6.0% 5.1% 12.3% 5.0% 11.5% 11.7% 3.7% 3.8% 12.0% 4.0% 11.4% 10.9% 10.9% 2.9% 3.0% 2.4% 2.6% 2.6% 10.4% 1.8% 10.0% 2.0%

1.0% 9.3% 8.0% 0.0% 2014E 2015F 2016F 2017F 2018F 2014E 2015F 2016F 2017F 2018F Plan CBI Plan CBI Note: Plan as at Q4 2014 Note: Plan as at Q4 2014. Group uses adjusted (slightly higher) rates in its internal modelling Source: Central Bank Quarterly Bulletin (January 2015) Source: Central Bank Quarterly Bulletin (January 2015)

External HPI Forecasts Are Higher Interest Rates Expected To Remain Low

(0)% 0.60% (10)% 0.40% 0.31% (20)% (28)% (33)% 0.15% (30)% (37)% 0.20% 0.08% 0.05% (40)% 0.02% (36)% (35)% (34)% (41)% 0.00% 0.08% 0.08% (50)% EURIBOR 3m Change from peak from Change (44)% 0.02% 0.01% 0.03% (60)% (0.20)% 2014E 2015F 2016F 2017F 2018F 2014A 2015F 2016F 2017F 2018F Plan Goodbody Plan Market

Note: Plan as at Q4 2014 Note: Plan as at Q4 2014 Source: CSO 2014, Goodbody (January 2015) Source: Bloomberg (March 2015) 93 Financial Targets: Building Momentum

2013 H1 2014 2014 2018E Target

Balance Sheet

Group LDR 151% 141% 138% <130%

Group CET1 Ratio (Fully Loaded) 11.3% 10.6% 12.4% >11%

P&L

Core Bank NIM 0.97% 1.19% 1.21% c.1.70%

Underlying Core Bank Cost: Income Ratio(a) 116% 85% 86% c.50%

Core Bank Cost of Risk 3.0% 1.0% 0.4%(b) <0.4%

Core Bank RoE(c) na na na c.10.0%(d)

(a) Adjusted for non-recurring items as shown in the Appendix (b) Excludes writebacks. Including writebacks Core Bank Cost of Risk is (0.2)% (c) Data na as Core Bank/Non-Core equity not historically reported (d) RoE target based on a notional fully loaded CET1 ratio of 11%

94 NIM: Core Bank NIM Trending To 170bps

Target NIM • Key Drivers of NIM expansion expected to include:

1.70% – Removal of legacy costs including CCN and deposit intangible amortisation costs

1.21% 1.19% – Market cost of deposits continues to fall

0.97% – Deposit premium versus peers reduced IndicativeRepresentative Bridge to only: Target not intended to portray actual contributions from each category – Proportion of more expensive Corporate and Institutional deposits reduced

– Gradual run-off of low yielding tracker mortgages

– Growing front book at attractive margins Core Core Core Legacy Falling Change Back Front Core Bank NIM Bank NIM Bank NIM Funding Cost of in Deposit Book Book Bank NIM 2013 H1 2014 2014 Costs Deposits Mix Run-Off Growth 2018 Target

Note: Figures exclude ELG fees 95 Cost Income Ratio (1): Underlying Cost Base Expected To Fall In Medium Term

Carrying Cost Base Detailed 2014 Cost Base

2012 2013 2014 2014 yoy %∆ 2014 Medium Term Outlook Recurring 277 261 290 11% Payroll 130 Payroll 150 127 130 2% Distribution And PMUs(a) 58

Non-Payroll 108 117 141 21% Central Costs 49 Depreciation And Amortisation 19 17 19 12% AMU/Credit 17 Non-Recurring 6 39 99 154% Non-Core 6 Legacy Legal and Compliance Costs 0 40 76 90% Non-Payroll 141 Impairment Charge/(Reversal) On 6 (1) (4) 300% Revaluation Of Property IT/Operations/Branches 56

Bank Levy 0 0 27 na Professional Fees 52 Total Operating Expenses 283 300 389 30% Centralised Costs 21 Exceptional items 166 (309) 9 na Other 3 Loss On Disposals 80 0 9 na Non-Core 9 Restructuring Costs 86 20 0 na DB Pension Writeback 0 (329) 0 na Depreciation And Amortisation 19 • Significant actions taken to ‘right size’ the cost base for the medium term: • The Group’s recurring cost base is expected to reduce significantly in the – Branch closures short and medium term: – Defined Benefit (DB) pension scheme wind-up – Non-Core to be deleveraged (€32m in FY2014(b)) – Voluntary Severance Scheme (VSS) programme – Reduced role for AMU/Credit – Reduction in staff benefits – Reduced requirements for external consultants • New cost challenges in recent years from additional regulatory burden, • The underlying Group cost base is c.€270m the Bank Levy and cost of dealing with legacy issues (a) Product Management Unit 96 (b) Includes €17m of allocated central costs Cost Income Ratio (2): Improvement Driven By ‘Built In’ NII Growth And Opex Reduction

Target CIR Income Drivers

• ELG Fees

86% • CCN Repurchase

• Amortisation Of Deposit Intangibles

• Reducing Cost Of Funds

• Asset Margin Uplift c.50%

Opex Drivers

Indicative CIR Bridge • Bank Levy

• SSM/CA and Restructuring Plan related costs

• Increasing costs to support front book growth largely offset by reductions in AMU costs FY 2014 NII Opex BAU Core Bank Underlying Drivers Drivers Cost Target • Rigorous ongoing Cost Management Core Bank Increases CIR CIR 97 Cost Of Risk: Normalisation Driven By Macroeconomic Environment And Arrears Management

Group Impairments (€m)

1,600 • Loan losses have sharply improved in H1 2014 driven by: 1,440

1,400 – Significantly lower new defaults m) € – Increasing number of non performing loans curing 1,200

1,000 891 929 • In H2 2014 the Group achieved a net impairment provision release (irrespective of any changes in HPI assumptions) 800 315

600 • Further improvements expected as macroeconomic environment continues to improve: 400 614 – Higher household employment 200 – Higher income, driven by GDP growth 103 0 (145) – Higher house prices will also have a positive impact by (42) reducing loss given default assumptions Group Impairments, Historical Impairments, And Group Forecast( (200) 2011 2012 2013 2014 Underlying BSA Impact Write-Back • Core Bank Cost of Risk of (0.2)% in 2014. Excluding the writeback this gives an underlying Core Bank Cost of Risk of Group Cost of 4.1% 2.7% 3.0% (0.1)% 0.4% Risk Group Underlying 4.1% 2.7% 2.0% 0.4% Cost of Risk • Medium target Cost of Risk less than 40bps Avg. Group Net 35.1 33.0 30.5 28.8 Loans 98 RoE: Baseline Target of 10% Is Achievable

Core Bank RoE Target of c.10%(a) Medium-Term Outlook

Representative only: not intended to portray actual Lending • RoI Mortgage net loan growth from 2018 onwards contributions from each category

c.10.0% Funding • Core Bank Loan to Deposit ratio of <130%

• Core Bank Target NIM of c.1.70% by 2018, driven primarily by further fall in cost of funds Total Income • No significant ELG fees post 2016 • Fee income anticipated to be stable with upside potential • Core Bank Target Cost to Income Ratio of c.50% Operating • Elimination of non-recurring costs and cessation of Costs bank levy

• Core Bank Target cost of risk of <40 bps Loan Losses • Target excludes any potential write-backs

na • Core Bank targeting sustainable profitability from 2016 Profitability 2014E Asset Deposit ELG Fees Legacy Cost 2018E • Core Bank RoE Target of c.10%(a) on a post tax basis Core Bank Backbook+ Mix/ Funding Reduction Core Bank RoE Frontbook Pricing Costs (b) Target Margin Tangible • Expected to trough in 2015, post adjustment for Management Book Value deleveraging

(a) RoE target based on a notional fully loaded CET1 ratio of 11% (b) Legacy funding costs include CCN and deposit intangibles amortisation

99 Section 10

Closing Remarks Summary: Clear Points of Departure and Arrival

2018

2016 • Target RoE of c.10% • Clear path to enhanced • Non-Core deleveraging RoE beyond 2018 2014 complete • Sustainable profitability in Core Bank from 2016 • Passed AQR and baseline stress test 2018 2012 • Capital shortfall under adverse stress test • New Senior Management 2017 Team appointed • Established dedicated 2016 AMU to address non•performing loans 2015 2017 2014 • Cost of Risk normalising • Legacy costs reducing 2013 2015

2012 • Restructuring Plan approval • Implement Capital Plan 2013 • Targeted growth in • Creation of Core Bank key products • Return to lending • Sale of Non-Core RoI and half of CHL • Captured deposits • Demonstrated product relevance; in particular, Current Accounts • Return to wholesale funding markets 101 Section 11

Glossary Glossary (1/2)

Term Definition Asset Management Unit (AMU) A platform in the Core bank which manages non‐performing home loan, buy‐to‐let and unsecured loan portfolios in the Republic of Ireland AVS Assisted Voluntary Sale Auburns Sterling denominated mortgage backed securities secured on the CHL Book APH Average Product Holding Buy-To-Let (BTL) RoI mortgages secured on properties which are rented out Assessment carried out by the Central Bank of Ireland in December 2014 as part of the condition for Ireland leaving the EU/IMF program. It led to PTSB having to increase Balance Sheet Assessment (BSA) its provisioning levels Capital and interest (C&I) A treatment which requires full capital and interest to be paid Capital Buffer Excess capital above regulatory minimum Capital Home Loans (CHL) A performing UK BTL mortgage portfolio located in Non-Core Capitalisation A treatment where outstanding arrears are added back onto a borrowers remaining capital balance CBI Central Bank of Ireland CCMA Central Bank's Code of Conduct on Mortgage Arrears, first published in January 2011, and updated and revised in July 2013 COF Cost of funding - average cost of funding for PTSB group A portfolio of loans made to borrowers by the Group in Ireland, generally, to finance the acquisition of commercial property interests. The portfolio is split into CRE Performing (which is further split into CRE Performing (Residential) and CRE Performing (Commercial)) and CRE Non Performing (which is further split into CRE Non Commercial Real Estate (CRE) Performing (Residential) and CRE Non Performing (Commercial)). CRE Performing (Residential) and CRE Non Performing (Residential) are residential loans to existing CRE customers and are included within Home Loan and Buy-To-Let figures in public accounts and where specified in this presentation Consumer Finance A portfolio predominately consisting of credit card debt and unsecured personal loans Core Bank The continuing business of the Group Corporate Deposits Deposits with the bank from Corporate customers (category includes Credit Unions) CSO Central Statistics Office Defaults Loans which have become classified as non performing as a result of meeting the non performing loan criteria DIA Days in Arrears DoF Department of Finance EIR Effective Interest Rate Fastnets Euro denominated mortgage backed securities secured on the RoI mortgage book A loan is subject to forbearance where, in response to financial difficulties of the borrower, a modification to the terms of the loan has been granted to allow for the borrower Forbearance to have sufficient debt service ability Frontbook Loans originated by PTSB since 1 January 2012 Home Loan (HL) RoI mortgages secured on private residential property HPI House Price Index IBNR Incurred But Not Reported Institutional Deposits Deposits from government institutions and non-bank financials Interest Only (IO) A treatment where only the interest due on a loan is required to be paid IoM Isle of Man IPI Irish Permanent Isle of Man (IoM) Limited – a closed mortgage book in the Isle of Man comprising €0.3bn residential loans The total of cash, cash equivalents and unencumbered collateral (inc High Quality Liquid Assets) which can be exchanged for cash at short notice. This typically comprises Liquidity Buffer the total of on-balance sheet unencumbered liquid assets, including cash, combined with unencumbered collateral which is eligible at the ECB

103 Glossary (2/2)

Term Definition The ratio of the stock of high quality liquid assets to expected net cash outflows over the next 30 days Liquidity Coverage Ratio (LCR) under a stress scenario. CRD IV requires that this ratio exceed 60% on 1 January 2015 and 100% on 1 January 2018 Loan to Deposit Ratio (LDR) The ratio of net loans to deposits LTV Loan to value ratio - outstanding loan balance divided by current estimated value of the property held as collateral Medium Term The period covered by the Group’s MTP (2015-2018) Medium Term Plan (MTP) The Group’s business plan covering the period 2015-2018 (refreshed annually on a four year rolling basis) MTR Mortgage to rent NAMA National Asset Management Agency NPS Net Promoter Score NPLs are impaired loans which are less than 90 days in arrears, loans greater than 90 days in arrears, loans which have been treated but are within the 12 month Non Performing Loans (NPLs) forbearance holding period and forborne loans, previously non performing, which have redefaulted i.e. returned to more than 30 days in arrears and cross defaults, where the loan is associated with another non performing loan Non-Core Assets identified by the Group for run-off or disposal NTB Next Time Buyer Owner Managed Enterprises (OME) OME segment is a segment of the SME market with the smallest sized businesses; businesses have <10 employees and either <€2m turnover or <€2m balance sheet Partial Capital and Interest (PC&I) A treatment which requires only partial repayment of the capital amount of a loan but the full interest must be paid Permanent Bank International Limited ("PBI") a deposit business in the Isle of Man (€0.6bn deposits). While considered core to the overall business of the Group, it is PBI included within the Non-Core Business (and more particularly, the UK element thereof), to enable the Group to hedge its foreign exchange exposure more efficiently. Volumes expected to grow in the future PCR Provision Coverage Ratio, calculated as total provisions divided by NPLs greater than 90 days in arrears and/or impaired loans Principal and Interest (P&I) An alternative label for a treatment which requires full capital and interest to be paid PTSB PTSB is the Core commercial part of the Group PTT Peak to through RoI Republic of Ireland A loan treatment which separates the loan into two parts; one part must continue to be serviced by the borrower while the other is 'warehoused' and repayment is deferred Split Mortgage to the end of the mortgage term Springboard Specialist Irish mortgage book sold to Mars Capital in October 2014 System Funding The system of access to funding provided to financial institutions by the ECB and the national central banks of certain participating member states of the European Union TBV Tangible Book Value Term Extension and Capitalisation A treatment where outstanding arrears are be added back onto a borrowers remaining capital balance and the life of the mortgage term is extended Treated Loan A loan which has had a treatment applied, it can be performing or non performing Treatments Solution options for customers in arrears offered by PTSB through the AMU UTD Up to date (Zero DIA) A scenario in which the borrower surrenders the collateral to the Bank. Where this arises the Bank then seeks to sell the property. Any sale proceeds generated (net of Voluntary Surrender (VS) reasonable costs) are then lodged to the customer’s account to reduce the debt outstanding. All customers remain fully liable for any residual debt which remains outstanding post-sale Yield Unless otherwise stated, all lending yields quoted are calculated using total gross interest (as reported, including accounting adjustments) over gross average loans.

104 Legal Disclaimer (1/2)

THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS PRESENTATION IS NOT AN OFFER OR INVITATION TO BUY OR SELL SECURITIES.

Important: By attending or participating (in person or otherwise) in any oral presentation made in conjunction with this presentation or by accepting or receiving this presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice and disclaimer. This presentation document, together with the oral presentation accompanying this document provided by the Company (as defined below) and any further information that may be made available in connection with the subject matter contained herein (together hereinafter, this “presentation") has been prepared by and issued by, and is the sole responsibility of, permanent tsb Group Holdings p.l.c. (the "Company", and together with its subsidiaries, the "Group"). This presentation is made available to you for informational and background purposes only and does not, and is not intended to, constitute or form part of any offer to sell or an offer, inducement, invitation or commitment to purchase or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or inducement to engage in an investment activity or a recommendation to enter into any transaction with the Company or any member of the Group.

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This presentation should not form the basis of any investment decision and the contents do not constitute advice relating to legal, taxation, financial or investment matters. Nothing in this presentation constitutes investment advice or a recommendation regarding any securities of the Group. The presentation does not purport to contain all of the information that may be required to evaluate an investment in the Company and/or its financial position. Any prospective investors must make their own investigation, analysis and assessments and consult with their own adviser concerning the data referred to herein and any evaluation of the Group and its prospects.

This presentation is an advertisement and not a prospectus (or prospectus equivalent document) and investors should not subscribe for or purchase any securities referred to in this presentation except on the basis of information in any prospectus relating to the Company which may at some future point be published (the "Offering Document") and would then be available from the registered office of the Company.

Any Offering Document will include a description of risk factors relevant to the Company. Any Offering Document will supersede all information provided to you before the date of any Offering Document, and your investment decision, if any, must be made solely on the basis of the information contained therein. Potential investors must make their own investigation and assessment and are advised to seek expert advice before making any investment decision.

The information and opinions contained in this presentation are provided as at the date of the presentation and do not purport to be all inclusive or to contain all the information that may be required or desired in considering any potential investment. In particular, no representation or warranty, expressed or implied, is given by or on behalf of the Group or its advisors, or any of its respective parent or subsidiary undertakings or any of its directors, officers, employees or any other person and no reliance should be placed upon, the fairness, accuracy or completeness of the contents of this presentation, on the opinions contained in this presentation or on any other statement made or purported to be made by any of them, or on behalf of them, in connection with the Group.

To the extent permitted by law, no liability whatsoever is accepted by the Company, any member of the Group or any of such persons' directors, officers, employees, affiliates or advisers or any other person for any loss howsoever arising, whether directly or indirectly, from any use of this presentation or such information or opinions contained herein or otherwise arising in connection herewith.

None of the foregoing persons is under any obligation to provide any recipient of this presentation with any additional information to either correct any inaccuracies or omissions or update the information provided in this presentation. Nothing in this presentation shall be relied upon as a promise or representation, whether as to the past or the future. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts. The information in this presentation is subject to updating, revision, verification and amendment without notice and such information may change materially. Any opinion expressed in this presentation is subject to change without notice. Except where otherwise indicated herein, the information provided in this presentation is based on matters as they exist as of the date of preparation and not as of any future date and no person is under any obligation to update or otherwise revise the information in this presentation to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof.

105 Legal Disclaimer (2/2)

This presentation includes statements, estimates, opinions and projections with respect to the anticipated future performance of the Group ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from the Group’s current business plan or from public sources which may or may not prove to be correct. These forward looking statements can be identified by the use of forward looking terminology, including the terms "anticipates", "target", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "should" or "will", or, in each case, their negative or other variations or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. Such forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. As a result, recipients of this presentation should not rely on such forward-looking statements due to the inherent uncertainty therein. No representation or warranty is given as to the completeness or accuracy of the forward-looking statements contained in this presentation. Forward-looking statements speak only as to the date of this presentation and the Company, each member of the Group and each of such person's directors, officers, employees, affiliates and advisers expressly disclaim any obligation or undertaking to update or re-issue any forward- looking statement in this presentation. Any indication in this presentation of the price at which securities have been bought or sold in the past cannot be relied upon as a guide to future performance. No statement in this presentation is intended to be a profit forecast and no statement in this presentation should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

Certain information contained in this presentation, including industry, market and competitive position data, has been obtained from published and non-published sources prepared by third parties, which may not have been updated to the date hereof. While such information is believed to be reliable for the purpose used in this presentation, it has not been independently verified. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. In addition, certain of the information contained in this presentation has been obtained from the Company's own internal research and analysis and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and analysis and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. By their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or implied) is given that such estimates are correct or complete.

Certain figures contained in this presentation, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this presentation may not conform exactly to the total figure given.

This presentation does not constitute an offer of securities in the United States or any other jurisdiction. The securities referred to in this presentation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.

The securities have not been and will not registered under the applicable securities laws of Australia, Japan, Switzerland or the Republic of South Africa and the Company is not a "reporting issuer", as such term is defined under applicable Canadian securities law and, accordingly, subject to certain exceptions, the securities may not be offered or sold in these jurisdictions or to, or for the account or benefit of, persons resident in these jurisdictions. This presentation does not constitute the provision of investment advice under the European Communities (Markets in Financial Instruments) Regulations (Nos 1 to 3) 2007 of Ireland ("Markets in Financial Instruments Regulations") by the Company or any other person. This presentation is being communicated for information purposes only to persons who, if in the European Economic Area (“EEA”), other than in Ireland or the United Kingdom, are “qualified investors” as defined under the Prospectus Directive (Directive 2003/71/EC and amendments thereto, including Directive 2010/73/EU, to the extent implemented in the relevant Member State of the EEA) and any implementing measure in each relevant Member State of the EEA (“Qualified Investors”). If you are in the EEA, other than Ireland or the United Kingdom, then any investment or investment activity to which this presentation relates is only available to Qualified Investors, and by receiving this presentation you represent and warrant to the Company that you are a Qualified Investor. Nothing in this presentation constitutes investment advice and recommendations that may be contained herein have not been based upon consideration of the investment objects, financial situation or particular needs of any specific recipient.

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The securities in the Company are only suitable for investors who understand the potential risk of capital loss and that there may be limited liquidity in the securities of the Company, for whom an investment in the securities is part of a diversified investment programme and who fully understand and are willing to assume the risks involved in such an investment programme. This presentation does not constitute a recommendation concerning the issue. The price and value of securities may go down as well as up. When considering what further action you should take you are recommended to immediately consult, if you are resident in Ireland, a professional adviser who is authorised or exempted under the European Communities (Markets in Financial Instruments) Regulations (Nos. 1 to 3) 2007 or the Investment Intermediaries Act 1995 (as amended) or if you are resident in the United Kingdom, a professional adviser who is authorised or exempted under the Financial Services and Markets Act, 2000, or another appropriately authorised professional adviser if you are in a territory outside Ireland or the United Kingdom.

106 permanent tsb Group

Analyst and Investor Presentation: Appendix

Please refer to the important information in disclaimer on pages 21 to 22 before continuing

12 March 2015 Section 1

Corporate Structure Corporate Structure

Minister for Finance of Ireland 135k Private Shareholders (0.8% (99.2% ownership) ownership)

permanent tsb Group Holdings p.l.c. (The ESM listed Holding Company)

permanent tsb p.l.c. (The Bank)(a)

Joint Mortgage Irish Permanent Permanent Bank Irish Permanent Irish Permanent Company Limited permanent tsb Capital Home Holdings Property International Holdings (IOM) (in members voluntary liquidation) Finance Ltd(a) Loans Ltd(a) No. 1 Ltd Company Ltd(a) Limited(a) Ltd Blue Cube Personal Loans Limited

Kencarol Ltd Springboard Funding No 1 Ltd Irish Permanent Irish Permanent (IOM) Ltd Guinness & Mahon (Ireland) Ltd Finance Ltd Springboard Mortgages Ltd(a) • Erin Executor & Trustee Company Irish Permanent International Ltd (Isle of Man) Ltd.

• Mars Nominees Ltd Irish Permanent Nominees (IOM) Ltd

Biola Ltd

Core Bank and Non-Core ROI Non-Core UK

Registered in Ireland Registered in UK Registered in Isle of Man Ownership

(a) Regulated entity 2 Board Membership

Alan Cook Jeremy Masding Glen Lucken Dominic Dodd David Stewart Non-Executive Group Group Chief Executive Group Chief Financial Senior Independent Non- Independent Non- Chairman Officer Officer Executive Director Executive Director Joined April 2011 Joined February 2012 Joined January 2013 Joined December 2012 Joined April 2014

Emer Daly Julie O'Neill Ken Slattery Richard Pike Independent Non- Independent Non- Independent Non- Independent Non- Executive Director Executive Director Executive Director Executive Director Joined September 2011 Joined January 2014 Joined August 2013 Joined January 2014

3 Board Committee Membership and Structure

Permanent TSB Group Holdings plc (PTSBGH)

Alan Cook (Chairman), Dominic Dodd(a), David Stewart, Emer Daly, Julie O’Neill, Ken Slattery, Richard Pike, Jeremy Masding (CEO), Glen Lucken (CFO) PTSBGH Audit

Emer Daly(c), Dominic Dodd, Ken Slattery, Richard Pike

Permanent TSB p.l.c.

Alan Cook (Chairman), Dominic Dodd(a), David Stewart, Emer Daly, Julie O’Neill, Ken Slattery, Richard Pike, Jeremy Masding (CEO), Glen Lucken (CFO)

PTSB Remuneration & PTSB Nomination PTSB Risk & Compliance PTSB Audit Compensation

Alan Cook(c), Dominic Dodd, Dominic Dodd(c) , Alan Cook, David Stewart(c), Emer Daly, Emer Daly(c), Dominic Dodd, Emer Daly, Julie O’Neill David Stewart, Ken Slattery Julie O’Neill, Richard Pike Ken Slattery, Richard Pike

(a) Senior Independent Director (c) Chair 4 Section 2

P&L Income Statement Segmental Analysis

Group Core Non-Core (€m) FY 2012 FY 2013 FY 2014 FY 2013 FY 2014 FY 2013 FY 2014

Interest Income 1,200 973 874 749 675 224 199

Interest Expense (900) (664) (545) (462) (341) (202) (204)

Net Interest Income (excl ELG) 300 309 329 287 334 22 (5)

ELG Fees (165) (105) (59) (103) (59) (2) –

Other Income 62 48 38 48 35 – 3

Total Operating Income 197 252 308 232 310 20 (2)

Total Operating Expenses (283) (300) (389) (282) (356) (18) (33)

Pre-Provision Profit/(Loss) (86) (48) (81) (50) (46) 2 (35)

Writeback/(Charge) Of Impairments (891) (929) 42 (644) 51 (285) (9)

Profit/(Loss) Before Exceptional Items (977) (977) (39) (694) 5 (283) (44)

Exceptional Items (Net)(a) 58 309 (9) n/a - n/a (9)

Profit/(Loss) Before Taxation (919) (668) (48) (694) 5 (283) (53)

Net Non-Recurring Items (24) 17 89 16 91 1 (2) Profit/(Loss) Before Impairments, Non- (110) (31) 8 (34) 45 3 (37) Recurring And Exceptional Items (a) 2013 Group figure primarily relates to the wind-up of the Group Pension Schemes. Split of the gain between Core-Bank and Non-Core unavailable

6 NIM: Interest Income

Gross Average Balances (€bn) Gross Yields Interest Income (€m) 2013 2014 2013 2014 2013 2014

Core Bank Tracker 15.5 15.0 X 1.7% 1.3% = 262 191

Core Bank Fixed and Variable 7.9 8.0 X 4.0% 4.0% = 319 319

Consumer Finance 0.4 0.3 X 9.0% 9.8% = 34 34

ROI Non-Core 2.5 2.4 X 3.2% 3.0% = 82 71

UK Non-Core(a) 7.0 6.9 X 1.6% 1.4% = 115 94

Treasury Assets 7.3 7.2 X 2.5% 2.6% = 181 185

Other(b) 6 7

Underlying Interest Income 998 901

Exceptionals - -

Deferred acquisition costs (25) (27)

Total Interest Income 973 874

(a) Includes cost of GBP:EUR hedging (b) Other income includes Loans and Advances to Banks, Lease and installment finance and gains/losses on interest rate hedges on assets

7 NIM: Interest Expense

Average Balances (€bn) Cost of Funds Interest Expense (€m)

2013 2014 2013 2014 2013 2014

Current Accounts(a) 2.2 2.5 X 0.0% 0.0% = 1 1

Retail Deposits 11.1 11.4 2.4% 1.8% 266 203 (ex Current Accounts) X =

Corporate Deposits 1.6 2.2 X 3.6% 2.6% = 59 59

Institutional Deposits 3.4 3.6 X 1.6% 1.1% = 52 39

IoM Deposits 0.3 0.5 X 2.3% 1.9% = 8 10

Wholesale 8.1 7.6 X 2.4% 2.5% = 195 191

System Funding 8.1 5.9 X 0.7% 0.2% = 54 11

Other(b) (1) 0

Underlying Interest Expense 633 514

Amortisation of Core Bank 31 31 deposit intangibles

Total Reported Interest Expense 664 545

(a) Current account cost of funds is 0.03% in 2013 and 0.04% in 2014 (b) Gains on interest rate hedges on liabilities

8 Fee and Other Income: Stable Revenues with Upside Potential as Economy Improves

Fee and Other Income • Net Fee and Commission income in 2014 (€m) 2012 2013 2014

Retail Banking And Credit Card Fees 43 41 44 • Potential for modest growth as activity levels pick up

Brokerage And Insurance 9 7 10 • Total Other Income impacted by significant one-offs gains in 2012 and 2014

Other Fee Income 3 2 2 • Further detail of Fee and Commission and Other Income presented in Notes 5, 6 and 7 of the 2014 Total Fee And Commission Income 55 50 56 Annual Report

Fee and Commission Expense (13) (14) (19)

Net Fee And Commission Income 42 36 37

Net Trading And Other Income 20 12 1

Total Other Income 62 48 38

9 Non-Recurring Items

Group Core Bank Non-Core (€m) 2012 2013 2014 2013 2014 2013 2014 • Banking Levy introduced by the Income Finance Act 2013; expected to have a three-year duration and therefore Gains on buy-backs of own debt (27) (16) - (16) - - - assumed it is not incurred beyond Gain on disposal of Government (38) (5) - (5) - - - 2016 Gilts Loss on disposal of debt securities 46 5 - 5 - - - No adjustment for elevated Loss on buy-back of debt securities - - 11 - 11 - - • professional fees (e.g. those arising Other (11) (6) (21) (6) (17) - (4) in connection with the SSM CA process or the Restructuring Plan) Total Non-Recurring Income (30) (22) (10) (22) (6) - (4) is reflected in the estimation of non- recurring expenses

Operating Expenses

Legacy legal & compliance - 40 76 39 74 1 2

Bank Levy - - 27 - 27 - -

Property Revaluations 6 (1) (4) (1) (4) - -

Total Non-Recurring Expenses 6 39 99 38 97 1 2

Net Non-Recurring Items (24) 17 89 16 91 1 (2)

10 Section 3

Loan Book and Treasury Loan Portfolio Summary

Gross Loans Net Loans Non-Core Bank Non-Core Bank Core Bank Total Core Bank Total (€m) RoI UK Total RoI UK Total RoI Residential HL 16,270 185 185 16,455 14,892 126 126 15,018 o/w CRE Performing (Residential) HL 70 70 70 64 64 64 o/w CRE Non Performing (Residential) HL 115 115 115 62 62 62 o/w Core Residential HL 16,270 16,270 14,892 14,892 RoI Residential BTL 5,868 391 391 6,259 4,934 227 227 5,160 o/w CRE Performing (Residential) BTL 84 84 84 80 80 80 o/w CRE Non Performing (Residential) BTL 307 307 307 147 147 147 o/w Core Residential BTL 5,868 5,868 4,934 4,934 CRE (Commercial) 2,004 2,004 2,004 1,112 1,112 1,112 o/w CRE Performing (Commercial) 469 469 469 418 418 418 o/w CRE Non Performing (Commercial) 1,535 1,535 1,535 694 694 694 Consumer 344 344 249 249 UK Residential 6,758 6,758 6,758 6,697 6,697 6,697 o/w IPI 305 305 305 304 304 304 o/w CHL 6,453 6,453 6,453 6,392 6,392 6,392 Total 22,482 2,580 6,758 9,338 31,820 20,075 1,464 6,697 8,161 28,236 Sale of Non-Core Assets CRE Non Performing (Residential) HL (80) (80) (80) (45) (45) (45) CRE Non Performing (Residential) BTL (402) (402) (402) (234) (234) (234) CRE Non Performing (Commercial) (1,008) (1,008) (1,008) (512) (512) (512) CHL (3,206) (3,206) (3,206) (3,200) (3,200) (3,200) Total 0 (1,489) (3,206) (4,695) (4,695) 0 (792) (3,200) (3,991) (3,991) Pro-Forma Loan book RoI Residential HL 16,270 105 105 16,375 14,892 81 81 14,972 RoI Residential BTL 5,868 (10) (10) 5,857 4,934 (7) (7) 4,926 CRE (Commercial) 996 996 996 599 599 599 Consumer 344 344 249 249 UK Residential 3,552 3,552 3,552 3,497 3,497 3,497 o/w IPI 305 305 305 304 304 304 o/w CHL 3,246 3,246 3,246 3,193 3,193 3,193 Total 22,482 1,091 3,552 4,643 27,125 20,075 673 3,497 4,170 24,245 Note: All figures as of 31 December 2014. FX rate of EUR:GBP 0.78 as at 31 December 2014 used for conversion of UK Residential 12 Overview of Home Loans Portfolio

Balances LTV (€m) 2012 2013 2014 (€m) 2012 2013 2014

Gross Loans 17,542 17,013 16,455 <70% 4,070 4,193 5,294

Early Arrears 1,110 927 704 70% – 90% 2,214 2,304 2,888

NPLs <90 days 0 1,033 1,845 90% – 110% 2,387 2,526 2,711

>90 days 3,194 3,455 2,382 110% – 130% 2,437 2,438 2,513 NPLs 3,194 4,488 4,227

130% – 160% 3,418 3,390 2,341 Provisions 1,050 1,511 1,574

160% – 180% 1,598 1,309 363 Provision Coverage 33% 34% 37%

Net Loans 16,492 15,502 14,881 180% < 1,430 786 290

Note: 2013 restated to exclude Springboard assets sold in H2 2014. Does not include deferred fees, Note: Excludes gross loans of €32m in 2012, €66m in 2013 and €56m in 2014 which are discounts and fair value adjustment (Group total of €138m for 2014) not classified 13 Overview of Buy-to-Let Portfolio

Balances LTV (€m) 2012 2013 2014 (€m) 2012 2013 2014

Gross Loans 6,580 6,463 6,259 <70% 520 570 814

Early Arrears 359 317 244 70% – 90% 468 518 768

NPLs <90 days 0 978 991 90% – 110% 712 816 1,257

>90 days 2,035 1,518 1,269 110% – 130% 1,078 1,227 1,578 NPLs 2,035 2,497 2,260

130% – 160% 1,835 1,983 1,210 Provisions 991 1,286 1,100

160% – 180% 831 661 258 Provision Coverage 49% 52% 49%

Net Loans 5,589 5,177 5,160 180% < 1,116 646 323

Note: 2013 restated to exclude Springboard assets sold in H2 2014. Does not include deferred fees, Note: Excludes gross loans of €20m in 2012, €42m in 2013 and €55m in 2014 which are discounts and fair value adjustment (Group total of €138m for 2014) not classified 14 Overview of Consumer Finance Portfolio

Balances (€m) 2012 2013 2014

Gross Loans 451 357 344

Early Arrears 19 27 19

NPLs <90 days 0 0 7

>90 days 149 101 95

NPLs 149 101 102

Provisions 150 198 97

Provision Coverage 101% 101% 95%

Net Loans 301 259 247

Note: Does not include deferred fees, discounts and fair value adjustment (Group total of €138m for 2014)

15 Treasury Portfolio Overview

Treasury Portfolio Summary Treasury Portfolio Mix

Asset Type Balance (€bn) Gross Yield(a)

Debt Securities 5.3 3.3% Corporate Bonds 3% NAMA Bonds Government 3.9 4.2% 18%

Corporate 0.2 2.6%

NAMA 1.3 1.8%(b)

Loans To Government Credit Loans and Advances to Credit Institutions Bonds 1.8 0.4% Insitutions 55% (cash and equivalents) 25%

• o/w Restricted in Securitisation 0.7 Vehicle Balances

Total 7.1 2.6% Total Treasury Assets: €7.1bn (a) 2014 gross income/Average balance for 2014 (b) NAMA Bonds priced off 6 month Euribor. However, EIR accounting adjustments, including those arising from redemptions, have given rise to a higher yield

16 Section 4

Comprehensive Assessment SSM CA: Overview and Outcome

Asset Quality Review (AQR) Baseline Stress Test Scenario Adverse Stress Test Scenario

• Test of the adequacy of a bank’s loan • Test of the bank’s capital adequacy at • Test of the bank’s capital adequacy at Test loss provisions (loan loss provisions 31 December 2013 under expected 31 December 2013 under severe summary are funds set aside to cover losses on economic conditions and a standardised economic conditions and a standardised the bank’s non-performing loan book) forecasting methodology forecasting methodology

Test outcome • Capital surplus • Capital surplus • Capital shortfall of €855m for the group • CET1 > 8.0% • CET1 > 8.0% • CET1 < 5.5%

• The Group submitted a Capital Plan, • No action required • No action required noted by the JST Implications • The Group has set aside appropriate • The Group is adequately capitalised • Capital plan includes an issuance of at loan loss provisions under expected economic conditions least €525m of new capital from private investors

18 Stress Test Was Conducted On A Static Balance Sheet Basis

• Use of a notional, Static Balance Sheet resulted in:

– Assets and Liabilities maturing within the time horizon of the exercise were deemed to be replaced with similar financial instruments (e.g. low yield trackers maturing during the period were replaced with notional equivalents)

– No workout of defaulted assets allowed in the exercise

– No deleveraging allowed

• Banks with a recently approved Restructuring Plan were exempted from the Static Balance Sheet assumption and were tested under the Dynamic Balance Sheet, allowing for the size and composition of the Balance Sheet to adjust (e.g. disposals, organic deleveraging and adjustments to the Balance Sheet composition were recognised)

– Banks with an RP approved prior to 2013YE were tested under a Dynamic Balance Sheet

– However, 5 banks that received RP approval in 2014 were tested under both a Static and Dynamic Balance Sheet

• The benefit of a Dynamic Balance Sheet varied substantially across banks, from a negligible impact to +12% CET1 Ratio

– The most comparable bank in this Group to ptsb was AIB, which benefitted by +3.3%

19 Stress Test Methodology Does Not Reflect The Group’s Recent Actual Experience

Methodology Actual Experience

Recognition of income on defaulted assets prohibited in the Adverse • The Group has recognised income from its impaired loans in 1 Scenario recent years(a) and expects to continue to do so in the future

• Provisions released in 2014 and potential to release further No release of provisions permitted (despite additional conservatism provisions over 2015 – 16, due to the improving capabilities of the 2 introduced in prior years) Asset Management Unit (AMU) in restructuring the non- performing loan book, and an improving macroeconomic outlook

No allowance for the reduction in Eligible Liabilities Guarantee • Legislation ending the ELG Scheme was enacted in 2013 3 (ELG) Fees and covered liabilities are reducing as balances mature

(a) Total interest income as at 31 December 2014 on impaired loans in the income statement amounted to €94m (31 December 2013: €85m)

20 Legal Disclaimer (1/2)

THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. THIS PRESENTATION IS NOT AN OFFER OR INVITATION TO BUY OR SELL SECURITIES.

Important: By attending or participating (in person or otherwise) in any oral presentation made in conjunction with this presentation or by accepting or receiving this presentation you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice and disclaimer. This presentation document, together with the oral presentation accompanying this document provided by the Company (as defined below) and any further information that may be made available in connection with the subject matter contained herein (together hereinafter, this “presentation") has been prepared by and issued by, and is the sole responsibility of, permanent tsb Group Holdings p.l.c. (the "Company", and together with its subsidiaries, the "Group"). This presentation is made available to you for informational and background purposes only and does not, and is not intended to, constitute or form part of any offer to sell or an offer, inducement, invitation or commitment to purchase or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or inducement to engage in an investment activity or a recommendation to enter into any transaction with the Company or any member of the Group.

The contents of this presentation may not be copied, distributed, published or reproduced in whole or in part, or otherwise disclosed, directly or indirectly, to any recipient (whether within or outside your organisation or firm). Failure to comply with these restrictions may constitute a violation of applicable securities laws and may constitute a criminal offence. Accordingly, by attending or participating (in person or otherwise) in any oral presentation in which this presentation is made available or by receiving this presentation through any other means, you represent that you are able to receive this presentation without contravention of any legal or regulatory restrictions applicable to you. This presentation document is given in conjunction with an oral presentation and should not be taken out of context.

This presentation should not form the basis of any investment decision and the contents do not constitute advice relating to legal, taxation, financial or investment matters. Nothing in this presentation constitutes investment advice or a recommendation regarding any securities of the Group. The presentation does not purport to contain all of the information that may be required to evaluate an investment in the Company and/or its financial position. Any prospective investors must make their own investigation, analysis and assessments and consult with their own adviser concerning the data referred to herein and any evaluation of the Group and its prospects.

This presentation is an advertisement and not a prospectus (or prospectus equivalent document) and investors should not subscribe for or purchase any securities referred to in this presentation except on the basis of information in any prospectus relating to the Company which may at some future point be published (the "Offering Document") and would then be available from the registered office of the Company.

Any Offering Document will include a description of risk factors relevant to the Company. Any Offering Document will supersede all information provided to you before the date of any Offering Document, and your investment decision, if any, must be made solely on the basis of the information contained therein. Potential investors must make their own investigation and assessment and are advised to seek expert advice before making any investment decision.

The information and opinions contained in this presentation are provided as at the date of the presentation and do not purport to be all inclusive or to contain all the information that may be required or desired in considering any potential investment. In particular, no representation or warranty, expressed or implied, is given by or on behalf of the Group or its advisors, or any of its respective parent or subsidiary undertakings or any of its directors, officers, employees or any other person and no reliance should be placed upon, the fairness, accuracy or completeness of the contents of this presentation, on the opinions contained in this presentation or on any other statement made or purported to be made by any of them, or on behalf of them, in connection with the Group.

To the extent permitted by law, no liability whatsoever is accepted by the Company, any member of the Group or any of such persons' directors, officers, employees, affiliates or advisers or any other person for any loss howsoever arising, whether directly or indirectly, from any use of this presentation or such information or opinions contained herein or otherwise arising in connection herewith.

None of the foregoing persons is under any obligation to provide any recipient of this presentation with any additional information to either correct any inaccuracies or omissions or update the information provided in this presentation. Nothing in this presentation shall be relied upon as a promise or representation, whether as to the past or the future. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts. The information in this presentation is subject to updating, revision, verification and amendment without notice and such information may change materially. Any opinion expressed in this presentation is subject to change without notice. Except where otherwise indicated herein, the information provided in this presentation is based on matters as they exist as of the date of preparation and not as of any future date and no person is under any obligation to update or otherwise revise the information in this presentation to reflect information that subsequently becomes available or circumstances existing or changes occurring after the date hereof.

21 Legal Disclaimer (2/2)

This presentation includes statements, estimates, opinions and projections with respect to the anticipated future performance of the Group ("forward-looking statements") which reflect various assumptions concerning anticipated results taken from the Group’s current business plan or from public sources which may or may not prove to be correct. These forward looking statements can be identified by the use of forward looking terminology, including the terms "anticipates", "target", "believes", "estimates", "expects", "intends", "may", "plans", "projects", "should" or "will", or, in each case, their negative or other variations or comparable terminology or by discussions of strategy, plans, objectives, goals, future events or intentions. Such forward-looking statements reflect current expectations based on the current business plan and various other assumptions and involve significant risks and uncertainties and should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. As a result, recipients of this presentation should not rely on such forward-looking statements due to the inherent uncertainty therein. No representation or warranty is given as to the completeness or accuracy of the forward-looking statements contained in this presentation. Forward-looking statements speak only as to the date of this presentation and the Company, each member of the Group and each of such person's directors, officers, employees, affiliates and advisers expressly disclaim any obligation or undertaking to update or re-issue any forward- looking statement in this presentation. Any indication in this presentation of the price at which securities have been bought or sold in the past cannot be relied upon as a guide to future performance. No statement in this presentation is intended to be a profit forecast and no statement in this presentation should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

Certain information contained in this presentation, including industry, market and competitive position data, has been obtained from published and non-published sources prepared by third parties, which may not have been updated to the date hereof. While such information is believed to be reliable for the purpose used in this presentation, it has not been independently verified. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in this presentation. In addition, certain of the information contained in this presentation has been obtained from the Company's own internal research and analysis and estimates based on the knowledge and experience of the Company's management in the market in which the Company operates. While the Company believes that such research and analysis and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. By their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or implied) is given that such estimates are correct or complete.

Certain figures contained in this presentation, including financial information, have been subject to rounding adjustments. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this presentation may not conform exactly to the total figure given.

This presentation does not constitute an offer of securities in the United States or any other jurisdiction. The securities referred to in this presentation have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements under the Securities Act.

The securities have not been and will not registered under the applicable securities laws of Australia, Japan, Switzerland or the Republic of South Africa and the Company is not a "reporting issuer", as such term is defined under applicable Canadian securities law and, accordingly, subject to certain exceptions, the securities may not be offered or sold in these jurisdictions or to, or for the account or benefit of, persons resident in these jurisdictions. This presentation does not constitute the provision of investment advice under the European Communities (Markets in Financial Instruments) Regulations (Nos 1 to 3) 2007 of Ireland ("Markets in Financial Instruments Regulations") by the Company or any other person. This presentation is being communicated for information purposes only to persons who, if in the European Economic Area (“EEA”), other than in Ireland or the United Kingdom, are “qualified investors” as defined under the Prospectus Directive (Directive 2003/71/EC and amendments thereto, including Directive 2010/73/EU, to the extent implemented in the relevant Member State of the EEA) and any implementing measure in each relevant Member State of the EEA (“Qualified Investors”). If you are in the EEA, other than Ireland or the United Kingdom, then any investment or investment activity to which this presentation relates is only available to Qualified Investors, and by receiving this presentation you represent and warrant to the Company that you are a Qualified Investor. Nothing in this presentation constitutes investment advice and recommendations that may be contained herein have not been based upon consideration of the investment objects, financial situation or particular needs of any specific recipient.

This presentation and any materials distributed in connection with this presentation are not directed or intended for distribution to or use by, any person or entity that is a citizen or resident located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to the law or regulation of that jurisdiction or which would require any registration or licensing within such jurisdiction. Persons who come into possession of this presentation or other information referred to herein should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdictions and neither the Company nor any other person accepts liability to any person in relation thereto.

The securities in the Company are only suitable for investors who understand the potential risk of capital loss and that there may be limited liquidity in the securities of the Company, for whom an investment in the securities is part of a diversified investment programme and who fully understand and are willing to assume the risks involved in such an investment programme. This presentation does not constitute a recommendation concerning the issue. The price and value of securities may go down as well as up. When considering what further action you should take you are recommended to immediately consult, if you are resident in Ireland, a professional adviser who is authorised or exempted under the European Communities (Markets in Financial Instruments) Regulations (Nos. 1 to 3) 2007 or the Investment Intermediaries Act 1995 (as amended) or if you are resident in the United Kingdom, a professional adviser who is authorised or exempted under the Financial Services and Markets Act, 2000, or another appropriately authorised professional adviser if you are in a territory outside Ireland or the United Kingdom.

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