permanent tsb Group - Positive update on NPL reduction strategy

Davy Research
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We believe the non-performing loan (NPL) update from PTSB should be positively received. PTSB is pursuing a strategy to achieve a reduction to a high-single-digit NPL ratio in the medium term while minimising the impact on its capital base. We believe the commencement of a portfolio sale coincides with strong investor appetite for Irish portfolios, while non-sale reduction techniques demonstrate that PTSB will not be solely reliant on sales to achieve its NPL targets.