The PTSB sale process stepped up a notch this month, with first round bids being submitted for the lender.
While a number of private equity firms are thought to have been circling the bank – a point of particular concern among unions and, perhaps, the Government, seeing as PTSB is thought to be ripe for pretty severe cost cutting – Austrian lender Bawag has been one of the industry players consistently linked to a bid for the company.
Indeed, for some analysts it almost seems as if it is the only obvious trade buyer. Just last month, UBS analysts suggested Bawag would fund a deal through a mix of cash and shares, leaving the prospect of the Irish State holding shares in an Austrian bank in order sell off its holding in an Irish bank.
It was perhaps not surprising then for analysts to question Bawag chief executive Anas Abuzaakouk about PTSB when his company reported its 2025 results on Wednesday.
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While he didn’t give much away, Abuzaakouk did not exactly play down the reports that his group is in the running for PTSB.
“Ireland is one of the most robust banking markets in Europe,” he said, adding: “We have the bandwidth to be able to address larger acquisitions going forward.”
Such comments will do little to reduce expectations that the Austrian bank is in for PTSB.
Bawag had surplus cash of about €468 million at the end of the year – well below the €1.7 billion market capitalisation of PTSB. But Abuzaakouk indicated he wouldn’t shy away from issuing new shares to finance a deal if he thought it was worth it.
[ Would Simon Harris accept a Vienna bank stake to sell PTSB?Opens in new window ]
Still, the bank will have a better idea of what it wants to do on any deals when it reports first quarter earnings in April, he added.
That timeline might fit nicely with the sale process for PTSB. The market clearly expects Bawag to make a move on the Eamonn Crowley-led lender. Given the concerns about private equity buying the bank, the unions and Government might also be hoping Bawag moves on PTSB. Over to you, Anas.
