Update in respect of the Sale of Non-Core Assets.

Thursday 26th March 2015

This notice does not constitute, or form part of and should not be construed as, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in permanent tsb Group Holdings p.l.c.. The distribution or publication of this notice and any related documents, and the offer, sale and/or issue of securities in permanent tsb Group Holdings p.l.c. in certain jurisdictions may be restricted by law and therefore persons into whose possession this notice comes should inform themselves about and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities laws of any relevant jurisdiction.

permanent tsb Group Holdings plc (the "Group")

Sale of Non-Core Assets Update

On 11 March 2015, the Group announced that it had reached agreement to sell certain non-core loan portfolios with an aggregate portfolio size of approximately €5 billion together with the Capital Home Loans legal entity ("CHL"), a UK subsidiary of the Group, and its loan servicing platform (the "CHL Platform"), (together the "Sale of the Non-Core Assets"). This followed a competitive process. Further to that announcement the Group provides the following update in respect of the Sale of Non-Core Assets.

Non-Core loans held by CHL in the United Kingdom

The Group agreed to dispose of the CHL legal entity including its loan servicing platform together with GBP £2 billion of CHL's lending assets. The Group also agreed to dispose of its interest in the Auburn 4&5 securitisation vehicles which include GBP£0.5 billion of lending assets. The acquirer is an affiliate of Cerberus Capital LP. For the year ended 31 December 2014, losses attributable to the entity and its lending assets to be disposed were approximately €15 million[1]. The total consideration for the sale of the entity,

including its GBP£2 billion of lending assets and its interest in the Auburn 4&5 securitisation vehicles will be approximately GBP£1.8 billion (€2.3[2] billion) relative to a book value of GBP£2 billion (€2.6 billion) as

at 31 December 2014. On completion, the transaction is estimated to have a net adverse impact on the capital buffer of the Group of circa GBP£240 million (circa €330 million at current exchange rates). This is within the Group's parameters and also within the Group's Restructuring Plan commitments. The net adverse impact amount of GBP£240 million takes into account the loss on disposal, the reduction in required capital, fees and other capital impacts associated with completion of the transaction. The sale is expected to close before the end of July 2015 and is subject to regulatory approval.

Non-Core loans in Ireland

The Group also agreed the sale of non-core lending assets backed largely by Irish commercial real estate which comprise approximately €1.5billion of loans. This includes loans backed by assets spread across the country ("Non-Core Irish Loans"). The acquirer of the Non-Core Irish Loan portfolios is Havbell Limited, a newly incorporated entity funded by Deutsche Bank and funds affiliated with Apollo Global Management, LLC. Losses attributable to the Non-Core Irish Loans for the year ended 31 December 2014 were approximately €2 million. The total consideration for the transaction will be approximately €0.8 billion relative to an aggregate book value of approximately €0.8 billion as at 31 December 2014. On completion, the transaction is estimated to have a net positive capital buffer impact of circa €50 million. This takes into account the loss on disposal, the reduction in required capital, fees and other capital impacts associated with completion of the transaction. The sale is expected to close before the end of June 2015.

The aggregate proceeds of the Sale of Non-Core Assets will be used for general corporate purposes and in the day-to-day operations of the Group.

Media Enquiries:

Ray Gordon

Gordon MRM

[email protected] Ph: +353872417373

Important Notices

This announcement has been issued by permanent tsb Group Holdings p.l.c. and is the sole responsibility of permanent tsb Group Holdings p.l.c. The information in this announcement is for background purposes only and does not purport to be full or complete. No reliance may be placed for any purpose on the information contained in this announcement or its accuracy or completeness. The material set forth herein is for information purposes only and should not be construed as an offer of securities for sale in the United States or any other jurisdiction.

This announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this announcement. The Group will not undertake any obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.

The contents of this announcement are not to be construed as legal, financial or tax advice. Each recipient should consult his own legal adviser, financial adviser or tax adviser for legal, financial or tax advice, respectively.