PTSB said today that the bank is no longer blocked from paying dividends.
In a statement to the stock exchange, the lender said the Central Bank has removed the "dividend blocker" which prohibited it from paying dividends to shareholders irrespective of the financial performance of the bank.
The removal of the block - with effect from today - was confirmed to PTSB by the regulator on the completion of the latest Supervisory Review and Evaluation Process (SREP) review of the bank.
The dividend blocker was introduced in 2016 and it meant that even in the event of a strong financial performance, PTSB was not permitted to pay a dividend to shareholders.
PTSB CEO Eamonn Crowley said the removal of the dividend blocker is a landmark event for the bank.
He said it acknowledges the enormous progress which has been made by the bank over the past decade.
"It reflects the fact that PTSB now occupies a key position in the Irish banking landscape, and it significantly enhances the investment case for existing and potential investors in the bank," Mr Crowley said.
"This progress has been hard won and I want to acknowledge the huge efforts over a long period of time by current and former colleagues who laid the groundwork for this decision," he added.
PTSB from now on will be required to submit an ex-ante application for a distribution ahead of any AGM proposal by the board for consideration and approval by the Central Bank.
It added that it will update the market on its medium term financial targets and distribution policy during 2024.
Shares in the bank moved higher in Dublin trade today.
