Wednesday 18 October 2017

Mortgage lending at Permanent TSB leaps 63pc in the first three months of 2017

Permanent TSB boss Jeremy Masding
Permanent TSB boss Jeremy Masding

Gretchen Friemann

Permanent TSB has increased its share of the fast-growing mortgage market in the first three months of the year according to figures released this morning.

The partially-nationalised bank revealed its new mortgage lending leapt by 63pc on the same period last year, outpacing the broader market's growth of 39pc.

The improved performance was foreshadowed in this morning's Irish Independent.

An upward move in PTSB's net interest margin - a key profit measure - also beat market expectations, rising to 1.8pc on the back of the sale late last year of the lender's non-core UK loan book. PTSB also attributed the higher NIM to a continued reduction in the cost of funds as well as further redemptions of senior NAMA bonds.

While the bank's overall lending volumes increased by 64pc compared to the same quarter last year, customer deposits reduced fractionally to €16.9bn at the end of March, from €17bn in Q1 in 2017.

PTSB's trading update, which highlights the bank is "profitable and capital generative", comes ahead of its annual general meeting in Dublin today.

Read more: PTSB chief Masding's pay 'not excessive'

While investors are likely to question PTSB's chief executive, Jeremy Masding, on the strategy to reduce its €5.9bn impaired mortgage book, the lender provided no update on its non-performing loans but said "we continue to develop the next phase of our NPL strategy as communicated earlier in the year." 

PTSB has committed to updating the market on its toxic loan book in the third quarter.

The bank, which emerged last year from a difficult restructuring period, said operating costs over the past quarter were "in line with expectations" and confirmed it had its strengthened capital buffers with the common equity Tier 1 ratio increasing to 15.1pc from 14.9pc at the end of last year.

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