Business

Sunday 28 May 2017

Permanent TSB has made its first post-tax profit since 2007

Jeremy Masding, Group Chief Executive, Permanent TSB
Jeremy Masding, Group Chief Executive, Permanent TSB
Michael Cogley

Michael Cogley

Permanent TSB has made its first post-tax profit in nine years as new mortgage lending increased by 4pc in the first six months of the year.

The bank posted a profit after tax of €80m, marking a major swing from the loss of €410m it made in the same period last year.

PTSB made a profit of €29m from the sale of a share held in Visa Europe in the first half of the year.

During the period total impairment write-backs amounted to €61m, an improvement of €85m on the same time in 2015.

PTSB chief executive Jeremy Masding believes the bank is now better positioned to grow its business.

"Having recapitalised the bank during 2015, the Group has moved to pre-and post-tax profitability and is generating capital for the first time since 2007.

"Of course there are challenges ahead. However, we remain as committed as ever to serving our customers and, to delivering attractive and sustainable returns to our shareholders by making the most of our key strengths," he said.

Net interest margin increased by 31bps  from 1.12pc to 1.43pc.

The bank also highlighted the challenges it faces from a "constrained" mortgage market and increasing regulatory costs.

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