Thursday 14 November 2019

Mortgage lending jumps at Permanent TSB

Jeremy Masding
Jeremy Masding
Ellie Donnelly

Ellie Donnelly

Mortgage lending at State-backed Permanent TSB increased by 17pc year-on-year in the three months to 30 September.

The bank’s market share of drawdowns increased to 15.5pc during the period from 14.7pc in the first half of this year, according to a trading update from the group.

Permanent TSB said that whilst the mortgage market in Ireland continues to grow “steadily”, it remains competitive.

Personal lending increased 14pc, while loans to small and medium businesses also increased, albeit from a “low based.”

Meanwhile, the banks non-performing loans (NPLs) reduced by 35pc to €1.1bn at 30 September from €1.7bn at 30 June, following the sale of €500m of NPLs.

Permanent TSB’s NPL ratio is now below 7pc.

The bank currently holds 610 properties in possession, with 261 for sale, the majority of which are part of its targeted buy-to-let voluntary surrender programme.

Permanent TSB said it is "satisfied" with the progress being made to date, and expects to sell the majority of these properties over the next 12 months.

Net interest margin – which measures the difference between the bank’s cost of money and what it charges to lend – was 1.82pc, this was in line with the first half of this year and up 5 basis points on the same period last year.

Last month the bank announced that its CEO Jeremy Masding was stepping down after seven years in charge. The bank has commenced a process to replace him.

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