Profit jumps 45pc at Permanent TSB, as Masding hails 'transformational year'
Profit before exceptional items and tax at Permanent TSB increased 45pc year-on-year to €94m in 2018, in what CEO Jeremy Masding described as a "transformational year" for the bank.
Total new lending volumes increased by over 40pc to €1.5bn compared to 2017, according to annual results from the bank.
Non-Performing Loans (NPLs) reduced by 68pc to €1.7bn at 31 December 2018, from €5.3bn in 2017.
The bank’s NPL ratio now stands at 10pc.
However Permanent TSB’s net interest margin – a key barometer of a bank’s performance – decreased by two basis points to 1.78pc from 1.8pc. This is primarily as a result of lower interest income from the Treasury Asset portfolio and NPLs, offset by improvements in the cost of funds, the bank said.
Total operating income of €442m remained broadly in line with 2017.
Elsewhere, and the bank’s residential mortgage market share increased to 15pc from 12.6pc in 2017.
Jeremy Masding, chief executive, said: "2018 was a transformational year for Permanent TSB. It was a year in which the bank exited its restructuring plan, demonstrated its profitability, grew market share further and dealt decisively with its legacy NPL issue."
"In addition, the bank eliminated the last of its System Funding that, at one stage in 2011, made up approximately 40pc of its resources," Mr Masding added.