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PTSB sinks to a loss but increases share of battered mortgage market

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Eamonn Crowley, Permanent TSB

Eamonn Crowley, Permanent TSB

Chris Bellew/ Fennell Photograph

Eamonn Crowley, Permanent TSB

Permanent TSB has announced a loss before tax of €57m for the first half of the year, as the bank was hit by the effects of Covid 19.

The main driver of the loss was a net impairment charge of €75m, a write down that has been taken in anticipation of loan losses.

The bank reported an operating profit before impairment and exceptional items of €23m.

Net bank’s net interest margin (NIM) stood at 1.75pc – based on the difference between what it pays savers and what it charges borrowers.

Recently appointed CEO Eamonn Crowley said the second quarter had been dominated by the impact of Covid-19 but activity levels are starting to recover.

“As customers embraced the Government imposed lockdown, the Bank saw new business volumes and transactional banking activities reduced to levels lower than the Bank has seen in recent years, but we are pleased to say that volumes have increased again as the phased approach to opening up the Irish economy emerges.”

While new lending, dominated by mortgages, fell 16pc to €600m in the first half of the year, the bank lifted its share of the mortgage market at to 15.2pc. Operating costs were down, but the bank was hit with €20m of regulatory charges in the period.

The bank said it has approved around 10,500 mortgage payment breaks representing around 10pc of its loan book. The maximum Covid-19 ,500 payment break is for up to six months, on all applications approved before the 30th of September 2020.

Online Editors