Permanent TSB’s lending rises as its non-performing loans fall

Bank increases share of new mortgage market

Permanent TSB said new lending rose 50 per cent in the year to date and non-performing loans fell to €1 billion.

In an interim management statement for the third quarter of the year, the bank said new lending was strong at €1.4 billion so far this year, with an increase in home loans of 1 per cent over the same period as the pace of new lending exceeded repayments.

The total performing loan book at PTSB was €13.9 billion at the end of September, up €200 million on the figures at the end of 2020, while the ratio of non-performing loans was reduced to 6.9 per cent.

New mortgage lending of €1.3 billion was 56 per cent higher year on year, while SME lending was €58 million in the year to date, a 43 per cent rise from the prior period.


PTSB said its new mortgage market share rose to 17.5 per cent in the third quarter, up from 14.9 per cent a year earlier.

Net Interest Margin (NIM) was 1.49 per cent, down 25bps year-on-year as rate reductions and higher levels of excess liquidity weighed.

Customer deposits were 5 per cent higher at €18.9 billion, a rise of €900 million since the start of the year.

Digital upgrade

"We have made substantial progress on our digital transformation journey, following the announcement of an additional €50 million investment in technology infrastructure and digital capability earlier this year. This has included an upgrade of the bank's core platforms, desktop and app services; a new digital process for opening current accounts; the introduction of Apple Pay; and a partnership with Irish fintech Credit Logic," said chief executive Eamonn Crowley.

The bank is also introducing Google Pay for Android customers.

PTSB is acquiring €7.6 billion of mortgages and small-business loans from Ulster Bank, a move it expects to boost its profitability by 50 per cent over the medium term.

"We are focusing intently on the opportunities arising from the potential acquisition of a major part of the Ulster Bank retail and SME business. We are building on our Memorandum of Understanding with NatWest Group and the parties are working towards legally binding agreements," Mr Crowley said, adding that the bank would also focus on Ulster Bank current account and deposit customers looking for a new bank.

PTSB said it expected new lending volumes for this year to be ahead of both 2020 and 2019 volumes. NIM is expected to remain at around 150 basis points.

The bank will also continue to invest in its digital and sales service, pushing up operating expenses 3 per cent year on year.

Ciara O'Brien

Ciara O'Brien

Ciara O'Brien is an Irish Times business and technology journalist