Permanent TSB has reported “strong” levels of lending in the first three months of this year.
The bank had new lending of €400m in the year to-date, a 22pc increase on quarter one 2020, according to a trading update.
This figure, which includes personal loans and lending to small and medium businesses (SME), was predominately driven by an increase in mortgage lending.
Mortgage lending grew by 30pc year-on-year, outperforming the mortgage market which grew by 7pc, according to the bank.
Permanent TSB’s share of the mortgage market increased to 17.9pc here in the three months to 31 March, from 14.7pc at March 2020.
"The bank has been extremely resilient since the onset of the Covid-19 pandemic, evident from business performance which continues to grow and trend very positively following a strong quarter four 2020,” Eamonn Crowley, Permanent TSB chief executive, said.
“The bank's mortgage drawdown volumes in quarter one were circa 30pc higher than the same period last year and mortgage applications and approvals are also materially ahead versus the prior year,” he added.
Customer deposits of €18.3bn, increased 2pc in the first quarter of 2021.
The bank said its non-performing loans (NPLs) of €1.1bn at 31 March 2021 remain “in line with balances” at December 2020, while the NPL ratio remains at 7.6pc.
PTSB’s net interest margin (NIM) – a key measure of profitability in a bank – was 1.56pc at 31 March, down from 1.73pc at the end of 2020.
Negotiations with NatWest in relation to acquiring certain aspects of Ulster Bank's retail and SME business are continuing, Mr Crowley said.
“Until these negotiations have concluded there can be no certainty that an acquisition will occur or on what terms. Any agreement reached will need to provide certainty and clarity for associated customers and employees, be supportive to the overall commercial position of Permanent TSB and value accretive for our shareholders," he added.
PTSB said it continues to maintain tight control over its administrative cost base. The bank’s voluntary redundancy scheme, which concluded earlier this year, will result in around 300 full-time employee exits commencing this month and continuing through the course of the year.
