PTSB mortgage market share up 14pc as it takes on Ulster Bank loans

Permanent TSB CEO Eamonn Crowley and chief financial officer Nicola O'Brien

Sarah Collins

Permanent TSB has seen an 86pc rise in net interest income in the first three months of the year, compared to 2022, thanks to rising interest rates and a growing loan book.

In an interim management statement on Tuesday, the lender reported fees and commission income up 12pc compared to the same period last year due a higher customer base.

Its net interest margin was 2.26pc, 82 basis points ahead of the first quarter last year.

The bank’s share of the mortgage market grew 14pc in the first three months of the year, with new mortgage lending of €721m, up 69pc compared to the same period last year.

However, that level of growth is not expected to continue as the high level of mortgage switchers seen in the second half of last year and early this year is expected to drop off.

Permanent TSB completed the acquisition of 25 Ulster Bank Branches and around 3,200 Ulster Bank SME loan accounts, valued at €165m, in the first three months of 2023.

It expects to take on Ulster Bank’s remaining non-tracker mortgage portfolio and the Lombard asset finance business shortly.

“This migration marked another significant step for us in the transformative transaction with Ulster Bank, and has allowed us to further expand our business offering and build valuable customer relationships,” said chief executive Eamonn Crowley.

“We look forward to completing the migration of Ulster Bank assets in the coming months.”

Customer deposits rose 3pc since December to €22.3bn.

Non-performing loans were €0.7bn in March 2023.

The bank said it maintains a strong capital position, with a fully-loaded core equity tier 1 capital ratio of 15.2pc.

Permanent TSB successfully issued €650m eligible senior debt in April 2023.

Looking ahead, the bank said a positive domestic macroeconomic backdrop mean the bank was in a strong position.

It expects total income of around €650m, up 60pc higher year-on-year.

However, it said the scale and pace of any further interest rate increases by the European Central Bank remain unclear.

“The Bank reports a strong business and financial performance in the first quarter of the year,” Mr Crowley said.

“New lending volumes and transactional banking income have increased year-on-year, driven by the competitive market and a larger customer base. We also have a strong pipeline of activity across all of our key product lines.

“Although the global macroeconomic environment remains uncertain, the Irish economy continues to out-perform in terms of growth and employment levels.”