PTSB's mortgage share tops 20% in first quarter
Permanent TSB Group Holdings said its net interest income reduced by 9% in the first quarter of this year due to the impact of lower interest rates.
The bank's net interest margin (NIM) fell to 2.03% in the first three months of the year from 2.31% the same time last year.
But the bank said that recent deposit rate reductions which became effective from April 2 will help negate the effect of further downward movements in base rates. It said it still expects NIM to exceed 2% for the year.
In a trading update today, PTSB said its share of new mortgage drawdowns in the first quarter of 2025 was over 20%, up significantly when compared with a level of 13.4% in 2024.
It noted that "green" mortgage lending accounted for 41% of all new loans in the quarter, and said the reduction in its mortgage fixed rates announced in mid-January continues to support its effort to maintain its competitive presence in the market.
PTSB said total gross loans on its balance sheet rose to €22 billion at the end of March, up about 1% on the €21.8 billion at the end of December 2024.
The bank said its total operating expenses were down about 4% in the first quarter, adding that it remains on track to meet its cost target of €525m for the year.
PTSB said its voluntary severance scheme is at an advanced stage and when combined with management actions and natural attrition, it continues to expect a reduction in staff numbers of about 300 this year.
The lender said that economic conditions in Ireland are supportive of its business and asset quality remains strong.
Non-performing loans at the end of March were unchanged relative to the year end and represented about 1.7% of gross loans, it said adding that it had booked a "small" €1m impairment charge.
"The bank will continue to closely monitor the impact of US trade tariffs on the Irish economy, however notwithstanding heightened uncertainty, PTSB is well provisioned and coming into 2025 had modelled more conservative impairment scenarios than consensus," it added.
Eamonn Crowley, the bank's chief executive, said that PTSB recorded a strong start to 2025 with all key financial metrics in the first quarter tracking well against plan.
"Our core mortgage business entered the year with a strong pipeline and we recorded a share of new mortgage drawdowns in Q1 of over 20%, continuing the momentum we showed through 2024. Meanwhile new Business Banking lending was up 25% year-on-year, with our SME business having a particularly good start to the year," Mr Crowley said.
"We are translating our refreshed strategy into action and continue to build our competitive presence as the Challenger Bank in the Irish market," he stated.
"Our funding and capital positions remain strong and notwithstanding heightened uncertainty associated with the global picture on international trade and how this might impact Ireland, we remain confident about the prospects for our business in 2025," he added.
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