PTSB sees interest income drop 9%
The impact of lower interest rates saw PTSB's net interest income to drop by 9% in the first quarter, but the bank has reiterated its targets for this year on the back of strong lending.
The bank has grown its share of Ireland's mortgage market from 16.4% last year to 20%. New business lending was also up 25%. Total gross loans rose to €22bn, up 1% since the year-end. Customer deposits of €24.9bn represent a 3% rise.
Chief Executive Eamonn Crowley said all key financial metrics were tracking well. "We are translating our refreshed strategy into action and continue to build our competitive presence as the Challenger Bank in the Irish market. 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 said.
In a note this morning on PTSB's update, analysts from Davy said their 2025 forecasts will remain unchanged.
While the main impact of tariff-induced global uncertainty is to lower ECB rate expectations, they do not see this impacting 2025 but will likely result in lower net interest income in 2026, Davy said.
However, housing remains a key priority for the Irish Government and policy and measures to increase output, to meet demand, would benefit the mortgage market, to which PTSB is heavily geared.
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