Analyst: Mortgage rate pressure to weigh on PTSB

Pressure to lower mortgage rates will likely weigh on the profitability of 75%-State-owned Permanent TSB (PTSB) over the coming years, according to Davy Stockbrokers.

In a research note published yesterday, analyst Emer Lang said the home loan lender will have a return on equity of 2.3% and 3.7% in 2017 and 2018.

That compares with valuations on European banks which suggest they currently have much higher returns on equity.