Permanent TSB shares rise 3% on hopes lender has turned corner

Shares in Permanent TSB rose more than 3% on hopes that the mortgage lender has turned a new chapter by focusing on growing new mortgage lending here after selling off a major UK loan book.

A “modest” rise in the lender’s net interest margin, a key measure of any lender’s profitability, and a “positive landscape” for new mortgages even as redemptions continued to outpace growth in new business were the main features of its trading update released yesterday, said Darren McKinley, an analyst at Merrion Capital.

The net margin rose to 1.44%, as PSTB paid down expensive Nama bonds.