PTSB grows share of mortgage market to 16.3%

PTSB said total gross loans grew to €21.5bn as of the end of September. 

PTSB has grown its share of the mortgage market to 16.3% following interest rate reductions, the bank has said in its latest trading update.

In the year to the end of September, PTSB’s total gross loans rose to €21.5bn - up from €21.4bn as of the end of June. As of the end of September, the bank’s share of the new mortgage market grew to 16.3% - an increase from the 13.5% at the end of June.

The bank said the increase in mortgage share comes as customers responded to the significant rate reductions announced by the bank. Since June, the European Central Bank has cut interest three times, the latest of which was earlier this month.

PTSB is the smallest of the three pillar banks with Bank of Ireland and AIB having much larger shares of the mortgage market.

“We remain focused on customer retention and offering borrowers a competitive suite of products as their fixed rate terms come to an end,” the bank said, adding that it expects new mortgage lending across the market in Ireland to be flat in 2024 at. €12.2bn.

The bank’s total operating income rose 3% between January to September this year with net interest income 1% higher year-on-year.

Customer deposits with the bank stood at €23.8bn - an €800m increase from the end of last year. It said that over 90% of flows into term deposits are now into one-year fixed-term products as “customers respond positively to our competitive interest rates”.

PTSB said that lending to small and medium-sized businesses is growing strongly, up 25% year-on-year.

However, the company’s total and underlying operating expenses grew by 17% year-on-year. This is projected to slow down through the rest of the year following lower regulatory charges and the recognition of the bank levy earlier in the year.

In its outlook, the bank said it expects further increases in new lending through the rest of the year “reflecting our strong pipeline of applications”.

“Margins in the second half of 2024 will be below the first half reflecting price changes on both sides of the balance sheet and the change in deposit mix.

Beyond this year, and the likely further reductions in interest rates, the bank said it is reviewing what measures it can take to continue to protect and grow shareholder returns.

Chief executive of PTSB Eamonn Crowley said the bank remains focused on creating efficiencies that will ensure “we deliver for our colleagues, customers and shareholders in the most optimal, sustainable and cost-effective way”.

“The Irish market remains extremely attractive and with strong capital and liquidity positions, we are well positioned to achieve our ambition of being Ireland’s best personal and business bank through exceptional customer experiences.”