PTSB sees interest income drop 9% following ECB rate cuts 

Lender saw its mortgage market share grow to 20% in the first three months of this year

Total gross loans rose to €22bn, up 1% since the year-end. Picture Andres Poveda

The impact of lower interest rates saw PTSB's net interest income drop by 9% in the first three months of 2025, but the bank has reiterated its targets for this year on the back of strong lending.

The lender now holds a 20% share of the Irish mortgage market, up from just over 16% at the end of 2024.

New business lending was also up 25%, with total gross loans rising to €22bn, up 1% since the year-end. Customer deposits also rose, increasing by 3% to a total €24.9bn.

PTSB Chief Executive Eamonn Crowley said all key financial metrics were tracking well, saying on Wednesday morning: "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.

Mr Crowley added that new lending in its relatively small business banking unit was up 25% on an annual basis, with small- to medium-sized enterprise activity “having a particularly good start to the year”.

In a note this morning on PTSB's update, analysts from Davy said its 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.