PTSB shows strong lending growth ahead of sale to BAWAG

The bank said it will continue to 'prioritise cost optimisation, with savings generated from a lower headcount, tight management of supplier costs'

PTSB chief executive officer Eamonn Crowley said the bank’s strategy is 'delivering, with growth in our loan book running at over 4% while our core mortgage business has gained momentum as the year has progressed'.

PTSB has seen its total operating income increase by 7% in the first nine months of the year as new business lending, new mortgage lending, and net interest income all see strong gains.

According to the bank’s latest trading statement, during the first nine months of the year net interest income for the first nine months increased 9%, “reflecting both higher margins and higher average interest earning assets”.

For the period July to September, its net interest margin was 2.14%, up 13 basis points. The increase reflects the lower average cost paid out for deposits as well as the two 0.25% increases in interest rates from the European Central Bank which “also contributed positively in the third quarter”.

So far this year, its total gross loans increased by €800m to €23.4bn. This was driven by the bank’s mortgage book which “has gained momentum as the year has progressed”.

“Our share of the new mortgage business was circa 20% in the first nine months and we have a strong pipeline heading into quarter four,” the bank said.

New lending in business banking was up 16% and growth in the book of 12%. The bank has €25.8bn on deposit from customers, up 2% year-on-year.

The bank has a loan to deposit ratio of 89% and liquidity coverage ratio of 214% as of the end of September. Non-performing loans were 1.3% of gross with the bank stating that its “overall credit performance is stable with no signs of deterioration”.

In terms of expenses, the bank said its total operating costs are 2% lower. It said it will continue to “prioritise cost optimisation, with savings generated from a lower headcount, tight management of supplier costs and change spend helping to offset the impact of inflationary pressures”.

Chief executive of PTSB Eamonn Crowley said the bank’s strategy is “delivering, with growth in our loan book running at over 4% while our core mortgage business has gained momentum as the year has progressed”.

The trading update comes as the BAWAG takeover of the bank progresses. In July, PTSB shareholders approved the sale of the bank. The State, through the finance minister, owns approximately 57.5% of PTSB.

Mr Crowley added that the bank’s proposed sale to BAWAG “is progressing as planned” with completion expected between the end of this year and early next year “subject to court and regulatory approval.” 

In its outlook, the bank said trading conditions “remain positive underpinned by a resilient Irish economy”.

“The bank remains confident about its prospects for the rest of the year and as previously guided, is on track to record a return on tangible equity in excess of 9% for 2026.”