Permanent TSB appears to be benefiting from the proposed exit of competitors from the banking market in the Republic by increasing its share of the new mortgage business and building on its small base of small business loans.
In a trading update, Permanent TSB said its share of the mortgage market increased to 17.5% at the end of June from 15.2% a year earlier after reporting “strong new lending” of €900m.
Permanent TSB is due to consolidate its position as the third largest mortgage lender behind AIB and Bank of Ireland, as both Ulster Bank and KBC prepare to exit banking altogether in the Republic.
Last week Permanent TSB set out further details of its agreement with Ulster Bank to take €7.6bn in mortgage and other loans, along with 25 of its 88 branches, when the NatWest-owned lender starts on its withdrawal from next summer.
Under the agreement, NatWest also plans to buy a stake of up to 20% in Permanent TSB, a transaction that will end up diluting the Irish Government’s current 75% shareholding as the State doesn’t plan to inject more money.
The bank also said in its update it has €1bn in non-performing loans -- or 7%, while its net interest margin, which is a key measure of banking profitability, fell by 23 basis points to 1.5% since the end of 2020.
Chief executive Eamonn Crowley said the bank will continue to spend to boost its digital services.
“We are making great progress on our digital transformation programme with a further €50m investment in our technology infrastructure and digital capability, launched our new market leading digital current account and formed partnerships with both global service integration providers and Irish fintechs,” Mr Crowley said.