Permanent TSB boosts lending levels as Ulster Bank talks continue

PTSB said it expects new lending volumes for this year to be ahead of both 2020 and 2019 volumes. 

Permanent TSB (PTSB) has said it remains in talks with NatWest over the potential acquisition of parts of Ulster Bank’s retail and SME business in the Republic.

In its latest trading update, PTSB said: “The parties continue to work together with a view to entering into legally binding agreements over the coming months. Until an acquisition is finally concluded there can be no certainty that an acquisition will occur or on what terms.” 

“We are focusing intently on the opportunities arising from the potential acquisition of a major part of the Ulster Bank retail and SME business. We are building on our Memorandum of Understanding with NatWest Group and the parties are working towards legally binding agreements,” said PTSB chief executive Eamonn Crowley.

PTSB reported a strong performance for the third quarter of the year; with new lending up 50% year-on-year to €1.4bn and its share of the new mortgage market rising to 17.5% from 14.9% 12 months ago. It also boosted its SME lending levels by 43% over the 12 months.

New mortgage lending of €1.3bn represented a 56% year-on-year increase and significantly outperformed the total mortgage market which grew by 32%.

PTSB also continued to lower its non-performing loans and default levels. As of the end of September, the bank had €1bn worth of non-performing loans on its books, €100m less than at the end of last year.

The bank said it expects new lending volumes for this year to be ahead of both 2020 and 2019 volumes. 

It grew customer deposits, in the first nine months of this year, by €900m to €18.9bn, with a 19% increase in current account balances.