Permanent TSB shares soar even before exit of mortgage rivals Ulster Bank and KBC

AIB has also said it has appointed Jim Pettigrew as its new chair of the board

Permanent TSB chief executive Eamonn Crowley said the NatWest talks continue with the aim of making them legally binding. 

Shares in Permanent TSB have now climbed 81% since the start of the year even before the formal exit of two of its major banking rivals. 

Analysts had predicted that Permanent TSB would emerge as a big winner from the plans of Ulster Bank and KBC Bank to quit banking in the Republic. In an update, Permanent TSB said new mortgage lending had risen sharply to help it secure a greater share of the mortgage market.

It now controls 17.5% of the new mortgage market, which is sharply up  from around 15% a year ago. The lenders said it had also boosted its lending to small firms. 

Permanent TSB is set to acquire billions of mortgage loans as well as a number of branches from Ulster Bank when the NatWest-owned lender completes its exit from the Republic.  Permanent TSB chief executive Eamonn Crowley said the NatWest talks continue with the aim of making them legally binding.  

Permanent TSB and the big two of AIB and Bank of Ireland are all set to tighten their grip over the Irish banking market. 

AIB has struck an agreement with NatWest to take corporate loans from Ulster Bank, while Bank of Ireland is looking to acquire around €9bn in mortgage loans from KBC Bank.

Permanent TSB shares — the third largest mortgage lender — rose 3% and have now surged 81% since the start of the year on the prospects for growth when Ulster and KBC depart. The bank said it expects new lending volumes for this year to be ahead of both 2020 and 2019 volumes.

Meanwhile, AIB said it has appointed Jim Pettigrew as its new chair of the board. Mr Pettigrew was formerly the chair of Britain's Virgin Money, which was bought and then merged with Clydesdale Bank, or CYBG. 

The group was then rebranded under the Virgin name.  Virgin Money is currently run by David Duffy, who was chief executive at AIB until 2015. 

Mr Pettigrew is chair of BlueBay Asset Management, chair of Dundee Heritage Trust and chair of Scottish Ballet.