Permanent TSB said on Tuesday its net interest income soared 86 per cent in the first quarter of the year as it acquired much of Ulster Bank’s loans and benefitted from rising interest rates.
Since late November, PTSB has taken over €5.2 billion of performing mortgages, 25 branches and €165 million of micro-business loans from Ulster Bank, as the latter retreats from the Irish market. The bank has also agreed to buy Ulster Bank’s Lombard Asset Finance business and a further €900 million of mortgages from Ulster Bank, which are expected to transfer by the end of June.
PTSB, led by chief executive Eamonn Crowley, said that its net interest margin – the difference between the average rates at which it funds itself and lends on the customer – rose by 0.82 percentage points on the year to 2.26 per cent in the first quarter. This was driven as the bank’s surplus deposits automatically became more profitable as the European Central Bank hiked its deposits rate from minus 0.5 per cent to 3 per cent since last July and as PTSB passed on some of the ECB’s rate increases to mortgage customers.
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