PTSB chief executive Eamonn Crowley said the bank's loan quality"remains robust" as it continues to take"a measured approach" passing on ECB rate increases to customers. Photograph Nick Bradshaw
The bank, which rebranded this month from Permanent TSB, said in a trading statement that new mortgage lending increased by 11 per cent over the period to €1.8 billion, even though the overall mortgage market was down 10 per cent as switching activity slumped. PTSB’s share of mortgage market drawdowns rose by 3.8 percentage points to 20.7 per cent from September 2022.
Mainstream banks have recaptured mortgage market share from nonbank lenders in the past 12 months as they have generally been able to offer more attractive rates due to their reliance on cheap deposits from their customers for funding. Non-banks must finance themselves on the wholesale and capital markets, where funding costs have soared amid rising official interest rates.The European Central Bank has hiked its main lending rate from zero in July 2022 to 4.5 per cent.
The group’s total performing loan book has increased by almost 50 per cent since the middle of last year, as it gradually took over €6.75 billion of mortgage, small business and asset finance loans from Ulster Bank as the latter retreated from the Irish market. PTSB’s performing portfolio stood at €20.9 billion at the end of September.