‘Strong’ start for PTSB but mortgage market share dips

PTSB saw its share of the mortgage market fall slightly in the opening months of 2024 as homeowners proved wary of switching and competition for first time buyers remained elevated.

But business lending grew and, in common with the other Irish banks, it saw net interest income increase again.

In an interim management statement for the first quarter of the year, the bank said total operating income was up 9 per cent year on year, at €167 million.

Net interest margin was five basis points (0.05 per cent) higher at 2.31 per cent and operating expenses were in line with expectations, PTSB said, with guidance for a mid-single digit increase year on year.

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The bank said its new business mortgage market share was 13.4 per cent, down from 15.4 per cent at the end of the fourth quarter of 2023.

Customer deposits at the end of March stood at €23.3 billion, up 5 per cent, or €1 billion, since the same period in 2023 and 1 per cent on the end of last year.

Net loans and advances to customers rose 7.5 per cent to €21.3 billion year-on-year, but a slower pace of new lending and contractual repayments and redemptions resulted in a 1 per cent decline in the bank’s total performing loan book at the end of the first quarter. The bank said lending across term and business banking was strong in the first quarter at €80 million, with the asset finance business line bringing further diversity to the business.

Non-performing loans were €700 million at the end of March.

The results were “in line with expectations,” Davy analyst Diarmaid Sheridan said in a research note. “While net lending is modestly lower, the roll-out of new products and changes to the existing line-up should support recovery from here and should also be seen in the context of a 40 per cent increase in customer lending since Q3 2022.”

Chief executive Eamonn Crowley said the bank recorded a “strong financial performance” in the three-month period, including a 10 per cent increase in net interest income year-on-year and a doubling of business lending.

“Our mortgage market share during Q1 declined slightly from Q4 2023 and continues to be impacted by the reduced switcher market. We remain committed to bringing competitive propositions to the mortgage market while we continue to diversify our lending to business customers through business banking and PTSB Asset Finance,” he said.

“Our strong capital and liquidity positions, continued growth in our customer deposit base and our refreshed brand positioning support our ability to grow and diversify the business across both retail and business banking through this year and beyond.

“We have confidence that the acquisitions and investments we have made are putting us in a strong position to continue to further grow and diversify our business and deliver sustainable returns for our shareholders over time.”

PTSB, in which Irish taxpayers hold a 57.4 per cent stake, rebranded from Permanent TSB in October last year.

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