Upbeat Permanent TSB eyes further lending growth in fourth quarter

(Alliance News) - Permanent TSB Group Holdings PLC on Tuesday said lower interest rates helped ...

Alliance News 29 October, 2024 | 11:00AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Permanent TSB Group Holdings PLC on Tuesday said lower interest rates helped its share of new mortgage lending to climb sharply in the third quarter.

Permanent TSB, formerly Irish Life & Permanent PLC, is a provider of personal financial services, based in Dublin. It operates from 78 branches in the Republic of Ireland.

The lender said its new business mortgage market share in Ireland of 16.3% in the third quarter compares to 13.5% for the six months to June.

This came as customers responded to the "significant rate reductions" announced by the bank, it said, while a "strong pipeline" of new business suggests this will continue into year end.

Permanent TSB also reported strong momentum in its Business Banking area with new small and medium sized lending up around 25% on-year, and new lending in its asset finance business also doing well and slightly ahead of plan.

Overall, customer deposits have increased by around 5% since December 2023.

Total operating income for the first nine months of 2024 was up around 3% year-on-year with net interest income around 1% higher, the bank said.

The net interest margin of 2.23% for the first nine months, was eight basis points lower on-year, Permanent TSB added. This reflects higher term deposit costs and a reduction in fixed mortgage rates announced in May.

Total and underlying operating expenses grew by around 17% from a year prior, slowing from 20% growth in the first half and in line with management expectations

"As previously guided, total operating expenses are on track to grow by a mid-single digit percentage for the year. Factors contributing to the projected slowdown in the fourth quarter are lower regulatory charges and the recognition of the bank levy earlier in the year," the firm stated.

The bank said it maintained a strong capital position with a CET1 capital ratio of 14.8% on a pro-forma basis.

"Economic conditions in Ireland are very supportive of our business and asset quality remains strong," Permanent TSB added.

"Overall business levels remain encouraging, and the bank expects new lending to increase further in the fourth quarter reflecting our strong pipeline of applications".

The company expects 2024 total income broadly unchanged on-year with NIM of around 220 basis points. Total operating costs are expected to rise by a mid single digit percentage.

Shares in Permanent TSB rose 5.5% to EUR1.63 in London on Tuesday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Permanent TSB Group Holdings PLC 1.58 EUR 2.94 -
Permanent TSB Group Holdings PLC 1.55 EUR 6.90 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures