Irish Life and Permanent says arrears in its Irish residential mortgage book continue to rise but that the rate of growth has moderated.
In an interim management statement, the lender says that arrears cases over 90 days increased by 3% in both September and October compared to an average monthly increase of 8% to August.
Irish Life and Permanent said that bad debt charges for the second half of the year are expected to be broadly in line with the first half of 2009.
This is higher than the group had previously expected and is due to the increase in bad debts in commercial property, where values continue to decline.
Meanwhile, Permanent TSB says that after a very difficult start to the year, liquidity conditions have generally improved over recent months.
It said that dependence on money from the ECB has been greatly reduced and currently amounts to €7bn, down from €12bn from the end of June.
Lending continues to be weak in Permanent TSB's main areas - home mortgages and consumer finance. Advances for the full year will be about 80% lower than in 2008, it adds.
IL&P said it expects that 2009 will see the worst of the current economic downturn in Ireland, with GDP expected to fall by 7-8%.
It said the economic environment has affected the group with lower new business volumes and tighter margins across all businesses and, as expected in the banking business, rising impairments in its loan book.
