Permanent TSB has said it continues to trade in line with expectations. 

In an interim management statement for the six months to the end of September, the lender said that it remains on track to reach its guidance on second half operating expenses and impairments.

The bank said its Net Interest Margin is also expected to be marginally higher than its previous guidance for the second half as a result of the sale of the residual non-core UK assets and a better third quarter performance.

But it also cautioned that challenges remain in the form of constrained housing supply in Ireland, increasing regulatory costs and any potential negative impact on the Irish economy resulting from Brexit.

In today's statement, Permanent TSB said that its new mortgage lending drawdowns increased by 12% on a year-on-year basis.

It also said its loan impairments were in line with its guidance and by the end of September were down by €0.3 billion compared to December 2015. 

Last month Permanent TSB agreed the sale of the residual non-core UK loan book and it said it expects the deal to be completed by the end of the year.

"The sale achieves our aim as set out at the time of our capital raise in 2015 of simplifying the group to focus on Irish retail and SME banking; as a consequence, the group will equal the Core Bank going forward," the bank said.

Shares in the bank moved higher in Dublin trade today.