Permanent TSB has reiterated that it intends to have compensation paid to all of its 1,971 customers who were affected by the tracker mortgage issue before the end of the year.

In a trading update, Permanent TSB said that 1,448 of these impacted customers have now been fully redressed and compensated.

The bank said it continues to review the provision associated with the Central Bank's independent assessment into the tracker mortgage issue. "At present, we believe it remains appropriate," it added.

The bank has set aside €145m to compensate affected customers. 

Permanent TSB also said in today's update for the nine months to the end of September that it is trading in line with expectations.

The lender said its residential mortgage lending is up 65% over the nine months to the end of September.

This is twice the rate of growth for the market as a whole and means that PTSB is increasing its share of new home loans. It said its market share of mortgage drawdowns increased to 11.9%.

It also noted that consumer and SME lending rose by 56% - albeit from a low base.

During the first nine months of the year, PTSB said that over 30,000 new current accounts were opened, an increase of 16% on the same time last year.

The bank said that its non-performing loans continued to reduce during the third quarter of the year, mainly due to an improvement in new defaults and favourable "cure" trends.

It said it expects this trend to continue for the rest of the year. 

Permanent TSB said its net interest margin - a key indicator of profitability - rose by two basis points to 1.83% from 1.81% in the first half of the year as a result of the continued reductions in the cost of funds.

The bank said its operating costs were in line with expectations as it continues to focus on "tight cost management".