Pre-tax profit at Permanent TSB jumped by a third to €57m for the first six months of the year, when compared with the same period last year.
New lending at the bank saw a 50% increase to €585m, while PTSB's level of non-performing loans fell by €200m to €5.1 billion.
LISTEN: PTSB head says bank isn't putting profits ahead of customers
Permanent TSB's sales of its controversial Project Glas loan portfolio to Start Mortgages - an affiliate of the so-called vulture fund Lone Star - for around €1.3 billion in July is not reflected in the half-year results.
However, when this sale is completed - which is expected to be in the last three months of the year - PTSB's ratio of non-performing loans will fall by 9% to 16%.
The bank's share of the mortgage market rose by 1.2% to 13.8% in the first six months of the year.
Referencing the loan sale in the results, PTSB Chief Executive Jeremy Masding said the lender has made "significant progress in reducing the level of NPLs following the announcement of a €2.1 billion sale at the end of July.
"In addition, we continue to maintain capital levels comfortably above the required regulatory minimum which positions us well for investment, profitable growth and the continued reduction in NPLs over the medium term."
