Permanent TSB has said its total new lending volumes rose by 25% in the first quarter of 2019, as it continues to trade in line with expectations.

In a trading update for the three months to the end of March, the bank said that new mortgage lending grew by 19%, outperforming market growth of 11%. 

Permanent TSB noted that while the mortgage market here continues to grow steadily, it remains competitive. 

Permanent TSB, which is still 75% owned by the state, has a 15.1% share of the residential mortgage market. 

The bank said its non-performing loans reduced in the first quarter of the year mainly due to cures and reduced default flows. It said it expects this trend to continue for the rest of the year. 

Permanent TSB said it is "committed" to reducing the NPL ratio to mid-single digits in the medium term and according to regulatory guidelines. 

The bank completed two controversial loan sales - Projects Glas and Glenbeigh - which related to more than 16,000 mortgages last year.

At the end of March, the bank said it had 960 properties in its possession, with 200 for sale. It said it expects to sell most of these properties over the next 12 months.

It also said that its net interest margin - the difference between the average rate at which it funds itself and lends on to customers - was stable at 1.79%. It said it expects it to remain that way for the rest of the year.