Permanent TSB says the proportion of non-performing loans on its books has reduced to below 7% following recent loan sales from a peak of 28%.

In a trading update for the nine months to the end of September, the bank said its non-performing loans reduced by 35% to €1.1 billion from €1.7 billion in June.

The lender said it remains committed to reducing its NPL ratio to a mid-single digit in the medium term.

In today's trading statement, Permanent TSB also said its business and financial performance continues in line with market expectations.

It said its total new lending volumes rose by 19% on an annual basis, while its market share of new mortgage lending rose to 15.5% from 14.7% at the end of June.

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

Personal lending rose by 14%, while SME lending also grew on an annual basis - but from a low base. 

Permanent TSB said its net interest margin - a key measure of bank profitability - stood at 1.82% at the end of September and it said it expects this to remain broadly unchanged from this level for the rest of the year. 

It said it remains confident that it is adequately capitalised for both profitable growth and delivery of the remaining stages of its NPL reduction strategy.

Last month Permanent TSB said that its chief executive, Jeremy Masding, will step down next year after eight years in the role.

The bank's board said it had has begun the process to select a new CEO in line with its established succession planning protocols.

Shares in the bank moved higher in Dublin trade today.