Permanent TSB said today that new lending volumes and banking income were both higher in the first quarter of 2022 compared to the same time last year, while the bank has a strong pipeline of activity.
In a trading update, Permanent TSB said that although the economic consequences of the war in Ukraine have tempered the post-pandemic recovery, the fundamentals of the Irish economy remain robust and its outlook remains promising.
PTSB said it was making good progress in its preparation to "transform" the bank with the purchase of Ulster Bank's non-tracker mortgages, SME loans and the Lombard Asset Finance business.
It said the number of new current account openings in the first quarter jumped over 170% compared to this time last year and is 67% higher than the last three months of 2021 as customers from the departing Ulster Bank and KBC Bank Ireland seek a new bank.
It noted that its digital current account - which allows new customers to open a current account in less than ten minutes - is proving to be extremely popular.
The lender said its new mortgage lending of €0.4 billion grew by 11% on an annual basis.
But its market share of mortgage drawdowns fell to 17% from 17.9% the same time last year.
The bank said the mortgage market in Ireland is estimated to grow 15% from €10.5 billion in 2021 to about €12.1 billion this year, adding that it remains highly competitive.
PTSB said its net interest income was broadly in line with last year.
But its gross interest income was slightly lower after the sale of the non-performing loans porfolio - known as Glenbeigh III - in the fourth quarter of 2021 along with incurring costs on holding higher levels of excess liquidity, while the cost of deposits reduced on last year.
It noted that its fees and commission income performance was strong so far this year - rising by 25% compared to last year - as transactional activity has recovered to pre-Covid levels.
Customer deposits of €19.4 billion at the end of March are €0.3 billion higher than 31 December 2021, reflecting an increase in current accounts to €7.4 billion.
Its non-performing loans (NPLs) of €0.8 billion at the end of the first quarter remain in line with balances reported at the end of 2021 and its NPL ratio remains at 5.5%
The bank said its loan to deposit ratio of 74% at the end of March 2022 provides it with a strong liquidity position and significant potential to lend as it expands its franchise.
Permanent TSB said its operating expenses are higher than in 2021 - in line with management expectations - with outlook for costs in 2022 projected to be about 12% higher as it invests to attract and support the moving of customers from banks who are exiting the Irish market - Ulster Bank and KCB Bank Ireland.
The bank has also agreed a two year pay deal based on a 6.5% pay increase for its workers.
"We remain focussed on our ambition of becoming Ireland's best personal and small business bank. As an Irish brand with people and community at the heart of our approach, we are very confident in our ability to continue to grow and provide real choice and value for customers in the Irish market, " commented Eamonn Crowley, Permanent TSB's chief executive.
