Permanent TSB has reported a 3% increase in total operating income for the first nine months of this year and said it was seeing good momentum in its new lending pipeline.
In a trading statement, the bank said its share of new mortgage lending increased in the third quarter to 16.3% from 13.5% for the six months to June as customers responded to its "significant" rate reductions.
It said there is also a strong pipeline of new business which suggests this will continue into the end of the year.
PTSB said today it was seeing strong momentum in its Business Banking area with new SME lending up about 25% compared to the same time last year. New lending in its asset finance business also doing well and slightly ahead of plan.
Meanwhile customer deposits rose by €0.8 billion, or 3%, since December 2023 and was 5% higher compared to the first nine months of 2023.
PTSB said its Net Interest Income for the first nine months is about 1% higher on last year as higher average earning assets offset some margin erosion.
The lender noted that liquid assets are higher this year while average loans incorporate a full nine months of the Ulster Bank asset finance business which was bought in July 2023.
Its Net Interest Margin (NIM) was 2.23% for the first nine months, eight basis points lower than the same time last year and compares with 2.27% in the first half of 2024.
It said this reflects higher term deposit costs and a reduction in it fixed mortgage rates announced in May.
PTSB said that both its total and underlying operating expenses grew by about 17% in the first nine months, down from 20% in the first half.
"As previously guided, total operating expenses are on track to grow by a mid-single digit percentage for the year. Factors contributing to the projected slowdown in the fourth quarter arelower regulatory charges and the recognition of the bank levy earlier in the year," the bank said.
Permanent TSB's chief executive Eamonn Crowley said the bank continued to deliver a robust business and financial performance in the third quarter, with strong momentum in its new lending pipeline.
"Both new and existing customers are responding positively to our attractive and competitive product offering, as our share of the new mortgage lending market grew to 16.3%. We are also demonstrating good progress as we grow and diversify our business with new SME lending within business banking increasing 25% year on year," the CEO said.
"We had a step change in scale and profitability last year and as we continue embedding our new business lines, we remain focused on creating efficiencies that will ensure we deliver for our colleagues, customers and shareholders in the most optimal, sustainable and cost-effective way," he said.
"The Irish market remains extremely attractive and with strong capital and liquidity positions, we are well positioned to achieve our ambition of being Ireland's best personal and business bank through exceptional customer experiences," he added.
Shares in the bank reversed their earlier gains in Dublin trade to stand lower this afternoon.
