(Alliance News) - Irish lender Permanent tsb Group Holdings PLC on Thursday reported a drop in profit in the first half but saw a sharp rise in new lending.
In the six months to June 30, Permanent tsb recorded pretax profit of EUR28 million, down 51% from the EUR57 million reported the year before.
The lender's net interest income fell 6.2% to EUR181 million from EUR193 million. Total operating income slipped 10% to EUR210 million from EUR234 million.
The lender ended the period with a net interest margin of 1.82% compared to 1.77% at the same point last year.
Permanent tsb's total loans at the end of the half stood at EUR15.81 billion, broadly flat on the year before.
"The bank continued to demonstrate strong business performance in the first half, outperforming the market for new lending and gaining market share with a range of competitive, customer-friendly products," said Chief Executive Jeremy Masding.
Permanent tsb's total new lending volumes increased 22% year on year to EUR700 million. The lender's market share of new mortgage lending in the half edged higher to 14.7% from 13.8% the year before.
Masding added: "The underlying business and franchise remain strong, and well-positioned to capitalise on market opportunities. We will continue to deliver sustainable shareholder value and fair customer outcomes, backed by a clear vision and strategy."
Permanent tsb ended the half with a CET1 ratio of 16.8% versus 14.7% the year before. The lender closed the period with EUR10.31 billion in risk-weighted assets compared to EUR11.99 billion.
The lender had EUR1.7 billion of non-performing loans, with its non-performing loan ratio unchanged at 10%. Permanent tsb said it remains committed to reducing the NPL ratio to mid-single digits in the medium term.
Shares in Permanent tsb Group were untraded Thursday but last closed at EUR1.20 each.
