LONDON (Alliance News) - Irish personal finance services firm Permanent TSB Group Holdings PLC said Thursday its total new lending in the recent quarter was sharply up on the year before as it continued to offload its non-performing loans.
Permanent TSB's total new lending in the first quarter of 2019 was EUR300 million, up 25% on the year before.
Permanent TSB's new mortgage lending increased 19% in the three months to the end of March, outperforming market growth of 11%. As a result, the lender's market share of drawdowns at the end of the quarter was 15%.
"Whilst the mortgage market in Ireland continues to grow steadily, it remains competitive. We continue to manage our offering carefully by maintaining price discipline and credit underwriting standards," the company said.
Personal lending increased 17%, with the company's lending through digital channels up 74% year-on-year.
The lender's net interest margin in the quarter was 1.79%, 1 basis point higher than in 2018. Permanent TSB expects its margins to remain stable through 2019.
Permanent TSB said its net interest income from its performing loan book was stable, partly offset by reduced income from non-performing loans sales in 2018. The lender said its total performing loan amount at the end of the quarter was broadly in line with the total at the end of 2018.
Permanent TSB reduced its non-performing loans in the first quarter, a trend the company expects to continue throughout 2019.
"The bank continues to manage the remainder of the non-performing loans portfolio and is committed to reducing the non-performing loans ratio to mid-single digits in the medium term, as per regulatory guidelines whilst protecting capital," the company said.
The lender's customer deposits at March 31 of EUR17.2 billion was EUR200 million higher than on December 31, with current account balances up 3% from December 2018. The company's loan to deposit ratio was 98% at the end of March.
The lender's proforma CET1 ratio at the end of quarter stood at 14.3% compared to 14.0% at the end of December.
Permanent TSB said its operating costs in the period were in line with expectations. "We continue to focus on delivering cost saving initiatives to allow for investment; in addition, the full year bank levy and regulatory charges are expected to be in line with the prior year," the lender added.
Shares in Permanent TSB were up 0.9% Thursday at EUR1.41 each.
