PTSB's Irish mortgage market share jumps as rivals head for the exit

DUBLIN, May 5 (Reuters) - Permanent tsb (PTSB) in the first
quarter expanded its share of Ireland's fast growing mortgage
market to 17.9% from 15.3% in the previous quarter as it looks
to take advantage of rivals announcing plans to leave the
market.

The 75% state-owned lender said on Wednesday that its new
mortgage lending jumped by 30% versus 13% growth in the overall
market while it increased capital levels and kept non-performing
loans in line with the end of last year.

Ireland's market is set to shrink to just three retail banks
after NatWest announced in February that it would wind
down its Ulster Bank unit and Belgium's KBC said last
month it was exploring the sale of the bulk of its Irish assets.

Each bank had a share of the mortgage market just below
PTSB's at the end of last year and their exit will leave the
mortgage lender competing with the dominant Bank of Ireland
and Allied Irish Banks

PTSB is also in early talks with NatWest to purchase
mortgage and small- and medium-size business loans, branches and
customer deposits and said on Wednesday that those discussions
continue.

It also said all the loan breaks it offered to customers at
the start of the pandemic had expired with 5% of those -
accounting for around 100 million euros in loans - requiring
further forbearance measures.

It anticipated that a further 4% would likely require
additional help.

"New lending continues to beat expectations, capital is
trending well ahead of forecast and asset quality remains robust
– all pointing to a strong start to 2021, with good momentum
across the business," Davy Stockbrokers analyst Diarmaid
Sheridan wrote in a note.

"New lending opportunities are increasing for PTSB, arising
from the exits of Ulster Bank and KBC - and setting aside the
potential acquisition from Ulster Bank - and therefore further
upside potential exists."
(Reporting by Padraic Halpin; editing by Jason Neely)