Permanent TSB (PTSB) said on Tuesday that its new lending grew by 11 per cent to €500 million in the first three months of the year, with the economy remaining "robust" even though the war in Ukraine has "tempered the post-pandemic recovery".
New mortgage lending grew at the same pace, to €400 million, giving the bank a 17 per cent market share of drawdowns during the period – albeit slightly below the 17.9 per cent share of activity recorded for the same period in 2021.
“The mortgage market in Ireland is estimated to grow 15 per cent from €10.5 billion in 2021 to circa €12.1 billion in 2022, and it remains highly competitive. We continue to manage our offering carefully, by maintaining price discipline and credit underwriting standards,” the bank said in a trading statement.
Pay increase
PTSB said that it has agreed a 6.5 per cent pay increase over two years for employees, amid soaring inflation in the economy.
“We believe that this deal is competitive and will be effective in attracting, retaining and motivating talented colleagues to enable us honour our commitments to customers and all other stakeholders as we build a sustainable bank into the future,” it said. “The bank continues to manage its cost base tightly while investing in our people and infrastructure to ensure we are adequately prepared to meet the needs of our rapidly growing customer base.”
PTSB agreed last year to buy an estimated €6.8 billion of mortgages and small business loans from Ulster Bank, as the latter exits the market. The deal, which remains subject to approval from competition authorities, would grow PTSB's loan book by over 40 per cent.
PTSB's chief executive, Eamonn Crowley, said that the bank was "making good progress" in its preparation for the migration of Ulster Bank loans.
