Permanent TSB has recorded a pretax loss of €166m for 2020, with its annual results also showing a jump of €80m in non-performing loans and a 4% decline in net interest income. 

New lending amounted to €1.4 billion, 15% down on 2019, but the bank saw mortgage applications increase to market share of 14.5%. Most of the growth was in the second half of the year.

The results were depressed by exceptional costs arising from a job-shedding plan to cut staff numbers by 300, costing €31m, and net deleveraging costs of €25m. Operating costs fell only by €1m but would have fallen further if not for €5m worth of Covid-19 costs, the bank stated.

PTSB also recorded a net impairment charge of €155m, which it said “reflects a prudent approach to the current macro-economic environment”.

Chief executive Eamonn Crowley said: “While 2020 was a loss making year for the bank, the second half of the year saw the bank increase its new lending volumes and transactional activity as the economy began to reopen. Our active mortgage offer pipeline is at a strong level and positions us well to continue our strong performance into 2021.

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“Despite the challenges that 2020 brought, I am confident that the bank is in a strong position to make the most of the opportunities that will arise in the post-pandemic recovery phase.

“We have ambitious plans to grow our position in the retail and SME markets in Ireland and support customers and communities across the country. The bank is in early discussions with NatWest in relation to acquiring certain elements of the Ulster Bank businesses in the Republic of Ireland. This includes certain retail and SME assets, liabilities and operations.”

The bank extended mortgage payment breaks to customers during the year to alleviate temporary financial pressures arising from the pandemic, on a loan total of €1.6 billion or 10% of its total mortgage lending. All but one per cent of the breaks have now expired, with just 103 borrowers still on a break.

Photo: Eamonn Crowley (left) with McCann, interim chief financial officer. (Pic: Andres Poveda)