More than 135,000 current and deposit accounts have been opened with Permanent TSB to date this year, the bank has said in a trading update for the third quarter.
The 100,000 new current accounts and 35,000 new deposit accounts represent annual increases of 250% and 80%, respectively, with 70% of new current account openings taking place online.
PTSB recorded new lending of €1.8bn during the first nine months of 2022, an improvement of 33% year-on-year, and said net interest income is ahead of expectations due to higher new lending and higher interest rates.
New mortgage lending rose 31% to €1.6bn, although the company's share of the mortgage market declined from 17.5% to 16.9%. PTSB said it has "significant momentum" moving into Q4 with the market expected to grow 32% this year.
The bank had a net interest margin of 1.39%, down 10 basis points from last year (1.49%) as a result of €9m costs incurred on holding excess liquidity as its has grown with acquisitions this year, with underlying net interest margin on 1.74%.
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PTSB expects net interest margin to increase to 1.5% for the full year as a result of its acquisition of Ulster Bank assets, while income from fees and commission has risen 28% this year due to higher transactional activity.
The outlook for net interest margin is favourable as costs associated with the low interest rate environment reduce, the bank said. Net interest income has risen 3% and gross interest income is up 4% due to increased lending and higher interest rates.
The bank has delivered a very strong business and financial performance year-to-date with significant momentum heading into the final quarter of the year," said Eamonn Crowley, CEO of PTSB.
"New lending volumes have increased 33% year-on-year to €1.8bn, driven by a very popular Green mortgage offering which is now accounting for approximately 25% of mortgage drawdowns, and we have a strong pipeline of activity across all of our key product lines.
"Whilst the macroeconomic environment remains uncertain, the Irish economy continues to out-perform in terms of growth and employment levels."
Operating costs of €271m were 13% higher year-on-year in line with expectations as PTSB absorbed Ulster Bank assets, and customer deposits of €20.8bn represent an increase of 9% or €1.7bn since December, with current account balances of €8.5bn.
The total performing loan book of €13.7bn was €300m more than at the end of December following the sale of €800m Glenbeigh IV buy-to-let portfolio.
The bank's stock of non-performing loans is €700m or €100m lower than in December, while PTSB's non-performing loan ratio is 4.8% of its total loan book, down from 5.5% at the end of 2021.
PTSB said in its outlook for the rest of the year that it expects a small impairment release and that exceptional items show a net gain of over €200m following the Ulster Bank mortgage purchase, offsetting transaction and other costs from deleveraging activity.
The Ulster Bank deal will also see PTSB's ratio of non-performing loans fall to 4% and add €180m in gross interest income, €40m in funding costs, and €50m in operating expenses.
"Earlier this week, the Bank announced the material completion of the acquisition of the performing non-tracker residential mortgage business of Ulster Bank Ireland DAC," Crowley added.
"This is a step-change for the bank as we grow our mortgage book by approximately 40%. Our imminent acquisitions of Ulster Bank's SME and Asset Finance businesses and 25 of its branches, will support the Bank in generating greater scale with more customers and becoming a much stronger competitive force in Irish retail banking."
Photo: Permanent TSB logo seen in Dublin during Level 5 Covid-19 lockdown.
On Saturday, 30 January, 2021, in Dublin, Ireland. (Pic: Artur Widak/NurPhoto via Getty Images)
