May 10, 2017 / 7:09 AM / 2 months ago

Ireland's PTSB gets mortgage market share back on track

2 Min Read

DUBLIN, May 10 (Reuters) - Permanent tsb (PTSB) increased its share of Ireland's fast recovering mortgage market to 10.4 percent in the first quarter, moving it back towards the level targeted in its initial public offering (IPO) two years ago.

PTSB had told investors it would aim to capture 13 to 17 percent of new mortgage lending by 2018 when the government sold an initial 25 percent of the majority state-owned bank, but its share had remained below double-digit territory.

The smallest of Ireland's three remaining domestically owned banks said on Wednesday that its new mortgage lending grew by 63 percent year-on-year, outperforming 40 percent growth across the market in the European Union's fastest growing economy.

The mortgage lender lagged the market last year when its new lending grew 14 percent year-on-year having grown by just 2 percent during 2015. But chief executive Jeremy Masding said in March that the trends he was seeing were "really positive".

The bank's net interest margin, which shows how profitable its lending is, rose to 1.80 percent from 1.59 percent at the end of 2016 while its core tier one capital ratio, a key measure of financial strength, inched up to 15.1 percent from 14.9 percent.

Shares in the bank were 3.9 percent higher at 2.70 euros by 0705 GMT.

"This is a very good trading update and suggests we may have reached an inflection point on PTSB's market share and that the bank may have meaningfully reengaged on new customer acquisition," Owen Callan, analyst at Investec Ireland, said.

"It is possible that PTSB has finally reached a turning point with momentum building to the upside on key operational performance metrics."

Reporting by Padraic Halpin. Editing by Jane Merriman

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