September 26, 2021

MP Now News

Mortgage News

PTSB mortgage market share rises to 17.9% in Q1

Permanent TSB On Wednesday, the company announced that its share of the Irish mortgage market rose to 17.9 percent in the first quarter of the year as new lending tightened from the same period last year, which was hit by the initial shock of the Covid-19 crisis have.

The bank’s new mortgage loans rose by 30 percent to 400 million euros in the reporting year, outperforming the broader market, which grew by 7 percent, according to a trade statement. The bank was responsible for 15.3 percent of the drawdowns last year.

“While the mortgage market is in Ireland A growth of 13 percent from EUR 8.4 billion in 2020 to EUR 9.5 billion in 2021 is expected. It remains competitive, ”it said, adding that“ pricing discipline and credit underwriting standards ”will continue to be meticulously.

The increased market share comes at a time when PTSB is in talks to acquire a large portion of the Ulster The bank’s loan book as a unit based in the UK NatWest Group prepares to withdraw from the market. Analysts estimate that PTSB will end up acquiring around EUR 9 billion in mortgages and small business loans out of Ulster Bank’s total portfolio of EUR 19.8 billion. SHAME is also in talks to acquire EUR 4 billion of the outgoing bank’s corporate and business loans.

Negotiations with NatWest to acquire certain aspects of Ulster Bank’s retail and SME business are ongoing. Until the conclusion of these negotiations, there can be no certainty as to whether or under what conditions an acquisition will take place, ”said Eamonn Crowley, CEO of PTSB. “Any settlement must provide security and clarity for associated customers and employees, support Permanent TSB’s overall business position, and add value to our shareholders.”

Separately, KBC Bank Ireland announced last month that the company plans to exit the market by selling most of its EUR 10.3 billion loan book to Bank of Irelandfurther effects on competition in the mortgage market. Still, a number of non-bank lenders have come into the market in recent years, including Dilosk, Finance Ireland and Avant Money, which are owned by the Spanish group Bank inter.


PTSB’s non-performing loans (NPL) stood at EUR 1.1 billion at the end of March, which is the same as at the end of last year. Analysts expect banks’ NPL ratios to rise later this year due to the coronavirus crisis.

Of those borrowers who suffered disruptions last year, 5 percent of their $ 100 million loans continued to be lenient, leading their loans to be classified as the highest risk of credit loss. The bank estimates an additional 4 percent of expired mortgage customers will need additional help and loan restructuring.

The bank’s core capital ratio, a measure of a lender’s financial reserves to withstand a shock loss, rose 0.5 percentage points to 15.6 percent.

The bank’s net interest income decreased by 10 percent in the first quarter of 2021 compared to the same period in the previous year. This reflects lower income following the sale of € 1.4 billion in mainly interest-linked purchase and rental mortgages. Lower interest income for bonds held in the Treasury division, as bond interest rates remain extremely low internationally.

Fees and commission income are lower year-over-year as the re-entry into Level 5 restrictions in January impacted transaction activity. Since then, however, fees and commissions have returned to pre-Covid-19 levels.