Irish PTSB reports underlying loss as costs offset loan growth

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DUBLIN, July 27 (Reuters) – Ireland’s permanent tsb (PTSB) (IL0A.I) reported an underlying loss of 2 million euros ($2 million) in the first half as operating expenses rose offsetting a 22% increase in new loans. that he expects it to continue until 2022.

PTSB, which is set to become a much bigger player in the declining Irish market after winning competition approval last week to buy 7.5 billion euros in loans from NatWest (NWG.L), reduced its loss by 4 billion euros a year ago.

After new loans reached €1 billion, PTSB said it had a strong pipeline of business across all core product lines and demand remained strong. Its share of Ireland’s fast-growing mortgage market fell to 16.3% from 17.5% a year ago.

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It now expects operating costs for 2022 to rise 14% year-on-year, higher than a previous forecast of 12% due to accelerating investment in its digital offering and inflationary pressures.

The bank remains committed to achieving underlying cost savings over the medium term, she added.

PTSB, which said it did not plan to pass on a 50 basis point rate hike from the European Central Bank to fixed and variable rate mortgage customers, said Wednesday that the automatic hike for customers whose mortgages following the ECB rate would add 28 million euros in interest. income on an annualized basis.

Analysts at Davy Stockbrokers, who had forecast underlying profit of 9 million euros for the period, said the results nonetheless represented strong operating profit and expect PTSB to deliver sustainable returns in the years to come. coming.

($1 = 0.9866 euros)

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Reporting by Padraic Halpin Editing by Mark Potter

Our standards: The Thomson Reuters Trust Principles.

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