First-half performance a
‘major turning point’, says
chief executive
Permanent TSB, which is still
majority-owned by the State,
has reported its first after-tax
profit since 2007 for the first
half of 2016. The bank said
after-tax profit of €80m
compared with a €140m loss in
the same period last year.
Chief executive Jeremy
Masding said the performance
– which he described as a
“major turning point” – was
helped by the Irish economy’s
strong performance, but he
warned that Britain’s vote to
leave the EU would clearly have
an impact on the economy over
the medium-term.
The bank’s net interest margin
increased from 1 per cent to
1.43 per cent, as funding costs
fell and deposit rates for
customers were also reduced.
Net interest income jumped by
18.6 per cent to €198m. There
was a €26m gain from the sale
of a share in Visa Europe.
Non-performing loans were
€6.2 billion, down from €6.6
billion at the end of 2015,
helped by what Permanent TSB
called “ongoing progress with
resolution strategies” for
customers in financial
difficulty. In the first-half there
was an impairment write-back
of €61m, helped by mortgage
resolution measures, though
Permanent TSB said it expected
an impairment charge in the
second half.
There was a 4 per cent increase
in new mortgage lending to
€211m. But Masding said some
institutional shareholders in
the bank had expressed
concern about the desire of
some politicians and
commentators to influence
pricing decisions in the
mortgage market.