Permanent TSB (PTSB) has reported a solid start to 2026, with the bank highlighting revenue growth, stable credit performance and continued expansion across its lending business in its latest trading update ahead of its annual general meeting in Dublin.
In its first-quarter statement, the bank said total operating income increased by 10% compared with the same period last year, supported by higher interest income and improved lending margins. Its net interest margin rose to 2.13%, up from 2.03% a year earlier, reflecting improved profitability in its core banking operations.
The bank also reported growth in its overall lending portfolio. Total gross customer loans reached €22.7 billion at the end of March 2026, marking a 3% year-on-year increase. This was driven largely by continued expansion in its core mortgage book, which also grew by 3% over the period.
PTSB said its share of new mortgage lending stood at around 19% in the first quarter. It expects this figure to move closer to 20% in the coming months, supported by a strong pipeline of applications.
Diversification across business lines also contributed to growth. New lending in business banking rose by 18%, while new personal term lending doubled compared with the same period last year following a restructuring of its personal loan products. As a result, the business banking loan book expanded by 10%, and personal term lending increased by 25%.
Customer deposits stood at €25.6 billion at the end of March, representing 3% annual growth. The bank noted a slight increase in current account balances during the quarter, offset by a modest decline in corporate deposits.
Credit quality remained stable, with no impairment charge recorded in the first quarter. Non-performing loans were reported at 1.4% of gross loans, unchanged from December, although a small increase was recorded due to a revised definition of default. The bank said overall credit performance remained steady, with no indication of deterioration.
Chief executive Eamonn Crowley said the bank’s performance reflected higher margins and a stronger balance sheet. He also pointed to a reduction in the cost-to-income ratio, which fell to 72%, as evidence of improving efficiency.
PTSB said it continues to monitor global economic and geopolitical developments but stressed that it remains well capitalised and conservatively provisioned against potential risks.
The bank also confirmed progress on its strategic direction following the announcement of a recommended acquisition offer from BAWAG Group at 297 cents per share. Crowley said the proposed deal, subject to completion of a formal sale process, would support the next phase of growth and enhance the bank’s position within the Irish retail banking sector.
