Dublin-listed lender, Permanent TSB Group Holdings, anticipates that its performance in 2023 will align closely with its previously stated guidance. The bank has reported a significant increase in net interest income and margin for the third quarter, primarily attributed to the higher interest-rate environment and growth in loan book volumes.
Impressive Financial Results
During the three months ending September 30, net interest income surged to 93% above the comparable quarter of the previous year. Furthermore, the net interest margin recorded a year-on-year increase of 92 basis points, reaching 2.31%.
The bank also highlighted that the performance of its net fees and commission income remained strong and on par with that of the previous year.
Steady Growth in Lending and Deposits
New lending reached €2.2 billion ($2.33 billion) by the end of the period, marking a 9% increase compared to the previous year. Additionally, customer deposits experienced a 9% growth, totaling €22.7 billion by September 30. However, the bank noted that the pace of deposit growth is slowing.
Solid Balance-Sheet Strength
At the end of the period, Permanent TSB Group Holdings’ fully loaded common equity Tier 1 ratio stood at 13.8%, compared to 15.2% at the close of 2022. This ratio serves as a key indicator of balance-sheet strength.
In August, Permanent TSB upgraded its guidance and now projects total income of €680 million for the year, with an expected underlying profit of approximately €180 million.