Permanent TSB said total income would likely be higher this year than previously forecast. Photograph: Bryan O'Brien / THE IRISH TIMESPermanent TSB said total income for 2023 should grow 65 per cent amid ongoing central bank rate hikes and the bank increasing its share of mortgage lending, even as the overall home loan market is showing signs of slowing.
The bank now sees its total income coming to €650 million, some €30 million, or 5 per cent higher than previously guided, as European Central Bank rates have risen more than previously assumed. PTSB sees the official deposit rate ending the year at its current 3.75 per cent level, but up from 2 per cent at the end of 2022.
PTSB’s costs are expected to fall below 65 per cent of income this year compared to its prior forecast of below 70 per cent. Its medium-term goal is to reduce the ratio to about 50 per cent, which is widely seen as a key goal for retail banks internationally. The group’s loan book increased by 42 per cent year-on-year to €21.1 billion as of the end of June, as the group gradually took over €6.25 billion of mortgage and small business loans from Ulster Bank as the latter retreated from the Irish market. A final batch of €500 million of asset finance loans transferred last month.