Irish PTSB Cuts First Half Losses, Lots of Mortgage Eligible Rises Strongly

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DUBLIN, 28 July. (Reuters) – Ireland cut its first-half loss to € 4 million ($ 4.72 million), recovering from a year-long hiatus due to COVID-19, and reported that the number of permitted mortgages increased significantly ahead of a large loan from one of his departing rivals.

UK-based NatWest agreed last week to sell assets, including € 7.6 billion in loans from its Ulster Bank division to PTSB. The move, which PTSB and analysts have called “the only opportunity for a generation” for a small bank.

The mortgage lender, which at the end of June had mainly mortgages of € 14 billion, recorded a major loss of € 54 million in the first six months of 2020, resulting in a loss of € 166 million for the full year.

This was mainly due to the fact that the bank allocated 155 million euros to cover possible losses on loans. The impairment loss for the first half of 2021 was only € 3 million.

The state-owned 75% PTSB increased its share of new mortgages to 17.5% from 15.2% a year earlier as it benefited from planned withdrawals from Ulster Bank and Belgian bank KBC.

It says that as the number of mortgage approvals also increased compared to the same period last year, leading to strong business development, new lending volumes are projected to be higher than 2020 and 2019 volumes this year.

The bank’s shares, which surged as much as 16% on Friday when it announced the NatWest deal, were up 3.5% at 07:45 GMT at € 1.50.

“Overall, the results are encouraging amid the main catalyst for the stock’s gains – significant upside potential from the potential acquisition of Ulster Bank assets,” Davy Stockbrokers analyst Diarmade Sheridan wrote in a note. ($ 1 = 0.8469 euros) (Report by Padraic Halpin, editing by Louise Havens)

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