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PTSB’s Bold Move: Customers Flocking to Variable Mortgage Rates


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In a market dominated by fixed rate mortgages, Permanent TSB (PTSB) has made a bold move by attracting customers to variable rates. Despite starting at 4.3%, PTSB’s three-year fixed rates ranging from 4.55% to 5.1% have gained significant attention.

This shift in customer behavior reflects a growing desire for flexibility as fixed rate terms expire. With a strong financial performance, robust asset quality, and a customer-focused approach, PTSB is well-positioned to navigate the challenges of an evolving mortgage market while supporting its customers and stakeholders.

Customer Behavior: Switching to Variable Rates

A significant number of customers are opting to switch to variable mortgage rates when their fixed rate mortgage term ends. This trend is evident in the recent data from PTSB, which shows that fixed products accounted for only 3% of new mortgage lending this year.

The bank’s standard variable rate starts at 4.3%, while three-year fixed rates range from 4.55% to 5.1%. This shift in customer behavior is driven by the desire for more flexibility and the potential for lower interest rates in the future.

PTSB’s Financial Performance: Increased Lending and Deposits

PTSB’s financial performance has shown a notable increase in lending and deposits. To paint a picture of this performance, here are three key points:

  1. New lending has experienced a significant uptick, with a 9% increase in the first nine months of 2023. This growth reflects the bank’s ability to attract new borrowers and expand its lending portfolio.
  2. Customer deposits have also seen a positive trend, rising by €0.1 billion to reach €22.7 billion in the third quarter. This increase in deposits indicates a growing trust and confidence in PTSB among its customers.
  3. PTSB’s mortgage market share has expanded to 20.7% in the third quarter, highlighting the bank’s success in capturing a larger portion of the mortgage market. Additionally, new mortgage lending has grown by 11% year-on-year, further reinforcing PTSB’s solid financial performance.

Asset Quality and Capital Strength: Robust Position

The bank maintains a robust position in terms of asset quality and capital strength. PTSB’s asset quality remains solid, with non-performing loans standing at €0.7 billion at the end of September. There has been no notable deterioration in the asset quality of the bank’s loan book. Furthermore, PTSB’s capital remains strong, with the Common Equity Tier 1 (CET1) ratio meeting regulatory requirements. This indicates the bank’s ability to absorb losses and withstand financial stress. To provide a visual representation of PTSB’s asset quality and capital strength, the following table illustrates key figures:

Asset Quality Capital Strength
Non-Performing Loans CET1 Ratio
€0.7 billion Meets regulatory standards

PTSB’s robust asset quality and capital strength position them well to navigate challenges and continue supporting their customers, the Irish economy, and shareholders.

PTSB’s Brand Overhaul: Reflecting Growth Ambitions

How does PTSB’s brand overhaul reflect its growth ambitions?

  1. Reflecting larger scale and business diversification: The major overhaul of PTSB’s brand and business reflects the bank’s growth ambitions. The bank’s expansion and diversification efforts have resulted in a larger scale of operations, prompting the need for a rebranding to align with its new identity.
  2. Differentiating as a full-service, customer-focused bank: The brand overhaul aims to differentiate PTSB as a full-service bank that prioritizes customer satisfaction. By investing in a new brand name, PTSB, and customer promise, the bank intends to position itself as a trusted and customer-centric institution in the market.
  3. Delivering a better banking experience: The brand overhaul is part of PTSB’s strategy to deliver a superior banking experience for its customers. With a renewed focus on customer satisfaction, the bank aims to enhance its products, services, and overall customer journey, ultimately driving growth and loyalty among its customer base.

Future Outlook and Guidance: Supporting Customers and Economy

As PTSB looks to the future, its focus remains on supporting its customers and the Irish economy. Despite changes in mortgage customer rate choice and lower market growth, PTSB is well-positioned to continue providing assistance to its customers.

The bank’s asset quality continues to perform well, with no notable deterioration in its loan book. In addition, PTSB’s capital remains strong, meeting regulatory requirements. However, the global macroeconomic environment remains volatile, which can pose potential challenges.

Nevertheless, PTSB’s guidance on key performance indicators for the rest of the year remains broadly in line with prior market communications. With its commitment to delivering a better banking experience and its robust financial position, PTSB is poised to support its customers, the Irish economy, and its shareholders.


In conclusion, PTSB’s decision to offer variable mortgage rates has proven successful as customers increasingly choose this option for its flexibility. This shift in customer behavior has contributed to the bank’s positive financial performance, with increased lending and deposits.

Moreover, PTSB’s strong asset quality and capital strength position it as a reliable institution. With a recent brand overhaul, PTSB is well-positioned to continue supporting its customers and stakeholders in the evolving mortgage market.

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Lisa is a skilled writer with a huge passion for journalism. With a talent for storytelling and a deep understanding of current events, she has quickly become a respected journalist in the industry. Lisa's articles are always well-written and thought-provoking, and she has a knack for finding the most interesting angles on any story. She is known for her ability to connect with her readers and engage them in the issues that matter most. Lisa is a dedicated journalist who is passionate about making a positive impact through her writing. When she's not working, Lisa enjoys hiking, yoga, and spending time with her loved ones.

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