Permanent TSB may absorb initial ECB rate hikes - CEO

Permanent TSB may choose to absorb the first two rounds of European Central Bank interest rate hikes and not increase its own mortgage pricing in a bid to grow its market share, the bank's chief executive said today.

"I think it's fair to say that Irish banks given their liquid position and given where they are can withstand for a portion of time some of those interest rate increases," Eamonn Crowley told reporters after the company's EGM today in Dublin. Eamonn Crowley said the bank estimates it would make a €40m gain from a 50 basis point rate hike as it would no longer be charged for holding excess cash and its stock of mortgages that track the ECB rate would automatically reprice.He added that he expects the Irish mortgage market to keep growing through the current cost of living crunch due to the demand for loans far outstripping housing supply.

They will be contacted in advance of their loans transferring with further information in the coming months, the lender stated. The bank CEO said that Permanent TSB will continue to engage with regulatory and competition authorities on getting the necessary approvals from them.

Source: News Formal (newsformal.com)

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