PTSB said its underlying pretax profit rose 34 per cent to €68 million in the first half of the year, driven by growth in loans and customers rolling off higher-earning deposit accounts and cheap fixed-rate mortgages. The bank’s gross loans grew by 4 per cent to €22.9 billion on the same period last year, it said on Wednesday. Its net interest margin (NIM) – the difference between the average rates at which the bank funds itself and lends to customers – widened to 2.13 per cent from 2.02 per cent a year earlier. The increase in NIM reflects the impact of lower interest rates across deposits, particularly its term accounts as these matured. In addition, it continued to benefit from a roll-over of maturing fixed-rate mortgages on to higher prevailing rates, it said. The results come on the eve of shareholders gathering in Dublin for an extraordinary general meeting (egm) vote the bank’s plan to sell itself to Austrian banking group Bawag for €1.62 billion. The deal is structured as a scheme of arrangement, overseen by the High Court, which requires at least 75 per cent approval from voting shareholders. The Government’s 57.5 per cent stake, pledged to vote for the sale, carries extra weight when considered against the fact that more than a fifth of shareholders haven’t bothered to vote at its annual general meetings in recent years.However, the court could yet rule that the transaction requires separate approval from minority shareholders – even if the bank is said to have robust legal advice that only one vote is necessary. Some minority shareholders and analysts have criticised the deal as selling PTSB on the cheap, especially since European banking stocks have jumped in since the sale process started in late October, with Bawag among the leaders of the surge. “The PTSB board’s decision followed a thorough evaluation of value, certainty, stakeholder considerations, and long-term strategic fit,” said PTSB chief executive Eamonn Crowley on Wednesday. “We look forward to engaging with shareholders at the scheme meeting and egm on July 30th where shareholders will have the opportunity to consider and vote on the board recommended offer.”Net profit for the first half jumped to €42 million from €15 million a year earlier, which was also driven by costs for voluntary redundancies dropping to €11 million from €19 million. The bank’s cost-to-income ratio fell 5 percentage points to 71 per cent. Still, AIB and Bank of Ireland reported annual cost ratios of 44 per cent and 49 per cent respectively last year, while Bawag’s was 36.1 per cent. The Austrian group is expected to accelerate cost cutting once it takes over. While it is seen reducing PTSB’s 3,000-strong workforce in the near term, it has promised to “engage constructively with employee representatives and follow applicable information and consultation obligations in respect of any organisational changes”.