Permanent TSB has reported a pre-tax loss of €131 million for the first half of the year.

The figure is a considerable improvement on the €587 million loss reported for the same period in 2012.

The operating loss for the period, after impairments but before exceptional items, was €449 million. This compares with a figure of €457 million for the first six months of 2012.

The group's chief executive Jeremy Masding said it was "on track for the core 'Good Bank' to be profitable in the next 12 months".

“We’ve made great progress so far this year on winning new current accounts, lending new mortgages and agreeing long term solutions for customers in arrears and there are encouraging signs across the business,” he said.

Almost 30,000 new customers have signed up for current accounts so far this year, and €121 million in new mortgages have been approved.