Mortgages are the lifeblood of Irish banks, so the resumption of positive momentum in the mortgage market in February must have been welcome news for bank shareholders.
Shares in Bank of Ireland and AIB have been performing well since both published strong annual earnings in the last month. But while record-high interest rates drove a lot of passive profitability for both lenders last year, the higher cost of credit dampened demand for home loans and put a kink in the housing market.
So record profits came with a caveat: if housing transaction levels remain low, the optimistic forecasts for the big two might need some trimming.
The latest figures from Banking & Payments Federation Ireland provide some reassurance on that score.
Mortgage approvals bounced back