‘Clarity much-neededon Brexit’ bank CEO

Danske Bank in Northern Ireland has reported an operating profit of £72.5m for the nine months to end September 2019.

Friday, 1st November 2019, 3:08 pm
Danske Bank UK CEO Kevin Kingston

Total income has been maintained at 2018 levels despite continued economic and political uncertainty.

Lending is 3% higher year-on-year, with retail customer activity levels remaining “satisfactory”.

New lending to businesses is impacted by Brexit, with some larger customers delaying investment decisions. Customer deposits grew by 5% year-on-year. Costs have been reduced by 2% compared to the same period last year, with the bank focused on managing its cost base while continuing to invest in improved solutions designed to ensure customer expectations are fully met, Danske Bank has stated.

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Profit before tax is 6% higher, reflecting reduced loan impairments compared to the same period last year.

Commenting on the results, Danske Bank UK CEO Kevin Kingston, said: “I am pleased to report an operating profit of £72.5 million for the first nine months of 2019. The underlying performance of the bank remains satisfactory, with lending up 3% year-on-year.

“In business banking, demand for lending continues to be subdued as a result of uncertainty around the stretched Brexit process. It is important to note that our capacity to support new business lending remains strong, but current demand levels are below what we would expect in a more normalised trading environment. There has been a notable uplift in requests for support, advice and guidance from our Business Banking relationship managers – these are conversations we encourage and value. The business community awaits much-needed clarity on what the Brexit journey will look like.”