Danske Bank in Northern Ireland reported a pre-tax profit of £107m for the nine months to the end of September 2015.
This represents a significant improvement compared to the same period last year and continues the Bank’s upward profitability trajectory over the last number of years. The outcome reflects a combination of improved revenue performance, ongoing cost control and impairment recoveries.
Income growth of six per cent year on year reflects growth in both lending and deposits, alongside reductions in the Bank’s funding costs. The Bank’s ability to continue to support increased new lending is demonstrated by an overall loan to deposit ratio of 80 per cent at September 2015. The year on year reduction in expenses reflects a combination of recurring efficiencies achieved and non-recurring cost reductions.
The Bank reports a credit in loan impairments resulting from a number of factors including continuing recovery in the property market and improved trading performance in the Bank’s business customer base. This credit exceeds any new and increased charges in respect of impaired loans resulting in a net recovery of £38m for the year to date.
Danske Bank UK CEO Gerry Mallon said: “We have continued to make good progress in quarter three, resulting in a healthy £107 million profit for the first nine months of 2015. The performance of the Bank continues to improve, income is up on the same period last year and we continue to focus on reducing our underlying operating costs. We serve our customers in what is still a recovering economy – but it is an improving picture, with businesses and consumers gaining more confidence to borrow and invest. As the economy continues to grow we will continue to have both the appetite and the capacity to meet this expected increase in demand for support.”