Fewer businesses in the North are borrowing money to expand or invest because of the "stretched Brexit process", one of Northern Ireland's largest financial institutions has warned.
Danske Bank UK’s chief executive said business lending is “subdued” in the North because of the continued uncertainty surrounding the UK’s departure from the EU.
Kevin Kingston said lending applications are "below what we would expect in a more normalised trading environment" and instead firms in Northern Ireland are turning to Danske for "support, advice and guidance".
According to Danske, its larger business customers have been “delaying investment decisions” in the North.
Mr Kingston said: “In the short-term, the business community awaits much-needed clarity on what the Brexit journey will look like.
“However the reality is, whatever shape it takes, it will only be the beginning of a new operating environment, and the process of change will be a significant factor in everybody’s lives for many years to come.”
Danske Bank’s latest financial results for the nine months to the end of September, released on Friday, show the bank grew its overall lending position in Northern Ireland by three per cent year on year to £5,457 million.
The bank, which employs 1,500 people in the North, reported a pretax profit of £71.1 million – up from the corresponding period in 2018 of £67 million.
Danske’s exposure to bad loans fell during the first nine months of 2019 to £1.4 million compared to the same period in 2018 when it was £3.1 million.
The bank also highlighted that its total income of £175.5 million had “been maintained at 2018 level” despite what it described as the continued economic and political uncertainty.
Globally, Danske lowered its guidance for a second time since July in response to an increasingly tough business environment shaped by growing compliance costs and negative interest rates as it reported net income in the third quarter that missed analyst estimates. Denmark’s biggest bank is being investigated for money laundering across Europe and in the US.
