Danske Bank’s operations in the North reported a total loss of £92.1 million for 2012 but Gerry Mallon, head of Danske UK, said the latest set of results showed it was “firmly on track towards our goal of returning to profitability”.

In 2011 the bank reported full year losses of £216.6 million. Despite the improvement in its balance sheet last year the hangover from Northern Ireland’s short-lived property boom and the current depressed property market continued to wipe out any positive upsides for Danske in the North.

Although bad debt charges were 38 per cent lower than the previous year at £157 million they still swallowed the 69 per cent rise in profits from normal bank activity to £65 million during 2012.

The latest full-year results show Danske Bank’s total income increased in Northern Ireland by one per cent to £187 million.

Overall lending volumes fell in the North by 7 per cent year on year, which Danske said reflected lower levels of business activity in general in Northern Ireland.

The bank grew its mortgage balances by 3 per cent while its deposit balances were “broadly maintained” at 2011 levels.

According to Danske its deposit to loans ratio remains above 100 per cent and the bank’s solvency ratio stood at 21.4 per cent last December.