Pre-tax profits at Danske Bank in Northern Ireland grew 12 per cent, year on year, in the first quarter of 2016 to £35 million, its latest financial results show.
The bank reported a “net reversal in loan impairments” which it said had been driven by the continuing recovery in the local property market and improved customer trading.
“This reversal exceeds any new and increased charges in respect of impaired loans resulting in a net recovery of £8.6 million for 2016 to date,” Danske Bank highlighted in its latest financial update.
At group level, Danske reported a net profit of Danish Kroner 4.9 billion for the quarter, the same level as a year earlier.
Since January 1st, Danske's business in Northern Ireland has operated as a separate unit. The Danish group has pulled out of retail banking south of the border and separate figures for the Republic are not published.
However, Terry Browne, country manager and head of corporate and institutional banking at Danske Bank Ireland, said: "In Ireland we have delivered strong performance in corporate and institutional banking in line with our expectations.
“A number of new business wins and continued work with some of Ireland’s leading corporate and institutional organisations underpins Danske Bank Ireland’s continued growth. This is being driven by our corporate and institutional division’s ever increasing financial advisory expertise and high quality technology based products.”
In Northern Ireland, the bank reported that both deposit and lending balances increased year on year in the first quarter of the year boosting total income by five per cent to £56.3 million.
Kevin Kingston, CEO, Danske Bank UK CEO, said the bank started the year with a strong set of objectives including an ambition to significantly grow its mortgage business.
“In quarter one a strong mortgage product offering and marketing campaign helped us to drive significant new mortgage business. New mortgage lending approvals for customers were up 170 per cent year-on-year.
“With regards to our small and medium sized business customers, new lending was up by 52 per cent year-on-year. As well as attracting new customers, it has been particularly pleasing to see many existing customers starting to once again invest in growing their businesses,” Mr Kingston added.
He said the bank is also continuing to see more activity in the wider property market and has been involved in funding a number of key deals locally in the first quarter including the sale of Bloomfield shopping centre in Bangor and a Lagan Homes NI project to build several hundred new homes.
“As consumer and business confidence continues to improve we expect demand for finance to increase further. We look forward to continuing to support customers and the wider economy in the year ahead,” Mr Kingston added.
