Posted on Thursday 30 October 2014 by Ulster Business
Danske Bank has notched up pre-tax profits of £81m for the first nine months of the year, according to its latest results.
That is a big improvement on the £1.4m it made during the same period last year and has been helped by a sharp reduction in loan impairments, money set aside to protect against expected bad debts.
Impairments stood at £41.2m in the first three quarters of 2013 while this year the bank managed to record a credit in loan impairments of £20.6m, "reflecting higher than expected repayments generated from the sale of property and other assets held as security against impaired loans".
Operating income rose 14% while increased new lending managed to offset the impact of loan repayments and recoveries.
"We've continued to make good progress in quarter three, resulting in a healthy £81 million profit for the first nine months of the year," Danske Bank UK CEO Gerry Mallon said. The results reflect the continuing trend of improving business performance combined with falling impairment charges and lower underlying costs."
"While we have the appetite and capacity to lend to new and existing customers,
the demand for lending is still somewhat subdued. As business confidence
continues to improve, we anticipate that businesses will start to invest more and
the economy will grow further.
"There are clear signs of price stability in the Northern Ireland housing market.
Our own surveys show that consumer confidence is at a six year high, while
businesses are slowly starting to invest again. Those trends, combined with our
focus on supporting and investing in our customers puts us in a strong position as
we finish the year."