• New mortgage lending up 35% year-on-year
  • Profit before impairments up 11% year-on-year
Index 17/16
Total income 56.6 55.8 102
Expenses -34.3 -35.5 96
Profit before loan impairment charges 22.4 20.2 111
Loan impairments -7.3 -7.1
Profit before tax 15.1 27.3 55
Loans (end of period) 5,115m 4,675m 109
Deposits (end of period) 6,663m 6,268m 106

Danske Bank in Northern Ireland reports a profit before impairments of £22.4m for the first quarter of 2018.

Lending is 9% higher year-on-year and deposits grew by 6%.

Total income is 2% higher reflecting the growth in lending and deposits, and higher UK interest rates partially offset by lower fee income following the sale of the Bank’s wealth business in 2017.

Restructuring initiatives completed in 2017 have enabled increased investment in new technology and customer solutions, whilst also supporting a net reduction in operating costs.

The combination of higher income and lower costs delivered an 11% increase in profit before impairment charges.

Impairment charges are higher year-on-year, reflecting losses compared to the net recoveries reported in recent years.

Danske Bank continues to have capacity to support further lending growth as demonstrated by a loan to deposit ratio of 77% as at March 2018.

Commenting on the results, Danske Bank UK CEO Kevin Kingston, said:

“I am pleased to report an operating profit of £22.4 million for the first quarter of 2018. The underlying performance of the bank continues to be strong, with lending up 9% year-on-year.

“In Personal Banking, we have seen a 35% uplift in new mortgage lending compared to the same period last year. We have more mortgage consultants based in Northern Ireland than any other bank, and have also invested in the creation of a new team of relationship managers dedicated to serving the independent mortgage broker network.

“Our mortgage product proposition is strong, and will be further improved in the coming weeks with the introduction of a very competitive remortgage offer to encourage more switchers.

“Lending in Business Banking is up 4% year-on-year, as we continue to further strengthen our leading market share in the Corporate and Business segment. Notable corporate deals have included funding support for SHS Group’s acquisition of 3V Natural Foods and support for the expansion of Weavers Court Business Park in Belfast - helping to create an additional 40,000 square foot of Grade A office space.

“The digital transformation agenda at Danske Bank also continues at pace. In March 2018 we became the first local bank to provide Samsung Pay for customers, and also the first bank in the UK to make Garmin Pay available.

“We are currently building an exciting new mobile banking App, and we aim to have it ready for all customers in the coming months. It will include touch and face ID for logon, improved navigation options and be set up for the addition of regular new features to improve customer experience. It will also be configured to allow customers to view accounts held in other banks, which is expected to become increasingly popular as a result of Open Banking.

“Our ambition is to be known as the best multi-channel bank, providing customers with many ways to bank with us. The onus is then on the customer to choose what suits them best - be that our digital channels, face-to-face or by telephone.

“As the biggest bank in Northern Ireland we look forward to making more possible for customers and supporting the wider economy in the year ahead”.