Danske Bank UK financial Results Q1 2025

Vicky Davies, CEO of Danske Bank UK, commented:

“I am pleased to report an operating profit of £58.5m for the first three months of 2025. Operating profit is up 8% on the same period last year, with the Bank continuing to grow both in Northern Ireland and across the rest of the UK. Lending to customers has increased by 6% year-on-year, while customer deposits have also risen, growing by 9%.

“Whilst loan impairments remained low in quarter one, in quarter two there has been a marked increase in the volatility of the global trading environment - the impact of which will become clearer over the months ahead. Costs have increased year-on-year due to inflationary pressures and continued investment to improve customer experience.

“During quarter one we supported the Northern Ireland business community with over £330 million in business lending approvals. Notable business deals included growth funding support for local enterprises Andras House hotel group, Hillmount garden centres, Vision Fabrications, Rural Housing and Radius Housing.

“The number of new small businesses joining Danske Bank was up around 60% year-on-year, with many attracted by the two years’ fee-free banking that we are offering small businesses if they switch to Danske Bank and open a small business digital account.

“In addition to our easy-to-use digital banking platforms, we continue to support our business customers through a strong local presence on the ground in Northern Ireland through our 24 branches, six banking hubs, our award-winning local contact centre and our large team of business relationship managers.

“In the first three months of the year, we also approved around £185 million in mortgage lending across Northern Ireland. Lending approval volumes for first-time buyers were up over 50% year-on-year. 67% of first-time buyers who chose a fixed rate opted for a 2-year product, perhaps anticipating rates may continue to fall, and 33% applied for a 5-year product, with many preferring the security of knowing their mortgage repayment won’t change over a longer term.

“In Personal Banking we opened around 3,000 new personal current accounts in quarter one. We are currently offering a £175 switching incentive for people in Northern Ireland who wish to switch their personal current account over to Danske Bank.

“We continue to grow our business in targeted sectors in Great Britain. In quarter one we approved around £75 million in mortgage lending via brokers, with British Housing Associations also being supported through around £85 million in lending approvals.

“The Bank has had a strong start to 2025, but we remain conscious of prevailing risks that may further impact the economy moving forward. These include elevated levels of geopolitical uncertainty, restrictive impacts on global trade, the risk of inflation rising higher than expected and the possibility of the UK Government further tightening fiscal policy. As always, we will stay focused on supporting our customers and ensuring we are there for them when they need us.”