2021 Q3 Financial results

 (GBP millions) Ytd Q3
Ytd Q3
Index 21/20
Total income 147.3 153.3 96
Expenses -108.5 -107.5 101
Profit before loan impairments 38.8 45.9 85
Loan impairments 11.1 -35.3
Profit before tax 49.9 10.5
Loans (end of period) 5,554m 5,607m 99
Deposits (end of period) 10,552m 9,055m 117
  • Profit before tax is £49.9 million, up from £10.5 million in the first 9 months of 2020.
  • An improving economic environment means loan impairment provisions continue to reduce.
  • Many personal and business customers are paying off debt and holding savings, with deposit balances up 17% year-on-year.

Vicky Davies, CEO of Danske Bank UK, commented:

“I am delighted to share a set of results that reflects an improving economic outlook for Danske Bank and the Northern Ireland economy.

“This year we became one of the first banks in the UK to reintroduce 95% loan-to-value mortgages, and we followed this up by launching the UK’s first carbon neutral mortgage. In addition, we reduced our rates across our mortgage ranges for purchasers, switchers and existing customers – helping more people get on the property ladder.

“I am pleased to share that we have now also increased our maximum mortgage term from 30 to 35 years to help more customers, particularly first time buyers, as they seek to secure their first home.

“Small business lending, excluding government backed support loans in 2020, is up 4% year-on-year and is approaching pre-pandemic levels. Lending to larger businesses is more subdued, due to many organisations carrying excess liquidity and some delaying growth plans into 2022.

“Digital banking trends continue to accelerate. In Northern Ireland log ons to Danske Bank’s digital channels have increased 10% year-on-year, and we are now seeing around 6 million log ons per month. Wearable payments, which includes the likes of Apple Pay and Google Pay, are up 54% year-on-year.

“To ensure we keep pace with customer expectations around digital banking we have established a Technology and Digital Development unit within the bank in Belfast, which we are actively investing in and growing. The unit includes digital channels, robotics, automation, data analytics and IT infrastructure and security teams.

“On 15 October the contactless card payment limit across the UK was raised to £100. I’m delighted that we have introduced flexible contactless functionality for our personal customers that allows them to set whatever limit they are comfortable with from £0 right up to £100 – this can be set by customers themselves through the App or by contacting us for assistance.

“Looking ahead our focus will remain on working hard to improve service levels and ensuring we’re making banking easier for customers. Whether that’s in our branches, on the phone or through our digital channels.”