| (GBP millions) | Q3 YTD 2022 |
Q3 YTD 2021 |
Index 22/21 |
|---|---|---|---|
| Total income | 191.4 | 147.3 | 130 |
| Expenses | -107.7 | -108.5 | 99 |
| Profit before loan impairment charges | 83.8 | 38.8 | 216 |
| Loan impairments | -4.2 | 11.1 | |
| Profit before tax | 79.6 | 49.9 | 159 |
| Loans (end of period) | 5,689 | 5,554 | 102 |
| Deposits (end of period) | 10,694 | 10,552 | 101 |
- Profit is improved year-on-year, with a positive income performance driven by increased transactional activity and higher UK interest rates. Impairment levels remain low.
- Deposits are still at record high levels, but are starting to flatten.
“I am pleased to announce a strong set of financial results for the first nine months of 2022, with a profit before tax of £79.6 million.
“In response to inflationary pressures, the Bank of England raised interest rates during quarter three from 1.25% to 2.25% - their highest level for 14 years. The Bank of England is expected to raise interest rates further in quarter four.
“Deposits remain at record high levels, but we are seeing them starting to flatten. Households' purchasing power is being squeezed by high inflation and we expect that some of our customers will use the deposits they built up during the pandemic to help with the increased cost of living over the winter months.
“We are very conscious of the impact rising inflation and interest rates is having on our customers. Year-to-date we have proactively outreached to over 10,000 customers offering guidance and support directly relating to their financial circumstances. We have also created a Money Worries online hub offering advice and assistance to those worried about the financial impacts of the increased cost of living. The hub includes a customer call back service for those who want to talk through any concerns they have with one of our advisors. In addition, we have lowered unpaid item fees for personal and business customers from £7.50 to £1.50 and have been raising our rates of interest paid on savings.
“We also continue to focus on making banking easier for customers by improving our digital solutions. Digital banking trends are accelerating, with more than 6.5 million log ons to our digital channels per month. In quarter three, we added new functionality to our App allowing customers to set up their own standing orders and the ability to make international transfers. We have also introduced a digital self-service overdraft application for business customers, giving them the ability to apply online for an overdraft or overdraft increase.
“Given the increased cost of living, many customers are focused on tracking their expenditure and we are seeing the Spending Overview facility on our App being accessed more than ever. This tool allows customers to see their transactions grouped into categories like housing and transport, giving an overview of their spend and income across recent days, months or the past year.
“The economic outlook for the UK remains uncertain, and during these challenging times, Danske Bank’s priority will be to focus on ensuring we are there for customers when they need us.”
