Danske Bank profit shows 'improving' outlook for economy
- Published
Danske Bank in Northern Ireland made a pre-tax profit of £50m in the first nine months of 2021, up from £11m in the same period in 2020.
The bank said the results reflect "an improving outlook" for the economy.
Lending to small firms was up 4%, and is close to pre-pandemic levels.
The results include £11m of writebacks - money set aside to cover expected losses that can now be released as loans performed better than expected.
The bank said many personal and business customers are paying off debt and holding savings, with deposit balances up 17% year-on-year to more than £10.5bn.
Lending to large business customers was "subdued", with some delaying growth plans into 2022.
Bank of Ireland also reported an improved performance for the first nine months.
The Dublin-headquartered bank said its operating profit, excluding bad loan charges, was up 17% compared to the same period in 2019, pre-pandemic.
Ulster Bank's parent company, Nat West, tripled its profits in its most recent quarter also helped by writebacks.
It said operating profit before tax reached £1.1bn, a rise from £355m the year before.
'Growth is good'
Analysts had expected the figure to reach just £677m.
Chief Executive Alison Rose said that although there are "challenges in the economy" around supply chains and the cost of living - a number of key indicators remain positive.
She added: "Growth is good, unemployment is low and there are limited signs of default across our book."
Ulster Bank is winding down its business in the Republic of Ireland.
It said that early next year it will begin to serve formal account closure notices to current account and deposit account customers.
It is urging customers to consider their options and get ready to move to a different bank.
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- Published23 July 2021
