Danske Bank Reveals £35m Pre-Tax Profit In First Quarter Of 2016

Danske Bank has reported pre-tax profits of £35 million for the first quarter of 2016.

The bank said that the figures revealed in the report continues the upward profitability trajectory reflecting a combination of improved revenue performance, ongoing cost control and impairment recoveries.

The report also shows that deposit and lending balances have increased year-on-year.

Danske Bank reports a net reversal in loan impairments resulting from a number of factors including a continuing recovery in the property market and improved customer trading. The reversal exceeds any new and increased charges in respect of impaired loans resulting in a net recovery of £8.6m for 2016 to date.

Commenting on the results, Danske Bank UK CEO Kevin Kingston, said: "I am pleased to report a strong profit of £35 million for the first quarter of 2016. Our underlying financial performance has continued its upward trajectory and we are maintaining a prudent approach to cost management. 

"We started the year with an ambition to significantly grow our presence in the mortgage market, alongside maintaining our market leading position in business banking and among higher net worth customers through our Private Banking and Wealth units.

"In Quarter One a strong mortgage product offering and marketing campaign helped us to drive significant new mortgage business. New mortgage lending approvals for customers were up 170% year-on-year.

"To further stimulate the marketplace we have continued to extend the availability of our mortgages to prospective customers beyond traditional platforms and into the wider broker network. Today our mortgages are available via over 80% of brokers across Northern Ireland. New mortgage lending via the broker channel was almost ten times higher than it was in the first quarter of 2015. 

"With regards to our small and medium sized business customers, new lending was up by 52% year-on-year. As well as attracting new customers, it has been particularly pleasing to see many existing customers starting to once again invest in growing their businesses. This week we have launched a unique small business incentive of £500 cashback for switchers and start-ups, which we expect to drive additional growth and higher customer acquisition levels. 

"On the corporate banking side, we have seen continued movement in the wider property sector, and deals we have helped to fund in Quarter One have included the sale of Bloomfield shopping centre in Bangor and the planned build of several hundred houses by Lagan Homes (NI) Ltd. 

"As consumer and business confidence continues to improve we expect demand for finance to increase further. We look forward to continuing to support customers and the wider economy in the year ahead."

(MH/CD)