Business

Danske Bank posts £107m profits in nine months

Danske Bank CEO Gerry Mallon
Danske Bank CEO Gerry Mallon Danske Bank CEO Gerry Mallon

DANSKE Bank in Northern Ireland made profits of £107 million before tax over the first nine months of 2015.

The bank said it represented a "significant improvement" compared the same period last year.

Danske Bank UK chief executive Gerry Mallon described the results as "healthy" and came as the company focused on reducing its underlying operating costs.

The bank has seen an improved revenue performance and improved cost control and impairment recoveries.

Income grew 6 per cent year on year reflects as lending and deposits rose alongside reductions in the bank’s funding costs.

In September, Dankse had an overall loan to deposit ratio of 80 per cent.

Mr Mallon said the bank was benefiting from an improved housing market "with average house prices and transaction levels increasing steadily in recent month".

"Our economic forecasts suggest that local house prices will increase by 6.1 per cent on average this year and then by a further 2.7 per cent in 2016.

“Danske Bank continues to say yes to nine out of 10 mortgage applications and so far this year has approved over £185 million in new mortgage lending to first time buyers, switchers and home movers.

"To support our efforts to grow our mortgage business we have an expert team of mortgage consultants in place, offering appointments from Monday to Saturday face-to-face, by telephone or via online meetings.

"To further stimulate the market we also continue to extend the availability of our mortgages throughout the wider broker network. Today our mortgages are available through over 75 per cent of brokers across Northern Ireland."

He said the bank's digital offering had increased in popularity with 2.8m log ons per month.

Meanwhile Danske continues "to retain a leading market position, with our customer satisfaction levels remaining consistently high," in business banking.

"Alongside the continued acquisition of new customers, we have been encouraged by the uplift in demand for lending from our existing customers after several years of relatively subdued growth activity," said Mr Mallon.

“Quarter three also saw us conclude our annual series of Danske Advantage business events. These events focus on a range of different business sectors and are designed to encourage debate and discussion around the opportunities and challenges that each currently faces.

"This year we demonstrated our knowledge and expertise alongside a range of expert contributors at events that covered: retail, manufacturing, technology, social housing and the north-west economy. Over 500 guests attended the events in total, including customers, prospective customers, academics, government ministers and members of the Northern Ireland Assembly.

“We serve our customers in what is still a recovering economy – but it is an improving picture, with businesses and consumers gaining more confidence to borrow and invest.

"As the economy continues to grow we will continue to have both the appetite and the capacity to meet this expected increase in demand for support."