Danske Bank reports sharp rise in mortgage approvals in first six months of 2022
THE north's biggest lender Danske Bank said mortgage lending was up 38 per cent in the first six months of 2022 compared to the same period last year.
Against the backdrop of rising interest rates, it said 91 per cent of customers chose a fixed rate mortgage product, with 62 per cent of them opting for a five-year-fix.
This is despite the economic challenges facing consumers, it said.
The figures were revealed as Danske Bank UK posted a turnover of £118.9m for the first half of the year, up 23 per cent on the first half of 2021.
The lender, which will have 28 branches here after it closes four outlets this September, also saw its pre-tax profit rise over £5m to £48.3m.
It attributed the growth to a year-on-year increase in transactional activity and higher UK interest rates.
It also said a rise in deposits throughout the pandemic are beginning to level out but still remain high, “providing the bank with capacity to support additional lending”.
Danske said it also approved £454 million worth of business loans to firms in the north during the first half of the year.
Vicky Davies, chief executive of Danske Bank UK described the bank's performance as “solid”. She anticipates the current interest rate of 1.25 per cent to rise again in the second half of the year.
Ms Davies said the bank continued to support the business community here over the period through loans and more sophisticated online tools.
“In May, we also became the first bank in the UK to create a digital solution that lets our business customers view all of their accounts and payments across multiple banks in one place,” she said.
"Through our online business banking platform, District, businesses can now get a full overview of their finances and gain a single point of entry to their accounts and transactions, including those of other banks that they may use, without the need to switch between banking platforms.
“Looking ahead, as Northern Ireland's biggest bank, we will continue to play a key role in supporting the wider economy and we remain resolute in our commitment to support customers through what will be increasingly challenging months ahead.”