Business

Danske Bank: Pre-tax profits up 60 per cent to £80m for year to date

Danske Bank reported £79.6 million pre-tax profit for the first three quarters of 2022.
Danske Bank reported £79.6 million pre-tax profit for the first three quarters of 2022. Danske Bank reported £79.6 million pre-tax profit for the first three quarters of 2022.

DANSKE Bank has announced a profit before tax of £79.6 million for the first nine months of 2022 on the back of record deposits.

The UK arm of the Danish multinational, which is headquartered in Belfast, said its total income after three quarters stood at £191.4m, a 30 per cent increase on the same period last year.

Danske Bank said it was driven by increased transactional activity and higher UK interest rates, while impairment levels remain low.

It left the north’s biggest lender with a 59.5 per cent surge in pre-tax profit for the year to date.

The latest results show Danske managed to cut its expenses from last year.

The bank said while deposits are still at record high levels, they are 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,” said Danske Bank UK boss Vicky Davies.

The third quarter saw the Bank of England raise interest rates from 1.25 per cent to 2.25 per cent. The chief executive said Danske Bank expects another rise in the fourth quarter.

“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.”

She said the services include customer call back services and lowering some fees.

Danske Bank said the trend toward digital banking continued in the third quarter, with more than 6.5 million monthly ‘log ons’ now being recorded on its digital channels.

The third quarter included four branch closures in Cookstown, Fivemiletown, Kilkeel and Lurgan.

“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,” said Ms Davies.

“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.”

Danske Bank said the economic outlook for the UK “remains uncertain”.

"During these challenging times, Danske Bank’s priority will be to focus on ensuring we are there for customers when they need us," said Ms Davies