Danske Bank profits rise to £16.7m and mortgage portfolio strengthened

Danske Bank recorded pre-tax profits of £16.7million for the first three months of the year, it has emerged.

And speaking of the broader economy, the bank’s chief says Russia’s invasion of Ukraine “has introduced additional economic uncertainty”, on top of existing challenges such as the pandemic and Brexit.

The latest accounts show earnings are up around 6% from the same period a year earlier.

Vicky Davies, chief executive, said mortgage approvals were up 25% year-over-year.

The figures also show that deposits have now reached £10.39bn.

“I am pleased to report a series of improving results as the Northern Ireland economy
continues to grow,” Ms. Davies said.

“The housing market remained buoyant in 2022 and successive Bank of England rates
the increases had no impact on transaction levels. Mortgage approvals at Danske Bank in
Northern Ireland is up 25% YoY and in Q1 2022, 88% of customers switched to a fixed rate product, which provides certainty over future payments.

“More small and medium-sized businesses entered 2022 with increased confidence to
invest in growth plans, having delayed them at the worst of the pandemic.

Loans in this segment, excluding the government-backed Bounce Back loan scheme, are
up 36% year-on-year. Lending to large corporations, however, remained subdued
due to many continuing to carry excess cash.

“Russia’s invasion of Ukraine has introduced additional economic uncertainty – adding to
existing challenges associated with the pandemic, Brexit, supply chain constraints and rising
inflation. We continue to monitor these factors closely, in particular how our
customers are impacted by the rising cost of living and increased cost charges for
Company customers.”

Danske Bank announces that it has just launched a new home energy saving tool on its website with the aim of helping its customers improve the energy efficiency of their homes.

“We also remain focused on supporting the climate change agenda,” Ms Davies said. “We have the largest team of corporate and corporate banking relationship managers in Northern Ireland, and in the first quarter of 2022 they have all completed carbon literacy training accredited by the Carbon Literacy Project.

“This increase in skills complements our work to help professional customers become more carbon
literate thanks to the climate action program we co-developed with Business in the
Community. We are committed to supporting 60 local businesses through this program
by the end of the year.”