Danske Bank’s Belfast-based UK lending business has recorded a pre-tax profit of £102.9 million in the first half of 2024.
Northern Ireland’s biggest bank has reported an income of £188.2m for the first six months of the year, 9.74% up on the same period last year (£171.5m)
Expenses increased by 10.5% in the same period to £85m, which meant the bank’s profit-before-tax was around £7m down on the £109.8m pre-tax profit recorded for the first half (H1) of 2023.
But higher interest rates in the UK mean Danske Bank’s profits are still more than double the level typically seen prior to the Covid-19 pandemic.
Danske Bank UK’s Belfast-based business said it had increased lending by 7% year-on-year to £6.2 billion.
Deposits remain significantly up on pre-pandemic levels, rising another 2% in H1 2024 to £10.8bn.
Danske Bank UK’s Belfast-based chief executive Vicky Davies, said mortgage lending surged by 30% to £360m in the first half of 2024.
“Markets are expecting the Bank of England base rate to ease back over the months ahead, and we are anticipating that the healthy level of mortgage lending seen in the first half of the year will continue across the rest of 2024,” she said.
Ms Davies said Danske Bank had also amended its affordability assessment for mortgage applicants purchasing more energy efficient homes.
It means more can be borrowed for properties with an energy performance certificate rating of A-C.
The bank CEO said the higher costs incurred during the January to June period was down to inflationary pressures and investment in the business.
She said the bank approved £370m in lending to businesses in the first six months of the year, well up on the £288m from the same period last year.
“The number of new small business accounts opened was up around 70% year-on-year, with us currently offering two years fee-free banking to small businesses if they switch to Danske Bank and open a small business digital account,” she said.
The bank boss said more than 9,000 new personal customer accounts were opened in the first six months of 2024, around 80% up on the same period last year.
“At Danske Bank we are very aware that many customers continue to face cost of living challenges,” added the CEO.
“We are staying close to our customers, providing support for those who need it, whilst continuing to help businesses pursue growth opportunities and people buy or move home.”
The first half financial results were published just six weeks after Danske Bank closed another four branches in Northern Ireland.
Branches in Carrickfergus, Saintfield, Knock (east Belfast) and Shipquay Place in Derry city centre closed on June 7.
Danske has closed one dozen branches in the north since 2021.
