Pre-tax profits at Danske Bank from January to March dropped from £24.7m to £1.4m as the bank made allowances for customer financial difficulties due to coronavirus.
Business lending has doubled on the same time last year, with the bank lending out £120m in coronavirus-related business support loans.
The bank said it had granted 4,500 mortgage payment holidays to customers since the crisis.
Chief executive Kevin Kingston said: “I feel passionately that Danske Bank’s role is to be a force for good both now and throughout the challenges ahead.”
However, coronavirus interruption and low interest rates had contributed to a 4% fall in income to £55.7m during the first quarter of 2020.
Operating profit at the lender was also down 9% to £21m, compared to £23.1m the first quarter of 2019.
But loan impairments - the amount set aside to cover bad loans - of £19.7m led to pre-tax profits of £1.4m.
The bank said: “The economic outlook for 2020 is challenging and this is reflected in the provision for higher loan impairments, which allows for the expectation that a greater number of customers will experience financial difficulties in the months ahead.
“As a result of the above, both operating profit and profit before tax have fallen compared to the same period last year.
“Danske Bank maintains a very strong funding, liquidity and capital position and will use this capacity to support both personal and business customers through the current challenging times.”