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Danske Bank reports £90m profits and Brexit slowdown in lending

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Danske Bank reported an increase in profit

Danske Bank reported an increase in profit

Danske Bank reported an increase in profit

Danske Bank in Northern Ireland has reported pre-tax profits of £90m for 2019, up 1% from £88.8m the year before.

But the bank, which has 40 branches, said new lending to business during the year had been affected by Brexit, with some customers delaying investment decisions.

Total income during the year was steady at £233.2m, with the bank saying levels had held despite continued economic and political uncertainty.

Lending was 3% higher year on year, and retail customer activity was satisfactory.

Customer deposits grew by 7% year-on-year.

Costs were down by 1% compared to the same period last year.

Chief executive Kevin Kingston said: “Demand for corporate and business lending overall was subdued as a result of uncertainty around the prolonged Brexit process.

“It is important to note that our capacity to support new business lending has remained strong, but current demand levels are below what we would expect in a more normalised trading environment.”

Instead, he said mortgages had been the key driver of lending in 2019.

“Danske Bank’s total mortgage lending is at its highest ever level, and it is noteworthy that in the past 12 months we have helped over 2,000 local first time buyers realise their home owning ambitions.”

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Belfast Telegraph