Danske Bank in Northern Ireland made £200,000 pre-tax profit earlier this year because of reduced levels of potential bad debt, it has been revealed.
Banks make provision for unproductive loans, in Danske's case mainly involving commercial property. This time less had to be set aside.
Profits of £27 million were made for the first half of this year before bad debts, with the cost associated with the poor loans substantially lower at £28 million, the bank said.
Underlying income was constant, financial results showed.
"Overall loans fell by 6% year on year with business activity levels remaining slow and mortgage balances marginally higher over the period," a statement said.
The half year financial report to June showed deposit balances were 12% higher year on year. The bank's overall deposit to loans rate remains well above 100%.