Danske Bank makes £10.5m pre-tax profit in NI

Danske Bank in Northern Ireland made a pre-tax profit of £10.5m in the first nine months of 2020.

That is down 85% compared to the £71.1m profit for the same period last year.

The performance was heavily impacted by "loan loss provisions" related to coronavirus.

These provisions are money the bank must put aside to cover loans, which they assess are unlikely to be repaid in full.

The bank made provisions of just over £35m in the first nine months of 2020 compared to just £1.4m in the same period in 2019.

The bank said it has approved over £370m of government-backed loans thorough the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back loan scheme.

It has arranged around 5,000 'mortgage holidays' and another 675 payment holidays for personal finance customers.

The bank has also seen a surge in deposits as customers with the means to do so focus on paying down debt and holding cash.

"Customers, both personal and business, are saving more than ever, with deposit growth up 23% year- on-year," chief executive Kevin Kingston said.

He added the effects of the pandemic would continue to be felt for some time.

"The coronavirus disruption to our economy looks set to continue for longer than we all hoped.

"Alongside this, Brexit uncertainty still prevails - with less than two months until the transition period ends on 1st January and Northern Ireland's trading relationship with the rest of the UK changes," Mr Kingston continued.