Financial results for quarter four 2009
- Operating profit before impairment charges of £22.1m
- Total income is £53.7m for the fourth quarter of 2009
- Costs remained flat compared to previous quarter
- Impairment charges of £19.9m for quarter four represents an
improvement on previous quarters. Actual write offs remain low at
£2.3m.
For the fourth quarter of 2009 Northern Bank Banking Activities has reported
a small profit before tax of £2.2m. Lower interest rates continue to
influence the interest income through very modest deposit margins, resulting
in a total income of £53.7m for the quarter. Operating costs remained
flat compared to the previous quarter.
Full Year 2009
- Operating profit before impairment charges of £68.6m, up 3% compared
to 2008
- Total income of £203.3m compared to £215.7m in 2008
- Costs down 10% compared to 2008
- Impairment charges of £168.7m and actual write offs of £7.6m
- Total lending fell by 4% despite mortgage growth of 6% year on year.
- Deposits remained constant.
Commenting on the results, Chief Executive Officer Gerry Mallon said:
"These results are as expected given the challenging market conditions and
low interest rate environment which we and our customers continue to
operate in. However, through a reduction in impairment charges and in
costs Northern Bank has returned to a profitable position in quarter four.
"Given the local climate we had to make prudent provision for potential
losses. However these provisions have reduced across the year and we
were able to comfortably absorb these within our strong capital base.
"We have responded to the crisis by focusing on staying close to our customers,
particularly those in financial difficulty. This approach has paid off,
with actual write offs remaining very low. Our customer satisfaction
scores continue to improve. We also focused on cost control and were
able to reduce our operating costs without affecting job security.
"Despite aggressive competition we were successful in retaining our deposit
base. I believe this is a reflection of the confidence both new and existing
customers have in Northern Bank's stability and in our products.
"We have seen reduced demand for business lending as many have cut
back on investment and development. At the same time our Corporate
Banking team has been successful winning some really good new business.
"Providing our customers with greater choice about how, when and where
they interact with us has continued to be a key priority. We have significant
competitive advantage with our eBanking and Cash Management systems
which are attracting new customers on their own merit. We remain confident
that the range of competitive products and services we offer will ensure
better consumer choice. This is reflected in the fact that we have
grown our mortgage book in a very slow housing market.
"The crisis may have abated but there is no doubt that business conditions
are still tough. We're optimistic that 2010 will be a year of recovery, albeit
a slow recovery. Our priorities will remain unchanged. We will continue to
stay close to our customers and to apply the sound and secure banking
practices which Northern Bank is known for. This is ensuring that we are
one of the strongest banks to emerge from the economic recession."
ENDS
The Danske Bank Group's Interim Report for the first half of 2009 is
available at www.danskebank.com/reports
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