- Operating profit before impairment charges of £16.0m
- Total income is £47.1m
- Costs down 3% on previous quarter
- Impairment charges of £14.4m
- Pre-tax profit of £1.6m
This is the second consecutive quarter where Northern Bank has reported a pre-tax profit, and impairment charges have reduced for the fourth successive quarter. Actual write offs remain low at £2.5m.
Income levels are being largely maintained in difficult economic conditions where low interest rates and strong competition influence interest income, fees and commissions. Overall lending volumes are broadly unchanged
from Q4 2009 with deposit volumes also stable despite exceptional market
conditions.
A continued focus on cost control has seen 18% cost savings on Q1 2009 as well as quarter on quarter improvement with efficiency savings sought across the business.
Commenting on the results, Chief Executive Officer Gerry Mallon said:
"Although the road to recovery remains fragile, we expect 2010 to be
much better than 2009. In these still uncertain times our customers value
the strength and security of Northern Bank as a financial partner.
Increasing numbers of businesses are moving their banking relationship
to Northern Bank based on our services , expertise and technology. Management
of cash flow has come even more sharply into focus in the recent economic climate and our Cash Management services are delivering very real benefits for customers in terms of convenience, efficiencies and cost control.
Northern Bank is very much open for business and we are well placed to
support businesses and consumers to maximise the opportunities that
emerge as the economic recovery strengthens."
Download Northern Bank financial results press release
