Danske Bank UK financial results - six months to end June 2017

Danske Bank UK financial results – Delivering for customers
  • Lending balances 8% higher year-on-year
  • Total income remained flat year-on-year, reflecting lower interest rates
  • Expenses up 10% year-on-year due to higher costs and investment
  • Profit before tax of £56.5m, down from £64.5m in H1 2016
​(GBP millions)
H1,2017 H1,2016 Index
Total income
Profit before loan impairment charges
Loan impairment net recovery /(charges)
Profit before tax 56.5 64.5 88
Loans (end of period)
Deposits (end of period)

Danske Bank in Northern Ireland reports a profit before tax of £56.5m for the 6 months to the end of June 2017.

The reduction in profit before tax reflects the adverse impact of the lower Bank of England Base Rate on our income, as well as higher expenses given operational restructuring, increased pension costs and the implementation of our investment programme - driving competitiveness, efficiency and the delivery of new solutions for customers.

The Bank’s core underlying business continues to perform well as evidenced by strong growth in both customer lending and deposit volumes.

Danske Bank reports a net credit in loan impairments of £15.2m, down from £16.5m in H1 2016. This reflects a continuing recovery in property values and in the trading results of the Bank’s business customers.

Danske Bank continues to have a strong capacity to support new lending as demonstrated by a loan to deposit ratio of 74% at 30 June 2017.

Commenting on the results, Danske Bank UK CEO Kevin Kingston, said:

“I am pleased to report a healthy profit before tax of £56.5m for the first half of 2017. The underlying performance of the Bank remains strong, with lending up 8% year-on-year.
“Following a record year for our mortgage business in 2016, I am delighted to note that growth in this segment has continued, with new mortgage lending approvals up 7% year on year.
“In June 2017 we were delighted to integrate Apple Pay after clear demand from our customers for us to do so. It has proved a great addition to our already strong digital offering.
“Apple Pay is just the first of several new digital enhancements that we plan to introduce over the next year to further improve customer experience.
“It has also been an important first half of the year in terms of our approach to supporting small business customers. We have completed a programme of decentralising our small business advisors and locating them in key individual branches throughout Northern Ireland. This decision was taken as a result of strong feedback from small businesses and it will allow our people to be more accessible and closer to customers. These changes have already made a tangible impact, with lending to small businesses up 32% year-on-year and 37 new small business relationships being established every week.
“With regards to medium to larger-sized businesses, new lending is also up - 9% higher than over the same period in 2016.
“Despite improved business activity across the Bank, total income has remained broadly flat compared to the first half of 2016 as low interest rates continue to impede our income growth.
“Our focus for the second half of 2017 remains firmly on supporting our customers - whether that be by making their personal banking easier for them, helping them with personal loans or mortgages, or assisting them in taking their businesses to the next level.”

For more information about Danske Bank Group’s financial statements, please go to Danske Bank Financial reports.

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