Relaunch sees NIB report €5m loss

NATIONAL Irish Bank’s relaunch into the Irish market has resulted in pre-tax losses of €5 million during the first quarter of this year.

NIB, which is owned by Danske Bank, began its relaunch last month.

However, yesterday it reported that the pre-tax losses were reflected by the heavy costs associated with NIB’s integration onto Danske Bank’s technology platform.

It said the change programme was completed over the Easter weekend, when it launched a range of products to personal and business customers in Ireland.

According to NIB’s results for the quarter ended March 31, total lending increasing by 47% on the equivalent period last year.

Lending to personal customers increased 39% year-on-year while business lending was up 52%.

Mortgage lending for the period increased 40%, with more than 60% of new business coming from customers of other banks who switched to NIB.

Business deposits increased by 32%, and personal deposits 13%.

NIB chief executive Andrew Healy said: “Despite the costs related to the change programme, the underlying business performed strongly reflecting the commitment of our 750 staff and our continued focus on providing highly attractive and competitive products and services to both business and personal customers.

“Overall, our financial performance was in line with expectations.”

Mr Healy said the bank are very confident about the future as they seek to differentiate National Irish Bank in Irish banking.

Danske Bank last year bought NIB and Belfast-based Northern Bank for $1.86 billion (€1.47bn), adding 154 branches to its business.