NIB profits hit €6m despite tougher trading conditions
However the bank noted that the results were achieved in tougher operating conditions.
NIB said total income increased by 14% to €47m, while operating expenses were down 3% and profit before credit losses increased to €11m, compared to €4m for the same period last year.
Total lending increased by 27% year-on-year, while business lending increased 26%.
NIB chief executive, Andrew Healy said the economic slowdown and, in particular the continuing increase in the cost of funds, has resulted in tougher operating conditions.
“However, we have a very clear growth strategy and we’re focused on building a powerful franchise which will compete aggressively in the long term,” he said.
NIB added the growth in net interest income has been “adversely affected” by the ongoing instability in the international capital markets which has resulted in higher funding costs for the bank. Net interest income would have been 10% higher, and total income 8% higher, compared to the same period last year were it not for these increased funding costs.
NIB is also in the middle of a €30m branch expansion and will add 10 branches by the end of next year.
NIB’s parent company, Danske Bank said its first-quarter profit fell 33% as trading income dropped and it booked losses on some loans. Net income declined to 2.57 billion kroner (€344m) from 3.82bn kroner a year earlier, the bank said yesterday.
