Danske Ireland losses at €17.4m
Impairment charges for the period were €15.4m, while total income increased to €15.7m. Costs were down 1% over the period.
These results are for Danske Bank’s core operations only. It separated all non-core assets last year. Head of Danske Bank Ireland, Terry Browne, said, “Having reorganised the business in 2012 we continue to see the benefits of those changes reflected in the performance of our key target business areas in corporate & institutional banking and private banking. Total income increased on the previous quarter with non-interest income now accounting for 40% of the bank’s income as compared with 34% in 2012.
“This continuing shift in balance reflects the bank’s focus on the provision of advisory services particularly to corporate and institutional clients and private banking clients.”
The personal banking division saw mortgage arrears remaining relatively low at 4.25% versus an industry average of 12.3%.... “we are still guiding €750m in impairments by the end of 2014”. The combined loan book of the three core divisions was €2.9bn while customer deposits increased by 8% to €3.4bn.
Danske Bank A/S cut its profit outlook for this year.
Danske now sees net income from 6.5bn kroner ($1.16bn) to 9bn kroner, compared with a previous range of 7.5bn kroner to 10bn kroner, the Copenhagen-based bank said. Net interest income slipped 3.7% to 5.5bn kroner, while net income rose 46% to 2.18bn kroner, beating a 1.68bn kroner estimate, after the bank reported a 45% drop in loan losses to 924m kroner. Trading income dropped 26% to 2.15bn kroner.
