NIB operating profit down 45%

National Irish Bank has today reported an operating profit before impairment charges of down 38% to €13m for the three months to March 31, 2010.

Income fell 19% to €42m due to lower demand and lower deposit margins.

The bank achieved a 7% reduction in costs year-on-year. Impairment charges, at €146m, were down €52m on last year.

National Irish Bank’s total loan book is €10.2bn, down 5% on last year.

Mortgages represent €3.7bn, with loan quality remaining "satisfactory", the bank says.

Commercial property accounts for €3.3bn, with most of the bank’s loan impairment charges in this area. Deposits increased by 21% year-on-year.

"Economic and trading conditions continue to be very difficult and the banking sector is going through dramatic change," said National Irish Bank CEO Andrew Healy.

"While our loan impairments continue to trend downwards, they remain high. Last December we announced a major restructuring programme to reduce our costs and to reposition the Bank to ensure we have a strong future in the Irish banking market of tomorrow. This programme is on track."

Parent group Danske Bank Group also announced its financial results for Q1 today.

Profit before tax was €187m, down 40% year-on-year.

Income was down 30% to €1.624bn. A total of €574m set aside for loan impairment charges, and profit before tax down 40% to €187m.

"Our parent, Danske Bank, is one of the best capitalised banking groups in Europe. Danske remains fully committed to Ireland and is ambitious for National Irish Bank’s future,” said Healy.