Danske Bank reports €671m in pre-tax profits

Danske Bank Group have announced a pre-tax profit for the nine months to September 30, 2010 of €671m.

This shows a 44% increase year on year.

National Irish Bank reported an operating profit before impairment charges of €36m.

The bank's income was down 11% to €124m due to reduced customer demand, the impact of impaired loans and lower deposit margins.

Costs reduced by 3% to €88m due to the bank’s restructuring programme.

Loan impairment charges of €504m were set aside, leading to a loss before tax of €468m.

Andrew Healy, CEO, National Irish Bank said: "The economy and conditions in the banking market continue to be very difficult. Our priority is the implementation of our restructuring programme which is on track to complete by the end of the year.

"We’ve taken early and decisive action to reduce our costs and reposition National Irish in a banking market that is undergoing massive change. Loan impairments remain at elevated levels, though we believe they peaked in the first half of this year."

National Irish Bank’s total loan book was €9.8bn, down 7% on last year.

Commercial property loans amounted to €3.3bn, with most of the Bank’s loan impairment charges in this area.

The quality of the Bank’s €3.6bn mortgage book remained relatively strong with less than 250 customers in arrears.

Total deposits amounted to €4.3bn, a reduction of 2%.