NIB reports 16% rise in operating profit

National Irish Bank has reported a 16% rise in operating profit for 2010, to €49m.

In annual results released this morning, the bank, which is owned by Danske Bank, also confirmed it has set aside €667m for loan impairment charges, down €37m on the previous year.

Costs reduced by 16% to €113m, largely driven by the bank’s restructuring programme.

National Irish Bank’s total loan book is €9.4bn, down 8% on the previous 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 €3.5bn mortgage book shows less than 300 customers in arrears. Total deposits amounted to €5.3bn, up 28%.

In a statement, NIB said it has no plans at present to follow other lenders in increasing their variable mortgage rates.

Commenting on the results, Andrew Healy, CEO, National Irish Bank said: "“Conditions remain very difficult but National Irish Bank has acted quickly to deal with the challenges faced by all banks operating in Ireland.

"Our reduced cost base and improved operating profit are positive signs and while impairments remain very high, they are lower than last year.

"The bank remains committed to the Irish market and is fully supported by a very strong parent in Danske Bank. Our five-year partnership with An Post, which commenced in November, is a clear example of our long-term commitment and we plan further initiatives this year to underline the strength of this commitment.

"Our restructuring programme has been completed ahead of schedule. Our staff have made an enormous contribution to the bank's future by implementing changes that were difficult but necessary. National Irish Bank is well positioned for a banking landscape that has changed radically."

Danske Bank Group also announced its financial results for the 12 months to December 31, 2010.

Profit before tax was up 36% to €865m, with operating profit down 33% to €2.719bn.