Danske Bank publish financial results for first three months of 2024, reporting profit before tax of £51.3m

  • Photo: CEO Vicky Davies

    Danske Bank have published their financial results for the first three months of 2024, reporting a profit before tax of £51.3 million, with lending up five per cent year-on-year. 

    Highlights from the results include deposits up by one per cent year-on-year, as well as a strong income performance driven by lending growth and higher UK interest rates.

    Costs are increased due to inflationary pressures and continued investment to improve customer experience, whilst impairments remain low, reflecting the strength of the loan portfolio.

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    Vicky Davies, CEO of Danske Bank UK, commented: “I am pleased to announce a strong set of results for the first three months of 2024. A robust financial performance means we are well positioned to continue to support customers when they need us.

    “At Danske Bank we are very aware that many customers continue to face cost of living challenges. We are staying close to our customers, providing support for those who need it, whilst continuing to help businesses pursue growth opportunities and people buy or move home.

    “In quarter one mortgage lending approvals in Northern Ireland were up over 50 per cent year-on-year, but that is compared to a very quiet first quarter in 2023, reflecting a return to more normal levels of activity in the housing market. Looking ahead, with markets expecting the Bank of England base rate to ease back, we are projecting that this improved demand for mortgages will continue.

    “Around 60 per cent of new mortgage customers in quarter one opted for a two-year fixed mortgage product.

    "In 2022 only 27 per cent of customers opted for this product, with many at that time choosing to fix for longer. We believe this indicates more customers are now anticipating a greater potential for nearer term rate reductions.

    “The first three months of the year also saw us support the Northern Ireland business community with over £200 million in business lending approvals. Small Business account applications in quarter one were up 32 per cent year-on-year and we are currently offering two years fee-free banking to small businesses if they switch to Danske Bank and open a small business digital account.

    “In addition to our easy-to-use digital banking platforms, small business customers are supported through a strong local presence on the ground in Northern Ireland through our branches, contact centres and business advisor teams. Small businesses can apply to become a customer digitally through our website.

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    “In Personal Banking we have also invested in new customer onboarding digital solutions, and you can apply for a Danske personal current account online in less than ten minutes. Last year we opened over 12,000 new personal current accounts, and this year, to help attract even more new customers, we are currently offering a £200 switching incentive for people in Northern Ireland who wish to switch their personal current account over to Danske Bank.

    “We continue to support society through the many local community initiatives that we are involved in.

    "This work includes our new partnership with the NI charity Include Youth, our charity partner for 2024. This is a commitment from us to support the local young people they work with who have care experience or are just leaving care. Our aim is to help further improve lives, whether through raising awareness and reducing stigma, fundraising, or through Bank colleagues volunteering their time and skills."

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