Ulster Bank's Results Demonstrate Successful Progress

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  • Following last week’s Preliminary Results, Royal Bank of Scotland today announced its full H1 2014 Results, including those for Ulster Bank.  Ulster Bank highlights include (H1 2014 vs H1 2013):

    • An adjusted operating profit of £69m (€84m) for H1 2014, representing a second consecutive quarterly profit;
    • Net interest margin improved by 50bps to 2.32% and net interest income has increased by £21m (€26m);
    • Expenses have improved by £22m (€27m) as a result of our continued focus on cost control and a reduction in restructuring and conduct related costs;
    • Impairment losses reduced by £446m (€543m);
    • Loan deposit ratio improved to 108%.

     Commenting on the Ulster Bank figures, Chief Executive Jim Brown said:

     “Today’s results demonstrate a second consecutive quarterly profit, the success of our existing strategy and sustained progress across all areas of the Bank.  The half-year adjusted operating profit of £69m (€84m) reflects an improvement in Net Interest Margin, a reduction in expenses and an improvement in impairment losses.  Impairment losses have improved by 89%, while the number of customers in mortgage arrears has now decreased month on month for the past 15 months, reflecting the investment to date in supporting customers in difficulty. In total, the number of customers in arrears in the Republic of Ireland has reduced by 10,000 compared to the same point in 2012.

     “We continue to strengthen our market position across corporate, SME and retail resulting in increased volumes across key sectors.  On business lending our £1bn / €1.2bn for business fund is ahead of plan with over £650m (almost €800m) already provided in H1. We are approving over 90% of applications and our tailored supports for agriculture, start-ups, food & drink and manufacturing are driving much of this demand.  We have seen an 44% increase in mortgage drawdowns and 45% increase in mortgage offers compared to H1 2013. This is as a result of our ‘Yes’ campaign where we are approving 9/10 mortgage applications.

     “Our customers have continued to move toward direct channels with 86% of activity now happening outside of the traditional branch.  Our ‘Get Cash’ and ‘Pay your Contact’ services, launched last year have been used over 92,000 times by our customers in H1.

     “We are focused on sustaining the recovery of our business, while providing the best customer service on the island of Ireland through a simplified and more agile bank.”

     

     

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