National Irish Bank today reported an operating profit before impairment charges of €13m and a net loss of €133m in the first quarter of 2010. Parent, Danske Bank Group, announced profit before tax was €187m, down 40% year on year.

National Irish Bank income fell 19% to €42m due to lower demand and lower deposit margins. NIB said it achieved a 7% reduction in costs year on year through tight cost management. Impairment charges (bad debt costs), at €146m, were down €52m on last year.  The bank’s total loan book is €10.2bn, down 5% on last year. Mortgages represent €3.7bn "with loan quality remaining satisfactory." €3.3bn is represented by commercial property with most of the bank’s loan impairment charges in this area. Deposits increased by 21% year on year.

Commenting on the results, Andrew Healy, CEO National Irish Bank said: “Economic and trading conditions continue to be very difficult and the banking sector is going through dramatic change. 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. 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.”.