National Irish Bank today reported an operating profit €26m before bad debt charges of €367m in H1 2010. Income was down 17% to €84m due to reduced customer demand, the impact of impaired loans and lower deposit margins. Costs reduced by 6% to €58m. NIB parent, Danske Bank Group, also today announced its financial results for the six months to 30 June 2010. Profit before tax was €420m, up 32% year on year. Operating profit fell 36% to €1.46bn at Danske. €1.04bn was set aside for loan impairment charges.

Commenting on the results, Andrew Healy, CEO, National Irish Bank said:  “These results reflect the continuing difficult economic and banking market conditions. Our focus is on completing the restructuring programme we started last year and our work in this regard is on track.”  Healy referred to recent market moves in terms of mortgage pricing but advised that National Irish Bank has no plans to increase mortgage rates at this time.

“These are tough times to be operating a bank in Ireland and we are fortunate to have the unflinching support of a strong parent in Danske Bank. We have taken early and decisive action to reduce our costs and to reposition National Irish Bank for a market which is being radically reshaped.”

As part of its restructuring programme, National Irish Bank recently announced a significant partnership with An Post which will give the bank’s customers access to cash services in 1,200 post offices nationwide - - the largest distribution network for financial services in Ireland. Healy claimed this partnership provided tangible evidence of National Irish Bank’s and Danske’s long term commitment to Ireland.

National Irish Bank’s total loan book was €10bn in June, down 5% on last year. Commercial property loans amounted to €3.3bn, with most of the bank’s loan impairment charges in this area. The mortgage book amounted to €3.6bon. Total deposits amounted to €4.2bn, an increase of 3%.