Danske Bank Group today announced its financial results for the twelve months to
31 December 2011. Profit before tax was down 35% to €566m.
Irish unit, National Irish Bank, reported an operating profit before impairment charges of
€45m, a decrease of 7% on last year. Income fell 13% to €141m due
to reduced customer demand and the impact of impaired loans. Costs fell by 15%
to €96m, driven by the Bank’s restructuring programme. Bad debt provisions rose
to €850m, leading to a loss before tax of €805m compared with €618m in 2010.
National Irish Bank’s total loan book was €8.6bn, down 9% on last year.
Commercial property loans amounted to €3.1bn, with most of the Bank’s loan
impairment charges in this area. NIB said the quality of the Bank’s €3.3bn mortgage
book remained satisfactory.
Deposit growth remained strong with average deposit levels increasing by 21%.
Commenting on the results, Andrew Healy, CEO, National Irish Bank said:
“2011 was clearly another challenging year. Impairment charges remained
disappointingly high due primarily to continued falls in property values. That
said, we’re making progress in implementing our strategic plan. With a further
15% reduction in costs last year, total cost savings from our restructuring
programme now amount to 29%. And deposits have continued to perform well.
We have refined our customer strategy for what is now a very changed market.
In 2011 we invested in our Corporate and Private banking divisions where our
people and technology strengths have helped us to win some good new business.
We’ll focus on developing these business lines further as we move forward.
We believe the changes we have made to our business create a good platform
for growth. With the strong support of our parent, Danske Bank Group, we look
forward to playing an important role in Ireland's new banking landscape.”
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