Profits rise for Danske Bank in NI

Danske Bank in Northern Ireland has recorded a pre-tax profit of £65 million for the first half of the year.

Danske’s shares rose more than four percent to their highest since July 2007 and were one of the biggest gainers in the FTSEurofirst 300 index.

The bank said a number of factors were behind the rise, including an increase in business lending and an improvement in the housing market.

The Copenhagen-headquartered banking group said a review of its business had “concluded that synergies between the Northern Irish market and the Nordic markets are limited”.

“They are making the bank in Northern Ireland ready to be sold and it make good sense”, analyst Christian Hede from Nordea Markets said.

Danske Bank United Kingdom chief executive Gerry Mallon said the performance of the business continues to significantly improve with income up on the same period past year and a continued focus on expenditure.

For 2015, the bank now expects a net profit above 16 billion Danish kroner ($2.35 billion), having previously guided for a figure above DKK14 billion.

For the first half, the Group’s total income rose to 23.18 billion Kroner from 21.8 billion Kroner a year ago. Its loan book increased in Norway and Sweden, while it fell in Denmark versus the first quarter. The bank was able to reverse 219 million kroner in provisions set aside for impairments, after losing 626 million kroner a year earlier.

It added that the stronger outlook is owing mainly to positive developments in income supported by high customer activity at all business units and in impairments as macroeconomic conditions continue to improve.