According to the bank’s quarter one results, pre-tax profits were up 5% year on year from £48.9m to £51.3m, while income was up 12%, up from £83.7m to £94.2m.
Costs were up from £46.1m to £54.2m which the bank said was due to “inflationary pressures and continued investment to improve customer experience”.
Vicky Davies, CEO of Danske Bank UK, said: “I am pleased to announce a strong set of results for the first three months of 2024.
“A robust financial performance means we are well positioned to continue to support customers when they need us.
“At Danske Bank we are very aware that many customers continue to face cost of living challenges. We are staying close to our customers, providing support for those who need it, whilst continuing to help businesses pursue growth opportunities and people buy or move home.”
Deposits at the bank were up 1% year-on-year while lending was up 5% and mortgage approvals saw a boost of 50%.
Ms Davies added: “In quarter one mortgage lending approvals in Northern Ireland were up over 50% year-on-year, but that is compared to a very quiet first quarter in 2023, reflecting a return to more normal levels of activity in the housing market.
“Looking ahead, with markets expecting the Bank of England base rate to ease back, we are projecting that this improved demand for mortgages will continue.”
Since December 2021 in an effort to curb rising inflation, the Bank of England has pushed up the interest rate on 14 consecutive occasions to hit 5.25% in August — a 15-year high.
Ms Davies said: “Around 60% of new mortgage customers in quarter one opted for a two-year fixed mortgage product. In 2022 only 27% of customers opted for this product, with many at that time choosing to fix for longer.
“We believe this indicates more customers are now anticipating a greater potential for nearer term rate reductions.”
The first three months of the year also saw the bank sign off on £200m in business loans. Ms Davies said.
“Small business account applications in quarter one were up 32% year-on-year and we are currently offering two years fee-free banking to small businesses if they switch to Danske Bank and open a small business digital account. “In addition to our easy-to-use digital banking platforms, small business customers are supported through a strong local presence on the ground in Northern Ireland through our branches, contact centres and business advisor teams. Small businesses can apply to become a customer digitally through our website.
“In personal banking we have also invested in new customer onboarding digital solutions, and you can apply for a Danske personal current account online in less than 10 minutes.
“Last year we opened over 12,000 new personal current accounts, and this year, to help attract even more new customers, we are currently offering a £200 switching incentive for people in Northern Ireland who wish to switch their personal current account over to Danske Bank.”
Ms Davies added that the bank is continuing to engage in community initiatives, including through their partnership with their charity partner for 2025, NI charity Include Youth.
She added: “This year we also mark 200 years as a leading local bank. It has been 200 years of supporting customers, the economy and wider society.
“As I reflect on this milestone, and the long history of the bank, I feel we have a very strong platform to move forward from as a business and I look to the years ahead with optimism.”
