Monday 24 October 2016

Danske's NI operations to be stripped out

Published 22/07/2015 | 11:48

Danske Bank is withdrawing from retail banking in Ireland
Danske Bank is withdrawing from retail banking in Ireland

Danske Bank’s Northern Ireland operations will become a standalone business unit instead of part of the Danish giant’s personal banking and business banking.

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The move takes effect from January and Danske Bank Northern Ireland will be disclosed in financial statements as a separate business unit.

Danske’s Northern Ireland wing recorded a pre-tax profit for the first six months of the year of £65m.

This represents a significant improvement compared to the same period last year.

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

“The first half of the year has been a particularly strong one for Business Banking. We have already provided more new lending to business customers in 2015 than we did in the whole of 2014,” Mr Mallon said.

“This is down to an encouraging increase in demand for lending from our existing customers after a long spell of relatively subdued demand and the continued acquisition of new to bank customers.”

Danske said it would be introducing a new operating model for Northern Ireland.

“Our activities in Northern Ireland will operate as a standalone business unit rather than as part of Personal Banking and Business Banking,” Danske said.

“We have made a business review that concluded that synergies between the Northern Irish market and the Nordic markets are limited, and we are confident that the change will better enable us to create value for our customers in Northern Ireland, to develop our market position and to improve profitability.”

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