Business Irish

Monday 20 February 2017

Ulster Bank profits slide as mortgage lending soars 47pc

Published 05/08/2016 | 07:23

Gerry Mallon new ceo of Ulster Bank in the Republic
Gerry Mallon new ceo of Ulster Bank in the Republic

Profits at Ulster Bank have fallen to €155m in the first half of its financial year as the bank's expenses were inflated by an industry-wider examination of tracker mortgages.

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The bank reported a profit of €199m in the same period last year but its expenses soared this year due to costs of €118m relating to the examination.

Mortgage drawdowns at the bank soared by 47pc as the bank increased its market share here to 18pc.

The RBS-owned bank posted total income during the period of €377m, up from €368m. Meanwhile operating expenses increased to €402m.

The bank incurred impairment releases of €34m, down from €104m in the same period last year.

Ulster Bank chief executive Gerry Mallon said the institution reported a "strong, consumer-focused" first half.

"Ulster Bank demonstrates a profitable performance with an increase in income, reduction in underlying expenses and significant increase in mortgage lending.  These were offset by a reduction in net impairment releases and a provision in relation to the industry-wide tracker mortgage examination.

“Ulster Bank’s new service-led improvements to customer experience such as mobile mortgage managers and process improvements as well as the introduction of a number of new competitive rates, have seen Ulster Bank increase market share in Q1 to 18pc, with a 47pc increase in mortgage drawdowns to €400m in H1 2016 compared to the same period in 2015," he said.

Ulster Bank parent RBS today reported a £2.04bn loss for the first half of its financial year.

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