Tuesday 26 March 2019

Ulster Bank swings into profit in 2018

Ulster Bank chief executive Jane Howard
Ulster Bank chief executive Jane Howard
Ellie Donnelly

Ellie Donnelly

Ulster Bank has reported an operating profit of €15m for 2018.

This is a swing on the loss of €151m in 2017, according to full year results from the bank.

Total income was in line with prior year at €689m, while the bank’s operating expenses reduced to €657m from €772m in 2017.

Meanwhile there was a 13pc increase in new mortgage lending to €1.13bn

The bank’s net interest margin - a key barometer for measuring the profitability of banks – improved by 12 basis points to 1.79pc, driven by a funding benefit, improving asset mix and lower cost of deposits.

There was a €3.8bn or 18.8pc reduction in risk weighted assets.

In the final quarter of 2018 Ulster Bank completed a sale of a portfolio of non-performing loans, reducing its non-performing loan ratio to 11.3pc.

Ulster Bank CEO Jane Howard said:

"In 2018, we made tangible progress on our priorities to build a simpler, safer and more customer focused bank." 

"Today we report a modest profit of €15m which is underpinned by a significant improvement in net interest margin, reduction in our non performing loan ratio, increased customer deposits and new mortgage lending growth."

"In 2018 we also paid a dividend of €1.5bn to our shareholder and raised €1bn of stable funding through the issuance of mortgage backed bonds."

Elsewhere and Ulster Bank owner RBS has reported a profit of £1.6bn (€1.8bn) for 2018.

Online Editors

Also in Business