Ulster Bank's operating profits fall to €26m in first half of 2019
Ulster Bank’s operating profit fell to €26million in the first half of this year from €100m a year ago as operating expenses hit €322m, up from €285m in the first half of last year and lending margins declined.
The bank, which is a subsidiary of RBS, said in a statement that total income fell by €31mn from a year ago to €324mn due to the sale on non-performing loans and an accounting change.
“We have maintained a strong capital position while continuing to invest in our business,” said Chief Executive Jane Howard.
The bank’s net interest margin declined to 1.63pc at the end of the first half against 1.85pc a year ago and its return on equity was 2.1pc versus 7pc.
Parent group RBS said it had made provisions totalling €312m for the tracker mortgage scandal matter.
Like most of its peers, Ulster Bank has been selling off its non-performing loans portfolio and it said in July it planned to dispose of €900mn worth of the sour debts.
Customer deposits increased by €1.8bn or 9pc from a year ago and the bank’s loan to deposit ration was down by 11 percentage points at 100pc
Commercial new lending rose to €830m, the bank said.