Ulster Bank profits dip 6pc to €78m
Ulster Bank profits fell by 6pc in the first quarter of its financial year due to a lower level of impairment releases.
Year on year income increased by 11pc in the period to €205m. Net interest margin increased by 9 basis points to 1.75pc.
Adjusted operating expenses at the bank remained flat at €136m when compared with the same period last year despite a €6m increase in regulatory levies.
The bank said a net impairment release of €17m was largely driven by asset disposals which benefited from improved market conditions.
"New lending indicators remain positive, underpinned by the continued improvement in Irish economic conditions, with gross new mortgage lending increasing by 32pc to €200m compared with Q1 2015," the bank said in a statement to shareholders this morning.
Ulster Bank reduced its net loans and advances to customers by €600m when compared with the first quarter of last year and that includes a reduction of €900m in the low-yielding tracker mortgage portfolio, which was reduced to €11.6bn.