Danske Bank makes £218m profit in Northern Ireland

Danske Bank in Northern Ireland made a pre-tax profit of £218m in 2024, up 17% on the £186m profit made in 2023.

It is among the largest annual profits ever recorded by a Northern Ireland business.

Banks tend to be more profitable in times of higher interest rates.

Danske's performance also reflects the post-pandemic recovery in the Northern Ireland economy with employment at a record high.

The wider Danske group, which is based in Denmark, posted record annual profits and said it would return money to shareholders.

The bank said macroeconomic conditions had developed more favourably than expected in the markets in which it operates, adding that the outlook for inflation and growth had improved during the year, especially in Denmark.

The chief executive of the Northern Ireland operation, Vicky Davies, said it had been a "strong financial performance" which included growth in the mortgage business.

"We have an ambition to become the clear leading provider of mortgages in Northern Ireland, and in 2024 we made great progress towards achieving this goal by delivering a record £730m in local mortgage lending approvals - an increase of around 35% year-on-year," she added.

She said customer behaviour had changed, with borrowers taking shorter fixed rate deals in anticipation that interest rates will continue to fall.

On Thursday, the Bank of England cut rates from 4.75% to 4.5%.

Its governor, Andrew Bailey, said that rates remain on a downward path.

"In 2023 over half of our local mortgage customers opted for a five-year fixed mortgage product, whereas in 2024 63% chose a two-year fixed option, with many anticipating that the Bank of England base rate was going to start to fall in the nearer term," Mrs Davies said.

"We expect local mortgage lending to remain healthy this year, buoyed by the decreasing rate environment, low unemployment levels and strong buyer demand."