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Northern Bank reports £100m loss | Northern Bank reports £100m loss |
(31 minutes later) | |
Northern Bank has reported a loss of £100m for 2009, compared to a £12m loss in 2008. | Northern Bank has reported a loss of £100m for 2009, compared to a £12m loss in 2008. |
The bank made an operating profit of £68.6m, but had to set aside £168.7m to cover loans it thinks might not be repaid, mainly in the property sector. | The bank made an operating profit of £68.6m, but had to set aside £168.7m to cover loans it thinks might not be repaid, mainly in the property sector. |
The bank said it returned to clear profitability in the last quarter of the year, making £2.2m in that period. | The bank said it returned to clear profitability in the last quarter of the year, making £2.2m in that period. |
Chief Executive Gerry Mallon said that while conditions remain tough he is optimistic 2010 will see slow recovery. | Chief Executive Gerry Mallon said that while conditions remain tough he is optimistic 2010 will see slow recovery. |
He said that despite the huge bad loan provision the size of actual write offs was "very low" at £7.6m for the year. | |
Mr Mallon said the bank has faced "aggressive competition" for customer deposits but was successful in retaining its deposit base. | Mr Mallon said the bank has faced "aggressive competition" for customer deposits but was successful in retaining its deposit base. |
Total lending fell 5% compared to 2008. Retail lending - things like mortgages and personal loans - actually rose by 3% but lending to corporate customers dropped 8%. | |
'Worst year' | |
Northern Bank began in 1809 as a Belfast-based banking company known as the Northern Banking Partnership. | Northern Bank began in 1809 as a Belfast-based banking company known as the Northern Banking Partnership. |
It was acquired by the Danske Bank Group in 2005, the largest bank in Denmark and a major player in Scandinavian financial markets. | It was acquired by the Danske Bank Group in 2005, the largest bank in Denmark and a major player in Scandinavian financial markets. |
It has 83 branches in Northern Ireland employing 1250 people. | It has 83 branches in Northern Ireland employing 1250 people. |
Danske's unit in the Irish Republic, National Irish Bank (NIB), made a loss of 661m euros (£577m) for 2009. | |
The bank's chief executive Andrew Healy said it had been "possibly the worst year in Irish banking history." | |
The bank recorded an operating profit of 42m euros, a fall of 42% from the previous year. | |
Its bad loan provision totalled 704m euros and it warned loan impairment charges will remain high in 2010. | |
In December, NIB said it was closing 25 of its 58 branches with the loss of 150 jobs. | |
Overall Danske announced a 113% rise in operating profits to 4.1bn euros, with 3.5bn euros set aside to cover bad loans. |
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