Menu
06/08/2010
Bad Debt Fears Stymie Ulster Bank
The Ulster Bank has reported a massive jump in operating losses for the first half of this year.
Although its operating profit increased to £185m, that was wiped out by money set aside to cover bad loans meaning they had losses of £314m on an Ireland-wide basis.
In counterpoint, its parent company, the Royal Bank of Scotland (RBS) announced substantial pre-tax profits.
Across the UK, Royal Bank of Scotland (RBS) has seen its pre-tax profit leap to £1.14bn in the first half of the year from £15m a year earlier.
It reported an operating profit of £1.6bn compared with an operating loss of £3.4bn in 2009.
In the Irish Republic, RBS is currently seeking to take control of the iconic Arnotts Department Store, which has heavy borrowings from the bank.
However, it is mainly because its subsidiary Ulster Bank was a well-known lender to property developers that it has seen a significant deterioration in its financial performance in recent times.
Even though the day-to-day business is in profit that is all but wiped out due to the volume of property lending it is worried will have to be written off.
However, the banks said it managed to increase customer numbers by 49,000, or 3%.
Ulster Bank Chief Executive, Cormac McCarthy, said operating profit before loan losses increased by 21% to £185m.
"Reflecting the market environment in which we operate, our results include a significant charge for impairment resulting in an overall loss of £314m," he said.
Mr McCarthy said the economic backdrop and outlook remains challenging.
However, he said the bank had taken "decisive action" to adapt to the changes in the marketplace, resulting in "a significant improvement" in the performance of the underlying business.
A bullish Mr McCathy reiterated that Ulster Bank is "a core part of RBS" and said the bank, was "fully committed to supporting the needs of our 1.9 million customers across the island of Ireland."
See: RBS First Half Profits Leap By £9m
(BMcC/CD)
Although its operating profit increased to £185m, that was wiped out by money set aside to cover bad loans meaning they had losses of £314m on an Ireland-wide basis.
In counterpoint, its parent company, the Royal Bank of Scotland (RBS) announced substantial pre-tax profits.
Across the UK, Royal Bank of Scotland (RBS) has seen its pre-tax profit leap to £1.14bn in the first half of the year from £15m a year earlier.
It reported an operating profit of £1.6bn compared with an operating loss of £3.4bn in 2009.
In the Irish Republic, RBS is currently seeking to take control of the iconic Arnotts Department Store, which has heavy borrowings from the bank.
However, it is mainly because its subsidiary Ulster Bank was a well-known lender to property developers that it has seen a significant deterioration in its financial performance in recent times.
Even though the day-to-day business is in profit that is all but wiped out due to the volume of property lending it is worried will have to be written off.
However, the banks said it managed to increase customer numbers by 49,000, or 3%.
Ulster Bank Chief Executive, Cormac McCarthy, said operating profit before loan losses increased by 21% to £185m.
"Reflecting the market environment in which we operate, our results include a significant charge for impairment resulting in an overall loss of £314m," he said.
Mr McCarthy said the economic backdrop and outlook remains challenging.
However, he said the bank had taken "decisive action" to adapt to the changes in the marketplace, resulting in "a significant improvement" in the performance of the underlying business.
A bullish Mr McCathy reiterated that Ulster Bank is "a core part of RBS" and said the bank, was "fully committed to supporting the needs of our 1.9 million customers across the island of Ireland."
See: RBS First Half Profits Leap By £9m
(BMcC/CD)
Related Northern Ireland News Stories
Click here for the latest headlines.
30 July 2015
Ulster Bank Records Operating Profit Of £131m
Ulster Bank has recorded an operating profit of £131 million for the first half of this year. The bank reported a £55 million profit in the same period last year. The firm also said that new lending to business increased by 57%.
Ulster Bank Records Operating Profit Of £131m
Ulster Bank has recorded an operating profit of £131 million for the first half of this year. The bank reported a £55 million profit in the same period last year. The firm also said that new lending to business increased by 57%.
25 June 2013
New NI Bank Notes In Circulation
New bank notes have been released into circulation in Northern Ireland. The £10 and £20 notes are being issued from Danske Bank and will gradually replace the existing Northern Bank notes. The design of the notes remains the same, the only difference is the Danske Bank logo has replaced the Northern Bank logo.
New NI Bank Notes In Circulation
New bank notes have been released into circulation in Northern Ireland. The £10 and £20 notes are being issued from Danske Bank and will gradually replace the existing Northern Bank notes. The design of the notes remains the same, the only difference is the Danske Bank logo has replaced the Northern Bank logo.
15 November 2012
Northern Bank Becomes Danske
Today the Northern Bank officially becomes Danske Bank. The new name comes from the bank’s Danish parent and will see branches across Ireland, Norway, Finland, Latvia, Estonia and Lithuania adopt the new title.
Northern Bank Becomes Danske
Today the Northern Bank officially becomes Danske Bank. The new name comes from the bank’s Danish parent and will see branches across Ireland, Norway, Finland, Latvia, Estonia and Lithuania adopt the new title.
26 February 2015
Ulster Bank Reports £600m Profit
Ulster Bank has recorded its first annual profit since 2008. The bank welcomed the figures, which revealed an operating profit of just over £600m last year. In 2013, the bank recorded a loss of £1.6bn. In its annual results for 2014, the bank said its performance was helped by a number of factors including an improving economy.
Ulster Bank Reports £600m Profit
Ulster Bank has recorded its first annual profit since 2008. The bank welcomed the figures, which revealed an operating profit of just over £600m last year. In 2013, the bank recorded a loss of £1.6bn. In its annual results for 2014, the bank said its performance was helped by a number of factors including an improving economy.
10 May 2012
Northern Bank To Be Rebranded
Danske Bank has announced a new organisational set-up for its operations in Northern Ireland and Ireland. The new structure will take effect on 1 June 2012. The re-organisation mirrors a similar Group wide set-up being introduced in all Danske Bank operations.
Northern Bank To Be Rebranded
Danske Bank has announced a new organisational set-up for its operations in Northern Ireland and Ireland. The new structure will take effect on 1 June 2012. The re-organisation mirrors a similar Group wide set-up being introduced in all Danske Bank operations.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
