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Danske Bank's H1 profit rises by 10%

Danske Bank Country Manager for Ireland Terry Browne said 'corporate and institutional business has delivered another strong performance'
Danske Bank Country Manager for Ireland Terry Browne said 'corporate and institutional business has delivered another strong performance'

Net profit at Danske Bank rose by 10% to €1.39 billion for the first half of the year, when compared with the same period in 2016.

The lender said the figures were boosted by "positive macroeconomic developments in the Nordic markets, a continuation of low loan impairment levels, increased lending volumes and high customer activity".

At the end of June 2017, total lending was up 3% from the year-earlier level. Lending increased in all markets. Total deposits rose 7% from the level in the first half of 2016.

The return on shareholders’ equity after tax was 13.5%, against 12.4% in the first half of 2016.

Total income of €3.28 billion was 6% higher than for the same time in 2016, with increases across most income sources.

Net interest income was up 6% to €1.54 billion, net fee income rose 13%, while net trading income was 53% higher.

However, other income, at €113.4m, fell by 53%.

This was attributed to the fact that results for the comparable period in 2016 benefited from the sale of domicile properties.

Operating expenses for H1 rose by 3% to €1.54 billion, reflecting the high activity level, continued investments in digitalisation and costs relating to implementing new regulatory requirements.

The cost/income ratio fell from 48.3% to 47.1%.

Commenting on the results, Country Manager and Head of Corporate and Institutional Banking at Danske Bank Ireland Terry Browne said: "Our Corporate and Institutional business has delivered another strong performance in Q2.

"As always, we are committed to supporting our clients, some of the leading businesses in Ireland, as they continue to leverage the opportunities and manage the challenges of the current marketplace.

"We continue to invest in high quality technology based products and are constantly updating our advisory solutions to ensure our clients have the tools needed for the growth of their businesses both in Ireland and abroad."