Ulster Bank has reported a loss of €87m for the three months to the end of September, results from its parent Royal Bank of Scotland show today.
This compares to a profit of €36m the same time last year.
Ulster Bank said its total income in the three month period rose by €3m, or 1.8%, which it said reflected an increase in lending income and lower cost of deposits.
The bank said its operating expenses increased by €47m, or 33.3%, to €188m mainly due to higher litigation and conduct costs connected with "customer remediation and project costs associated with legacy business issues".
It also said that a net impairment loss of €68m includes a provision for a further non-performing loan sale which it expects would result in a material reduction in its non-performing exposure ratio.
Earlier, Royal Bank of Scotland reported a pre-tax profit of £961m for the third quarter, but said it had taken a £100m impairment provision to account for greater economic uncertainty.