Ulster Bank has reported total income of €161m for the three months to the end of September.

That is down about €8m on the same time last year and reflected the sale of a portfolio of non-performing loans.

The bank reported an operating profit of €34m for the three month period compared to a loss of €87m the same time last year.

Its net interest margin -  a key measure of bank profitability - decreased by seven basis points compared to the second quarter mainly due to accounting changes which took effect in the latter part of the second quarter.

Excluding strategic, conduct and litigation costs, Ulster Bank said its operating expenses for the third quarter fell by €12m, or 8.3%, due to reduced pension costs and the impact of other cost saving initiatives. 

It also said its net loans to customers rose by €0.2 billion on the back of growth in the commercial loan portfolio.

The bank's parent company, Royal Bank of Scotland, today reported an £8m pre-tax loss in the three months to the end of September, compared to a £961m profit for the same time last year. 

RBS said it was making a fresh £900m provision to compensate customers who were mis-sold payment protection insurance (PPI) on loans and credit cards.