Danske reports €2m loss in Ireland
Danske Bank in Ireland has reported an operating loss, before impairment charges, for its 2012 financial year.
Danske Bank in Ireland has reported an operating loss, before impairment charges, of €2 million for its 2012 financial year.
Income at the bank fell 13 per cent to €122 million due to continued low levels of customer demand. Meanwhile, costs rose by 29 per cent to €124 million, due the reorganisation of the bank's retail business.
The bank said loan impairment charges of €750 million were set aside, down 12 per cent on 2011. Most of these charges were concentrated in the commercial property book, and the quality of the bank's €3.2 billion mortgage book remains "satisfactory".
The bank's performance in 2012 was in line with expectations and reflects Ireland's difficult economic conditions, said Terry Browne, head of the bank's Irish operations.
"Impairment levels remain high but are down 12 per cent year on year, and we're satisfied they are moving in the right direction. While reduced demand resulted in a 13 per cent year on year reduction in total income, non-interest income increased by 22 per cent reflecting the success of the bank's advisory model."