Ulster Bank saw its profits rise by 24 per cent in the first half of this year to £119 million sterling (€192 million) according to the latest financial results from its parent group, Royal Bank of Scotland.
The bank, which has 91 branches in Northern Ireland and 122 in the Republic, said its total income increased by £28 million in the period under review to £255 million.
Ulster Bank's performance was in line with that of its parent group, the Royal Bank of Scotland, which announced a 37 per cent hike in pre-tax profits to £2.751 billion for the six months to June. Mr Martin Wilson, chief executive of Ulster Bank, said the improved performance was the result of a combination of factors including strong volume growth in customer loans and deposits.
During the first half of the year the bank's net interest income rose by 19 per cent or £27 million to £166 million.
"On average the bank increased its loans and advances to customers by 19 per cent in the first half of the year."
Mr Wilson said lending increased in the Republic by 25 per cent compared to 14 per cent in the North despite unfavourable economic conditions in Northern Ireland.
"We also grew our comparable customer base in the first half of this year by 50,000 new customers so clearly our customers are interested in doing business with us and we are offering the right range of products at the right price to grow our business," Mr Wilson said.
He said the bank's strategy under Royal Bank of Scotland was one of "increased growth rather than cost containment".
"We view our branch network as our primary channel for growth supplemented by telephony, Internet banking and other support mechanisms but our focus is our customers and how we can satisfy their needs," Mr Wilson added.
He said this policy was reflected in the bank's programme of investment in its branch network and business centres, which have become more retail-orientated for both personal and business account holders.
According to the latest results Ulster Bank's non-interest income rose by £1 million to £89 million.
The results show an increase in dealing profits but a reduction in fees and commissions because of the sale of the bank's investment services and management businesses last year.
The bank's overall expenses increased by 5 per cent to £126 million in the first half of the year because of additional depreciation on property and equipment and additional costs in preparation for the introduction of euro notes and coins. But costs remained in line with expectation while staff costs were flat.
The interim results also highlight that the bank's provisions for bad and doubtful debts were down £1 million to £10 million in the first half of the year.
Mr Wilson said the bank believes it now has the structures in place to ensure long term growth without cost restrictions.
Although he believes the Republic's economy may show some signs of softening in the second half of the year Mr Wilson believes that there are no signs of a recession looming.
"The economy is set to grow by 7 per cent this year and while there has been some fall off in house prices at the top end of the market I think the demise of the property sector has been greatly overstated."
"We expect our customer base to continue to expand in the second half of the year, north and south," Mr Wilson said.
