Ulster Bank today reported an operating loss of £137 million for the first quarter of 2010, compared to £275 million for the last quarter of 2009.
The bank said the main driver was a lower impairment charge of £218 million for the first three months of this year, compared with a charge of £348 million in the fourth quarter, 2009. This was mainly due to a latent provision charge in the fourth quarter 2009 that did not recur.
Operating profits before impairment losses rose to £81 million in the first quarter 2010 from £73 million the previous three months.
Total income at the bank fell to £241 million for the three months ended March 31st from £285 million the previous quarter. Net interest income dropped to £188 million from £194 million for the same periods.
The figures were included in the results of Ulster Bank's parent, Royal Bank of Scotland Group.
Ulster Bank chief executive Cormac McCarthy said market conditions were still "extremely challenging" but added the increase in operating profit before impairment losses showed actions taken in the business over the past 18 months were having a positive impact.
"We understand that the needs of both our personal and business customers have changed and we have responded by providing a number of support initiatives which are designed to address the challenges they are facing," he said. "Despite prevailing conditions we continue to see opportunities for new business and growth in customer numbers. We remain committed to serving the needs of our 1.9 million customers across the island of Ireland."
Royal Bank of Scotland beat expectations with a return to profit in the first quarter as bad debts continued to shrink.