Published Thursday, 31 October 2013
The newly rebranded Danske Bank in Belfast city centre. (© Pacemaker)
The upturn allowed the lender to report a modest surplus of £1.4m for the first nine months of the year.
Write downs for bad loans cost the bank over £40m over the period. But these so called impairment charges are well down on a year ago.
Gerry Mallon, Head of Danske Bank UK & Ireland, said: "We are firmly on the right track for future growth of Danske Bank in Northern Ireland.
"The underlying performance of the business has continued to improve over the quarter. Income is holding steady and costs, while under constant review, are well under control.
"Whilst it is encouraging to see impairment charges tracking downwards, we continue to make a cautious assessment of the valuation of impaired assets in the current property market."
Meanwhile, in the Republic, Danske Bank is cutting an estimated 150 jobs by pulling out of the personal banking market.
It is the second bank in the south to announce major changes. Earlier this week, ACC said it is handing back its banking licence.
Danske, who took over National Irish Bank in ROI, said that it is focusing on its corporate side.
Personal accounts will be phased out in the first half of next year. Mortgages and loans will continue under their existing terms.
Mr Mallon added: "The decision regarding the personal and business banking divisions is necessary to stem the losses that continue to accrue in those units. Against the backdrop of the difficult economic and trading environment in Ireland, the Bank has been unable to re-establish a sustainable retail banking business model.
"We appreciate that this announcement will be of concern to our personal and business customers. For existing personal customers there is no change until the first half of next year. We are writing to customers in the coming weeks and will be working with them to minimise the impact on their day to day banking needs."
In relation to the job losses, he said: "We acknowledge also the impact this will have on our staff. We will be working closely with them through this process and commencing the appropriate consultation immediately "
Larry Broderick, head of the Irish Bank Officials' Association, said the job losses would be compulsory.
"We're now calling on Danske Bank to review this particular announcement. We're calling on the Minister of Finance to intervene.
"This is the second development in over a week where we're seeing now customers in Ireland are facing less competition and it has a huge impact for staff," he said.
"We are also going to commence with the bank a serious of negotiations to try and achieve a voluntary solution to this problem."
© UTV News