Published Tuesday, 11 August 2009
Figures for the first six months of this year show a potential loss of £69m - however, actual loan losses so far remain low, at around £3m.
The bank which began as a Belfast-based banking company known as the Northern Banking Partnership made an operating profit of £35m in the first half of this year.
It was acquired by the Danske Bank Group in 2005 and has 88 branches across the province.
Chief executive of Northern Bank Gerry Mallon said he was confident the bad debt could be absorbed.
"The ongoing difficulties in the property sector are reflected in our continued policy of making prudent provision for potential bad debt," he said.
"However, as Northern Bank remains strong and well capitalised we can comfortably absorb these provisions within our capital base - and actual losses remain at low levels."
The Northern Bank is owned by the Danish Danske Bank Group.
The total income was £100m, down by 9% on 2008. Lower interest rates and reduced activity in the market were given as reasons for the drop.
Total lending, excluding public sector, grew by 4%, including a 15% growth in mortgages.
Mr Mallon said the bank's performance was stable.
"These results represent a stable half year performance given the challenging global and local market conditions which we and our customers still face.
"We increased our total lending by 4% year on year, which represents an additional £200m commitment to the Northern Ireland economy.
"A continued focus on efficiencies has resulted in a further reduction in costs."
He added: "Throughout the economic slowdown and turmoil in the financial markets we have remained as committed as ever to supporting and staying close to our personal, business and agri customers alike.
"Northern Bank celebrates its 200 year anniversary this year. Throughout our long history we have consistently applied sound and secure banking practices through good and bad economic conditions.
"Sound banking decisions, keeping close to our customers and continued innovation in our products and services are enabling us to navigate through these challenging times as well."