Published Tuesday, 07 August 2012
Northern Bank said the next quarter will be "challenging". (© UTV)
The bank made a profit of £34.8m but incurred loan impairment charges of £100.6m, leaving them £65.8m in the red.
Property debts in Northern Ireland and the Republic have contributed to the losses, the bank has said.
During the first half of the year overall lending volumes fell by 7%, but mortgage balances increased by 4%.
Northern Bank said they have reduced costs "significantly" since 2011, when they recorded annual losses of £210m.
And compared to the same period last year, the figures represent a 60% increase, and Northern said it has made improvements in operating income and costs.
Chief Executive Officer Gerry Mallon said: "Impairment charges remain substantial, but lower than in the same period last year and a considerable reduction from £72.5m in Q1 to £28.2m in Q2 this year is encouraging progress in the right direction.
"The second half of 2012 will undoubtedly remain challenging, but we have proven that we have both the capacity and the capability to robustly withstand those challenges."
Parent company Danske Bank group made an overall profit before tax of €550 million for the first half of this year.
Northern will rebrand later this year as Danske Bank as part of an Ireland-wide restructuring plan.
Republic of Ireland-based National Irish Bank - also owned by Danske - has announced losses of more than £318 million for the first half of the year.