Northern Bank posts first-half loss

11 August 2009

Northern Bank made a loss of $113 million during the opening half of the year, despite recording an operating profit of $57 million.

The Northern Irish financial institution was forced to use $171 million to pay impairment charges, $5.1 million of which amounted to actual losses.

Total income at the bank over the six-month period was $164 million, a fall of nine per cent year-on-year due to decreased activity in the market and the lower base rate in the UK.

Danske Bank, its parent company, recorded income of $6.1 billion, with profit before impairment charges coming to $3.1 billion.

Chief executive of Northern Bank Gerry Mallon described the results as "stable".

He admitted that the domestic and global market conditions are still "challenging", but said that there has been a "continued focus on efficiencies" in an effort to reduce costs.

Northern Bank was founded in 1809 and became part of the Danske Bank Group in 2005.

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