Danske Bank has published its latest UK figures for 2020, with an operating profit of £45.9m for the first nine months of the year and over £450, of coronavirus loans approved.
Businesses across the UK are under substantial financial pressure due to COVID-19, and banks are not immune from the effects. Danske Bank has just published its Q3 2020 financials for the UK, showing a 37% year-on-year drop in operating profit to £45.9m.
Businesses have changed their spending and borrowing habits considerably due to the pandemic, with more customers now focusing on paying off debt when they can and creating a cash reserve. Deposits from personal and business customers were up by 23% year-on-year.
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Danske's UK lending was increased considerably compared to previous years due to high levels of support offered to business customers. The bank reports that it's helped over 9,000 businesses by approving over £450 million worth of coronavirus related business support loans since the first lockdown in mid-March, over £370 million of which was provided by the government's Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loan Scheme (BBLS).
For personal customers, the bank has arranged around 5,000 mortgage repayment holidays and pauses on 675 personal loans and credit card repayments. Danske also reports healthy levels of mortgage lending during the pandemic since the housing market re-opened following the initial lockdown and a backlog of sales was allowed to proceed, but the bank expects mortgage growth to slow over the rest of the year.
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Kevin Kingston, CEO of Danske Bank UK, said: "Like so many of our customers, the Bank is not immune to the business impacts of the pandemic. Income and profits are much reduced year-on-year as a result of coronavirus impacts, subsequent provision for potential future loan impairments and historically low interest rates. Our primary focus remains to support our customers and to look after our colleagues, who, as key workers, have continued to offer the levels of service that the people of Northern Ireland have come to expect from Danske Bank."
He continued: "The coronavirus disruption to our economy looks set to continue for longer than we all hoped. Alongside this, Brexit uncertainty still prevails – with less than two months until the transition period ends on 1st January and Northern Ireland’s trading relationship with the rest of the UK changes. As Northern Ireland’s biggest bank, be assured that Danske Bank has the commitment and the capacity to continue to support customers, the community and the wider economy through these troubled times."
Source: Written based on press release
