Danske Bank UK's operating profit for 2020 is down 36% compared to 2019 according to new figures, but business support is up due to coronavirus.
The coronavirus pandemic has changed how most of us save and spend, and has posed unprecedented challenges for businesses throughout the UK. Danske Bank UK has now published its financials for the whole of 2020, and it paints a very clear picture of the impact that the pandemic has had on business and consumers.
The bank made a total operating profit of £58.5m in the UK in 2020, down 36% compared to the previous year. Domestic customers have used the pandemic to pay off debts and build up some cash savings, with deposit growth increasing by 27% compared to 2019 levels.
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The biggest difference was found in business banking, with Danske Bank taking on a much higher than usual volume of loans to business customers facing difficulties. Over £450m worth of coronavirus-related loans were paid to over 10,000 businesses throughout the year.
The vast majority of the new loan support (over £395 million) was offered through the government-backed Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) and Bounce Back Loan Scheme (BBLS).
Around 86,000 personal banking customers benefitted from additional support in the form of the removal of interest on all existing personal overdrafts for three months. The bank also issued over 5,300 mortgage repayment holidays, and 675 personal loans and credit card repayment holidays.
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Danske Bank UK CEO Kevin Kingston commented: "Like many of our customers, Danske Bank has not been immune to the negative financial impacts of the coronavirus pandemic. Combined with a record low interest rate environment and Brexit uncertainty, 2020 proved to be a particularly challenging year."
"In 2021, we will continue to prioritise supporting our customers, looking after our colleagues, tightly managing costs and seeking strategic growth opportunities where we can. These growth opportunities will include pursuing pockets of opportunity in the rest of the UK."
Source: Written based on press release
