Danske Bank in Northern Ireland has reported pre-tax profit of £103m for the first six months of 2024, a drop of nearly £7m on last year.
But it said profits before loan impairments had risen by 9% from £94.6m to £103.2m.
However, £0.4m deduction for loan impairments, in contrast with the addition of £15.2m the previous year, left profit before tax falling 6% to £102.9m.
Lending was up 7% year-on-year to £6.2bn, with deposits up 2% to £10.8bn.
Total income was up from £171.5m to £188.2m, which Danske said was driven by lending growth and higher UK interest rates.
But it said costs had gone up due to inflationary prices and “continued investment to improve customer experience”.
Vicky Davies, CEO of Danske Bank UK, said it was a “strong” set of results.
“A robust financial performance means we are well positioned to continue to support customers when they need us.
“At Danske Bank we are very aware that many customers continue to face cost of living challenges.
“We are staying close to our customers, providing support for those who need it, whilst continuing to help businesses pursue growth opportunities and people buy or move home.”
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She said there had been over £370m in business lending approvals in the first half, including for hotel group Andras House, food company Finnebrogue, Used Cars NI, Exorna Kitchens and Connswater Homes.
Ms Davies said there was a 70% increase in the number of new small business accounts, with customers supported by a “strong local presence” through branches, contact centres and business advisor teams.
And there had been £360m in mortgage lending provided in the first half, which was up over 30% year-on-year.
She added that with the Bank of England expected to drop interest rates from 5.25% in coming months, “we are anticipating that the healthy level of mortgage lending seen in the first half of the year will continue across the rest of 2024”.
Mortgage customers were also able to borrow more where the new property has an energy performance certificate rated A-C.
And she said there had been an 80% increase in new personal current accounts in the first six months of 2024, to 9,000.
She added: “Looking forward to the rest of the year, we will keep focused on helping customers, colleagues and society thrive – while continuing to play an integral role in supporting the local economy.”