Pre-tax profits at Danske Bank in Northern Ireland have climbed by 5% from £152.2m to £160.4m over the first nine months of the year.

The lender said its “robust financial performance” meant total income rose by nearly £30m from £254.5m to £283.2m.

Profits before loan impairments were £153.4m, up from £138.4m.

Loans grew 5% year-on-year to £6.2bn, while deposits were up 5.7% from £10.5bn to £11.1bn.

The bank said it had enjoyed “a strong income performance… driven by lending and deposit growth in a higher interest rate environment”.

Costs grew due to the pressures of inflation, higher regulatory expenses and investment in customer experience.

And a fall in loan impairments from £13.8m to £7m reflected “improving local economic conditions and the strength of the bank’s loan portfolio”.

Vicky Davies, CEO of Danske Bank UK, said: “I am pleased to announce a strong set of results for the first nine months of 2024.

“A robust financial performance means we are well positioned to continue to support customers when they need us.

“Even though inflation has been falling and economic conditions have been improving, we remain very conscious that customers are still facing cost of living challenges.

“We are staying close to our customers, providing assistance where it is needed, whilst continuing to help businesses pursue growth opportunities and people buy or move home.”

She said the bank had approved over £490m in business lending over the nine months, adding:

“We have opened over 1,000 new small business accounts so far this year, and we are currently offering two years fee-free transaction banking to small businesses if they switch to Danske Bank and open a small business digital account.”

She said bank branches, contact centres and business advisor teams also meant a “strong local presence” to support small business customers.

Mortgage lending had also risen by over 30% over the year, to reach £580m – driven by demand for housing, declining interest rates and low unemployment.

She added that the bank had opened over 13,000 new personal current accounts in the first nine months, up around 60%. Personal lending volumes also rose 15% year-on-year.

Ms Davies added: “Looking ahead Danske Bank will continue to be a key enabler of economic growth across Northern Ireland, with a clear purpose centred around helping customers, colleagues and society to thrive.”