Danske Bank pre-tax profits increase by 69% in Northern Ireland

02 February 2023

The bank said the improved performance was driven by increased transactional activity and higher UK interest rates.

Transaction levels in the housing market were at "healthy levels" in the first half of 2022, but began to slow towards the end of the year.

Housing markets across the UK appear to be slowing as borrowers face higher interest rates.

The Bank of England is expected to raise interest rates for the 10th time in a row later.

The benchmark rate is widely expected to go up from 3.5% to 4%, after the Monetary Policy Committee meeting.

The rate is already at its highest level for 14 years.

Danskeʼs chief executive Vicky Davies said of the £590m of mortgage lending last year, 97% of customers opted for a fixed-rate mortgage, with 70% of them choosing a five-year-fix.

Ms Davies added: "We expect the local mortgage market to slow in 2023.

"However, given the relatively limited supply of housing in Northern Ireland versus other parts of the UK, we believe demand will remain at sustained, albeit reduced, levels."

She said that with the jobs market still strong, the bank was not seeing any "notable increase" in customer difficulties with mortgage repayments.