Danske Bank profits slump 37% during pandemic

The bank said it has also made additional provision for bad loans, as it anticipates that more customers will have financial difficulties.

But it added that the pandemic had led to some personal and business customers paying off debt and adding to their savings, with deposit growth of 23% year on year.

Mortgage lending had been strong after the housing market reopened following the spring-time lockdown, but the bank predicted it would return to more modest levels.

And overall lending was up because of the "unprecedented" levels of support given to customers, mainly through Government-backed loans such as the Coronavirus Business Interruption Loan Scheme (CBILs).

It granted 5,000 mortgage holidays to struggling customers, as well as 675 credit card and personal loan repayment holidays.

And it said that the bank would continue to support customers, and maintained "a strong funding, liquidity and capital position".

Chief executive Kevin Kingston 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 said it had approved over £450m in coronavirus-related business support loans since March, with over £370m provided through CBILs and the Bounce Back Loan Scheme.

Mr Kingston added: "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 January 1 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."