Danske Bank reports profits of £58.5m for first three months of 2025
But chief executive Vicky Davies warned that the impact of a volatile global trading environment would be felt over the rest of the year.
The bank said lending to customers had increased 6% year-on-year to £6.5bn, while customer deposits had also risen 9% to £11.5bn.
Pre-tax profits for the first three months were £64m, up 25% from £51.3m in the same period in 2024.
Ms Davies said loan impairments – the amount set aside for bad loans – had remained low in quarter one.
But with US President Donald Trump announcing tariffs on American imports, she said that in quarter two 'there has been a marked increase in the volatility of the global trading environment - the impact of which will become clearer over the months ahead'.
She added: "Costs have increased year-on-year due to inflationary pressures and continued investment to improve customer experience.'
She said there had been £330m of business lending approved during the first quarter, with major deals including growth funding for hotel group Andras House, garden centre business Hillmount, Vision Fabrications, Rural Housing and Radius Housing.
And the number of new small businesses joining the bank had grown around 60% over the year, Ms Davies said.
Over the first quarter, the bank had also approved £185m in mortgage lending – with lending approvals up over 50% year on year. In addition, 67% of first-time buyers had chosen two-year fixed deal in the hope that interest rates would continue to fall.
The bank, which has 24 branches, had also opened 3,000 new personal current accounts over the three months, and was offering a £175 switching incentive for people in NI.
In addition, business was growing in targeted sectors in Great Britain, with £75m approved in mortgage lending via brokers, while British housing associations were supported through around £85m in lending approvals.
Ms Davies added: 'The bank has had a strong start to 2025, but we remain conscious of prevailing risks that may further impact the economy moving forward.
"These include elevated levels of geopolitical uncertainty, restrictive impacts on global trade, the risk of inflation rising higher than expected and the possibility of the UK Government further tightening fiscal policy.
"As always, we will stay focused on supporting our customers and ensuring we are there for them when they need us.'
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