NORTHERN Bank, the National Australia Bank subsidiary in Northern Ireland, has reported a 36 per cent rise in pre tax profits to £76.8 million sterling for the year to the end of September.
The profits were boosted by the £4.8 million raised by the group from the sale of its shareholding in, the Tyrone Brick company. Its costs were also reduced by £4 million following the settlement of a long legal action and the release of surplus restructuring provisions from the previous year, according to chief executive Mr John Wright.
The bank received £2.5 million in settlement of an appeal in the Irish Supreme Court against a 1992 judgement in respect of a claim brought by a Norweigan bank. The claim related to a foreign trade transaction which originated in the Republic prior to the establishment of National Irish Bank.
Commenting on the results yesterday, Mr Wright said the bank had managed to strengthen its position in the Northern Ireland market, despite increased competition. Northern Bank, which has 23 branches, reported operating income of £174 million, up from £160 million in 1995.
The bank's assets rose by 8 per cent over the period, while business lending was particularly strong, increasing by £65 million. Mortgage lending was up 15 per cent while personal lending rose by 14 per cent. The bank's provision for bad and doubtful debts also rose, increasing from £4.9 million in 1995 to £5.7 million in the current year.
