Ulster Bank made an adjusted profit of €155 million in the Republic in the first half of 2016, down from €199 million in the same period of last year.
It had total income of €377 million in the six months, up from €368 million a year earlier.
But the bank’s operating expenses rose sharply due to a €118 million provision relating primarily to an industry-wide examination of tracker mortgages, ordered last year by the Central Bank of Ireland.
This pushed up its operating expenses to €402 million from €283 million for the first half of 2015.
The bank had impairment releases of €34 million in the period, down from €105 million a year ago.
Commenting on the half-year results, Ulster Bank chief executive Gerry Mallon said: "It has been a strong, customer-focused half year for Ulster Bank, reporting an adjusted profit of €155 million.
“Ulster Bank demonstrates a profitable performance with an increase in income, reduction in underlying expenses and significant increase in mortgage lending. These were offset by a reduction in net impairment releases and a provision in relation to the industry-wide tracker mortgage examination.”
Capital position
He added: "Ulster Bank maintains its strong capital position and our results reinforce our progress in building a strong and sustainable business in Ireland as part of RBS. Good progress is being made on reducing our operating costs while also investing in customer-facing initiatives and our brand presence.
“The customer trend towards digital channel usage continues with 46 million mobile and internet interactions carried out in the first half of the year, 20 per cent higher than last year.
“Ulster Bank’s new service-led improvements to customer experience such as mobile mortgage managers and process improvements, as well as the introduction of a number of new competitive rates, have seen Ulster Bank increase market share in Q1 to 18 per cent, with a 47 per cent increase in mortgage drawdowns to €400 million in H1 2016 compared to the same period in 2015.”
Following publication of the results, the Financial Services Union called on RBS to refocus on its Irish business with a long-term investment strategy. It also urged the bank to stop cutting costs, which it said undermined front-line services.
Ulster Bank’s operations north and south of the Border now operate separately from each other following a decision last year by RBS.
