Ulster Bank has posted an operating profit of £51 million (€70 million) for the first three months of the year, significantly higher than the £9 million reported during the same period last year.

However, the bank said total income earned during the three month period was down by £11 million to £190 million as a result of the weakening of the euro.

A significant weakening in the euro relative to sterling during the first quarter “had a material impact on Ulster Bank’s financial comparisons with prior periods” the group said in a statement.

Excluding the impact of the exchange rate movement total income increased by £5 million reflecting a continued improvement in deposit margins, stable loan product pricing and growth in new lending volumes.

Operating profit increased by £42 million to £51 million in Q1 2015, benefiting from the absence of net impairment losses.

The Royal Bank of Scotland subsidiary said its net interest margin, which was down from 2.14 per cent to 1.95 per cent, reflected in part declining returns on free funds.