Danske Bank has disclosed an 80% surge in pre-tax profit to £186 million in 2023. The bank attributes this growth partially to higher interest rates, which the Bank of England opted to keep steady at 5.25% on Thursday.
From 3.5% at the beginning of 2023 to 5.25% by the year’s end, interest rates experienced an ascent, with experts widely concurring that rates have reached their peak.
Vicky Davies, Danske Bank UK’s chief executive, indicated that this trend might spur activity in the housing market this year.
“Our anticipation is that we’ll observe increased activity in the mortgage market, encompassing house sales and mortgage lending,” she noted.
“Predicting the extent of this surge is challenging, but it’s our expectation: a modest upturn and vitality in the coming year, acknowledging the perennial challenges and uncertainties for consumers.”
Although 80% of Danske mortgage customers favored a fixed rate, Ms. Davies remarked on the rise in the proportion of individuals opting for a two-year fixed rate over a five-year fixed rate, mirroring the belief that interest rates have reached their zenith.
Furthermore, she expressed a desire for sustainability to be a top priority for incoming ministers as they return to Stormont.
“Northern Ireland has set ambitious climate targets for 2030. I think it’s crucial that we have the incentives and support necessary to aid businesses and consumers in transitioning, and I hope this ranks high on the executive’s agenda,” she added.
