Danish-owned National Irish Bank has reported an operating loss before impairment charges of €8 million for the first nine months of the year.

This is a 9 per cent decrease on the same period in 2011.

Costs rose by 44 per cent to €102 million, reflecting a one off provision for costs associated with the reorganisation of the Bank’s retail business announced in June.

Income fell 9 per cent to €94 million due to continued reduced customer demand. The Bank’s total loan book was €7.3 billion.

The Danske Bank Group recorded a pre-tax profit of €847 million for the first nine months of the year, an increase of 76 per cent on last year.

Commenting on the results, Terry Browne, country manager, Republic of Ireland, said: “The Bank’s performance during the first nine months of 2012 was in line with expectations given the challenging economic conditions.

Impairment levels remain high, but are lower than in previous quarters this year and remain concentrated in our commercial property book.”