Ulster Bank has reported a profit of €34m in the three months to 30 September, this is a swing on the loss of €87m in the same period last year, according to results from its parent company Royal Bank of Scotland.

Total income during the period was €161m, down from €169m in the corresponding time last year.

Meanwhile the bank’s net interest margin – a key measure of a banks profitability – decreased by 7 basis points compared with the second quarter of 2019 mainly due to the IFRS 9 accounting change which took effect late in the summer.

Loans to customers increased by €200m when compared with the six months to 30 June, driven by growth in commercial lending. 

On 8 October 2019 Ulster Bank confirmed the sale of a portfolio of non-performing mortgages of €800m. The affected loans remain on the bank’s balance sheet at 30 September 2019 and will be de-recognised during 2020.

Elsewhere, Royal Bank of Scotland has tumbled to a loss in the third quarter after taking a £900m hit for payment protection insurance (PPI) claims.

The part-nationalised lender reported pre-tax operating losses of £8m for the three months to September 30, down from £961m a year ago.

It posted attributable losses of £315m, against profits of £448m a year earlier.

RBS – still 62pc owned by the UK Government – blamed losses on the £900m bill for PPI following a last-minute surge in claims ahead of the August 29 deadline, as well as a “particularly challenging” quarter for its investment banking arm.

Despite the third-quarter losses, RBS said it remained on track for full-year expectations in “uncertain times”.

The group said operating profits stood at £2.7bn for the nine months of the year so far, down slightly on the £2.8bn reported a year ago.

The figures mark the last for boss Ross McEwan before he hands over to the lending giant’s first female chief executive.

Mr McEwan leaves on October 31, paving the way for Alison Rose to make history as the first woman to run one of Britain’s biggest high street banks.

Chief financial officer Katie Murray said: “These results demonstrate our solid underlying performance in a tough operating environment.

“We have seen strong growth across the business and our sustained high levels of capital and liquidity mean we are well positioned to support our customers in these uncertain times.”

(Additional reporting PA)

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