Ulster Bank, one of the few retail banks in the country with no state shareholding – it was bailed out by its UK parent, Royal Bank of Scotland – has announced half year profits of £131m up from £55m at the same stage last year.

While the bank says new lending to business customers rose by nearly 60 percent during the six months to June and mortgage draw downs rose by 45 percent, at an accounting level, the increased profitability was fully driven by the bank’s write-back of bad debt reserves to the profit and loss account this year, while it was still adding to its bad debt reserves in 2014.

The bank also notes that it’s profitability in sterling terms was reduced by the weaker exchange rate against the euro, the currency in which its business in the Republic of Ireland is transacted.

It says that proactive debt management and improving economic conditions contributed to the positive figures.

Ulster Bank chief executive, Jim Brown commented on the results: “While today’s results were impacted by a weakened euro, we see an increased profit, reduced operating expenses and a continued trend of impairment releases driven by proactive debt management and the improving economic conditions.”