56JV Sthn.pac 4a1a

RNS No 2357w
ULSTER BANK FINANCE PLC
5th August 1997

            ULSTER BANK GROUP ANNOUNCES ANOTHER  
               RECORD HALF-YEAR RESULT, WITH  
                 PRE-TAX PROFIT OF STGP70M  
                       TO 30 JUNE 1997 
 
Ulster Bank Group has announced a record pre-tax profit of StgP70m for the
half-year to 30 June 1997, an increase of StgP4m, 6 percent over the
corresponding period in 1996.

The Group reports its results in Sterling, which in the current half-year has
strengthened substantially. Consequently, the Group's Irish Pound profits have
been adversely affected relative to the comparative period when translated to
Sterling. The underlying profit improvement was StgP7m, 11 percent more than in
the first half of 1996.

Commenting on this year's interim results, Ulster Bank Group Chief Executive,
Ronnie Kells said that the excellent outcome was due to a combination of
factors. "We have continued to expand, grow our operation and win new business.
This growth is reflected in our income and in an increase in staff numbers of
294 over the same period last year."

Ulster Bank Group achieved good growth in income, up StgP10m, 6 percent largely
from increased lending and treasury operations. Costs rose by StgP6m, 6 percent
reflecting higher staff and administration costs. Provision for bad debts was
unchanged and remains at historically low levels due to the buoyant economies in
both the Republic of Ireland and Northern Ireland. Total Group lending increased
by StgP271m in the half year since 31 December 1996 to StgP4,338m reflecting
underlying growth of 12 percent. The cost/income ratio was 58.0 percent, which
although marginally higher than that of the comparative period, was 1.8 percent
lower than in the second half of last year.

"The strength and breadth of Ulster Bank as a comprehensive banking force is
reflected clearly in the results achieved across all the operating units within
the Group. Our Markets and Retail divisions have consistently performed well,
winning increased business as a result of our over all competitiveness," said
Ronnie Kells. "We are determined to build on the success we have already
achieved and we remain committed to providing a competitive banking service to
our customers. To this end, we are also equally committed to controlling our
costs. We recognise that this is crucial to our strategy of providing value for
money products to our customers," he said.

Ulster Bank Retail which encompasses the branch operations, the Lombard
companies, the invoice discounting, mortgages, cards and insurance broking
businesses had a good half-year and contributed profits up StgP2m, 5 percent to
StgP40m. Lending was substantially higher with growth of 12p ercent but margins
fell, reflecting strong competition for business.

Ulster Bank Markets, the Group's corporate banking, treasury, stock-broking and
investment management arm achieved profit growth of StgP2m, 7 percent to StgP30m
with all businesses producing higher results despite the adverse affect of the
strength of Sterling.

Ulster Bank Chairman, Sir George Quigley, acknowledged the continued support of
the Bank's customers and staff in achieving the results . "We value the
partnership nature of our relations with our customers and we take very
seriously the role which we can play in meeting the varied financial needs of
our personal customers and assisting our business customers to grow vigorously",
he said.

"We prize customer loyalty and we seek constantly to earn it by being responsive
and professional. Like any other major service organisation, we rely on our
staff throughout the Group to meet the challenge of providing a total quality
service. I wish to pay a special tribute to all of them for what we have
achieved together so far this year. The results are a reflection of their team
effort and their commitment to the Group," said Sir George. "There are no easy
options but I am confident that as a team we can build on our success so that we
can further enhance the Group's performance in an increasingly competitive
environment."

Sir George welcomed the restoration of peace and the opening up of fresh
possibilities for progress on the political front, albeit there were many
difficulties ahead. "These developments", he said, "offer the opportunity to
enhance economic growth throughout the island of Ireland. Ulster Bank believes
that financial institutions have a responsibility to help the community grasp
economic opportunities. We therefore look forward to playing a very full part in
the business development prospects which will undoubtedly result. We are
committed to helping people to reach out now for the better future which has
hitherto proved so elusive".

                               ULSTER BANK GROUP 
                               PROFIT STATEMENT 
 
                             1997      1996      1996 
                            First     First    Second 
                             Half      Half      Half 
                            STGPM     STGPM     STGPM 
 
Net Interest Income           119       111       118 
 
Fees and Commissions (net)     36        35        37 
 
Dealing Profits                24        23        23 
 
Other Operating Income          2         2         1 
                             _____     _____     _____ 
TOTAL INCOME                  181       171       179 
                             _____     _____     _____ 
 
Staff Costs                    (64)     (61)      (64) 
 
Administrative Expenses        (21)     (19)      (23) 
 
Depreciation                   (10)      (9)      (10)  
 
Other Operating Costs          (10)     (10)      (10) 
                              _____     ____     _____ 
TOTAL COSTS                   (105)     (99)     (107) 
                              _____     ____     _____ 
 
TRADING SURPLUS                 76       72        72 
 
Provision for Bad Debts         (6)      (6)       (2) 
                              _____     ____      ____ 
 
PROFIT BEFORE TAX               70       66        70 
Tax on Profit                  (19)     (21)      (20) 
                              _____     ____      ____ 
 
PROFIT AFTER TAX                51       45        50 
                              _____     ____      ____ 

Cost:Income Ratio              58.0     57.9      59.8 
                               Percent  Percent   Percent 
 
 
END

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