No-deal Brexit is ‘biggest threat in a generation’ to Northern Ireland’s economy, warns Danske Bank boss

The bank's UK chief said smaller businesses, which are 'the lifeblood of the economy' will be more at risk

A no-deal Brexit poses the “biggest threat in a generation” to the Northern Irish economy, according to the boss of Danske Bank UK.

Small businesses are most at risk from a hard Brexit, while consumers will also be affected, said Kevin Kingston, the group’s chief executive. Danske is one of the main banks in Northern Ireland, having taken over Northern Bank in 2004.

“A hard Brexit would undoubtedly have an impact on a whole range of sectors and individual businesses right across Northern Ireland,” he told reporters in Belfast.

“That converts into lower economic growth and businesses making tough decisions about the number of people they employ and their investment.

“That, inevitably, will have an impact on consumers in Northern Ireland and the financial affairs of people on the street.”

Mr Kingston said: “What we have seen is that larger businesses have been taking decisions to try to safeguard their operations, but the smaller businesses are far less prepared, making them the most vulnerable.

“It is these businesses that are of course the lifeblood of the economy in Northern Ireland.

“At this point I am gravely concerned about the challenges ahead should a hard Brexit become a reality.”

He added: “There will be businesses which won’t survive a hard Brexit.”

Mr Kingston made the remarks after Danske posted a 28 per cent drop in group profit in 2018, while profit in Northern Ireland dropped 40 per cent to £744m.

The bank was rocked last year by a money-laundering scandal and has now pledged to spend $307m (£235m) on tightening up its safeguards against financial crime.

Earlier this week, Northern Irish businesses said they urgently required more clarity on Brexit from the British government after MPs voted to remove the Irish backstop from Theresa May’s withdrawal deal.