Property loans widen NIB losses
09 February 2012 11:29
National Irish Bank have reported a pre-tax loss for last year of €805 million as the bank continues to put money aside for potential loan losses.
The pre-tax loss arises primarily from impairment charges totalling €850 million for the financial year.
The charges, which reflect the decline in potential profits from unrealised assets, were up by 27% from €667 million in 2010.
Income fell 13% to €141 million but a restructuring programme also reduced costs which were down 15% to €96 million.
Profit before the impairment charges stood at €45 million.
Danske bank, which owns NIB, reported a pre-tax profit of €566 million last year down 35% and announced impairment charges of €1.77 billion.
NIB's operating profit before the charges was €32 million, down 11% on the same period last year.
NIB CEO Andrew Healy said that impairment charges remained disappointingly high due to the decline in property values but that Danske Bank remains committed to its presence in Ireland.
"We have refined our customer strategy for what is now a very changed market. In 2011 we invested in our Corporate and Private banking divisions where our people and technology strengths have helped us to win some good new business. We’ll focus on developing these business lines further as we move forward," he said.