Losses at NIB rise to €401 million
Danish-owned National Irish Bank has reported a pre-tax loss of €401 million for the first six months of the year after setting aside €391 million for loan impairment charges.
For the same period a last year, the bank reported a loss of €400 million after setting aside €420 million.
NIB, which is owned by Danske Banking Group, reported an operating loss before impairment charges of €10 million. Commercial property loans amounted to €3.0 billion, with most of the bank’s loan impairment charges in this area.
Costs at the bank increased by 53 per cent to €74 million in the first six months of 2012, due to a one off provision for costs associated with the reorganisation of the Bank’s retail business announced in June.
Overall loans reduced by 9 per cent to €8.3 billion, while deposits decreased by 39 per cent.
“The Bank’s performance during the first six months of 2012 was in line with expectations. Economic conditions remain challenging and, with property prices continuing to fall, impairment levels remain high although they are lower than in the same period last year,” Terry Browne, National Irish Bank’s country manager said.
Meanwhile, Danske reported pre-tax profits that were up 15 per cent to €550 million for the first half of 2012. This compares to profits of €480 million for the same period a year earlier.
Operating profit was up 22 per cent to €1,496 million, and the group set aside €946 million for loan impairment charges.