Pre-tax losses at ACC up 17% to €219m
Bank received €150 million from parent firm Rabobank to ensure ‘adequate’ capitalisation
ACC Bank headquarters in Dublin.
Pre-tax losses at ACC grew by 17.7 per cent last year to €219 million as property-related exposures continued to weigh on the bank. ACC said it incurred a €234 million impairment charge in 2012 (€222m in 2011) bringing total provisions to €1.2 billion.
Total income fell by 18 per cent last year to €82.9 million “due to the negative impact of the increase in impaired loans” on the bank, which is a wholly-owned subsidiary of the Dutch Rabobank Group.
In its annual report ACC said it continued to rely on assistance from Rabobank to meet its liquidity requirements and capital needs. A capital contribution of €150 million was received from its parent company last year.
“Losses in 2012 reflect another year of challenges in the current market especially in regard to property-related exposures, ” said ACC.
Kevin Knightly, chief executive of Rabobank’s operations in Ireland, said the bank would continue to focus on addressing the issues in its loan book. “The short-term outlook remains challenging during 2013.”