ACCBANK suffered a loss of €394 million last year, an increase of €152 million on the previous year.

The bank, which is a subsidiary of Rabobank in the Netherlands, said the recession and the “collapse of the Irish property market” significantly affected its performance. However, Kevin Knightly, chief executive of all Rabobank operations in Ireland including ACC, said the bank continues to enjoy the full support of its parent.

“The results of our retail business in Ireland for 2009 are disappointing and are due to our exposure to the property market. While the outlook remains challenging, the effect of the decisive action already taken leaves us well placed to implement our strategies for the future development of the bank.”

Throughout 2009, ACC said it implemented a number of initiatives to address its performance. These included: significantly increasing the resources made available to manage the risk in its loan book; restructuring its operations by closing a number of retail branches and significantly cutting payroll and non-payroll costs.

Total income fell by 23 per cent on the previous year due to the non-recognition of interest on impaired loans. The operating costs for 2009 amounted to €112 million – compared to €99 million in 2008 – with the rise in costs reflecting additional pension charges.

The bank recorded an impairment charge of €383 million in 2009 (compared to €306 million in 2008) on a loan book of €5.5 billion (in 2008 it was €6 billion). At the year end, there was a defined pension deficit of €67 million, compared to €74 million in 2008.

Customer deposits decreased by 36 per cent in 2009 “reflecting the intense competition in the Irish market”, the bank said.

As well as the normal liquidity that its parent group provides to the bank, Rabobank invested extra equity of €275 million in ACC during the year “to ensure it was adequately capitalised”.

Rabobank is considered to be one of the world’s safest banks, maintaining its triple-A credit rating through the financial crisis.

ACC, which is not part of the National Asset Management Agency scheme for toxic or troubled loans, has been active in seeking its money back from a number of large property development groups.

The Cork-based Fleming group was this week placed in liquidation at the request of ACC Bank.

Last year it fought a lengthy court battle against companies in the Liam Carroll Group. In the event, Mr Carroll’s companies failed to win the protection of the courts against the bank.

The bank has also been involved in a range of court actions seeking judgments against smaller developers. It has brought a case seeking damages of more than €7 million from a solicitor it alleges failed to ensure the bank had proper security on a loan relating to a land deal in Co Kildare.

Last year, the bank secured a judgment for €1.6 million against former nightclub owner Robbie Fox.