THE ACQUISITION of deposits and assets from Irish Nationwide Building Society may have a marginally negative impact on earnings and capital, Irish Life & Permanent said yesterday.

In a statement to the stock exchange late afternoon yesterday, the bancassurer gave a breakdown of assets it received as support for the €3.6 billion worth of deposits it acquired from Irish Nationwide. These comprise €2.9 billion in senior Nama bonds and €700 million in Government -guaranteed bonds.

As with AIB which received a transfer of deposits from Anglo Irish Bank, Irish Life & Permanent received State-backed bonds as support for the €3.6 billion in Irish Nationwide deposits it acquired last month.

The €3.6 billion in deposits will improve loan to deposit ratio and liquidity of Irish Life & Permanent which is heavily under-funded.

The transfer will have the effect of reducing the loan to deposit ratio of the group’s banking division to around 200 per cent from 249 per cent.

In addition, the transfer of approximately 160,000 primarily retail deposit customers will also strengthen the groups banking arm, IL&P reiterated yesterday.

Last month, the court approved the transfer of €12.2 billion worth of deposits out of Anglo Irish Bank and Irish Nationwide Building Society (INBS), into AIB and Irish Life and Permanent as part of the wind-down of Anglo and INBS.

A sum of €8.6 billion was transferred from nationalised Anglo into AIB, which is almost fully nationalised, while €3.6 billion was transferred from Irish Nationwide to Irish Life & Permanent.

Two hundred and thirty-seven Irish Nationwide employees transferred to Irish Life & Permanent as a result of the deposit transfer, though no branches were acquired.

Irish Life & Permanent shares lost 14 per cent yesterday on the Irish stock exchange, closing at €0.67.