ACC Bank lost €394 million last year, an increase of €152 million on the amount it lost in 2008.
Total income for the bank, which is owned by Dutch bank Rabobank, fell by 23 per cent when compared to 2008, because of the non-recognition of interest on impaired loans.
The bank had a loan book of €5.5 billion at the year’s end, and recorded an impairment charge of €383 million during the year.
In 2008 this latter charge was €306 million.
Earlier this week the Supreme Court ruled against the Fleming construction and property group in a case taken by ACC and where the group was seeking approval for its rescue plan, having had the protection of the courts.
Tom Kavanagh of Kavanagh Fennell was appointed as liquidator to the group today. Last year the bank moved against developer Liam Carroll’s group of companies.
ACC, in a short statement issued with its 2009 results, said the year “continued to present significant challenges for the bank, with the effect of recession in Ireland and the collapse of the Irish property market significantly affecting its financial performance”.
As well as the normal liquidity that its parent group provides to the bank, Rabobank invested additional equity of €275m in ACC during the year to ensure it was adequately capitalised.
Kevin Knightly, chief executive of Rabobank operations in Ireland, said ACC 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,” he said.
The bank’s operating costs for 2009 amounted to €112m (€99million in 2008) with the increase in costs reflecting additional pension charges.
At the year’s end, there was a defined pension deficit of €67m (2008: €74million). Customer deposits decreased by 36 per cent during 2009 reflecting the intense competition in the Irish market, the bank said.
