Menu
02/03/2010
Bank 'Blames NAMA' For Huge Losses
A bank that trades across the whole of Ireland has revealed shocking losses.
Troubled AIB's Northern Ireland business, First Trust, lost £86m alone - compared to a £33m profit in 2008.
However, the bank's performance in the Irish Republic was disastrous with total losses there reaching 3.5bn euros.
In it's management report overview, the bank said €3.4bn of money related to loans that have been identified for potential transfer to the National Asset Management Agency (NAMA).
The overview said: "The outlook and environment remain extremely challenging.
"There are very significant matters and initiatives including NAMA, the European Union decision on restructuring and funding costs/market conditions, all of which could materially affect the Group's performance.
"In line with global trends for banks to hold more capital, AIB will be moving to increase its capital ratios. In 2010 AIB will prioritise restructuring and restoring its businesses to underpin viability, and renewing the Group's credibility amongst all its stakeholders."
However, AIB is now set to increase its mortgage interest rates in response to the data - its first-ever full-year loss.
In its preliminary results for 2009, the bank has reported pre-tax losses of €2.656bn for last year.
Describing the period as a "very challenging year", AIB said it was putting aside €5.35bn provision for bad loans. It said this equated to 4.05% of its average customer loans.
AIB Group Managing Director Colm Doherty said price rises across its financial products - including mortgages - were unavoidable.
He said the bank is paying more for the money it is borrowing than it is charging customers. He said this was unsustainable.
The Dáil Fine Gael Deputy Leader and Finance Spokesman Richard Bruton said AIB's worst ever results represented even more pain for consumers and borrowers, and should send a clear message to the Government that its banking policy is not working.
"The results paint a very worrying picture for taxpayers and for the economy. There is little comfort for borrowers, or for businesses, as the bank's commitment to restart lending is fragile at best.
"The open threat of rising costs for borrowers, including mortgage holders, also points to further trouble in store for the Irish economy," he commented.
(BMcC/GK)
Troubled AIB's Northern Ireland business, First Trust, lost £86m alone - compared to a £33m profit in 2008.
However, the bank's performance in the Irish Republic was disastrous with total losses there reaching 3.5bn euros.
In it's management report overview, the bank said €3.4bn of money related to loans that have been identified for potential transfer to the National Asset Management Agency (NAMA).
The overview said: "The outlook and environment remain extremely challenging.
"There are very significant matters and initiatives including NAMA, the European Union decision on restructuring and funding costs/market conditions, all of which could materially affect the Group's performance.
"In line with global trends for banks to hold more capital, AIB will be moving to increase its capital ratios. In 2010 AIB will prioritise restructuring and restoring its businesses to underpin viability, and renewing the Group's credibility amongst all its stakeholders."
However, AIB is now set to increase its mortgage interest rates in response to the data - its first-ever full-year loss.
In its preliminary results for 2009, the bank has reported pre-tax losses of €2.656bn for last year.
Describing the period as a "very challenging year", AIB said it was putting aside €5.35bn provision for bad loans. It said this equated to 4.05% of its average customer loans.
AIB Group Managing Director Colm Doherty said price rises across its financial products - including mortgages - were unavoidable.
He said the bank is paying more for the money it is borrowing than it is charging customers. He said this was unsustainable.
The Dáil Fine Gael Deputy Leader and Finance Spokesman Richard Bruton said AIB's worst ever results represented even more pain for consumers and borrowers, and should send a clear message to the Government that its banking policy is not working.
"The results paint a very worrying picture for taxpayers and for the economy. There is little comfort for borrowers, or for businesses, as the bank's commitment to restart lending is fragile at best.
"The open threat of rising costs for borrowers, including mortgage holders, also points to further trouble in store for the Irish economy," he commented.
(BMcC/GK)
Related Northern Ireland News Stories
Click here for the latest headlines.
14 March 2002
AIB sacks six executives over trading losses at Allfirst
Irish bank AIB, which has been at the centre of one the biggest banking fiascos since Barings, has sacked six executives at their American subsidiary Allfirst. The job losses were announced following the publication of US banking expert Eugene Ludwig's 30-day examination of the $691 million trading losses incurred at Allfirst.
AIB sacks six executives over trading losses at Allfirst
Irish bank AIB, which has been at the centre of one the biggest banking fiascos since Barings, has sacked six executives at their American subsidiary Allfirst. The job losses were announced following the publication of US banking expert Eugene Ludwig's 30-day examination of the $691 million trading losses incurred at Allfirst.
05 August 2009
Irish Bank Losses Rising
Northern Ireland's First Trust Bank has lost £41m, according to the latest financial statement. The report also detailed how this led to a £28m loss at the parent company Allied Irish Bank group's UK operation. AIB in The Republic has also reported a pre-tax loss of €872m for the first six months of its financial year.
Irish Bank Losses Rising
Northern Ireland's First Trust Bank has lost £41m, according to the latest financial statement. The report also detailed how this led to a £28m loss at the parent company Allied Irish Bank group's UK operation. AIB in The Republic has also reported a pre-tax loss of €872m for the first six months of its financial year.
27 March 2013
AIB Records €2.8bn Loss In 2012
Allied Irish Banks, the parent company of Northern Irish bank First Trust, has announced an operating loss of €2.8bn for 2012. There was a €2.9bn (5%) growth in customer accounts in 2012, despite the announcement to close certain offshore businesses.
AIB Records €2.8bn Loss In 2012
Allied Irish Banks, the parent company of Northern Irish bank First Trust, has announced an operating loss of €2.8bn for 2012. There was a €2.9bn (5%) growth in customer accounts in 2012, despite the announcement to close certain offshore businesses.
19 January 2024
AIB NI To Host Event During Apprenticeship Week
AIB NI has announced that its holding an event for young people, parents and career changers during NI Apprenticeship Week. The bank has partnered with early talent experts Workplus to hold the event at 5.00 pm on the 6 February at the AIB NI head office.
AIB NI To Host Event During Apprenticeship Week
AIB NI has announced that its holding an event for young people, parents and career changers during NI Apprenticeship Week. The bank has partnered with early talent experts Workplus to hold the event at 5.00 pm on the 6 February at the AIB NI head office.
25 June 2013
New NI Bank Notes In Circulation
New bank notes have been released into circulation in Northern Ireland. The £10 and £20 notes are being issued from Danske Bank and will gradually replace the existing Northern Bank notes. The design of the notes remains the same, the only difference is the Danske Bank logo has replaced the Northern Bank logo.
New NI Bank Notes In Circulation
New bank notes have been released into circulation in Northern Ireland. The £10 and £20 notes are being issued from Danske Bank and will gradually replace the existing Northern Bank notes. The design of the notes remains the same, the only difference is the Danske Bank logo has replaced the Northern Bank logo.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
