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 UK, the part of the bank that includes First Trust, made a loss of £131m compared to a £214m loss in 2011.

But AIB says it maintains a "strong market position in key Irish product segments" and is "well positioned for economic recovery."

It says the bank "remains fully focused on its business agenda including ongoing investment in a long term digital strategy."

AIB approved €1.5bn in new mortgages in 2012.

A total of €1.2bn of mortgages were drawn down during the year. The number of mortgages provided by AIB increased 83% from 2011 to 2012.

AIB, along with EBS, has doubled its mortgage lending target for 2013 to €2bn.

David Duffy, AIB Chief Executive, said: "AIB has now largely completed the restructuring phase of its strategic plan as the bank targets a return to sustainable profitability and growth during 2014.

"While 2012 was another very challenging year for the Group, a number of important steps were taken to position the bank for recovery over the longer term. We continued to make progress on restructuring our balance sheet and undertook a number of strategic initiatives which will reduce the bank’s cost base over time. Progress was also made in reorienting the organisation to be better aligned with the needs of our customers.

"Assisting both SME and mortgage customers in difficulty will continue to be a major priority for this year. AIB intends to meet or exceed the recently announced Central Bank of Ireland 2013 sustainable mortgage solution targets as part of ongoing efforts to deal effectively and quickly with customers in difficulty."

(IT)