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THE IRISH BANK Resolution Corporation has announced a €724 million loss for the first six months of 2012.
The former Anglo Irish Bank published its interim report this morning which outlined the significant economic challenges presented in the first half of the year.
Group chief executive Mike Aynsley, however said that “notwithstanding the continued macro economic challenge, the six month period to 30 June was one of relative operational stability and steady progress towards the orderly wind down of the bank”.
After a net interest income of €538 million, the bank’s operating profit for the period was €359 million before certain disposals and provisions of over €1 billion.
The growing impaired loan provisions mean the loss for the period has jumped substantially in a year. This time 2011, the bank reported a €105 million loss.
The group’s specific lending impairment charge reached a total €878 million for the period but total impaired loans amount to €18 billion.
IBRC explained that conditions remain weak within both the commercial and residential property markets and a lack of bank funding, as well as “an overhang of vacant properties” have continued to provide downward pressure on prices.
Budgetary austerity measures and high unemployment continue to impact credit quality across this [residential mortgage] portfolio.
Operations
There was a €28 million fall in operating expenses compared with the previous six months with overall group headcount dropping by 15 per cent. Currently, there are 775 staff at the bank. Of them, 256 people are employed – either directly or indirectly – in the NAMA unit.
Non-staff costs decreased by about €19 million.
A €2.8 billion decline in total assets, which now rest at a worth of €53.2 billion, was driven primarily by a reduction in gross customer loan balances, explained the bank. However, excluding the government promissory notes of €27.8 billion and Irish government bonds of €3.5 billion, total assets are €21.9 billion at 30 June 2012.
Almost 90 per cent of the group’s total funding comes from central banks and monetary authorities.
During the period, regulatory capital ratios have decreased (Tier 1 – 13.6 per cent; Total – 14.8 per cent) because of losses incurred.
The interim statement added that throughout the six months, the bank had “continued to actively manage and vigorously defend all legal claims”.
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Yes totally depressing, and to make it even worse, all the main players are still at large! Why has Neary the so called regulator not been brought to book? I mean, he was supposed to be in charge when all this was going on! There’s a lot more going on here than meets the eye! Who’s protecting who? Or are they all protecting each other??
Because this whole thing is facade. Irish get screwed with losses, the yanks get our businesses(MINUS THE DEBT) and we as a nation keep our attention and anger on the scapegoats
rodrigo the corruption levels at the top in this country is very frightening none of these guys can be brought before they people because they would start talking and the political class couldnt handle this
Utterly depressing read.
Let’s hope they’ll be gone soon…
OMG guys a €724 million loss ?
Well done!
Don’t worry I’m sure you can find a few hundred million in there somewhere to pay your extortionate wages, expenses and bonuses.
Completely agree rodrigo. Neary is vital in all this. The imcompetence thing is a smokescreen. He was told to look the other way. Even a novice would have asked questions about the lodgements to the anglo accounts in order to balance the books. In my opinion the decision to ignore the facts was taken at the very highest level. Neary has to be asked these questions
have your say