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« Previous « PreviousNext » Next »View GalleryPublished Date: 01 April 2010
By Erikka Askeland
ANGLO Irish Bank, the leading casualty of Ireland's banking crisis, yesterday reported the biggest loss in the country's history.
It revealed a 12.7 billion (£11.3bn) loss in the 15 months to the end of last year as it took a massive hit of 15.1bn in write-downs on its bad loans.
The bank's accounts were released a day after the Irish government revealed it was pumping a fu
ADVERTISEMENTrther 8.3bn into the bank, bringing its total support to 12.3bn in 2009.
The Dublin-based bank, which was nationalised in January 2009, said its position had deteriorated sharply since May when it predicted that impairment losses were likely to total 7.5bn.
AIB chairman Donal O'Connor yesterday said: "Unfortunately, our stress scenarios have been more than realised and reflect the very severe deterioration in asset values in the marketplace since March 2009."
AIB delayed releasing its results as it awaited European regulatory approval of the state's cash injection. The European Commission also announced it would investigate the government aid received by AIB and its accompanying restructuring plan.
Earlier, Bank of Ireland, the healthiest of the country's battered banks, reported a 1.47bn loss for the final nine months of 2009 as it booked impairment charges of just over 4bn on bad loans.
Some legislators have called for AIB to be wound up, but Irish finance minister Brian Lenihan said that would be far more expensive, costing the state an immediate loss of 30bn while also stumping up 70bn to cover the bank's liabilities. He believed AIB could recover and return to private ownership within seven years.
AIB intends to place 36bn in dud loans – the largest amount for any Irish bank – in the National Asset Management Agency (Nama), the "bad bank" set up to deal with the crisis. Initially, AIB will placing 10bn in Nama at a discount of about 50 per cent.
AIB – a specialist commercial lender that took great risks from which it profited handsomely during the Celtic Tiger's Europe-leading property boom of 1994-2007 – faced catastrophic losses when the Irish property-speculation bubble burst in 2008. It was also an aggressive lender to property firms in Scotland, with clients including WG Mitchell, the McKever Group of hotels and FM – all of which went into receivership last year.
The bank, which has offices in Glasgow and Edinburgh, had 200 corporate customers and an estimated £700 million in loans in Scotland, although it did not confirm current client numbers.
Earlier in March, former chairman Sean FitzPatrick and former finance director William McAteer were arrested and quickly released as part of a continuing criminal investigation into the bank's affairs.
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Last Updated: 31 March 2010 8:31 PM
Source: The Scotsman
Location: Edinburgh
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No longer a bank official,
UK 01/04/2010 01:18:37
Anglo Irisb Bank are NOT referred to as AIB. AIB are Allied Irish Bank PLC - a separate entity (also in trouble, but not by as much as Anglo Irish)Report Unsuitable2
Colin RB,
Bearsden 01/04/2010 09:37:22
Very poor and lazy journalism here- as above commentator says AIB is Allied Irish Banks not Anglo Irish BankReport Unsuitable3
Andra, Dundee,
01/04/2010 10:20:22
LOL - they must have a student seconded to this department this week!Report Unsuitable
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« Previous « PreviousNext » Next »View GalleryPublished Date: 01 April 2010
By Erikka Askeland
ANGLO Irish Bank, the leading casualty of Ireland's banking crisis, yesterday reported the biggest loss in the country's history.
It revealed a 12.7 billion (£11.3bn) loss in the 15 months to the end of last year as it took a massive hit of 15.1bn in write-downs on its bad loans.
The bank's accounts were released a day after the Irish government revealed it was pumping a fu
ADVERTISEMENTrther 8.3bn into the bank, bringing its total support to 12.3bn in 2009.
The Dublin-based bank, which was nationalised in January 2009, said its position had deteriorated sharply since May when it predicted that impairment losses were likely to total 7.5bn.
AIB chairman Donal O'Connor yesterday said: "Unfortunately, our stress scenarios have been more than realised and reflect the very severe deterioration in asset values in the marketplace since March 2009."
AIB delayed releasing its results as it awaited European regulatory approval of the state's cash injection. The European Commission also announced it would investigate the government aid received by AIB and its accompanying restructuring plan.
Earlier, Bank of Ireland, the healthiest of the country's battered banks, reported a 1.47bn loss for the final nine months of 2009 as it booked impairment charges of just over 4bn on bad loans.
Some legislators have called for AIB to be wound up, but Irish finance minister Brian Lenihan said that would be far more expensive, costing the state an immediate loss of 30bn while also stumping up 70bn to cover the bank's liabilities. He believed AIB could recover and return to private ownership within seven years.
AIB intends to place 36bn in dud loans – the largest amount for any Irish bank – in the National Asset Management Agency (Nama), the "bad bank" set up to deal with the crisis. Initially, AIB will placing 10bn in Nama at a discount of about 50 per cent.
AIB – a specialist commercial lender that took great risks from which it profited handsomely during the Celtic Tiger's Europe-leading property boom of 1994-2007 – faced catastrophic losses when the Irish property-speculation bubble burst in 2008. It was also an aggressive lender to property firms in Scotland, with clients including WG Mitchell, the McKever Group of hotels and FM – all of which went into receivership last year.
The bank, which has offices in Glasgow and Edinburgh, had 200 corporate customers and an estimated £700 million in loans in Scotland, although it did not confirm current client numbers.
Earlier in March, former chairman Sean FitzPatrick and former finance director William McAteer were arrested and quickly released as part of a continuing criminal investigation into the bank's affairs.
Page 1 of 1
Last Updated: 31 March 2010 8:31 PM
Source: The Scotsman
Location: Edinburgh
Bookmark:
Del.icio.us Digg Facebook reddit StumbleUpon
1
No longer a bank official,
UK 01/04/2010 01:18:37
Anglo Irisb Bank are NOT referred to as AIB. AIB are Allied Irish Bank PLC - a separate entity (also in trouble, but not by as much as Anglo Irish)Report Unsuitable2
Colin RB,
Bearsden 01/04/2010 09:37:22
Very poor and lazy journalism here- as above commentator says AIB is Allied Irish Banks not Anglo Irish BankReport Unsuitable3
Andra, Dundee,
01/04/2010 10:20:22
LOL - they must have a student seconded to this department this week!Report Unsuitable
Comment on this Story
In order to post comments you must Register or Sign In
RSS Feed of this article's comments Delivery formats: RSS, Atom, Javascript & Email Email a friend
Print article
Increase text size
Decrease text size
3 comments on this article
More Business
Scotland 'most likely' still in recession finds Lloyds survey
M&S chief 'may try to raise £750m' to turn around chain
AIB records worst Irish loss after a £13bn hit on bad loans
Taxpayer-owned bank boss takes home £1.3m despite waiving bonus
Reel life goes on as films buck the gloom
FSA reforms bring mixed fortunes but Edinburgh set to cash in
Technical hitches delay signing of BA merger deal
Credit firms warned: behave or lose licence
SCC puts out election wish-list to parties
Terry Murden: Sky not likely to cave in over ruling on pay-for-view
Scots workers hit as Jarvis axes jobs
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IFA of the Year 2010
