National Irish Bank reports €341m loss
National Irish Bank this morning reported a loss before tax of €341m for the six months to 30 June 30, 2010.
Income was down 17% to €84m due to reduced customer demand, the impact of impaired loans and lower deposit margins.
Costs reduced by 6% to €58m. The bank set aside loan impairment charges of €367m.
The bank reported an operating profit before these impairment charges of €26m.
“These results reflect the continuing difficult economic and banking market conditions.," said Andrew Healy, CEO, National Irish Bank.
“Our focus is on completing the restructuring programme we started last year and our work in this regard is on track.”
Mr Healy noted recent market moves in terms of mortgage pricing but advised that National Irish Bank has no plans to increase mortgage rates at this time.
“These are tough times to be operating a bank in Ireland and we are fortunate to have the unflinching support of a strong parent in Danske Bank. We have taken early and decisive action to reduce our costs and to reposition National Irish Bank for a market which is being radically reshaped.”
As part of its restructuring programme, National Irish Bank recently announced a significant partnership with An Post which will give the bank’s customers access to cash services in 1,200 post offices nationwide.
Mr Healy pointed to this partnership as providing tangible evidence of National Irish Bank’s and Danske’s long term commitment to Ireland.
National Irish Bank’s total loan book is €10bn, down 5% on last year.
Commercial property loans amounted to €3.3bn, with most of the bank’s loan impairment charges in this area.
The mortgage book amounted to €3.6bn. Total deposits amounted to €4.2bn, an increase of 3%.
Parent company Danske Bank Group today announced a profit before tax of €420m, up 32% year-on-year.
