Former Anglo Irish Bank reports €873m loss
Mike Aynsley
The former Anglo-Irish Bank, the Irish Bank Resolution Corporation (IBRC), has reported pre-tax losses of €873m for last year.
This compares to the nationalised lender's record 17.7bn losses in 2010.
Its annual report for last year,which also includes the bailed-out Irish Nationwide Building Society, revealed that it has €1.64bn set aside for bad loans.
Mike Aynsley, IBRC group chief executive, was appointed in September 2009 after a worldwide search for a banker to lead the Anglo wind-down.
Last year, the Australian banker was paid a salary of €538,000 - which includes wages capped at €500,000 plus a car allowance of 38,000 euro.
He also received a pension contribution of €125,000 and a €203,000 payment of temporary allowances - for relocation assistance including rent, travel and other agreed expenses - taking his total package for the year to €866,000.
Chairman and non-executive director Alan Dukes was paid fees of €150,000, €100,000 euro lower than the agreed contractual fee.
Mr Aynsley said 2011 was a period of significant change and welcome progress for the organisation.
"Since the completion of the merger with the Irish Nationwide Building Society, the combined entity has now been reshaped into a fully-integrated, fit-for-purpose, asset recovery organisation trading as IBRC," he said.
"The primary focus of IBRC continues to be the deleveraging of its lending portfolio while maximising the return for the taxpayer."
The losses for 2011 include 214m following the transfer in February of the majority of the bank's Irish and UK deposit books, losses on some bonds in the State's National Assets Management Agency and on the shares in transfer of its Isle of Man subsidiary to Allied Irish Banks (AIB).
There were losses of €426m as it shifted other assets, primarily the sale of the majority of the bank's holdings in the US.
The IBRC said staff costs fell by 8% last year with the headcount of 1,219 down by 11%, primarily due to 210 staff transferring to AIB.
Some €108m was spent on professional fees as bankers attempt to recover assets and fight cases in the courts, including the high-profile battle with Sean Quinn, who the bank alleges owes debts of €2.8bn.
The plan is for the IBRC to clear its loan books and shut its doors by the end of the decade.
The IBRC began the lay-off of another 130 staff late last year under voluntary redundancy. It will be completed this year.
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