AIB announces losses of €700 million for first six months of 2020

AIB has announced it has lost €700 million after tax for the first six months of 2020, according to their latest interim report.

The bank said it has put €1.2 billion aside to cover potential any potential bad loans.

AIB says it has no plans to introduce negative interest rates to retail customers

They are also providing 64,000 payment breaks to retail customers with 47,000 still in place.

AIB chief executive Colin Hunt says the bank does not plan to hit customers with negative interest rates;

"We have protected the vast majority of our customers from the impact of negative interest rates. We do have some of our larger corporate clients who do pay negative interest rates already.

"We have no plans to extend our negative interest rates to the vast bulk of our retail customers.

Speaking about the interim report, the Davy group said "AIB has again reiterated its medium-term financial targets up to 2022 but acknowledges that the challenge to achieving these is greater due to the current crisis.

"The path to achieving medium-term targets will therefore be different. The front-loading of provisions will bridge some of the gap to the medium-term target, but additional commentary on cost efficiency opportunities will be welcomed.

"2020 net interest income is guided at €1.9bn, non-interest income at €420m (Davy €395m), operating cost inflation at 2% (Davy +1%) and loan-loss provisions at 235-250bps (€1.46bn-1.55bn versus Davy €0.92bn)."