Bank Of Ireland reports €1.2bn pre-tax loss
Bank of Ireland today posted a pre-tax loss of almost €1.25bn for the first half of the year – almost double the figure for the same period in 2009.
The finance house’s operating profit, before losses on the sale of impaired loans to band bank the National Asset Management Agency (NAMA) and charges, was €553m, down 32% on the six months to June last year.
Richie Boucher, chief executive, said significant progress was made in the first six months of 2010 to try to stabilise the group, raising €4.6bn in funding.
But he warned conditions remained tough.
“We are confident that the steps that we have taken in the first half of 2010 to strengthen the Group will enable us to successfully meet the many challenges ahead and position us well to capitalise on the opportunities that arise through a recovery in the economic conditions in our key operating markets in Ireland and the UK,” Mr Boucher wrote.
Key results include:
* Underlying loss before tax was €1.246bn, compared with €668m in the same period in 2009.
* The Group’s underlying operating profit, before impairment charges and losses on sale to NAMA, was €553m – down 32% on six months to June 2009.
* The bank said operating expenses were down 3% to €916m due to lower staff numbers and continued rigorous cost management.
* €2.2bn of loans were sold to NAMA, incurring a loss on sale for the bank of €466m.
Mr Boucher said that while operating conditions remained challenging with new business stagnant, there were signs of stabilisation.
“We are confident that the steps that we have taken in the first half of 2010, to strengthen the Group, will enable us to successfully meet these challenges and position us to capitalise on the opportunities that a recovery in the economic conditions in our key markets in Ireland and the UK will present for Bank of Ireland.”
