NIB reports €341m losses for first half of year
National Irish Bank has today reported losses of €341m for the first half of this year.
The losses are largely a result of a major increase in impairment charges, with the bank setting aside €379m to cover bad loans.
The majority of the bad loans are in the commercial property sector.
National Irish Bank reported an operating profit before impairment charges of €38m, up 34% on the previous year.
Income increased 6% to €101m, while costs reduced by 6% to €63m.
Overall, Danske Bank has reported a larger-than-expected fall in profits and says write-offs of bad loans will remain high for the rest of the year.
Danske Bank's net profit was down 88% to €100m, income was up 48% to €4.3bn, with €2bn set aside for loan impairment charges.
Commenting on the results, Andrew Healy, CEO, National Irish Bank said: "Operating profit levels are holding up well but the amount we’ve set aside for potential loan losses is high.
"Although the level has reduced on the previous quarter, we expect this figure to remain high, in the short term at least. We remain firmly focused on our priorities – working closely with our customers, managing our loan book and reducing our costs.
"We are fortunate in these difficult times to be part of Danske Bank Group, a strong, well capitalised and supportive parent."
