ACC sought bailout as it wrote down debt of e383m
Published 06/03/2010 | 05:00
ACC Bank, which has been pursuing troubled developers through the courts, required another bailout from its Dutch parent last year as it wrote down €383m of bad loans.
Utrecht-based Rabobank pumped an additional €275m to shore up ACC's balance sheet in 2009, bringing the amount it has injected into its Irish unit over 24 months to €450m.
ACC's net loss for the year widened to €394m from €242m for 2008 -- contributing to a 17pc slump in Rabobank's net profit for the reporting year, to €2.3bn.
ACC, which succeeded yesterday in having the High Court appoint a liquidator to three insolvent companies in the Cork-based Fleming building group, blamed the collapse of the Irish property market for its dire financial figures.
Total income at the bank dropped 23pc last year to €128m as troubled developers increasingly stopped paying interest on impaired loans.
All told, ACC has written down €756m of its loan book over the past two years -- equating to about 13pc of its average loan book over the period.
ACC announced last year that it would axe 200 of its 660-strong workforce in closing 16 of its 25 branches between October and next month.