Bad debt charges increase NIB loses
Published 01/11/2011 | 08:53
National Irish Bank has reported increased losses for the nine months to the end of September.
This is due setting aside money to cope with potential loan losses.
NIB, which is owned by Danske Bank, said its pre-tax losses rose to €600m from €468m the same time last year, while its operating profits fell by 11% to €32m from €36m.
The bank has set aside €632m for loan impairment charges, up from €504m the same time in 2010.
NIB said that impairment charges remain very high mostly due to the continued weakness of the property market.
According to CEO, Andrew Healy: ‘’That said, they are slightly down on the previous quarter and we hope to see a downward trajectory moving forward.'.
'’’Deposit and cost performance is encouraging, with the benefits of our restructuring programme particularly being see on the cost line.''
The bank said that its income for the nine month period fell by 17pc to €103m.
This was due to reduced customer demand and the impact of impaired loans.
Costs fell by 19pc to €71m.
The bank said that its total loan book at the end of September stood at €9bn, down 8pc on last year.
Commercial property loans was behind most of its loan impairment charges.
But it added that the quality of the bank's €3.4bn mortgage book was ''satisfactory''.