BoSI's high level of impairments reflects struggling Irish economy, says parent
IMPAIRMENT levels at Bank of Scotland (Ireland) continue to run at high levels, reflecting the "well documented ongoing difficulties in the Irish economy", the bank's owner Lloyds said yesterday.
The commentary in Lloyds' interim management statement comes as BoSI prepares to fully quit the Irish market at the end of the year.
The Irish arm took £1.56bn (€1.78bn) of impairment charges in the first half of the year.
"In Ireland, impairment levels are expected to continue at similar levels to the first half of the year," Lloyds said, pointing to the "difficulties" in the economy.
On a conference call, Lloyds chief executive Eric Daniels said that while the bank "observes" the haircuts imposed by the National Asset Management Agency, those haircuts did not form the basis for BoSI's impairments.
Overall, Lloyds forecast a "good" 2010, but clashed with analysts over the vague nature of the statement, which one analyst said contained "just nine new numbers".
Under questioning, Mr Daniels said Lloyds provided full numbers at the half-year and full-year point, and had only issued detailed third-quarter numbers last year because it was raising capital.