EBS reports €79m loss on loan losses
Published 29/04/2010 | 15:04
EBS Building Society reported a loss after tax of €79m for 2009 after it set aside more cash for bad loans.
About €83m of the lender’s €195m impairment charge was linked to the transfer of loans to the country’s National Asset Management Agency, the company said in an e-mailed statement today.
EBS must raise €875m in capital after the financial regulator set out new requirements for lenders.
The building society may raise capital through a mixture of funding from private investors and the government, Chief Executive Officer Fergus Murphy told reporters at an investor meeting in Dublin today.
“The transfer of assets to NAMA is expected to result in further loan losses,” Murphy said in the statement. “As a result further impairments will be necessary and funding costs will continue to be high.”
About 22pc of the lender’s customers are in negative equity, Murphy told reporters.