IBRC says UK lending arm's loans are nearly all 'high risk'
ALMOST the entire UK loan portfolio of IBRC Asset Finance, the former Anglo Irish Bank's UK lending arm, is now considered high risk -- by the bank itself.
Accounts just filed for IBRC Asset Finance plc, formerly Anglo Irish Asset Finance, show that 96pc of the £1.5bn (€2bn) of loans owed to the UK unit are considered "at risk".
It means the debts are past due or secured on assets with falling or diminished values.
The news was revealed in accounts for the year to the end of 2011 that have just been filed with Companies House, the UK equivalent of the Companies Office here.
The former Anglo Irish Bank's UK unit made a loss of £39m (€50m) last year, the filing shows. That's a massive improvement on a €711m loss the previous year.
The amount of debt owed to the unit has dropped from £1.9m at the end of 2010 to £1.5m at the end of last year, as some loans were repaid and others sold off. The unit is no longer an active lender.
Losses for 2011 include a hit of £64m on foreign exchange losses, £17m incurred when assets were transferred to NAMA by the bank, and further losses of £37m realised when loan assets were sold to third-party investors.
Provisions for impairment of £47m also hit the bottom line of the bank.
Interest income for the year was £141m.
In 2010, Anglo Irish pumped almost €1.4bn into the UK operations following the wider nationalisation of the Irish parent bank.
The rescue of the UK unit was made up of a £1bn capital injection and the waiving of another £200m owed to the parent.