National Irish Bank posts €400m loss for first six months
Published 09/08/2011 | 11:00
National Irish Bank has reported a pre-tax loss of €400m for the first six months of the year.
The bank, owned by Danske Bank Group, set aside €420mto handle bad loans leading to the pre-tax loss.
Commercial property loans amounted to €3.3bn, with most of the bank's loan impairment charges in this area.
National Irish Bank chief executive Andrew Healy said performance was broadly in line with expectations and reflected the "harsh economic conditions that continue to prevail".
"While our restructuring programme is delivering benefits to the cost line, impairments remain frustratingly high and are caused in the main by the continued decline in property values," he said.
"Our parent, Danske Bank Group, remains strongly committed to Ireland and to National Irish Bank.
"We believe the changes we have made to our business create a good platform for growth once conditions improve."
The bank's total loan book was €9.1bn, down 9pc on last year.
Customer deposits increased by 21pc to the €5.1bn.
The bank reported an operating profit before impairment charges of €20m, a drop of 22pc.
Income fell 19pc to €68m due to reduced customer demand and the impact of the impaired loans.