Business Irish

Saturday 24 February 2018

AIB announces loss of €2.8bln for 2012

BAILED-OUT Allied Irish Banks (AIB) has announced operating losses of €2.8bln for 2012.

The bank also revealed 9.1pc of its private residential mortgages were in arrears of more than 90 days.

AIB chief executive David Duffy said while 2012 was a challenging year, the bank was on track to return to sustainable profitability during 2014.

"AIB has now largely completed the restructuring phase of its strategic plan as the bank targets a return to sustainable profitability and growth during 2014," Mr Duffy said.

"While 2012 was another very challenging year for the group, a number of important steps were taken to position the bank for recovery over the longer term."

The bank said its €2.8bn of losses for 2012 were down 65pc from €8.1bn the year before.

It also revealed a 29pc reduction in its reliance on funding from the European Central Bank, dropping from €31bn at the end of 2011 to €2bn at December 2012.

In its annual results report, AIB said 17.7pc of buy-to-let mortgages were in arrears of more than 90 days.

Mr Duffy insisted recent targets set by the Central Bank of Ireland for banks to deliver sustainable solutions to customers in mortgage distress had been adopted. He said supporting small and medium-size enterprises would also be a focus for AIB.

"Assisting both SME and mortgage customers in difficulty will continue to be a major priority for this year," Mr Duffy said. "AIB intends to meet or exceed the recently announced Central Bank of Ireland 2013 sustainable mortgage solution targets as part of ongoing efforts to deal effectively and quickly with customers in difficulty."

Online Editors

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business