Friday 24 November 2017

AIB record losses of €2bn for first six months

Allied Irish Banks (AIB) recorded its worst pre-tax losses of just over €2bn for the first half of the year, it was revealed today.

This compares with €872m for the same period in 2009, according to the bank's half-yearly results.

AIB, one of the six banks guaranteed by the State, said the six months from January were particularly difficult for the bank and its customers.

And managing director Colm Doherty warned that home owners would face further pain as the bank, 18.6pc of which is owned by the taxpayer, would follow Permanent TSB and Bank of Ireland in hiking mortgage interest rates.

"I think reluctantly we're going to have to follow all of the other banks in raising mortgage rates," he said.

Mr Doherty said the bank was losing money on mortgages.

"So we're going to have to follow our competitors he told RTE Radio's Morning Ireland.

In a statement the bank said it incurred significant credit losses in the first six months of the year and also suffered a knock in the transfer of the first tranche of loans to bad-bank National Asset Management Agency (Nama).

The half-yearly results include:

- €2,027m loss before tax compared with €872m in the same period last year;

- AIB Bank Republic of Ireland loss was €2,677m;

- Loss on transfer of first tranche of loans to Nama was €963m.

Bailed-out Bank of Ireland yesterday announced that almost 58,000 home owners are to be hit with a hike in interest rates for the second time this year.

The lender revealed that its standard variable mortgage rate will jump to 3.49pc next Tuesday.

Permanent TSB, one of the country's biggest mortgage lenders, said last week that its standard variable customers would be hit with a 0.5pc hike from yesterday.

Press Association

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