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Anglo Irish Bank reports loss of €873m, bad loan provisions of €1.6bn

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IBRC chief executive Mike Aynsley

IBRC chief executive Mike Aynsley

IBRC chief executive Mike Aynsley

ANGLO Irish Bank, now IBRC, has reported a pre-tax loss of €873m in 2011 and has been forced to make total provisions for impairment of €1.6bn.

The collapsed bank said its provisions also include a specific charge of €2bn while charges represent 6pc of loan balances.

While the pre-tax loss is a significant improvement on the record figure of €17.6bn for 2010, IBRC also reported a loss of €426m on the sale of assets, mainly the majority of its US business.

The company recorded an operating profit of €620m and a net reduction of €776m in the overall disposal of assets to NAMA.

The State was forced to take over the bank in January 2009, just months after the controversial bank guarantee.

It is now being wound down.

The European Central Bank wants to wean IBRC off over €40bn of 'emergency liquidity assistance' (ELA) that the bank has been drawing down from the Central Bank of Ireland.

The figures show that IBRC is 87pc dependent on funding from central banks and monetary authorities.

Total assets at the end of December were €55.5bn, a drop of €17.4bn on the year.

The Government is currently trying to negotiate with the ECB on €47bn, including interest, of the bank’s debt in the form of promissory notes or IOUs.

Just over €3bn is due to be repaid this weekend but the negotiation includes the replacement of this payment with a Government bond not due until 2025.

It is understood that as part of the ongoing clean-up of the banking sector, €30bn in tracker mortgages could be transferred to IBRC which is now merged with Irish Nationwide.

Commenting on the results, chief executive Mike Aynsely said: “The primary focus of IBRC continues to be the deleveraging of its lending portfolio while maximising the return for the taxpayer.”

The IBRC said staff costs fell by 8pc last year with the headcount of 1,219 down by 11pc, primarily due to 210 staff transferring to AIB.

Some €108m was spent on professional fees as bankers attempt to recover assets and fight cases in the courts, including the high-profile battle with Sean Quinn.