Anglo results for first half to show big reduction in its losses
Anglo Irish Bank is expected to this week reveal dramatically reduced losses for the first six months of this year.
Ireland's most toxic bank smashed records for the worst results in Irish corporate history in 2009 and 2010.
Anglo will report half-year results on Friday, when bosses will reveal a performance vastly improved from the €8.2bn lost in the first half of 2010, the Irish Independent understands.
Sources even suggested the bank's result for the first half of the year could be better than that of AIB, which lost €2.6bn in the six months to end June.
Anglo's better results reflect the massive write-offs that have already been taken over the last two years, as the bank booked losses of €12.7bn in 2009 and €17.7bn in 2010. A significant whack of those losses -- €8.9bn in 2010 alone -- related to distressed property loans that were transferring to NAMA.
By the end of 2010, Anglo had just €1.1bn of loans left to transfer to NAMA and €148m of provisions had already been taken on those, so NAMA charges for the first half of 2011 are expected to be minimal.
Anglo's remaining non-NAMA loan book -- totalling €33.9bn at the end of 2010 -- had already taken impairments of almost €9.6bn going into the 2011 period.
Since these loans are largely the healthier, non-property part of Anglo's portfolio, further significant provisions are not expected in the first half of the year.
The results were given to the Department of Finance after Anglo's July board meeting, the Irish Independent understands. A spokesman for the department declined to comment ahead of the results' publication, as did Anglo.
Anglo's half-year results announcement may also include an update on the sale of the bank's €9.5bn US loan book, which will draw second-round bids tomorrow.
The bank is expected to sell the book at about 70pc of its "face value", but even at that level the transaction would still improve the bank's capital position and reduce its reliance on cheap central-bank funding.
Anglo's results come almost two months after the official merger between Ireland's most toxic bank and Ireland's most toxic building society, Irish Nationwide.
The merged institution, dubbed Irish Bank Resolution Corporation, is expected to be wound down over a 10-year period.