Bank of Ireland losses widen to a massive €2.1bn
BANK of Ireland has revealed a huge increase in pre-tax losses to €2.1bn.
The bank blamed the massive increase in losses, up from €190m in 2011, on the impairment charges it has been hit with.
Its report for 2012 revealed losses of 1.7bn on asset sales, redundancy charges, and buying back its subordinated bonds.
Some 5,000 members of staff have left the bank on a special redundancy programme enforced after Ireland's banking collapse.
The bank said its impairment charges were 11pc lower than in 2011.
A further breakdown of figures showed areas where impairment charges were hitting hardest, with losses for the residential mortgage sector of €462m and property and construction at €797m.
The State owns 15pc of Bank of Ireland.
Bank of Ireland group chief executive Richie Boucher said that, while the economy has improved recently, the environment remains difficult and the bank continues to face many challenges.
"Bank of Ireland has made good progress against our strategic objectives as we enhance our core franchises and rebuild profitability within a restructured, robust balance sheet, in what was another challenging year for the group," he said.
Bank of Ireland said the State has received €3.8bn in payments for its support, returns on its investments and repayment of investments.