More than 60pc of Anglo Isle of Man loan book out to one client
MORE than 60pc of Anglo Irish Bank's Isle of Man operation's £113m (€132.3m) loan book is out to one customer, according to the unit's latest annual report.
This £71.5m of loans in question was described as "past due but not impaired" in the report for the 15 months to the end of December.
However, it noted that the terms of the borrowings had since been renewed and that "the quality of these loans and advances was considered satisfactory".
The Isle of Man business -- Anglo Irish Bank Corporation (International) -- is mainly run as a deposit-gathering operation, with the amount held in customer accounts also falling last year.
The report showed that deposits dropped almost 22pc to £3.2bn during the 15 months.
The unit stood out as a small bright feature for the beleaguered group, in carving out a £17.8m pre-tax profit for the reporting period -- up from £13.6m for the 12 months to September 2008.
The profits were buoyed as a 9pc drop in interest expenses, to €239.1m, outpaced an almost 5pc decline in interest income, to €262.7m.
The broader Anglo group posted a pre-tax loss of €12.7bn for the same 15 months, after writing off €15bn in bad loans.
The group's new management team, headed by chief executive Mike Aynsley, is finalising a revised state-aid restructuring plan for the European Commission.
Anglo hopes to split itself into an internal 'good' and 'bad' bank, with the bad bank being wound up over time.
Incoming chairman Alan Dukes repeated over the weekend that the EU asked the bank to consider a 20-year wind-down of the entire group under various costing scenarios, but he did not think this was a good option.
He said the proposed split of Anglo remained the least costly option open to the State.