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National Irish Bank lost €8m in first nine months of 2012

THE Danish owner of National Irish Bank says the Irish unit suffered operating losses of €8m in the first nine months of the year.

The bank set aside €578m to cover losses on property loans over the same period.

The latest operating losses mean a negative swing of €40m compared to the operating profits of €32m in the same period last year.

Profits were squeezed due to rising costs associated with a reorganisation of the Irish business.

The amount of cash set aside to cope with loan impairment charges however, represents an improvement of 9pc compared to last year.

Managers in Denmark said they anticipate further write downs on Irish developer loans over the coming quarters.

The bank said the performance of its €3.2bn of Irish mortgages “remained satisfactory” over the past nine months.

Customer deposits at €3bn are broadly in line with previous.