| Allied Irish Banks posted its first ever full-year net | | | | stakeholders," it said in a statement. |
| loss today after being burnt by exposure to | | | | AIB reported that 29.4% of it's loans are |
| Ireland's property market crash, saying the | | | | described as "critiscised" while 13.5% are |
| outlook and environment remained extremely | | | | "impaired". The bulk of these loans are in the Irish |
| challenging. | | | | Republic, though in the UK critiscised loans total |
| Allied Irish's net loss of ~2.3 billion (£2.1 billion), | | | | over ~3 billion, while impaired loans are ~522 |
| its first time in the red since its foundation in | | | | million of that. AIB Bank UK accounts for 15% of |
| 1966, better than the loss of ~2.9 billion | | | | the increase in criticised loans in the period, |
| expected by analysts, and an ~890 million profit | | | | influenced by continuing low levels of activity and |
| in 2008. In the UK it also swung to a loss of £15 | | | | weak asset prices in the property and |
| million, from a profit of £152 million in 2008. | | | | construction portfolio and the deteriorating trend |
| Ireland's second biggest bank by market value | | | | in the leisure sector, particularly in the licensed |
| said its 2009 operating profit before provisions | | | | trade sub-sector. |
| increased slightly from the previous year to | | | | AIB Group impaired loans as a percentage of total |
| almost ~3 billion, but it swung into the red after | | | | customer loans increased significantly to 13.5%, up |
| taking provisions mainly on loans to the | | | | from 2.3% at 31 December 2008.This increase |
| construction and property sector. | | | | reflects the considerable and continued |
| Allied Irish, in which the government last year | | | | deterioration in the markets in which the Group |
| acquired a 25% indirect stake, will transfer | | | | operates, primarily the ROI property market and |
| property loans worth up to ~23 billion to the | | | | to a lesser extent the UK, with contagion into |
| National Asset Management Agency (NAMA), | | | | other sectors also evident. Property & |
| Ireland's "bad bank," it said, slightly below an earlier | | | | construction impaired loans constitute 77% of |
| estimate of ~24 billion. | | | | total AIB Group impaired loans. <!-- BEGIN |
| "In 2010 AIB will prioritise restructuring and | | | | STANDARD TAG - 728 x 90 - Readbud.com: |
| restoring its businesses to underpin viability, and | | | | Run-of-site - DO NOT MODIFY --><! |
| renewing the group's credibility amongst all its | | | | |