05/08/2009
Irish Bank Losses Rising
Northern Ireland's First Trust Bank has lost £41m, according to the latest financial statement.
The report also detailed how this led to a £28m loss at the parent company Allied Irish Bank group's UK operation.
AIB in The Republic has also reported a pre-tax loss of €872m for the first six months of its financial year.
AIB, trading as First Trust in Northern Ireland, said its "asset quality deteriorated further, mostly in its property portfolios".
The bank said it making more money through lending due to the "re-pricing of customer loans to reflect market conditions."
AIB said its operating environment continues to be extremely difficult and added that First Trust's operating profit, before provisions, was £50m for the first half of 2009.
However, its loss before taxation was £41m because it has had to set aside £91m for loans it doesn't expect to be repaid.
It said this reflected the "deteriorating conditions in the Northern Ireland economy."
Net interest income was 16% lower than the same period last year reflecting a combination of lower interest rates and increased competition.
There have already been cut-backs. Staff costs at First Trust have fallen by 13% in past six months which the bank said is due to a reduction in staff numbers along with a freeze on pay increases and "a strong focus on discretionary expenditure."
HSBC and Barclays in Britain were able to get a boost from buoyant investment bank earnings in their recent figures, but Allied Irish did not, with its revenues from asset management, investment banking and wealth management all down.
Meanwhile, one of the UK's other top banking groups, Lloyds has today announced losses of £4 billion in the first six months of this year.
The bank, which was part-nationalised, has identified the large number of bad debts at HBOS, which it took over in September 2008, has a factor in the huge losses.
See: Lloyds Announces £4 Billion Loss
(BMcC/KMcA)
The report also detailed how this led to a £28m loss at the parent company Allied Irish Bank group's UK operation.
AIB in The Republic has also reported a pre-tax loss of €872m for the first six months of its financial year.
AIB, trading as First Trust in Northern Ireland, said its "asset quality deteriorated further, mostly in its property portfolios".
The bank said it making more money through lending due to the "re-pricing of customer loans to reflect market conditions."
AIB said its operating environment continues to be extremely difficult and added that First Trust's operating profit, before provisions, was £50m for the first half of 2009.
However, its loss before taxation was £41m because it has had to set aside £91m for loans it doesn't expect to be repaid.
It said this reflected the "deteriorating conditions in the Northern Ireland economy."
Net interest income was 16% lower than the same period last year reflecting a combination of lower interest rates and increased competition.
There have already been cut-backs. Staff costs at First Trust have fallen by 13% in past six months which the bank said is due to a reduction in staff numbers along with a freeze on pay increases and "a strong focus on discretionary expenditure."
HSBC and Barclays in Britain were able to get a boost from buoyant investment bank earnings in their recent figures, but Allied Irish did not, with its revenues from asset management, investment banking and wealth management all down.
Meanwhile, one of the UK's other top banking groups, Lloyds has today announced losses of £4 billion in the first six months of this year.
The bank, which was part-nationalised, has identified the large number of bad debts at HBOS, which it took over in September 2008, has a factor in the huge losses.
See: Lloyds Announces £4 Billion Loss
(BMcC/KMcA)
Related Northern Ireland News Stories
Click here for the latest headlines.
22 March 2024
New Support Programme For NI's 'Global Businesses Of The Future'
A new programme to support Northern Ireland's early-stage, technology-based, start-up businesses and entrepreneurs to become "global businesses of the future" has been announced Economy Minister Conor Murphy.
New Support Programme For NI's 'Global Businesses Of The Future'
A new programme to support Northern Ireland's early-stage, technology-based, start-up businesses and entrepreneurs to become "global businesses of the future" has been announced Economy Minister Conor Murphy.
21 March 2024
PSNI Welcomes CJINI Inspection Report
The PSNI has welcomed the publication of the Criminal Justice Inspection Northern Ireland (CJINI) inspection report and said that it accepts all of the recommendations that relate to the Police Service.
PSNI Welcomes CJINI Inspection Report
The PSNI has welcomed the publication of the Criminal Justice Inspection Northern Ireland (CJINI) inspection report and said that it accepts all of the recommendations that relate to the Police Service.
15 March 2024
Executive Committed To 'Better Shared Future For Everyone'
A key priority for Northern Ireland's newly restored Executive is "delivering a better shared future for everyone", the First Minister and deputy First Minister have told the NI Bureau breakfast event in Washington.
Executive Committed To 'Better Shared Future For Everyone'
A key priority for Northern Ireland's newly restored Executive is "delivering a better shared future for everyone", the First Minister and deputy First Minister have told the NI Bureau breakfast event in Washington.
20 March 2024
Belfast Man Handed Two-Year Stalking Protection Order
The PSNI have welcomed a two-year Stalking Protection Order (SPO) handed down to a 46-year-old Belfast man at Belfast Magistrates Court. The man had been found guilty of stalking and harassing his 50-year-old female ex-partner.
Belfast Man Handed Two-Year Stalking Protection Order
The PSNI have welcomed a two-year Stalking Protection Order (SPO) handed down to a 46-year-old Belfast man at Belfast Magistrates Court. The man had been found guilty of stalking and harassing his 50-year-old female ex-partner.
23 February 2024
One Year On Since Attempted Murder Of DCI John Caldwell
The PSNI will "continue to relentlessly pursue those responsible" for the attempted murder of Detective Chief Inspector John Caldwell, Chief Constable Jon Boutcher has said as he marked the first anniversary of the gun attack.
One Year On Since Attempted Murder Of DCI John Caldwell
The PSNI will "continue to relentlessly pursue those responsible" for the attempted murder of Detective Chief Inspector John Caldwell, Chief Constable Jon Boutcher has said as he marked the first anniversary of the gun attack.
-
Northern Ireland WeatherToday:Mainly dry this morning with sunny spells then scattered showers breaking out this afternoon. A chilly start then feeling warmer in afternoon sunshine. Light southerly winds. Maximum temperature 11 °C.Tonight:Any showers at first soon dying out. Then dry overnight with clear periods and turning chilly with a touch of frost later tonight. Minimum temperature 1 °C.