Belfast Telegraph

13bn euro plunge in Allied deposits

Allied Irish Banks has seen its customer deposits fall by 13 billion euro this year.

The bank said the amount of money held on account has been affected by adverse international sentiment towards the Irish sovereign and banking sector.

"This reduction was primarily due to lower institutional and corporate balances," the bank said.

AIB has issued a trading update and warned that challenging economic and market conditions were reducing operating profits overall.

The bank said it was mainly due to lower business volumes, an increase in Government guarantee costs of 190 million euro, the impact of the transfer of loans to state-run bad-bank Nama and rising funding costs.

It also said it had cut staff numbers by more than 600 over the last year.

"A lower cost base aligned with the bank's reduced size is a key part of our plans to improve the future performance of the bank," AIB said.

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