Belfast Telegraph

Bank of Ireland posts 1bn euro loss

Bank of Ireland has announced losses of almost 1 billion euro for last year.

The lender, which is about one third owned by the Irish State, issued the figures in its annual report describing 2010 as challenging and difficult.

The pre-tax figures compare with 2009 when it announced losses of 2.2 billion euro.

Bank of Ireland chief executive Richie Boucher said 2011 would remain challenging.

During last year, BoI sold assets worth 9.4 billion euro to the State's "bad bank", the National Assets Management Agency (Nama). Those deals left it facing losses of 2.2 billion euro.

Mr Boucher said the bank's losses from Nama deals and loans to customers peaked in 2009, reduced last year and would continue to fall in subsequent years.

Bank of Ireland has dramatically reduced the size of its operation since March 2008, cutting its workforce by about 2,400.

The bank's annual report said the losses on bad loans transferred to Nama were higher than expected.

Bank of Ireland has been told it needs to raise another 4.2 billion euro - on top of 3.5 billion euro already given by the State.

The losses before tax hit 950 million euro for 2010, according to the final accounts.

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