Bank of Ireland posts huge losses
Bank of Ireland has posted a pre-tax loss of almost 1.25 billion euro for the first half of the year - almost double the figure for the same period in 2009.
The finance house's operating profit, before losses on the sale of impaired loans to the National Asset Management Agency (NAMA) and charges, was 553 million euro, down 32% on the six months to June last year.
Richie Boucher, chief executive, said significant progress was made in the first six months of 2010 to try to stabilise the group, raising 4.6 billion euro in funding.
But he warned conditions remained tough.
"We are confident that the steps that we have taken in the first half of 2010 to strengthen the group will enable us to successfully meet the many challenges ahead and position us well to capitalise on the opportunities that arise through a recovery in the economic conditions in our key operating markets in Ireland and the UK," Mr Boucher wrote.
Key results include underlying loss before tax of 1,246 million euro, compared with 668 million euro in the same period in 2009, and the group's underlying operating profit, before impairment charges and losses on sales to NAMA, at 553 million euro - down 32% on six months to June 2009.
The bank also said operating expenses were down 3% to 916 million due to lower staff numbers and continued rigorous cost management while 2.2 billion euro of loans were sold to NAMA, incurring a loss on sale for the bank of 466 million euro.
Mr Boucher said that while operating conditions remained challenging with new business stagnant, there were signs of stabilisation.
"We are confident that the steps that we have taken in the first half of 2010, to strengthen the group, will enable us to successfully meet these challenges and position us to capitalise on the opportunities that a recovery in the economic conditions in our key markets in Ireland and the UK will present for Bank of Ireland."