Anglo Irish Bank loss doubles to record €8.2 billion
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Pastor Dale Morgan
Aug 31, 2010, 12:54:31 PM8/31/10
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Perilous Times
Anglo Irish Bank loss doubles to record €8.2 billion
Anglo Irish Bank, Ireland's state-run lender, said first-half losses doubled to €8.2bn (£6.8bn) - the biggest in the country's corporate history.
Published: 3:06PM BST 31 Aug 2010
Anglo Irish Bank loss doubles to record ?8.2bn
Anglo Irish said it would seek to wind down at least 80pc of its business over the next 10 years. Photo: Getty
The record shortfall included a massive €4.8bn charge for bad debts and a €3.5bn loss on loans sold at a discount to the National Asset Management Agency (NAMA) - the so-called 'bad bank' - set up to buy banks' mainly soured property loans.
Alan Dukes, the chairman of Anglo Irish, said the loss was due to "the severe contraction in the Irish property market, rising unemployment and weak consumer demand" which "continued to influence asset prices and impairment charges".
During the period markets were also worried about the health of eurozone debt-laden countries such as Greece, Spain and Portugal, which constrained access to international funding markets for all Irish banks.
Anglo Irish said on Tuesday it would seek to wind down at least 80pc of its business over the next 10 years.
"We have considered in detail a number of alternative strategic options for the future of the Bank, including an immediate liquidation," said Mr Dukes.
"After detailed consideration, we have decided to pursue a plan to split the bank, winding down at least 80 percent of the old bank and creating a new viable bank from the remaining good quality loan assets.
Anglo Irish, nationalised early last year to save it from collapse, also revealed that government was forced to inject a further €8.58bn into the troubled bank to prop it up. The Irish government injection takes its total state support to €22.9bn.
Mike Aynsley, the Anglo Irish chief executive. said the Irish economy was now out of recession but warned that the outlook remained challenging.
"After a severe recession the Irish economy is showing signs of some improvement," he said.
"However, expectations for growth remain subdued and trading conditions are anticipated to remain challenging for the immediate future as unwinding the imbalances created during the economic boom will continue to restrain consumption and investment."
Anglo Irish Bank loss doubles to record €8.2 billion
Anglo Irish Bank, Ireland's state-run lender, said first-half losses doubled to €8.2bn (£6.8bn) - the biggest in the country's corporate history.
Published: 3:06PM BST 31 Aug 2010
Anglo Irish Bank loss doubles to record ?8.2bn
Anglo Irish said it would seek to wind down at least 80pc of its business over the next 10 years. Photo: Getty
The record shortfall included a massive €4.8bn charge for bad debts and a €3.5bn loss on loans sold at a discount to the National Asset Management Agency (NAMA) - the so-called 'bad bank' - set up to buy banks' mainly soured property loans.
Alan Dukes, the chairman of Anglo Irish, said the loss was due to "the severe contraction in the Irish property market, rising unemployment and weak consumer demand" which "continued to influence asset prices and impairment charges".
During the period markets were also worried about the health of eurozone debt-laden countries such as Greece, Spain and Portugal, which constrained access to international funding markets for all Irish banks.
Anglo Irish said on Tuesday it would seek to wind down at least 80pc of its business over the next 10 years.
"We have considered in detail a number of alternative strategic options for the future of the Bank, including an immediate liquidation," said Mr Dukes.
"After detailed consideration, we have decided to pursue a plan to split the bank, winding down at least 80 percent of the old bank and creating a new viable bank from the remaining good quality loan assets.
Anglo Irish, nationalised early last year to save it from collapse, also revealed that government was forced to inject a further €8.58bn into the troubled bank to prop it up. The Irish government injection takes its total state support to €22.9bn.
Mike Aynsley, the Anglo Irish chief executive. said the Irish economy was now out of recession but warned that the outlook remained challenging.
"After a severe recession the Irish economy is showing signs of some improvement," he said.
"However, expectations for growth remain subdued and trading conditions are anticipated to remain challenging for the immediate future as unwinding the imbalances created during the economic boom will continue to restrain consumption and investment."
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