AIB announces €2.3bn loss

AIB announces €2.3bn loss

AIB has today reported a loss of €2.3bn after tax for 2011.

The loss arises after recognising net total provisions of €8.2bn, and is down from €10.2bn in 2010.

"This outcome includes income from exceptional items of €3bn relating to liability management exercise and loan disposals, and €1.6bn of profits relating to Polish discontinued operations," said an AIB statement.

Chief executive David Duffy said that it has been another difficult year for the bank.

"AIB made significant progress in 2011, ending the year with a Core Tier 1 ratio of almost 18% and a customer deposit base that is growing," he said.

"We exceeded our deleveraging targets, successfully integrated EBS and the Anglo deposit business and implemented our ‘open for business’ agenda.

"We are confident that as a pillar bank we will be able to provide the support required by the Irish economy and our customers over the coming years.

"Our plan is to return to sustainable profitability by 2014. Achieving this will be key to our ambition to provide an opportunity to attract private investment and return value to our principal shareholder."

Operating profit before provisions totalled €68m, compared to €658m for 2010.

The bank reduced its exposure to wholesale funding by €13bn or 20% in the year • 62% of three-year non-core deleveraging target of €20.5bn achieved in 2011.

AIB said that it exceeded the Irish Government’s €3bn lending target by €600m in 2011.

"The bank approved 33,500 out of 37,000 applications for credit received from small businesses during the year – an approval rate of more than 90%," said a statement.

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