NIB reports €49m loss
If that increase were excluded, the bank — which is owned by Danish financial services group, Danske Bank — would have generated a pre-tax profit of €45m for the period in question. However, the bank said yesterday that its impairment charges are only likely to rise in the coming months.
Loan impairment charges basically refer to the amount of money set aside by banks to cover potential bad debts, or loans which they think may not get paid back from customers. NIBs impairment charges — up from just €8m for the first nine months of last year — mainly refer to its loans to the commercial property sector, which make up around 16% of its total €10.5 billion loan book.
