Irish commercial loans hurt INBS

AS much as 64% of the €464 million set aside by the Irish Nationwide Building Society (INBS) to cover unpaid loans last year related to lending in the Irish commercial property sector.

In its annual report, published yesterday, the company’s board said: “The Society is of the view that the Irish commercial loans are appropriately provided for against impaired loans at the balance sheet date and reflect the Society’s best estimate of the amounts that are likely to be received from borrowers and the timing of those receipts.”

The €464m impairment provision was reported as part of the Society’s full-year results for 2008 and was a hefty increase from the previous year, when just €66m was set aside for property-related bad loans.