Huge impairment charges cause bank to lose €361m

ULSTER Bank saw underlying profits for the first half of this year wiped out by a more than 200% increase in impairment charges, resulting in an operating loss of £314 million (€361m) for the six months to the end of June.

While the underlying first-half operating profit of £185m amounted to a 20% year-on-year improvement; a huge rise in impairment charges reversed that figure into a significant loss.

Ulster Bank’s impairment charge – money set aside to cover bad loans, or those unlikely to be repaid – for the six months amounted to £499m – up from £157m for the same period last year; boosted by the bank’s over-exposure to the property sector.