Ulster Bank’s operating losses double

OPERATING losses at Ulster Bank almost doubled, last year to £761 million (€887m) — driven by a severe ratcheting up of impairment charges — but the bank is hopeful of some improvement in the second half of this year.

Yesterday’s full-year results for 2010 showed that Ulster set aside £1.16 billion in impairment charges for non-performing loans. This was up from an impairment of £649m in 2009. The operating loss figure was up from the previous year’s £368m.

Before the impairment charge was taken into account, however, Ulster Bank actually generated an operating profit of £400m, up 50% on 2009’s pre-impairment levels.