Non-performing loans push NIB losses up to €400m

A €50 million year-on-year increase in impairment charges to cover non-performing loans pushed pre-tax losses at National Irish Bank (NIB) up to €400m in the first half of this year.

That figure was up from a loss of €341m for the first six months of 2010. The main driver in the loss increase was the jump in first half impairment charges from €367m to €420m; a disappointing development attributed by NIB’s chief executive Andrew Healy to the continued decline in property values.

“Performance for the first six months of 2011 is broadly in line with expectations and reflects the harsh economic conditions that continue to prevail,” he said. “While our restructuring programme is delivering benefits to the cost line, impairments remain frustratingly high and are caused, in the main, by the continued decline in property values.”