‘Small’ bonuses for Ulster Bank chiefs

Management at Ulster Bank will receive “small” bonus payments for 2011, despite the bank’s operating losses rising by nearly 40% and impairment charges increasing by 19%.

Ulster yesterday reported an operating loss of just over £1bn for 2011, up by around 37% on the previous year. Total impairment charges (money set aside to cover losses made on loans) went from £1.16bn in 2010 to over £1.38bn last year.

As Ulster’s corporate loan losses declined slightly last year, the impairment rise was driven by its mortgage book. Over 12% of its mortgages are in arrears, as opposed to just under 8% at the end of 2010.