€700m losses ‘in line with expectations’

Ulster Bank has reported an operating loss of £555m (€702m) for the first six months of the year — up by £12m on the same period last year, but in line with management’s expectations.

The second quarter of the year saw a near 38% annualised increase in losses to £245m at the Royal Bank of Scotland-owned bank.

At the time of the publication of its 2011 annual results last February, Ulster Bank management said 2012 would likely be another tough year for all banks in the Irish market. That said, its first-half figures for the current year show a £13m reduction in impairment charges — money set aside to cover non-performing loans — to £717m, when measured on a year-on-year basis.