Irish banks may turn a profit next year

Fitch Ratings raised the prospect of Irish banks reporting a profit next year, helped by releasing funds set aside to cover bad-loan losses from Europe’s worst property collapse.

Ireland’s banks will probably increase loan-loss impairment charges this year after the Central Bank reviewed their balance sheets, Denzil De Bie, a Fitch analyst, said on a conference call from London yesterday.

Bank of Ireland said on Dec 2 the regulator estimates the nation’s largest bank may need to increase provisions by €1.1bn ($1.5bn).