Anglo Irish Bank reports €4.1bn loss in six months

Anglo Irish Bank has announced massive pre-tax losses of €4.1bn for the six months to the end of March this year.

The bank - which is owned by the Irish taxpayer after being nationalised in January - says the losses are primarily driven by bad loan charges of €3.7bn.

Finance Minister Brian Lenihan has responded to the results by announcing that the Government has agreed to inject up to €4bn of taxpayers' money into the institution, subject to EU approval.

Mr Lenihan says the results are extremely disappointing, but Anglo's full and frank disclosure of the problems it faces is an important step.

"Clearly the Bank made mistakes in some of the lending decisions taken in recent years, particularly in relation to property development in Ireland," said Anglo executive chairman Donal O'Connor.

"Our rate of growth and risk appetite at the top of the economic cycle was imprudent and the stark evidence of this is seen in the figures announced today.

We welcome the statement from the Minister for Finance confirming the Government’s decision to

provide, subject to EU approval, up to €4bn of capital and we are very grateful to the Government

for this support," O'Connor added.

"The Minister’s decisions place the Bank on a sound financial footing and we are determined to repay the taxpayer by creating a viable, efficient and respected bank.”