NIB reports loss of €661m

National Irish Bank has reported a pre-tax loss of €661m for the 12 months to December 31, which it has described as "possibly the worst year in Irish banking history".

In its yearly results out this morning the bank reported an operating profit before impairment charges of €42m but revealed it had set aside €704m for impairment charges, leading to a pre-tax loss of €661m.

Income fell 13% to €178m.

“Our 2009 results reflect the severe economic recession and what has possibly been the worst year in Irish banking history," said CEO Andrew Healy.

"Income is down because of reduced business activity levels and higher funding costs. It’s clear the property market remains frozen and this has led us to set aside very high impairment charges."

Mr Healy insisted NIB had "responded decisively to the harsh realities of operating a bank in Ireland today".

The bank, which employs around 700 people, announced in December that is was to shut down 25 out of 58 branches around the country with the loss of around 150 jobs.

The bank is owned by Danske Bank of Denmark, which today reported group operating profit of €4.1bn, up 113%.

"We are fortunate to be part of Danske Bank, a strong, well capitalised, European banking group," Healy said.

"Danske has reaffirmed its long term commitment to Ireland and is fully behind our plans."

NIB’s total loan book is €10.3bn, with mortgages representing €3.8bn.

Some €3.3bn of the loan book is represented by commercial property with most of the bank’s loan impairment charges in this area.