EBS announces €79m post-tax loss

EBS building society has today announced a post-tax loss of €79m for last year.

Despite the loss, EBS's total income was up 12% to €193m and operating profits were up 33% to €96m.

The impact of heavy impairment charges of €195m relating to previously written loans resulted in the overall loss.

Approximately €83m of the impairment charge relates to assets transferring to Nama, while the balance of €114m relates to the remaining assets of the business.

The Financial Regulator recently determined that EBS has a capital requirement of €875m and the Government has made a commitment to provide the capital in a manner consistent with EU State aid rules.

In 2009, EBS provided €1.07bn in new mortgages to members and a further €311m through Haven Mortgages.

Last year, EBS accounted for 50% of all first-time buyers who chose to go directly to a financial institution. The building society now has an overall market share of new business of 17.1%, an increase of 5.6% on the previous year.

EBS also increased its market share of the savings market and now has a 20% share of all new savings inflows in Ireland and almost 9% of the entire savings market.

Commenting on the results, EBS chairman Philip Williamson said: "Our main objective since the financial crisis began has been to work to stabilise the society, secure our future and ensure that we emerge in good shape to continue delivering for our members.

"This would not have been possible without the support of Government for which we are deeply appreciative. Despite all the challenges I am heartened by the fact that EBS is continuing to play an increasingly important role in the mortgage and savings market in Ireland.

"This is why EBS was first established and the Board and management are committed to our policy of delivering good value products and services to our members."