AIB posts record pre-tax losses for H1

AIB has reported record pre-tax losses today of over €2bn for the first half of this year.

In figures released to the stock exchange this morning, the bank revealed it did make an operating profit during the six-month period

However, that was wiped out because of €3bn it had to set aside to cope with troubled loans.

The losses are double those for the same period last year, but are broadly in line with expectations.

AIB is now likely to follow Bank of Ireland with a hike in its standard rates in the coming days, while its chief executive Colm Doherty has admitted that job losses may be likely further down the line.

"The six months to 30 June 2010 was a very difficult period for AIB and our customers," the bank said.

"A significant level of credit losses was experienced in the period in addition to the loss on transfer of the first tranche of loans to the National Asset Management Agency (NAMA)."

The bank said that its short-term priorities were to complete the transfer of eligible loans to NAMA, execute the capital plan and conclude the restructuring plan process with the European Commission.