NIB losses amount to €401m in six months

National Irish Bank has announced losses of €401m for the first half of the year.

The bank, which is cutting back its high street services, reported that it has set aside €391m for loan impairment charges.

At the same time last year it had set aside €420m for similar losses on loans.

NIB, which is owned by Danske Bank, said income fell 6% to €64m while costs increased by 53% to €74m due to the one-off costs for restructuring. Its operating loss was €10m.

NIB’s total loan book was €8.3bn, down 9% on last year.

Terry Browne, country manager, Republic of Ireland, said: “The bank’s performance during the first six months of 2012 was in line with expectations. Economic conditions remain challenging and, with property prices continuing to fall, impairment levels remain high although they are lower than in the same period last year.”

The parent company plans to rebrand all its overseas operations, including NIB, as Danske Bank from November.