AIB, Bank of Ireland, and Permanent TSB head for combined €1bn loss this year in Covid-19 hit 

Despite the combined €1bn loss, the outlook for the three banks is less grim than it first appeared at the height of the lockdown

The first effects of the Covid-19 fallout will be evident when the banks report their half-year earnings in August.

AIB, Bank of Ireland and Permanent TSB will likely report a combined €2bn in soured loan provisions and generate €1bn in losses this year but the outlook will likely be less grim than appeared at the height of the economy-wide lockdowns, according to broker Davy.

All three banks, which to a larger or lesser degree are owned by the Government, are preparing to report the first effects of the Covid-19 fallout on their loan books when they report half-year earnings in the first week of August.