BoI bad debts could reach e6bn in next 3 years

BANK of Ireland could suffer combined losses of up to e1 billion in the years 2010 and 2011 due to mounting bad debts, analysts warned last night.

Bank of Ireland said bad debts in the three years to 2011 will hit e4.5bn and could climb as high as e6bn in a worst-case scenario.

In a statement, the bank said it would make a second half loss in the current year but would return a full year profit despite a bad debt provision of e1.4bn to be included in the results.