Allied Irish Banks (AIB)

[mlkrborn]

Allied Irish Banks 1st-Half Net Loss Deepens To EUR2.24 Bln
Last update: 7/25/2011 2:49:19 AM
DUBLIN (Dow Jones)--Allied Irish Banks PLC (AIB) said its loss deepened in the first half to EUR2.24 billion, as Ireland's second-largest lender continues to struggle amid the national debt crisis it helped create.
The lender's loss for the six months to June 30 compared with a net loss of EUR1.73 billion a year earlier. It said that just over 34.5% of all its loans were either on watch, vulnerable or in the impaired loan categories.
Once Ireland's biggest lender on the stock market, Allied Irish is now almost totally owned by the Irish government. It is one of six Irish lenders that contributed to the country's banking and national debt crisis resulting from their reckless commercial-property lending during the boom years.
Allied Irish has already received EUR7.2 billion in government aid and is required by the Irish central bank and the country's bailout lenders to find EUR13.3 billion more in capital and buffer reserves before the end of the month -- more than any other surviving Irish lender -- to help cover anticipated loan losses over the next three years. At best, Allied Irish will only contribute EUR2 billion toward that target through a government-instructed buyback of the lender's junior bonds.
-Eamon Quinn, Dow Jones Newswires; [phone]; [e-mail]
("Allied Irish Banks 1H Profit EUR2.24 Bln Vs EUR1.73B Loss Year Ago," at 0600 GMT, incorrectly stated Allied Irish Banks had a net loss in the first half. The correct version follows:)
DUBLIN (Dow Jones)--Allied Irish Banks PLC (AIB) said it rebounded to a net profit of EUR2.24 billion in the first half of 2011 from a net loss of EUR1.73 billion a year earlier, reflecting the proceeds of the sale of its banking operations in Poland.
However, the lender said that for the six months to June 30, it had an underlying loss of EUR2.6 billion, driven by "elevated bad debts" amid Ireland's banking crisis. It said that just over 34.5% of all its loans were either on 'watch,' vulnerable, or in the impaired loan categories.
Once Ireland's biggest lender on the stock market, Allied Irish is now almost totally owned by the Irish government. It is one of six Irish lenders that contributed to the country's banking and national debt crisis resulting from reckless commercial property lending during the boom years.
Allied Irish has already received EUR7.2 billion in government aid and is required by the Irish central bank and the country's bailout lenders to find EUR13.3 billion more in capital and buffer reserves by an end-of-the month deadline--more than any other surviving Irish lender--to help cover anticipated loan losses over the next three years.
-By Eamon Quinn, Dow Jones Newswires; [phone]; [e-mail]
(END) Dow Jones Newswires
July 25, 2011 02:49 ET (06:49 GMT)