This morning Bank of Ireland has reported a per tax loss of just under €1.25 billion for the first six months of the year. This time last year the loss was €668 million. However the massive loses are due to the €1.8 billion the bank had to set aside to cope with current and future losses from band loans.
Of the €1.8 billion set aside, €900 is linked to loans BOI have or plan to transfer to NAMA (National Asset Management Agency). The other €900 the bank is for other bad loans.
Bank of Ireland post €1.25 pre tax loss.
Richie Boucher (Bank of Ireland CEO) believes this is the peak of loan losses the bank will suffer and that losses will start falling and will normalise by 2013.
Aside from loan loss charges, profits were down 32% to €553 million. Costs have been cut by 3% according to the bank which plans to increase it’s cost curring measures by letting 750 staff go over the next two years.
Bank of Ireland still appear uncertain about the final discount on loans it needs to transfer into NAMA. However they have stuck to their estimate of a total loan loss of €4.7 billion of a three-year period which ends March 2011.
According to http://www.bloomberg.com/ Bank of Ireland shares are down as of 10:36 are down to 0.843 per share, -0.24%.
