Saturday 17 August 2019

NIB 'still strong' in wake of losses

IRELAND-BASED National Irish Bank (NIB) recorded a pre-tax loss of €618m in 2010 but said it had no plans to follow other lenders in increasing its variable mortgage rates.

NIB said the quality of its €3.5bn mortgage book remained "relatively strong" with fewer than 300 customers in arrears.

Income dropped 9pc within the year due to a reduced customer demand, the bank said, and it recorded impairment charges of €49m.

Overall profit before tax at the institution, owned by the Danske Bank Group, jumped by 36pc to €865m and operating profits -- before impairment charges -- rose by 16pc to €49m.

National Irish Bank's chief executive Andrew Healy said that conditions remained very difficult but the bank had acted very quickly to deal with the challenge faced by all banks operating in Ireland.

But he said that the bank remained committed to the Irish market and is fully supported by its parent, Danske Bank.

"Our reduced cost base and improved operating profit are positive signs and while impairments remain very high, they are lower than last year," he said.

"Our five-year partnership with An Post, which commenced in November, is a clear example of our long-term commitment and we plan further initiatives this year to underline the strength of this commitment.

"Our restructuring programme has been completed ahead of schedule."

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