National Irish Bank reported an operating profit before impairment charges of €42 million. Income fell 13% to €178 million and the bank set aside €704 million for impairment charges, leading to a pre-tax loss of €661 million in 2009. Parent, Danske Bank Group today announced its financial results for the 12 months to 31st December 2009. Net profit was up 65% to €230 million.

Commenting on the results, Andrew Healy, CEO, National Irish Bank said: “Our 2009 results reflect the severe economic recession and what has possibly been the worst year in Irish banking history. Income is down because of reduced business activity levels and higher funding costs. It’s clear the property market remains frozen and this has led us to set aside very high impairment charges.

We’ve responded decisively to the harsh realities of operating a bank in Ireland today. In December, we announced a major restructuring of our business to substantially reduce our costs and to reposition the bank in what is going to be a radically changed market. We are fortunate to be part of Danske Bank, a strong, well capitalised, European banking group. Danske has reaffirmed its long term commitment to Ireland and is fully behind our plans."

The bank achieved a 10% reduction in underlying costs in 2009. After the inclusion of a provision for restructuring, total costs for the year were up 2%.

National Irish Bank’s total loan book is €10.3 billion. Mortgages represent €3.8 billion and the bank said loan quality was satisfactory. €3.3 billion of the loan book is represented by commercial property with most of the bank’s loan impairment charges in this area. Deposits increased by 25% over the year.

Danske Bank Group is the largest bank in Denmark.