State-owned Anglo Irish Bank has reported a loss of €12.7bn for the 15 months to the end of December 2009 -- the largest loss in Irish corporate history - - after charging €15bn to cover bad debts.
Some €10bn of the loan loss relates to the discount or 'haircut" taken by the toxic property loans agency NAMA. Overall, the bank expects to transfer loans with an original value of €35.6bn to the Sate toxic property loans agency, NAMA ,this year. The bank said it made an operating profit of €2.4bn, though this included a gain of €1.8bn from a restructuring of its debt. The bank confirmed that the Minister for Finance will inject €8.3bn into the bank, as announced in the Dáil yesterday. Anglo Irish also said restructuring of its activities and the NAMA process cost it €42m in the 15-month period.
Net interest income was €1.5bn for the 15 months to 31 December 2009, down 35% on a like-for-like basis compared to the year ended 30 September 2008. The cost of funding, both for customer deposits and wholesale funding, increased materially during the period. The liability management exercise conducted in August 2009 crystallised a gain of €1.8bn as €2.6bn of hybrid tier 1 and other subordinated securities were bought back at a significant discount to par.
Total operating expenses were €380m for the 15 month period, a reduction of 7% compared to the previous year, on a like-for-like basis. Costs incurred relating to restructuring activities and the NAMA process were €42m in the period. Impairment charges of €15.1bn comprise lending specific charges of €13.9bn, lending collective charge €0.6bn, investment securities €0.5bn and other assets €0.1bn. Included within specific provisions is €109m in respect of loans to certain former Directors of the Bank who resigned during the period.
Total assets at 31 December 2009 were €85.2bn, down from €101.3bn at the end of September 2008. This includes €56.3bn lending assets (€72.2bn at 30 September 2008) of which €25.5bn represents eligible NAMA loan assets classified as held for sale; €7.9bn available for sale financial assets (2008: €8.2bn); €7.4bn loans to banks (2008: €14.0bn) and an amount due from the Shareholder of €8.3bn.
|From Anglo Irish Bank's Annual Report 2006
Nominal lending assets remained relatively constant during the period. At 31 December 2009 impaired loans totalled €34.6bn with cumulative provisions of €15.0bn.
Total liabilities at 31 December 2009 were €81.0bn, down from €97.2bn at the end of September 2008. Customer deposits declined from €51.5bn at 30 September 2008 to €27.2bn at 31 December 2009. Borrowings from banks increased to €33.0bn at 31 December 2009 and includes €23.7bn from central banks compared with €7.6bn at the end of September 2008. Debt securities in issue at 31 December 2009 were €15.1bn compared with €17.3bn at 30 September 2008.
Annual Report 2009 - PDF Version (1 MB)
|Anglo Irish Bank closed at 22 euro cent on the Irish Stock Exchange, on January 15, 2009 - - its last day of trading before becoming a State-owned bank.
On February 21, 2007, the ISEQ index rose to an-all time high of 10,041 and the Financial sub-index rose to 18,098. Bank of Ireland closed at €18.65; Anglo Irish closed at €16.64 and AIB closed unchanged at €23.95.
A year later, on February 21, 2008, AIB closed at €13.80, Anglo Irish Bank finished at €8.84, while Irish Life & Permanent closed at €10.20 and Bank of Ireland traded at €9.50.
Seven issues dominate the Irish market and in recent years, overseas residents, dominated by institutions, have owned more than 60% of Irish bank shares. Ireland's biggest company CRH, accounts for about a third of Irish market capitalisation and in December 2008, foreign holders held more than 85% of the issued shares.