| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Last Updated: Aug 31, 2011 - 1:53 PM


Irish Life & Permanent reports pre-tax loss of €349m in H1 2011
By Finfacts Team
Aug 31, 2011 - 9:07 AM

Email this article
 Printer friendly page

Irish Life & Permanent today reported a pre-tax loss of €349m for the first half of this year (H1 2011), mainly related to loan losses at its Permanent TSB banking business.

IL&P is under State control after it was provided with capital after the March bank stress results. Irish Life, the life business, is to be sold.

Speaking today, Kevin Murphy, group chief executive, said;  “there were a number of positives in the performances of  both the bank and the life company during the period including higher sales in the life business and a higher net interest margin in the bank.  However both businesses were impacted by the continuing difficulties in the broader economy including rising unemployment levels, reduced disposable income and weak consumer confidence.”

Murphy said IL&P was making good progress on the planned sale of Irish Life.  He said; “we are progressing discussions with a number of interested parties and we are encouraged by the process so far.”

The bank recorded a pre-tax operating profit for the period of €376m (2010 – loss of €131m).  However the key factor in this result was the gain of €763m as a result of the State's recapitalsisation.  Excluding that gain, and the net loss of €23m on the bank’s own Tier 2 debt holdings, the bank recorded an operating loss of €364m in the first six months of the year.

While the bank increased its net interest margin to 97 basis points from 86 basis points in 2010, the main factor giving rise to the loss was the impairment charge of €333m for the period, an increase of €183m over the charge for H1 2010.

Speaking on the increased bad debt provisions (H1 2011 - €333m compared to   H1 2010 - €150m), Kevin Murphy said that the figure was in line with guidance given at the conclusion of the PCAR / PLAR stress test exercises in March; “The figure reflects an increase in the number of arrears on the one hand (8.8% of the bank’s mortgages are in arrears of more than 90 days) and a further reduction in house prices on the other.  As house prices fall, the impairment cost for the bank increases and that has clearly influenced our figures in this period.”

In relation to the rising cost of the bank guarantee, the figures show that Permanent tsb bank incurred €94m of guaranteed funding costs in the period compared to €45m the previous year.  This reflects both the higher charge the guarantee in the period and the increased amount of the bank’s funding which was subject to the guarantee.

Murphy announced that Permanent tsb has just completed a deal to raise £1.4 bln in unguaranteed funding through the UK.  The funds raised will be secured against the bank’s UK loan book.

It has also been confirmed that the bank has submitted a restructuring plan to the European Commission which sets out "a strong business case for the bank and commits the business to have a net interest margin of over 1%, normalised impairment provisions, a strong capital position and a loan to deposit ratio of 122.5% by 2015."

IL&P said sales at its life and fund management business rose 4% to €286m in the period, but the impact of the pension levy and tough conditions in the financial markets and economy led to the €4m loss. IL&P has paid €100m linked to the levy to Revenue.

Permanent tsb had funding from the  ECB and Irish Central Bank of €14.7bn at the end of June.

Results detail

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Irish
Latest Headlines
Ryanair revises up full-year profit guidance
AIB bank profitable in third quarter
Ryanair announces half-year profits up 32% to €795m
Ryanair benefits from improved customer service
Ryanair to buy 100 new Boeing 737 MAX 200
Finfacts server migration Thursday
State-owned Allied Irish Banks reports H1 2014 profit as bad loan charges plunge
Ryanair reports profit in its financial first quarter soared 152%
UK firm opens van dealership in Dublin
Ryanair reports 8% fall in full-year profit; US services to commence in 2019
Global Financial Centres Index: New York overtakes London; Dublin slips to 66 of 83 cities
Bank of Ireland reports “significant” improvement in 2013 results
Sale process of IBRC UK projects Rock and Salt completed
CRH says 2014 will be year of profit growth after reporting 2013 loss
Ryanair reports third-quarter loss
Irish Water says it saved €100m in setup costs
RSA Insurance fires two Irish executives for large loss/ accounting irregularities
Bank of Ireland will have to raise provisions by €1.4bn; AIB says it's "well capitalised"
CRH reports slightly improved third quarter
Central Bank says ownership of Newbridge Credit Union transferred to permanent tsb
Ryanair reports H1 profits rose by 1% to €602m
Dublin Web Summit: Irish Stock Exchange and NASDAQ OMX announce dual listing plan
Irish pension managed funds returned to growth during September
Dan O’Brien resigns as economics editor of The Irish Times
Central Bank says no action required on Anglo tapes revelations
Ryanair flew 9m passengers and Aer Lingus carried 1.1m in August
UK Competition Commission says Ryanair must cut Aer Lingus stake to 5%
CRH reports H1 2013 revenue dip and loss
Vodafone refunded UK after discovery of Irish tax haven deal
RBS reports half year profit; Ulster Bank posts reduced loss
Bank of Ireland cuts pretax losses in HI 2013 to €504m
Irish State-owned Allied Irish Banks reports losses of €758m in H1 2013
Service Announcement
Irish managed pension funds declined in June
VHI reports 2012 surplus of €54.3m; Health insurance made loss
Ex- Elan director says management / board "not competent to run a business"
Aer Lingus to put €140m in employees pensions fund; Ryanair apoplectic
Wednesday Newspaper Review - Irish Business News and International Stories - - May 22, 2013
Tuesday Newspaper Review - Irish Business News and International Stories - - May 21, 2013
Ryanair, Europe’s biggest low cost carrier, announced Monday record annual profits of €569m - - up 13%