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AIB posts half-year loss of €572 million

The chief executive of AIB says that the half-year interim results are “encouraging”, as the bank increases income.

AIB chief executive David Duffy
AIB chief executive David Duffy
Image: Sasko Lazarov/Photcall Ireland

AIB HAS SAID that interim half-year results are “encouraging”,  despite an operating loss of €572 million.

In the results, released this morning, the bank showed a return to pre-provision profit, coming in at €162 million in the first six months of the year, but operating losses before tax and exceptional items was €572 million. That number was down 47 per cent year on year.

Operating income at the state-owned bank was up in the period up to 30 June, registering at €916 million.  Operating expenses were down 14 per cent, while staff costs were down 16 per cent. That reduction is down to the bank shedding some 2,300 staff between June 2012 and June 2013.

The bank reduced their loan to deposit ration to 106 per cent in the first six months of the year, as well as exceeding their mortgage arrears offer target.  Ten per cent of AIB mortgages are now in arrears over 90 days, compared with a national figure of 12.3 per cent.

Chief executive of AIB David Duffy said that the results were positive for the future of the bank.
“We are mid-way through a three year plan to return to sustainable profitability. While we have met our key strategic objectives to date, we acknowledge the continuing challenges that lie ahead,” he said.

“We are seeing a steady improvement in our operating performance and a return to pre-provision operating profit. I expect that overall progress made in the first half of 2013 will continue through this year.”

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