#Open journalism No news is bad news

Your contributions will help us continue to deliver the stories that are important to you

Support The Journal
Dublin: 10°C Monday 21 June 2021

AIB lost €10.4 billion in 2010

Company confirms the figure in its 2010 annual report, in which is says it will also reduce staff numbers by 2000 in the coming year.

Image: Eamonn Farrell/Photocall Ireland

ALLIED IRISH BANK made a loss of €10.4billion after tax in 2010.

The figures were confirmed in the bank’s 2010 annual financial report which was published yesterday.

In the report, the bank’s executive chairman David Hodgkinson said that the performance “was extremely poor though not unexpected given the events of the year and the continuing economic downturn”.

The report states that the current realities facing the company includes ‘low industry confidence’ but notes that it has an already strong franchise and committed staff that it can use as a basis to rebuild in the coming year.

It will target a further 20 per cent reduction in staff costs, following reductions of 14 per cent, 8 per cent and 5 per cent in previous years.

It will also reduce staff numbers by 2000 over the next two years.

AIB says its vision is to “fulfil a key role in the recovery and development of the Irish economy” and that it wants to “restore AIB to a sustainable position of stand-alone strength and stability with the capacity to grow in a measured and prudent manner”.

The company has generated around €8 billion in capital actions and €8.6 billion in Anglo deposits and has reduced its gross loans by €34 billion in the past year.

Last year, it reduced staff costs by 14 per cent, following reductions of 5 per cent and 8 per cent in the two years previously.

Residential mortgages – €31 billion – represent one third of all continuing operations loans at the bank.

The bank says that as part of its restructuring plan it will “transform” AIB. This will include creating a dedicated unit separately managed and reporting directly to the CEO and board, and pursuing a reduction of non-core assets.

AIB hopes to return to profitability in 2013 but says the “future remains challenging”.

Read next: