Allied Irish Banks p.l.c. reported a loss for the fiscal year 2009, compared to a profit last year, due to crash in the Irish property market and higher provisions for impairment of loans and receivables.
Company reported profit attributable to owners of the parent company was EUR 2.41 billion or 215.2 cents per share, compared to a profit of EUR 772 million or 83.3 cents per share reported a year ago.
Operating loss for the year was EUR 2.42 billion, compared to a profit of EUR 862 million a year ago. Operating profit before provisions grew to EUR 2.96 billion from EUR 2.71 billion in the comparable period
Net interest income declined to EUR 3.23 billion from EUR 3.87 billion generated a year earlier. Net interest margin decreased 29 basis points to 1.92%, due to increased cost of deposits and higher funding costs.
Total provisions for the year increased significantly to EUR 5.38 billion from EUR 1.85 billion recorded in the previous year, including provisions for impairment of loans and receivables of EUR 5.36 billion, up from EUR 1.82 billion a year earlier.
The bank’s loan/deposit ratio at the end of the year was 146%, compared to 140% a year ago. Total assets at the end of the year amounted to EUR 174 billion, compared to EUR 182 billion at last year.
According to the officials of the company there are very significant matters and initiatives including NAMA, the European Union decision on restructuring and funding costs/market conditions, all of which could materially affect the group’s performance along with extremely challenging macroeconomic environment.