ANGLO Irish Bank unveiled the biggest losses in Irish corporate history at €17.7bn on what was another Black Thursday for the banking sector.
Anglo made the announcement on the day the results of the Central Bank‘s stress tests are being announced.
The bank has broken its own record for incurring the worst ever losses in Irish corporate history, saying 2010 was another exceptionally difficult period.
The loss figure includes impairment charges of €7.8bn and a loss of €11.5bn on disposal of assets to the National Asset Management Agency.
Anglo said the impairment charges included €2.6bn relating to NAMA loans.
The scandal-hit lender, which was run into the ground by former chairman Sean FitzPatrick, has cost taxpayers €29.3bn in recapitalisation costs.
CEO Mike Annesley said the bank believes 2010 was the last year of these types of extraordinary losses.
In a significant statement, he said: “We don’t expect that the taxpayer is going to need to put any more funds into the bank.”
However, if the property market continued to fall that would have an impact on the future value of the loans, he added.
Anglo is winding down and it is tasked with managing the repayment of some €35bn of loans still on its books.
In the past few weeks, its deposit book has been transferred to AIB.
Mr Annesley said that the bank had gone from 1,800 staff when the bank was nationalised to 800 and back to 1,300.
He told RTE’s Morning Ireland that the bank expects to be somewhere around the 1,000 mark by the end of 2011.
Anglo said its net interest income came to €0.7bn for the year.
Total expenses amounted to €353m, compared to €309m in 2009.
During the year, customers’ deposits declined from €27.2bn to €11.1bn by the end of December 2010.
Borrowings from banks increased to €46.6bn and included €45bn from central banks compared with €23.7bn in 2009.
Anglo said its total assets by the end of the year were €72.2bn, down from €85.2bn in 2009.
Its impaired loans totalled €17.6bn.
The bank said conditions in wholesale funding markets remain extremely difficult and it continues to rely on Government and monetary authority support mechanisms.
Anglo, nationalised in January 2009, has so far received promises of State assistance totalling €29.3bn.
It has also appointed consultants to value its US loan book and is continuing to pursue former chairman Sean FitzPatrick through bankruptcy proceedings.
The bank gave an update in an annual report of what former directors of the bank continue to owe the lender, including Lar Bradshaw, David Drumm and William McAteer.
– Cormac Murphy
then we have this from Dan White from the Herald.ie
Having already committed €46bn of taxpayers’ money, the indications are that Michael Noonan would be coughing up at least another €23bn. This will bring the total up to at least €70bn, the equivalent of almost €40,000 for every person still working here.
The latest black hole in the banks’ balance sheets has been caused by the rapidly worsening state of their mortgage loan books.
The banks have been clobbered by a double whammy of soaring arrears and the fact that most of their mortgages are loss-making trackers.
This is going to force all of the major banks, particularly AIB and Permanent TSB, the mortgage banking subsidiary of Irish Life & Permanent, to make major writedowns on home loans.
It means BoI and IL&P, the two banks which had avoided State ownership, are now set to follow AIB, Anglo, EBS and Irish Nationwide into State control.
Two-and-a-half years after Brian Lenihan’s disastrous decision to unconditionally guarantee their deposits and bonds, all of the Irish-owned banks have now been effectively nationalised.
Isn’t it a bit strange that Anglo would come out to-day with these catastrophic losses the same day we are getting the results of the latest stress tests for the Irish banking system?
I believe this has been carefully planned by the Central bank and the department of Finance. The news is as bad as it could be. The Irish taxpayer is again forced into a position of having to swallow this private toxic debt. Why won’t the new Minster of Finance shut this black hole down? May I remind him he is supposed to be working for the Irish people and not the international bondholders?
We have now have witnessed five attempts to stabilize the Banking system and 3 stress tests and as far as I am concerned we still haven’t got to the real figures yet! Not unless we hear the big D word Derivatives.
Where are the Derivative losses from the banks???
Since September 2008 Government guarantee of 400 billion
2009 then we had 10.875 billion injected into the banks
Early 2010 we had another 22billion injected the banks again
Late 2010 we had 13.5 billion into the main banks
And now today, we are told that the banks will need another 24 billion injection
What makes anyone believe we have now got all the figures on the table we were lied to before and we are now been lied to again? This is not what the Irish electorate wanted Mr. Kenny you said not one cent more. How can you justify hospital closures and the slashing of essential public services just to bailout private gamblers?