National Irish Bank (NIB) has reported a €632 million impairment charge for the first nine months, up from a €504 million charge for the year-earlier period on the back of unexpectedly high loan losses.
NIB’s Danish parent bank Danske said pre-tax loss widened to €600 million in the period from a €468 million loss a year ago. The bank said its operating profits fell by 11 per cent to €32 million from €36 million.
NIB's chief executive Andrew Healy said the bank hopes "to see a downward trajectory" on its impairment charges related to the property crash. "Danske remains committed to the Irish market," he said.
Danske today reported a steep drop in third-quarter profits below all forecasts, hurt by falling trading income, and said it would cut 2,000 jobs and start searching for a new chief executive.
The bank said third-quarter results had suffered from the financial crisis, new regulation and high funding costs and that a cost-savings programme would reduce expenses by 10 per cent or about 2 billion crowns (€268 million) in 2012-14.
"Our third-quarter results suffered from the intensified financial turmoil," chief executive Peter Straarup said in the statement. "To improve earnings, we (will) focus on our expenses." The bank said Mr Straarup, who reached 60 this summer, wished to retire in accordance with the terms of his employment contract.
"Consequently, the board of directors is initiating the process of finding a new chief executive officer," the bank said in the statement. Mr Straarup would continue as chief executive until his successor takes over, it said.
Pretax profit dropped to 10 million Danish crowns in the July-to-September quarter from 1.87 billion in the corresponding quarter last year, missing an average 1.28 billion crowns average estimate in a Reuters poll of analysts.
Reuters