Wednesday, Allied Irish Banks Plc (AIB) reported a loss for the first half of fiscal 2009, compared to a profit last year, reflecting significantly higher provisions for impairment of loans and receivables.
Loss before tax for the first half of 2009 was 0.87 billion euros, compared to a profit of 1.28 billion euros in the same period of the previous year. The company noted that previous year results have been restated.
Loss attributable to the owners of the parent company for the period was 0.83 billion euros or 43.2 cents per share, compared to a profit of 1.04 billion euros or 113.8 cents per share a year ago.
Net interest income for the half declined 4% to 1.69 billion euros from 1.86 billion euros last year, as slowing economic conditions resulted in lower loans. Loans to customers reduced by 2% and customer accounts decreased by 12% on a constant currency basis since 31 December 2008.
Other income for the fist half, including a gain of 623 million euros on redemption of subordinated liabilities from the capital exchange offering completed in June 2009, was 1.09 billion euros compared to 0.58 billion euros a year ago.
Total provisions for the period increased significantly to 2.40 billion euros from 0.14 billion euros last year. First-half provisions include provisions for impairment of loans and receivables of 2.37 billion euros, provisions for liabilities and commitments of 1 million euros and amounts written off financial investments available for sale of 22 million euros.
Looking forward, the company noted that it expects the operating environment to remain extremely difficult through the remainder of 2009, due to many risks and uncertainties with recessionary economic conditions continuing to prevail and little compelling evidence of recovery.
AIB is currently trading at $5.30, up 0.35 or 7.07%, on a volume of 1.65 million shares on the NYSE.
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