Allied Irish posts huge loss

Allied Irish Banks slumped to a loss €2.66bn last year as bad debt and loan impairment provisions hit €5.4bn in very tough conditions that it says show no signs of abating."The outlook and environment remain extremely challenging. 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," it said."In line with global trends for banks to hold more capital, AIB will be moving to increase its capital ratios. In 2010 AIB will prioritise restructuring and restoring its businesses to underpin viability, and renewing the group's credibility amongst all its stakeholders," the statement added.In 2009, operating profit before provisions was €3bn compared to €2.7bn in 2008, which included a €623m one-off gain.Provisions for loans and receivables were €5.4bn, with some €3.4bn of this related to loans to be transferred into NAMA, the Irish state's bad bank. Net interest margin decreased 29 basis points to 1.92% reflecting higher funding costs. Total operating income was down 11%. There was loss per share of €2.15c against a profit of €0.83c.