AIB £2.4bn loss is just the start of its problems, say analysts

By Harry Wilson, Financial Services Correspondent Published: 5:30AM GMT 03 March 2010

Reporting the full-year formula on Tuesday, AIB pronounced lost �2.4bn last year, contra a �944m distinction in 2008, as the opinion for the Irish skill zone one after another to darken, with waste approaching to rise.

New handling executive Colm Doherty, presenting AIB"s annual formula for the initial time, could suggest couple of certain comments and pronounced things could well get worse for the bank.

The fall of Irish genuine estate marketplace strike AIB with �3.3bn in impairments in 2009, next to to about three-quarters of the sum impairments, whilst UK loans comment for 15pc of the bank"s complaint assets, with couple of signs of an alleviation any time soon, according to analysts, who contend the bank"s problems will get worse prior to removing better.

Simon Adamson, a comparison banks researcher at CreditSights, pronounced AIB"s resources were a small of the misfortune he had seen at any European bank with couple of opportunities for disposals in the stream market.

"Most European banks are at the point where problems have appearance or are peaking, but the Irish banks are in a really opposite on all sides and we think impairments are expected to get worse," pronounced Adamson. "It"s tough to see any signs of great headlines for AIB."

Raising new collateral will be a priority for AIB this year, but Mr Doherty gave small item on intensity disposals. The bank"s stakes in Poland"s Bank Zachodni and M&T Bank in the US are seen as the majority expected resources to be sole first.

AIB is now scheming to send about �21bn of bad loans to the Irish government"s National Asset Management Agency, whilst about 1,600 jobs have already been cut as the outcome of a restructuring programme and Mr Doherty pronounced the bank would be stability with "aggressive cost reductions".