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02/03/2010
AIB Mortgages To Rise
Troubled Irish bank AIB is to increase its mortgage interest rates in response to its first-ever full-year loss, it has emerged today.
In its preliminary results for 2009, the bank has reported pre-tax losses of €2.656bn for last year.
Describing the period as a "very challenging year", AIB said it was putting aside €5.35bn provision for bad loans. It said this equated to 4.05% of its average customer loans.
In it's management report overview, the bank said €3.4bn of the loses related to loans that have been identified for potential transfer to the National Asset Management Agency.
The overview said: "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.
"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."
Speaking on RTÉ's Morning Ireland, AIB Group Managing Director Colm Doherty said price rises across its financial products - including mortgages - were unavoidable.
He said the bank is paying more for the money it is borrowing than it is charging customers. He said this was unsustainable.
This morning, Fine Gael Deputy Leader & Finance Spokesman Richard Bruton said AIB’s worst ever results represented even more pain for consumers and borrowers, and should send a clear message to the Government that its banking policy is not working.
“AIB’s results paint a very worrying picture for taxpayers and for the economy. There is little comfort for borrowers, or for businesses, as the bank’s commitment to restart lending is fragile at best.
“The open threat of rising costs for borrowers, including mortgage holders, also points to further trouble in store for the Irish economy."
(DW/BMcC)
In its preliminary results for 2009, the bank has reported pre-tax losses of €2.656bn for last year.
Describing the period as a "very challenging year", AIB said it was putting aside €5.35bn provision for bad loans. It said this equated to 4.05% of its average customer loans.
In it's management report overview, the bank said €3.4bn of the loses related to loans that have been identified for potential transfer to the National Asset Management Agency.
The overview said: "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.
"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."
Speaking on RTÉ's Morning Ireland, AIB Group Managing Director Colm Doherty said price rises across its financial products - including mortgages - were unavoidable.
He said the bank is paying more for the money it is borrowing than it is charging customers. He said this was unsustainable.
This morning, Fine Gael Deputy Leader & Finance Spokesman Richard Bruton said AIB’s worst ever results represented even more pain for consumers and borrowers, and should send a clear message to the Government that its banking policy is not working.
“AIB’s results paint a very worrying picture for taxpayers and for the economy. There is little comfort for borrowers, or for businesses, as the bank’s commitment to restart lending is fragile at best.
“The open threat of rising costs for borrowers, including mortgage holders, also points to further trouble in store for the Irish economy."
(DW/BMcC)
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Fine Gael Call For Interest Rate To Be Passed On
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Fine Gael Call For Interest Rate To Be Passed On
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AIB To Get Another Billion Euro Handout
The troubled AIB bank is to receive another handout as its profits and share price continues on a downward spiral. The Government is to seek EU approval to provide a €4 billion injection to buoy the Bank after it reported a loss of €4.1 billion, warning its losses could even reach €7.5 billion over the next three years.
AIB To Get Another Billion Euro Handout
The troubled AIB bank is to receive another handout as its profits and share price continues on a downward spiral. The Government is to seek EU approval to provide a €4 billion injection to buoy the Bank after it reported a loss of €4.1 billion, warning its losses could even reach €7.5 billion over the next three years.
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FF Call On Central Bank To Directly Engage With Mortgage Providers
The Central Bank has been urged to engage directly with mortgage providers in an effort to secure a reduction in the standard variable rate. Making the call Fianna Fáil finance spokesperson Michael McGrath said that "it is clear that there is a wide and growing disparity with existing customers on SVRs very much at the bottom of the pile.
FF Call On Central Bank To Directly Engage With Mortgage Providers
The Central Bank has been urged to engage directly with mortgage providers in an effort to secure a reduction in the standard variable rate. Making the call Fianna Fáil finance spokesperson Michael McGrath said that "it is clear that there is a wide and growing disparity with existing customers on SVRs very much at the bottom of the pile.
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Ireland WeatherToday:Dry, bright start this morning with best of sunshine in the west. Thickening cloud over Down and Antrim this morning with a few showers, extending westwards this afternoon. Lighter winds. Maximum temperature 16 °C.Tonight:Rather cloudy and mainly dry at first, then showery outbreaks of rain extending westwards to most places during the night, turning heavier towards morning. Light winds. Minimum temperature 8 °C.
