Bank of Ireland makes 1.8bn-euro loss in 2012

Bank of Ireland has recorded a loss of 1.8bn euros (£1.6bn; $2.3bn) for 2012.

The lender saw little respite in the rate at which it had to write off bad loans due to the property crash.

The bank took 1.7bn euros in impairment charges, versus 1.9bn in 2011, of which 462m euros was on mortgages and 797m on construction and property loans.

These charges dragged the 15%-state-owned bank into the red for the year. In 2011 it turned a 40m-euro profit thanks to a debt write-off.

The agreement by the Bank of Ireland's lenders to accept shares in lieu of the money owed to them generated a one-time gain of 1.8bn euros in 2011, which masked what would otherwise have been an equally dreadful year for the bank.

Chief executive Richie Boucher said 2012 had been "another challenging year", but added that the group had made "good progress" against its objectives.

The bank was also hit by the cost of redundancies, which totaled 150m euros. About 1,200 employees - 9% of staff - had taken voluntary redundancy since May. 


On the positive side, Coucher said there were signs of stabilisation in the Irish economy, with modest growth in economic output and a leveling off of unemployment. 

As a result, the number of customers defaulting on mortgages and loans was still going up, but at a slower rate, the bank said.