After seeing its shares slump another 30% yesterday, Irish Life and Permanent has decided to update the market on its exposure to Icelandic banks ahead of a planned interim management statement scheduled for November 12.
IL&P says it has exposure to three banks in Iceland - Glitnir, Landsbanki and Kaupthing - all of which have now been brought under the direct control of the Icelandic government.
The bank says in a statement today that the amounts of these investments is €62m plus another $42m in dollars.
It added that at the end of June it had already written down €16.7m of its investments in the three banks and said it 'anticipates that it will create impairment provisions to cover substantially all the outstanding debt'.
'The group has a strong and flexible capital position given its relatively low risk loan portfolio and its substantial unit-linked life business and can absorb any impairment which may arise as a result of its exposure to these Icelandic banks without placing the group under any capital strain,' the statement added.
On Friday the bank issued a statement saying its exposure was 'very manageable' but this failed to calm the markets.
IL&P closed down 3.3% at €1.47 in Dublin this evening. They had gained 42% earlier after the release of the bank's statement.
