Nationwide reveals €460m bad loan charge

Updated: 15:45, Friday, 17 April 2009

Irish Nationwide will issue results tomorrow which reveal that the company has taken a bad loan charge of €460m.

1 of 1Irish Nationwide - €240m loss last year
Irish Nationwide - €240m loss last year

The financial institution's chief executive, Michael Fingleton, is due to stand down at the end of this month.

Tomorrow's results have been anxiously anticipated.

Although Irish Nationwide is a building society, it operates as a lender to property developers.

That is a real problem for any bank in the current environment.

Its results for 2008 will show it has lent €8bn to commercial property but only €2bn to the residential sector.

Although its figures will say it make an operating profit of €260m, it has had to write off €460m due to bad loans, meaning it lost €240m last year.

The building society will also say it has €2.2bn of borrowings which must be repaid this year.

It will say its ability to repay the money will depend on an extension the Government guarantee.

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