Anglo reports record corporate losses

Thursday 31 March 2011 22.23
Anglo Irish Bank - Reported losses of €17.7bn for 2010
Anglo Irish Bank - Reported losses of €17.7bn for 2010

Anglo Irish Bank has confirmed losses in excess of €17.5bn for last year.

The defunct bank's audited accounts have been released ahead of the publication of stress tests on other Irish banks.

They are the worst set of figures of any business in Irish corporate history.

€17.7bn is the grand total of Anglo’s losses for 2010, slightly above guidance given last month.

That comprises rotten loans with no prospect of being repaid of €7.8bn and discounts forced on the bank from the transfer of its larger property loans to NAMA. The so-called haircut there is €11.5bn.

Anglo Irish is a bank in wind down tasked with managing the repayment of some €35bn of loans still on its books.

In the last few weeks, its deposit book has been transferred to Allied Irish Bank.

Thus far, it has cost the taxpayer €29.3bn in recapitalisation costs. The size of its future loan losses yet to filter through and which may lead to further injections of money is still the subject of conjecture. It still has around €35bn of loans on its books.

No more taxpayer money needed - Aynsley

Anglo's Chief Executive Mike Aynsley has said the Government has been 'incredibly helpful' during the year and said that the bank has received €29.3bn in support so far.

He added that he is confident the Irish taxpayer will not need to put any more money into the bank.

Mr Aynsley said that the problems in the banking industry are not confined to Ireland, but are affecting other peripheral countries in Europe.

The Anglo CEO said the bank had a workforce of 1,800 when it was nationalised, which was then cut to about 800.

200 staff were transferred to AIB when the bank transferred its deposits last month.

He predicted the bank will have a workforce of about 1,000 by the end of the year and added that a lot of extensive work has been done on restructuring.

It also emerged today that Mr Aynsley received a total pay package of just under €1m for 2010.

According to the bank's annual report, Mr Aynsley was paid a €500,000 salary, €341,000 in benefits and €133,000 in pension payments; amounting to €974,000 in total.

Anglo's chairman, Alan Dukes received €127,000.

Other non-executive directors, Noel Cawley and Aidan Eames received €52,000 each. Donal O'Connor was paid €114,000, Maurice Keane was paid €112,000 and Gary Kennedy received €59,000.