Anglo Irish Bank has confirmed losses of €17.7 billion for last year. The bank's audited accounts were released this morning ahead of the publication of stress tests on other Irish banks and are slightly worse than guidance given last month.
They are the worst set of figures of any business in Irish corporate history and the bank said the year was another exceptionally difficult period for both it and the Irish economy.
The loss figure includes impairment charges of €7.8 billion and a loss of €11.5 billion on disposal of assets to the National Asset Management Agency.
The bank said the impairment charges included €2.6 billion relating to NAMA loans.
Anglo Irish is a bank in wind down tasked with managing the repayment of some €35 billion of loans still on its books. In the last few weeks, its deposit book was been transferred to AIB.
So far the bank has cost the taxpayer €29.3 billion 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 €35 billion of loans on its books.
Anglo Irish Bank said that its net interest income came to €0.7 billion for the year. Total expenses amounted to €353m compared to €309m in 2009. The increase was due to restructuring expenses, and NAMA process and legacy matters.
During the year, customer deposits declined from €27.2 billion to €11.1 billion by the end of December 2010. Borrowings from banks increased to €46.6 billion and included €45 billion from central banks compared with €23.7 billion in 2009.
Anglo said that its total assets by the end of the year were €72.2 billion, down from €85.2 billion in 2009. Its impaired loans totalled €17.6 billion.
The bank said that conditions in wholesale funding markets remain extremely difficult and the bank continues to rely on Government and monetary authority support mechanisms.
Speaking on RTÉ radio today, Anglo's chief executive Mike Aynsley said the Government has been 'incredibly helpful' during the year and said that the bank has received €29.3 billion in support so far.
He added 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. It had almost 1,300 at the end of last year. 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 says that a lot of extensive work has been done on restructuring.
On today's stress tests, Mr Aynsley said that the work by independent experts has been thorough and deep. Admitting that the numbers of between €18-25 billion are big, he says they are to be expected.
He said the banking system has developed 'black holes' which need to be funded. The banks also need adequate supplies of capital as the country needs a healthy banking system to ensure a healthy economy, he added.
Aynsley paid €974,000 in 2010
The chief executive of Anglo Irish Bank, Mike Aynsley, was paid €974,000 for 2010. His remuneration included a basic salary of €500,000 and a pension contribution of €133,000. He also received benefits of €341,000 made up of relocation expenses, travel expenses and and rent allowance.
Mr Aynsley relocated from Australia to Ireland to take up his position and his wife and family still live there. Speaking on Morning Ireland, he said he planned to remain in Ireland.
Anglo Irish Bank chairman Alan Dukes received pay of €127,000 for the year. Former chairman Donal O'Connor, who resigned from the board, in June received €114,000.