Permanent TSB made an operating loss of €270m last year, compared to a profit of €30m in 2008.
Profits elsewhere in the group resulted in an overall loss for Irish Life and Permanent of €196m. Its profit the previous year was €341m.
Almost 4% of mortgages at the bank were in arrears at the end of 2009, and 22% of accounts are in negative equity.
The group, which was not involved in massive lending to the property development sector and so is not sending loans to the National Asset Management Agency, has seen its profits deteriorate over the last two years because of investments in three Icelandic banks and Lehman Brothers.
It has also had to increase the amount it sets aside for loan losses.
It is involved in investigations by the Office of the Director of Corporate Enforcement and garda into deposits lodged with Anglo Irish Bank mainly in September 2008.
In a statement this morning, the group said 2009 was a very difficult year for its customers and its businesses.
The bank’s chief executive Kevin Murphy said the defining development during the year was a steep and quick economic correction with GDP falling by close to 8% and unemployment increasing to 12.5%. He says this had a profound affect on Irish Life's key businesses.
The group says it made progress in reducing costs and that it will continue to do so this year.
Permanent TSB was quick to raise mortgage interest rates in the last year. That move, along with its sales focus changing to deposits, marked a change for its banking business.
Last month the group restructured to make it easier for it to take part in the consolidation of the financial services marketplace in Ireland, on which progress is expected this year.
