ULSTER BANK 'HERE TO STAY' DESPITE LOSSES - Ulster Bank made a loss of £8m sterling for the first six months of its financial year because of a jump in loan losses to £157m. £107m of this related to business loans. Profit before these impairment losses fell to £149m from £190m a year earlier.
Asked about future increases in impairment loans, Ulster Bank chief executive Cormac McCarthy said the market would continue to remain difficult and the bank remained cautious about the outlook.
He said Ulster Bank's impairment losses were, in reality, much higher, as it had allocated €15 billion of its portfolio of lending to a new division of its parent Royal Bank of Scotland.
Mr McCarthy said a 'new' Ulster Bank would not include such areas as lending for development land and certain mortgage products, and these would be wound down over time.
The bank announced 750 job cuts earlier this year, and plans for another 250 voluntary lay-offs today. Mr McCarthy said the previous scheme had been over-subscribed. He said Ulster Bank was a core part of RBS, and was 'here to stay' in Ireland.
Asked about lending to small business, Mr McCarthy said it had been constrained by the economic situation, and lending had been static over the past six months. He said Ulster Bank was not out of line with other banks in this area.
Mr McCarthy said that, like any other financial institution, Ulster Bank had got some things wrong during the boom.
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MARKETS AND CURRENCIES - The Hang Seng is down 1.6%, while Tokyo's Nikkei closed down slightly. The euro is worth $1.4361 and 85.55p.
