Irish Life & Permanent has reported a loss of €197m for last year, in line with the previous year's €196m loss.
A strong performance at its life business was offset by further losses at its banking business Permanent TSB, where the number of mortgages in arrears increased by almost 50%.
Shares in IL&P closed 5.9% lower at 88 cent in Dublin this evening.
Permanent TSB's losses increased by 36% to €364m, as it set aside €420m to cope with potential loan losses. The group said this was done due to the continuing weakness in the Irish property market and the likely impact of the recent Budget. 6.8% of its mortgage accounts are more than 90 days behind with repayments.
€242m of the loan loss provision was linked to residential mortgages. The group had signalled recently that it would be raising its impairment provisions.
Profits in IL&P's life business jumped, however, by 57% to €160m. This was due to strong growth in the value of existing business as more people held on to policies. Sales in the life business were up 6% to €572m. Retail sales fell 8% but there was strong growth at Irish Life Investment Managers.
Permanent TSB new lending halved
Permanent TSB's loan to deposit ratio was 249% at the end of 2010, but the recent addition of deposits from Irish Nationwide would have reduced this to 200%.
New loans issued by Permanent TSB halved during 2010 to €600m, while customer deposits fell by €1.2 billion to €13.4 billion. Retail deposits rose, but corporate deposits fell.
Irish Life & Permanent chief Kevin Murphy told RTÉ radio the bank was working closely with mortgage customers in arrears and had worked out individual plans. Mr Murphy said he believed any ECB interest rate rises later this year would be moderate and slow, and could be managed.
He said IL&P was comfortable that it was 'provisioning sensibly' for any mortgage losses.
