Permanent TSB has reported an annual loss of €424m.
The bank set aside €1.4 billion to provide for losses on mortgage loans - which were more than three times higher than in 2010.
The bank had issued a statement in February warning about the record losses.
Chairman Alan Cook said the group’s performance reflected the “difficult economic environment” and rising impairment charges in its Irish mortgage book.
It said its impairment provisions increased due to the continued distress of the Irish economy as well as more house prices declines, sustained high levels of unemployment and lower income levels due to the austerity measures.
It said the number of accounts greater than 90 days in arrears jumped by 71% to 20,816 cases in 2011, up from 12,200 cases in 2010. This represented 12% of its mortgage portfolio, up from 6.8% in 2010.
It pointed out that the number of owner occupier mortgages included in these numbers was 16,919, up from 10,347 in 2010, which represented 12.1% of its total mortgage portfolio. This compares to an industry average of 9.2.%.
The group also said that cost of the Government's guarantee scheme rose to €173m from €98m due to the addition of the Irish Nationwide Building Society deposits last February and the refinancing of older term debt.
Permanent TSB is the subject of ongoing negotiations between the Government and the Troika. A decision regarding its future is expected to be made by the end of this month.
Historically the lender was very reliant on borrowing money cheaply on international capital markets to lend to homeowners here, but that source of funding is now too expensive. PTSB is losing heavily on its extensive book of tracker mortgages which cost more to fund than the bank is making on interest payments from borrowers.
“The bank has successfully managed its funding requirements through the year and has made considerable progress in preparing the business for the future in a changed banking market,” Chairman Alan Cook said.
“A key challenge for the business and for our customers is arrears and we are working hard to manage this situation with our customers and with other stakeholders,” he added.
''Adverse developments, such as the continued downturn in economic activity has resulted in a decline in demand for business products and services, weak consumer confidence, lower personal expenditure and consumption, increases in debt service burden of customers and limitations on the general availability of credit,'' the group said in its results today.
''These factors have significantly affected, and may continue to affect, the group's customers and, as a consequence, the demand for and supply of, the group's products and services and in turn the group's results, financial condition and prospects,'' it cautioned.
