2,000 jobs to go as AIB reports €10.2bn loss

Allied Irish Banks (AIB) has posted a €10.2 billion loss for 2010, after booking a credit provision charge of €6 billion.
At the end of last year, the group’s impaired loans represented 13.4% of total loans and its Core Tier 1 ratio stood at 4%.
The bank’s loan to deposit ratio at 31st December was 165% compared with 123% a year earlier, and customer accounts decreased by €22 billion or 29% during 2010, to €52 billion.
Earlier this month, the Central Bank of Ireland said the country’s banks were in need of a further €24 billion injection of cash and revealed plans to merge AIB with the Republic’s Educational Building Society.
As a result, AIB expects to reduce its headcount by 2,000 over 2011 and 2012, with job losses taking place on a “phased basis”.
Last month, Anglo Irish Bank reported a loss of €17.7 billion for 2010, following another “exceptionally difficult” year.