AIB recorded a pre-tax loss of €3.8 billion in 2012, its annual financial report for 2012 has revealed.
Its 2012 losses were €1.3 billion less than the €5.1 billion it lost in 2011.
When exceptional items were excluded, its actual loss for 2012 was €2.8 billion, down 65 per cent on the €8.1 billion it lost the year before.
The bank also recorded a 29 per cent reduction in its reliance of ECB funding last year, dropping from €31 billion in 2011 to €22 billion in 2012.
The chairman of AIB, David Hodgkinson, said that 2012 had seen further progress in the “re-establishment of AIB as a stable, soundly functioning bank”.
Customer accounts
There was a five per cent increase (€2.9 billion) in the amount of money held in customer accounts last year, and the banks loan to deposit ratio dropped to 115 per cent in December 2012, a 23 per cent reduction on December 2011.
Mortgage arrears
As at December 2012, 9.1 per cent of AIB’s Irish residential mortgage accounts were in arrears of over 90 days. Buy-to-let mortgages were nearly double this, at 17.7 per cent.
On the subject of mortgage arrears, AIB chief executive David Duffy – who the report shows was paid €546,000 last year – said that assisting mortgage customers in difficulty would be a “major priority for this year”, and that the bank would “meet or exceed” the mortgage arrears resolution targets that were outlined by the Central Bank earlier this month.
New mortgages with a total value of €1.5 billion were approved by the bank in 2012, €1.2 billion of which was drawn down during the year. The number of mortgages provided by the bank last year showed an increase of 83 per cent on 2011.
The bank plans to double its mortgage lending target for 2013 to €2 billion.
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