The Irish Bank Resolution Corporation Limited (IBRC) has today published its Interim Report for the six months to 30 June 2012 which shows key financial results including a loss of €724m for the six months to the end of June. The report also shows an operating profit of €359m before disposals and provisions.
Net interest income of €538m, an increase of 14 percent compared to the corresponding prior period with the principal components being income earned on the promissory notes and customer lending balances, and interest expense incurred on Central Bank of Ireland special funding facilities.
Additionally, the bank reports that total operating expenses of €129m compared to €157m for the corresponding prior period. The overall group headcount has decreased by 15 percent since 31 December 2011. The total at June 302012 includes 256 people who either work directly in, or provide support to, the Bank’s NAMA unit. Excluding these NAMA related staff; IBRC’s overall headcount is 775.
The bank reports non-staff costs amounted to of €70m, a decrease of €19m or 21 percent since the corresponding prior period, primarily due to reduced professional fee expenditure in relation to asset recovery matters.
Total assets at the bank are €53.2bn, a reduction in the period of €2.8bn, or 5 percent, on a constant currency basis. This has occurred mainly by a reduction in gross customer loan balances of €2.1bn.
The report also stresses the agreement to utilise the €3.06bn due on the promissory notes in March 2012 to acquire a long term Irish Government bond of equivalent value. Excluding the Government promissory notes of €27.8bn and Irish Government bonds of €3.5bn, total assets are €21.9bn at June 30 2012 (31 December 2011: €25.3bn). Net customer lending totals €15.9bn. Impaired loans amount to €18.0bn. Total funding from central banks and monetary authorities of €42.3bn, representing 89 percent of total funding. Deposits from banks include €2.8bn of secured funding provided by Bank of Ireland. Tier 1 capital ratio of 13.6 percent and a total capital ratio of 14.8 percent. Regulatory capital ratios have decreased since December 31 2011 due to losses incurred during the period. The impact of these losses has been partially offset by a decrease of €2.3bn in risk weighted assets.
The report also states that throughout the period the Bank has continued to actively manage and vigorously defend all legal claims.