Allied Irish Banks (AIB $1.91 +0.11) reported an underlying loss of
EUR2.6 billion -excluding debt buyback gains and BZWBK profit (no est) driven by
continuing elevated bad debts; Proforma core tier 1 capital (post proposed
recapitalisation) 22.4%. The provision charge for loans and receivables was
EUR2,961 million or 6.48% of average customer loans and compared to EUR2,260
million or 3.78% of average customer loans in the half-year to June 2010.
The provision charge included EUR54 million for loans held for sale to NAMA and
the charge for loans and receivables to customers was EUR2,907 million compared
with EUR1,221 million and EUR1,039 million respectively for the same period last
year.
The writeback of provisions for liabilities and commitments of EUR173 million
reflects the release of contingent provisions raised in 2010 for loans that were
held for sale to NAMA at 31 December 2010 but were not classified as held for
sale to NAMA at 30 June 2011. The provision for impairment of financial
investments available for sale mainly reflects provisions for bonds held in
financial institutions.






