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Eye watering losses at First Trust

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Jamie Delargy
Business
The crash in the property market has forced First Trust to write off over £200m.

The massive write down in its 2009 accounts turned an operating profit of almost £120m into a loss of £86m.

The bank blamed the disastrous performance on a "sharp deterioration in the Northern Ireland economy" rather than on unwise lending to property developers.

The bank's parent Allied Irish Bank lost over €2.5bn. The result was mainly due to a huge write down of loans of over €5bn. In the South itself AIB lost over €3.5bn.

AIB expects to hand over just under €20bn worth of property loans to the South's toxic bank NAMA after taking recent write downs into account.

Back in Northern Ireland First Trust boosted its deposits by three per cent thanks to the launch of some fixed term offerings. Loans however were down by five per cent. It's not clear whether this was due to customers paying off debts or the bank reducing its lending.

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© UTV News

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