Ulster Bank reports losses of £1bn

Published Thursday, 28 February 2013
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Ulster Bank has announced losses of over £1bn for 2012.

Ulster Bank reports losses of £1bn
A general view of the Ulster bank headquarters in Belfast. (© PA)

It comes as parent company the Royal Bank of Scotland plunged deeper into the red after losing £5.2bn in what has been described as a "chastening" year.

Commenting on Thursday's figures, which cover all of Ireland, Ulster Bank Chief Executive Jim Brown said the bank is continuing the process of restructuring its business here.

"Operating loss increased by £56m year-on-year, primarily driven by a reduction in income as a result of a smaller balance sheet," explained Mr Brown.

"Income decreased by 6% year-on-year in constant currency terms, largely due to the high cost of deposit raising, coupled with lower interest-earning loan volumes.

Ulster Bank has released its annual results and once again they don't make for comfortable reading.

Jamie Delargy

"Impairment losses remained elevated, reflecting underlying credit metrics, new defaulting customers and deteriorating security values."

The losses for 2012 were up 6% from the previous year.

However, as UTV's Business Editor Jamie Delargy explained, the increase was not because the bank was writing off more bad loans.

"It was down to other factors," he explained.

"Depositors are demanding more interest on their money, cutting the Ulster's profit margins, and the bank is deliberately lending less which means lowered income."

Last year Ulster Bank revealed it paid out over £18m to almost 300,000 Northern Irish customers after a technical glitch left them without proper access to their bank accounts for weeks over the summer - these costs are not included in Thursday's results.

The bank plans to close seven branches and four sub-offices in NI by this June.

© UTV News
Comments Comments
Andrew in Larne wrote (698 days ago):
I wonder did the big managers still get their astronomical yearly bonuses. It is no wonder Ulster Bank are making a loss if they treat all their customers the way they have treated myself. I applied for a mortgage with them which was then followed by 4 months of being messed around only to be rejected on sumthing they knew about from the very start of my application process and I am not the only one who Ulster Bank are treating like this. Most financial and mortgage advisors I have dealt with recently will not even have any dealings with Ulster Bank.
norman.d in bangor wrote (699 days ago):
if ulster bank was a private company they would be wound up but these banks can rack up loses and still operate maybe if they stopped paying staff big bonuses for failure they would not be in debt
John in Carrickfergus wrote (699 days ago):
Somehow it doesn't surprise me. I defaulted on my current account 2 years ago (only £150 due to bank charges), I'm trying to pay off debts and improve my credit file and since September last year I have sent them 5 letters asking how I can PAY THEM MONEY, and they haven't even bothered to reply.
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