Published Thursday, 09 February 2012
The results were announced on Thursday by the Northern Bank's parent company, Denmark's Danske Bank.
The Northern Bank faces loan impairment charges of around £245 million, linked mainly to the commercial property sector in Northern Ireland.
Danske Bank in its statement warned that loan impairment charges, in relation to property, at the Northern are likely to remain high in the coming months.
Northern Bank Chief Executive Gerry Mallon said the losses were a consequence of a lack of recovery in both the global and local economy.
"That's led in turn to the property market staying in a moribund state and that's forced us to increase our levels of impairment on property loans," he explained.
"I think 2012 is going to be a difficult year, economically and for the business community in Northern Ireland.
Until we see a stabilisation of the global economy and the UK and Irish national economies, and then the Northern Ireland regional economy, we're not going to see any strong improvement in performance from the banks.
Northern Bank Chief Executive Gerry Mallon
"As a consequence we're not going to see any strong improvement in the local property market," he added.
In the Republic, NIB, the sister company to Northern Bank, reported losses of approximately €800m, again based largely on losses on the property market loans made by the bank.
Despite the poor performances, Mr Mallon assured UTV that Danske Bank is invested in the long-standing relationship with Northern Bank.
"I think every bank's prospects looked better in 2005/2006 than they do now.
"But I reiterate that we're a strong bank with long-term potential, a fully integrated part of Danske, and we're here for the long term," he said.
Danske Bank intends not to pay a dividend for 2011.