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Anglo Irish Bank posts a record €12.7bn loss as state approves a fresh bailout

NATIONALISED Anglo Irish Bank posted a €12.7bn loss for the 15 months to December, meeting expectations that it would report the largest loss in Irish corporate history.

The bank said yesterday it had booked impairment charges of €15.1bn, of which two-thirds were on assets to be transferred to the National Asset Management Agency (NAMA), Ireland’s “bad bank”.

The government, which had already pumped €4bn of capital into the lender, yesterday injected another €8.3bn via a promissory note and said Anglo could need another €10bn to cover future losses.

Pending EU approval, the remainder of Anglo after the NAMA transfers will be split further into two, with a functioning lender to be sold off and a bad bank of its own.

“The restructured organisation will have a role to play in the national recovery, acting as a domestic and international fundraising platform for the Irish economy and providing commercial banking services to assist Ireland’s recovery and growth,” chief executive Mike Aynsley said in a statement.