Allied Irish Banks Takes €1.2 Billion Coronavirus Loan Loss Charge

Allied Irish Banks has taken a €1.2bn charge to cover coronavirus loan losses as the country’s largest lender by market capitalisation faces “severe and rapid deterioration” in economic conditions due the pandemic, the Financial Times reported. AIB said the charge, higher than analysts had anticipated, would represent the “significant majority” of full-year loan losses, as it forecast declining interest and fee income this year. Colin Hunt, chief executive, said the bank had adopted a “very conservative and prudent approach” to provisioning in the first half. “We expect that will substantially cover the expected credit impact of Covid-19.”  Non-performing loan exposures rose 14 per cent in the first half to €3.8bn, representing 6.3 per cent of gross lending. Read more