Pressure is mounting on AIB boss Colm Doherty in the wake of last year’s €2.65bn pre-tax loss, with most of the Sunday newspapers taking a cut at the performance of the bank and its dismal prospects.
The Sunday Independent’s business section quotes the findings of an international research firm, Credit Sights, who believe next year’s losses could top €3bn and senior analyst Simon Adamson’s view that AIB’s loan book is “the worst in Europe”.
“From my experience, you have to go back to the Nordic banking crisis of the 1990s to see comparable levels of impaired loans in a big bank as you see in AIB today,” he says.
Finance minister Brian Lenihan believes there will be prosecutions over the events at Anglo Irish Bank and the bank was “too big to fail”, The Sunday Independent reports.
“I believe there will be prosecutions in relation to what happened in Anglo Irish Bank but it is not a matter for me, it is a belief of mine,” he said.
Irish Life & Permanent paid more than €4m to former chief executive Denis Casey and two other senior executives who resigned last year after details emerged about the controversial banking arrangements with Anglo Irish Bank.
Casey, finance director Peter Fitzpatrick and head of treasury David Gantly pocketed €1.8m “in lieu of notice” and a further €2.9m towards their pension plans, The Sunday Business Post reports.
Anglo Irish Bank wants to draw a line under its past when its annual results are published next month, according to a front page article in The Sunday Times. You can readily see why. The nationalised bank is the functioning definition of a basket case. Anglo is about to announce the largest loss in Irish corporate history when it writes off €11.2 billion on loans that it will transfer to the National Asset Management Agency (Nama).
During the debate over the banking crisis, the Government resolutely refused to go down the road of nationalising any of the major financial institutions but when the financial markets open tomorrow (Monday), the State will be the biggest shareholder in the Bank of Ireland.