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Allied Irish loss soars, cuts 2,000 jobs


Allied Irish loss soars, cuts 2,000 jobs


Allied Irish Banks is to cut the jobs of over 2,000 people after making a massive annual loss of 10.4 billion euros.

AIB said customers withdrew 22 billion euros of deposits last year.

The bank was effectively nationalised and saved from collapse by emergency European Central Bank funding due to losses from bad loans after Ireland’s property bubble burst.

There were further “slight” deposit outflows this year, mainly from overseas corporate funds AIB said.

Its executive chairman David Hodgkinson pointed out that fresh stress tests which require AIB to raise 13.3 billion euros in capital and a major overhaul of the banking sector have provided some stability.

“The news of the bank’s recapitalisation has been viewed positively by the market and we hope that that now represents a turning point and we can now rebuild the bank from here,” Hodgkinson said in a radio interview.

Talking about the casino-style lending during the bubble, Hodgkinson said: “There was almost a kind of collective madness, everyone went crazy and for a very long time.” Hodgkinson is a former chief operating officer at HSBC, appointed to the AIB job last year.

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