Allied Irish Bank has one of the worst loan books ever seen at any European bank and could run up losses of more than €3bn this year, according to Simon Adamson, senior analyst with CreditSights. Mr Adamson also said that the bank, which recently reported a pre-tax loss of €2.65bn for 2009, its first ever annual loss, had 'little prospect' of recovering soon.
Northern Rock is this week expected to report pre-tax losses of about £400m for 2009, a marked improvement on the £1.36bn of losses in 2008. Bad debts will hit a record of more than £1bn, reflecting the fact that a quarter of the bank's borrowers are in negative equity and problem loans account for almost 5% of the book.
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