Allied Irish Bank (AIB) announced that its loss for 2010 constituted 10.4 bln. Euro. This data was released by the bank.
The losses of AIB grew 4-fold as compared to 2.3 bln. Euro in 2009. As stress tests held by the central bank of Ireland in cooperation with independent experts showed, the bank needs another 13.3 bln. Euro.
According to The Guardian, it was an adverse financial situation that forced the bank to cut its expenses which will result in 2000 redundancies in 2011 – 2012. At present AIB staff numbers 14.5 thousands of people in Ireland and Great Britain.
Earlier on March 31, 2011, another bank announced its record losses of 2010 - Anglo Irish Bank. Its losses amounted to 17.7 bln. Euro which is the worst data for all time of banking sector of Ireland. In 2009 the losses of the bank constituted 12.7 bln. Euro.
Such unprecedented losses of its local banks made the Irish government to plan reforming the financial sector and cutting the number of financial institutions from 6 to 2. These are to be supporting ones. Merging of AIB and EBS Building Society will result in a single bank. The second supporting bank will be represented by the Bank of Ireland.
