Allied Irish Banks (AIB) has posted a
net loss for fiscal 2009 of €2.4bn ($3.3bn) compared with a net
profit of €772m a year earlier, following a surge in impairment
charges related to the Irish property crash.

Loan loss charges totalled €5.4bn while 29.4%
of total loans were classed as ‘criticised’ or at risk, with
two-thirds of such loans linked to the property/construction

The loan-deposit ratio stood at 146% at the end
of the year, a slight improvement from 156% at the end of June.

In a statement, the bank said: “AIB will be
moving to increase its capital ratios.

“In 2010 AIB will prioritise restructuring and
restoring its businesses to underpin viability, and renewing the
group’s credibility among all its stakeholders.”

AIB’s Polish earnings held up, with profits
before taxation of PLN854m ($296.8m) in 2009, down 8% from a year
ago. AIB holds a 70.4% stake in Poland-based Bank Zachodni WBK, a
shareholding widely regarded as the AIB group’s ‘jewel in the