Irish Life sees 2011 return to profit
Bancassurer Irish Life & Permanent posted a 2009 operating loss and said it would not be back in the black until 2011 by when it wants to have been part of a consolidation in the market.
The group, whose profitable life business and lack of property development exposure have made it Ireland's only major listed financial institution to escape a bailout, reported a 2009 operating loss of 196 million euros ($265m).
That loss, which came after a 341 million euro operating profit in 2008, resulted from bad debt provisions in its banking unit permanent tsb which, analysts expect, it will try to spin off later this year.
In contrast to Allied Irish Banks and Bank of Ireland, Irish Life & Permanent has not received capital from the government and is not taking part in the National Asset Management Agency (NAMA), a 54 billion euro "bad bank".
Permanent tsb is seen, however, as a potential candidate to create a "third force" in Irish banking by combining with some of NAMA's smaller participants such as building societies EBS and Irish Nationwide, which are already in merger talks.
"We are optimistic that clarity on this issue will be established over the coming months," chief executive Kevin Murphy said in a statement.
On the group's profit outlook he said: "In 2010, I expect the banking businesses' results to be broadly similar to 2009 but I anticipate a significant improvement in the life businesses' profitability."
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