Irish Nationwide Building Society has reported a loss after tax of €243m for 2008, compared to an after-tax profit of €309m last year.
The loss is because of two reasons, firstly provisions of €464m to cover potential losses from loans. The society has been hit by its heavy exposure to commercial property lending, which accounts for almost 80% of total loans.
2008 operating profits were €260m, but the society's total assets fell 10% to €14.4 billion. Irish Nationwide's loan book also dropped 15% to just under €10.5 billion, with much of this due to the fall in the value of sterling.
Irish Nationwide said it had €2.2 billion of debt which was due to be paid back this year. It said it planned to finance the repayment through reducing its loan book, securitising loans and issuing new bonds.
The society is covered by the Government's guarantee scheme, but says its ability to continue as a going concern is dependent on continuing Government support.