Bank of Ireland this week has released their Interim Management Statement for the 6-months to 30 September 2008.
BOI has revised their 3-year loan impairment charge outlook from circa €3.8 billion to circa €4.5 billion, of which circa €1.4 billion is expected to arise in the year to 31 March 2009.
The increase in the 3-year estimate is predominantly driven by a significant rise in unemployment expectations and a consequent increase in risk in their consumer portfolios.
The bank has recognised that there is a downside risk to this estimate which may result in an additional loan impairment charge of up to €1.5 billion for the 3-years to 31 March 2011.