Embattled financial group Bank of Ireland recorded a loss before tax of £1.87 billion (€2.16 billion) for the 12 months ending 31 December 2012.
The bank’s core tier one capital ratio – an assessment of financial strength – rose to 14.4% from 14.3% at the same point last year.
It has also significantly reduced its reliance on wholesale funding.
It declared use of wholesale funding of €39 billion in 2012, down from €51 billion at the same point in 2011. It used less cash from monetary authorities – drawing €15 billion in 2012, down from €22 billion in 2011.
The bank remains 15% owned by the Irish government and has endured a tough period of restructuring in 2012, with around 9% of its workforce taking voluntary redundancy and the headcount earmarked for further reduction in 2013.
Richie Boucher, chief executive of Bank of Ireland, said the programme to turn the Bank around would continue, noting the actions taken in 2012 as a positive foundation on which to build momentum in 2013.
He explained: “We have taken a number of actions including deleveraging the group’s balance sheet, repositioning assets within the group, increasing deposit volumes at less expensive rates and accessing longer-term funding markets.
“Total operating expenses reduced marginally to €1,638 million for the year-ended 31 December 2012, compared to €1.65 billion the previous year, primarily driven by sustained efforts to reduce costs and deliver efficiencies and despite a significant increase in regulatory costs and the adverse impact of currency exchange translations.”