Bank of Ireland reported a pre-tax loss of €1.8 billion today, with underlying losses soaring to €2.9 billion as impairment charges rose substantially.

The preliminary results published this morning cover the nine months to December 31st 2009, and come only a day after Minister for Finance Brian Lenihan announced details of plans to transfer loans to the National Asset Management Agency (Nama) and recapitalise banks.

"This nine month trading period was very difficult for both our customers and our business and this has been reflected in the substantial increase in credit losses," said chief executive Richie Boucher.

"With hindsight, it is clear that the bank's growth ambitions in previous years had been framed against an overly optimistic view of the outlook for the Irish economy and it was too exposed to the property sector and too reliant on wholesale funding."

Underlying operating profit before impairment charges was just over €1 billion for the period, a 28 per cent fall from the same period in 2008. However impairment charges of €4 billion brought this to a €1.8 billion loss before tax, with underlying pre-tax losses for the period reaching €2.9 billion.

Some €2.2 billion of the impairment charges relate to assets expected to transfer to Nama.