Irish Life and Permanent said its full-year operating losses was little changed at €197 million as a profit increase at its life assurance business was offset by rising losses in its banking unit.

Profit at the company's life unit rose 57 per cent to €160 million, the Dublin-based company said today. Losses at the banking unit rose 36 per cent to €364 million, as impairments rose.

The banking unit's loss swelled 36 per cent to €364 million on higher impairments. The division set aside €420 million for soured loans in 2010, up from €376 million a year earlier.

Irish Life and Permanent Plc said the share of its Irish home loan portfolio more than 90 days behind in payments rose to 6.8 per cent in 2010, from 3.9 per cent in 2009. The Dublin-based company published the figures in its yearly earnings report today.

IL&P's finance director David McCarthy said losses in the company's banking company should "moderate" this year, while the outcome in the life unit may be slightly better in 2011 compared with 2010.

Group chief executive Kevin Murphy said the results were in line with the 2009 performance.

“On the plus side, our life and pensions and fund management businesses in Irish Life enjoyed a very successful year and operating profits rose by 57% to €160 million,” Mr Murphy said.

“Against that, we had further losses in the banking business where the cost of rising impairment provisions drove a loss of €364 million".

“Combine the two with some movements in other areas and we had an operating loss for the group of some €197 million, which was very close to the performance in 2009".

IL&P is the country's only government-guaranteed lender not to be bailed out over the past two years. It was told by the central bank last year to raise an additional €243 million of capital by the end of May.

Bloomberg