Rabobank Ireland made an after-tax profit of €41.7 million in 2012, up from a loss of €21.6 million the previous year.

The Irish subsidiary of the Dutch bank attributed its 2011 losses to impairment charges related to a Greek sovereign bond, which were not repeated last year.

Operating income increased by 10 per cent in 2012, excluding a one off loss of €9.9 million due to the unwinding of some hedging derivatives.

The bank’s total assets decreased by €2.2 billion to €13.5 billion however, due to a reduction in lending to other Rabobank Group entities and the repayment of some available-for-sale investment bonds.

Lending to customers in the Irish market increased by €96 million, “reflecting a continued strong growth in the bank’s local franchise in the food and agribusiness sector”, it said in a statement.

Commenting on the results, Rabobank Ireland chief executive Kevin Knightly said: "The environment continues to be challenging in Ireland and in the wider euro zone, but overall we are pleased with our progress and in particular with our strengthening position in the food and agribusiness sector, which forms such an important part of the Irish economy."

Overall profits at the Rabobank Nederland Group declined by 20 per cent in 2012, due to an increase in bad-loan provisions in its domestic market, and the imposition of a bank tax by the Dutch government.

Rabobank Ireland primarily offers corporate banking services and global client solutions, focusing on food, agribusiness and renewable energy.

It is one of three Irish subsidiaries of the Rabobank Nederland Group, along with RaboDirect and ACC Bank, which employ around 600 people.

ACC Bank announced pre-tax losses for 2012 of €219 million last month, up 17.7 per cent on 2011.