Anglo Irish Bank

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Anglo Irish Bank
Davy Equity Conference New York, 9 January 2004
Sean FitzPatrick Chief Executive
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Anglo Irish Bank
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Lending
39 CAGR
(bn)
4
Funding
35 CAGR
(bn)
5
Cost/Income Ratio
29.3
70 of incremental revenue flows to profit
6
Pre-tax profits
44 CAGR
(m)
7
Earnings Per Share Growth
Cent
36.5 CAGR
Unequalled EPS growth
8
What do we do?
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Focused Business Model

• Ireland, UK, US
• Term, secured lending
• Service sector

Business Lending

• Ireland, UK, US
• Funding
• Corporate Treasury Sales

Treasury
Wealth Management

• Austria, Ireland, Switzerland UK
• Private Banking
• Wealth creation/preservation

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Not a Universal Bank

• We dont provide
• Checking accounts
• Overdraft / working capital facilities
• Residential mortgages
• Personal lending
• Credit cards

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Not a Universal Bank
Lending 79
Treasury 16
Wealth Management 5
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Lending Model
1. Cashflow
ASSET QUALITY
3. Recourse
2. Security
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Essential Ingredients
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Essential Ingredients
People
Positioning
Ethos
Value creation
Funding
Capital
Centralised Model
Asset Quality
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People

• Experienced management
• Breadth depth seamless succession
• Rewarded on performance of the Bank
• Ability to attract and retain key personnel

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Positioning

• Service sector
• Owner driver customer
• Customer desire to reduce reliance on Clearer

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Structure

• Centralised business model
• Excellent asset quality
• Highly efficient
• Consistent client service

Difficult for Universal Bank to replicate
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The Anglo Ethos

• Simple, uncomplicated focus
• Bespoke product offering
• Service driven
• Proprietorial culture lending our own money
• Professional

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Asset Quality

• Focus on cashflow
• contingencies security recourse
• Clear credit policy
• Centralised credit committee

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Asset Quality - Coverage
Provisions/NPLs
m
Non performing loans
129.3
280.6
Total provisions
217
Coverage
As at September03
Strong coverage European average 80
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UK Loan Securitisation
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Capital

• Highly efficient
• Substantial growth in ordinary equity
• Tier 1 8.5

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Shareholders equity
917
86
(m)
492
Sept-01
Sept-03
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Funding

• Lending funded through customer deposits
• Targeted approach
• Small/medium corporates service price
• Retail price flexibility
• Excellent quality well spread
• Rating upgrades
• Wholesale market used only for liquidity

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Total Funding
(bn)
41
Sep-02
Sep-03
Restated at Sep-03 currency exchange rates
Significant increase in funding resources
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Opportunity
Future
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Future

• Continue to follow our Proven Strategy
• Retain our Centralised Business Model
• Asset Quality is paramount not sacrificed for
  volume
• Continue diversification of Funding Base
• Largely Organic acquisitions only if fit strict
  criteria

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Future Lending Growth

• Opportunity to grow
• Ireland increasing market share
• UK significant potential to
  leverage off strong franchise
• Boston brick by brick

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Future
Profit growth of 15 compound per annum
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Superior Shareholder Returns
Future
Past
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(No Transcript)
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Appendices
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Sectoral spread Group
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Tier 1 capital position

m 2003 2002 Risk Weighted Assets 20,195 16,03
5 Equity Tier 1 917 710 Preference share
capital 259 278 TONICS 361 250 Perpetual
capital securities 261 154 Less deductions
_(80) (68) 1,718 1,324 Tier
1 Capital
8.5 8.2
Tier 1 capital position stands at 8.5
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Ratings

• Short Term Long
  Term Outlook
• Moodys P2
  A3 Positive
• Fitch F1 A3 Stable

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Liquidity
3.0m
2.5m
2.0m
1.5m
1.0m
0.5m
Nov 00
Nov 01
Nov 02
Oct 03
One of the most liquid stocks on the Irish market
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Analyst details
Investment Firm Analyst
Phone Number ABN Amro Eamon Hughes
353 1 609 3800 Bear Stearns Claes
Willquist/Tony Cummings 44 207 516 6850 BNP
Paribas Hugh Pye 44 207 595
3251 Cazenove Daragh Horgan 44 207 214
7647 Commerzbank Piers Brown 44 207 653
7654 Davy Stockbrokers Emer Lang/Scott Rankin
353 1 614 8997 Fox-Pitt, Kelton Mark
Thomas/Jon Kirk 44 207 696
6256 Goodbody Stockbrokers Len Riddell
353 1 641 9442 Merrill Lynch Stephen
Andrews/John Paul Crutchley44 207 996
2136 Merrion Capital Seamus Murphy 353 1
2404 126 Morgan Stanley Stephen Jarvis / Robin
Down 44 207 513 3933 NCB Stockbrokers John
Kelly/David Odlum 353 1 611 5918

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Further Information

• For additional information, please contact any of
  the individuals below.

Sean FitzPatrick Chief Executive Officer Direct
Tel [phone] E-mail seanfitzpatrick_at_anglo
irishbank.ie
Willie McAteer Chief Financial Officer Direct
Tel [phone] E-mail williammcateer_at_angloi
rishbank.ie
Tiarnan O Mahoney Chief Operating Officer Direct
Tel [phone] E-mail tiarnanomahoney_at_anglo
irishbank.ie
Matt Moran Associate Director, Group
Finance Direct Tel [phone] E-mail
mattmoran_at_angloirishbank.ie
Anglo Irish Bank, Stephen Court, 18/21 St.
Stephens Green, Dublin 2 www.angloirishbank.com