Anglo Irish Bank

1
Anglo Irish Bank
Davy Irish Equity Market Conference
London 18 May 2004
Sean FitzPatrick, Chief Executive
2
Issues

• Internal
• Asset quality
• Funding
• Scalability of model
• Growth

• External
• Margins
• Competition
• Interest rates

3
Overview of Performance Interim 2004
Excellent results for 6 months to 31 March 2004
Excellent results for 6 months to 31 March 2004
Profits before general bad debt provisions
Profits before general bad debt provisions
Market leading growth in 2004
4
Interim Profit Loss Account Overview
m
2004
2003
Pre-tax profit 228.6 154.5 Underlying
profit 228.6 182.2
EPS 51.42c 33.55c Underlying EPS 51.42c
40.50c
Record profits and EPS
5
Interim Profit Loss Account Overview
Record profits and EPS
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Interim 2004 Balance Sheet - Overview
bn
2004
2003
Total assets 30.4 25.8 Loans 21.3 18.5 Funding 26
.7 22.2 Capital resources 2.4 2.2 Tier
1 8.0 8.5
Restated at Mar - 04 currency exchange rates
Strong balance sheet and capital position
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Total Asset Growth
18
bn
Sep-03
Mar-04
Restated at Mar - 04 currency exchange rates
8
Total Loan Growth
15
bn
Sep-03
Mar-04
Restated at Mar - 04 currency exchange rates
Excellent loan growth across all markets
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Total Funding
20
bn
Sep-03
Mar-04
Restated at Mar - 04 currency exchange rates
Significant increase in funding resources
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Total Capital
9
bn
Sep-03
Mar-04
Restated at Mar - 04 currency exchange rates
Significant internal generation of capital
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Margins

• Total Margin
• Difference between what you pay for deposits and
  what you receive on assets

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Margins

• Assume EURIBOR of 10

Interest
rate paid on deposits 6 10 Liability
margin 4 0 Asset margin 2 2 Total
margin 6 2
Universal Bank Anglo
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Margins

• Assume EURIBOR of 2

Interest rate paid on deposits
1 2 Liability margin 1 0 Asset
margin 2 2 Total margin 3 2
Universal Bank Anglo
Anglo margin less sensitive to changes in
interest rates
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Interim 2004 Results Cost / income ratio
Unique business model benefits funding strategy
15
Loan funding growth
Bn
30.0
Customer loans
25.0
Interbank funding
20.0
Non-interbank funding
15.0
10.0
5.0
0.0
'95
'96
'97
'98
'99
00
'01
'02
'03
'04
Track record of lending and funding growth
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Total Funding Interim 2004
bn
65
Debt Securities 6.4
Customer Deposits 17.4
24
11
Interbank Deposits 2.9
Increasing diversity and quality of funding
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Ratings
Moodys upgrade of long term, short term
financial strength ratings in March 2004.
Continued strengthening of profits, asset
quality and funding
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Competition

• Large Universal Banks vs. Focused Player
• Easy for client to move to us
• Bespoke vs. commodity

Unique market positioning
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How do we win business?

• Bank of choice
• We deliver
• Responsiveness
• Flexibility
• Certainty of Execution
• Repeat business

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Scalability of model

• Hub spoke approach
• Local people in local market
• Chosen markets sectors
• Consistent decision making
• Value not volume

Scope for significant growth in next 10 years
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Lending - Ireland
Centralised model
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Lending - UK
Centralised model
23
Lending - Boston
Centralised model
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Provisions for bad or doubtful debts
General 234.7m
Specific 56.7m
Total provisions stand at 291.4m
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Asset Quality Interim 2004
m
Provisions/NPLs
Strong coverage European average 80
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Lending Model
2. Cashflow
1. People
ASSET QUALITY
3. Security
4. Recourse
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Asset Quality
Constant feedback to Credit Committee
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UK Loan Book

• Loan balances 6.9Bn
• Clients 952
• Security properties 2,788
• Supporting tenants 10,537

Granular diverse
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UK Loan book Geographic Spread
Strong regional diversification
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UK Loan Book Sectoral Spread
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Interest Rates

• Well positioned
• Significant hedging of our book

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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

• 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

Consistent strategy should deliver superior
returns
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Summary

• Record results in H1 2004
• Strong growth across all areas
• Asset quality is robust
• Future business prospects remain very strong

We are confident of the Banks future prospects
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(No Transcript)
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Appendices
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Work in progress
2004
2003
m
Restated at Mar-04 currency exchange rates
Expanding franchise continuing strong growth
in W.I.P
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Analyst details
Investment Firm Analyst
Phone Number ABN Amro Eamon
Hughes 353 1 609 3800 Bear Stearns Tony
Cummings 44 207 516 6360 BNP Paribas Sarah
Horder 44 207 595 6511 Cazenove Daragh
Horgan 44 207 155 8208 CAI Cheuvreux Mark
Phin/Ian Poulter 44 207 621 5232 Commerzbank Pie
rs Brown 44 207 653 7654 Davy
Stockbrokers Emer Lang/Scott Rankin 353 1 614
8997 Fox-Pitt, Kelton Mark Thomas 44 207 696
6256 Goodbody Stockbrokers Joe Gill 353 1 641
9442 Merrill Lynch Stephen Andrews/ 44 207 996
2134 John Paul Crutchley Merrion Capital Seamus
Murphy 353 1 240 4100 Morgan Stanley Stephen
Jarvis / 44 207 513 3933 Robin Down NCB
Stockbrokers David Odlum 353 1 611 5941
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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
John Rowan Managing Director UK Direct Tel 44
207 710 7020 E-mailjohnrowan_at_angloirishbank.co.uk
Tom Browne Director Direct Tel [phone]
2006 E-mail tombrowne_at_angloirishbank.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