Anglo Irish Bank

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Anglo Irish Bank
Ireland in Focus
Davy Equity Market Conference
New York - 10 January 2003
Sean FitzPatrick Chief Executive
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Superior Shareholders Returns
Future
Past
3
Past Performance - Profit Before Tax
m
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Focused Business Model
Anglo Irish Bank
Centralised Business Model
Wealth Management
Business Lending
Treasury
People
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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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Not just another universal bank

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

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Lending Model
1. Cashflow
ASSET QUALITY
3. Recourse
2. Security
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Lending Model

• Focused lending teams
• Term lending - low maintenance reduced risk
• Significant operating leverage
• Regular communication of lending criteria
• Efficent decision making

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Lending Model
Pre loan
During loan

• Due diligence
• - Cash flows
• - Security
• - Recourse
• Central credit committee sanctions all lending

• Monthly direct debit
• Quarterly loan reviews
• Annual review with client
• Strict NPL criteria
• Own your loan no separate recovery team

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Historical Increase in Lending
bn
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UK Loan Securitisation
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Sectoral Diversification
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Asset Quality
m Non performing loans 105 Total provisions
256 Coverage 244
Provisions/NPLs
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Treasury
bn
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Non Lending Revenues

• Supplements lending income
• Diversifies our earnings base
• without utilizing capital
• Leverages our existing capabilities skills
• Ability to achieve sustainable income and growth

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Non Lending Revenues
m
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Cost/income ratio
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Summary of key ratios
2002 5
year CAGR Pre tax
profit 34 47 EPS 35 40 Total
Assets 23 37 Cost/Income Ratio
30 Return on Equity 31
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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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W.I.P analysis
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Future
Profit growth of 15 compound per annum will
deliver
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Opportunity
m
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Superior Shareholder Returns
Future
Past
26
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