Sean FitzPatrick

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Anglo Irish Bank NCB Irish Equity Conference
Sean FitzPatrick Chief Executive 22 March 2002
www.angloirishbank.com
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Our Business

• A bespoke business lending bank

• Wealth management

• Focused on specific - markets
• - sectors

• A relationship bank

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Not a Universal Bank
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Business Lending

• Mid-market and professional sectors

• Traditional
• Cash flow
• Security
• Personal recourse
• Property lending?

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Sectoral Lending 2001
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Not just Celtic Tiger
Geographic Lending Sep 01
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Wealth Management

• Different Locations

• Private Banking
• Funds Management

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Treasury

• Group Funding

• Risk Management
• Centralised Control

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Deposit Growth
bn
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Business Model
Relationship
Focused

• Centralised
• Control

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Business Model

• Sustainable income

• Secure margins
• Fee income - significant and growing

• Diversification - Geographic
• - Sectoral

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Issues

• Scale

• Asset Quality
• Capital

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Size Matters?

• Skill not scale based

• Institutionalised smallness
• Consolidation opportunity

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ASSET QUALITY
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Provisions Non Performing Loans (NPLs)
01 96 Sep Sep Provisi
ons Specific 66 32 General 146
18 212 50 NPLs 82
55 Provisions/NPLs 259 93
m
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Provisions - PL Charge
m
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Asset Quality

• Underwriting
• Centralised model
• Traditional lending
• Clear focus

• Portfolio Management
• Full quarterly reviews
• Interest collection
• Provisioning

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CAPITAL
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Capital

• An issue but not a problem

• Capital resources 64 over one year
• 229 over three years
• Cocktail approach

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Total Assets
bn
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Pre-Tax Profit
m
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Return on Equity

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Financial Performance

• EPS 41

• 5 year EPS CAGR 35
• ROE 31
• Cost Income 30
• Tier One 7
• Total Capital Ratio 12

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Anglo in context

• 9th - market capitalisation

• 6th - pre-tax profits
• 6th - liquidity
• 1st - Irish bank performer - 1, 3 5 years
• 1st - European bank performer - 12 months

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The Future

• Consistent strategy
• Lending focus
• Income diversification
• Acquisitions
• Shareholder Value

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