Is Big Better

1
ANGLO IRISH BANK
UBS Global Financial Services Conference

• Is Big Better?

David Drumm Group Chief Executive New York
16 May 2006
2
Is Big Better?
only if it results in better returns for
shareholders
Anglo 5 year CAGR EPS 33
3
5 year growth - Lending
bn
CAGR 33
Sep-05
Sep-00
gt4 fold increase in Lending
4
5 year growth Pre-tax Profits
Mn
CAGR 36
Sep-05
Sep-00
4.6 times increase Pre-tax Profits
5
5 year growth EPS
cent
CAGR 33
Sep-05
Sep-00
4.2 times increase Earnings Per Share
6
Is Getting Bigger Better?
Yes for shareholders of Anglo Irish Bank
7
Anglo Irish Bank
Interim Results 6 Months Ended March 31st
Released Wednesday 10th May
8
2006 Interim Income Statement - Overview
m H1
2006
2005

• Pre-tax profit 375 277
• EPS cent 41.9 32.2

Record profits and EPS
9
2006 Interim Balance Sheet - Overview
bn
Mar 2006
Sept 2005
Total assets 60.1 49.2 Lending 41.2
34.1 Funding 51.0 41.8 Shareholders funds
2.4 1.8
Strong growth across balance sheet
10
Total Loan Growth
21
bn
7.1bn
Mar-06
Sep-05
Excellent growth of 7.1bn, stable margins
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Loan Growth - Ireland
17
bn
Sep-05
Mar-06
Underlying loan growth of 3.5bn
12
Loan Growth - UK
21
bn
Sep-05
Mar-06
Underlying loan growth of 2.6bn
13
Loan Growth - USA
41
bn
Sep-05
Mar-06
Underlying loan growth of 1bn
14
Asset Quality 31 March 2006
Total loans 41bn Non performing
loans 239m Total provisions 242m
Strong coverage of NPLs
15
Total Funding
22
bn
9.2bn
Sep-05
Mar-06
Significant increase in funding resources
16
Total Funding
bn
Debt Securities 12.3
Customer Deposits 30.1
59
24
10
7
Interbank Deposits 5.1
Repos 3.5
Increasing diversity and quality of funding
17
Shareholders Equity Growth
195
m
Mar-03
Mar-06
Capital base has trebled since Mar 03
18
Summary of Key Ratios Interim 06
Pre-tax profit 35 EPS
30 Total Lending 21 Total
Funding 22 Cost/income ratio 29 Return on
Equity 29
5 Year EPS CAGR 33
19
Work in Progress
bn
Mar 06
Sept 05
7.1
6.0
51
35
Ireland 3.2
Ireland 3.6
UK 2.5
UK 2.3
53
39
USA 1.0
USA 0.5
14
8
Expanding franchise continuing strong growth
in WIP
20
Excellent Performance in H1 2006
Getting bigger - continuing to create
shareholder value
21
Future
Can Anglo continue to get bigger better?
22
Constraints?

• Market potential
• Scalability of Anglo model
• Asset quality
• People

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Market Positioning

• Not a universal bank specialist / niche lender
• Bespoke / Non-commoditised approach
• Easy for customers to do business second banking
  relationship

Getting bigger but retaining clear, focused
offering to customers
24
Strict geographical client focus
3 Core Markets
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Homogenous Markets

• Same language
• Similar legal system
• Similar business culture

Pro-business environments
26
Geographic focus - opportunity
Big opportunity in each market over medium
long term
Opportunity is Compelling
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Ireland

• 25 year history
• Deep franchise
• Relationship / repeat business
• Strong economic backdrop

Strong prospects in growing market
28
UK

• 20 year history
• Strong franchise
• Market share Vs. market size
• Active clients / repeat business
• London regional strategy

Compelling opportunity
29
UK London Regional Opportunity
Birmingham (2001)
Market is 15 times larger than Ireland
30
USA

• Building strong foundation
• Boston 1998 New York 2005
• Business model proven accepted
• Similarity in markets

Significant medium and long term potential
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Constraints ?

• Market Potential ?
• Scalability of Anglo Model
• Asset Quality
• People

Unique Centralised Structure
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Underwriting Fundamentals

• People
• Cash Flow
• Collateral
• Recourse

Basic Tenets of Good Banking
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Asset Quality and Scalability
Consistent Application of Credit Policy
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Centralised Model - Structural Advantages

• Every loan approved centrally no surprises
• Lenders attend Credit Committee weekly
• Empowered by knowledge of Credit Policy
  Appetite
• Better communication with customer
• Reputation for consistency

Customers want certainty
35
Constraints?

• Market Potential ?
• Scalability of Anglo Model ?
• Asset Quality ?
• People

Only real constraint People
36
Service Culture

• Our People ..Our USP
• Highly people dependent
• Strong ability to retain attract talent
• Culture of ownership

Common goals - shareholder staff interests
firmly aligned
37
Strategy 2011

• Big organic opportunity
• Big focus on core markets
• Highly scalable model
• Asset quality never sacrificed for volume
• Ability to retain attract new talent

Confident of generating superior shareholder value
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EXPERIENCE THE DIFFERENCE
39
Further Information

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

Willie McAteer Finance Director Direct Tel 353
1 616 2310 E-mail williammcateer_at_angloirishbank.i
e
David Drumm Group Chief Executive Direct Tel
353 1 616 2001 E-mail daviddrumm_at_angloirishbank.
ie
Declan Quilligan Chief Executive UK Direct Tel
44 207 710 7020 E-maildeclanquilligan_at_angloirish
bank.co.uk
Tom Browne Managing Director - Ireland Wealth
Mgt Direct Tel [phone] E-mail
tombrowne_at_angloirishbank.ie
Matt Moran Chief Financial Officer Direct Tel
353 1 616 2559 E-mail mattmoran_at_angloirishbank.i
e
Anglo Irish Bank, Stephen Court, 18/21 St.
Stephens Green, Dublin 2 www.angloirishbank.com