Anglo Irish Bank

1
Anglo Irish Bank
Living in a 1 world
Merrill Lynch Pan European Banking Insurance
Conference
London 9 October 2003
Sean FitzPatrick Chief Executive
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Anglo Irish Bank
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Lending
35 CAGR
(bn)
As at March 03
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Funding
34 CAGR
(bn)
As at March 03
5
Cost/Income Ratio
29.5
70 of incremental revenue flows to profit
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Profits
(m)
40 CAGR
Market consensus forecast
7
Earnings Per Share Growth
33 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
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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 wizened bankers
• 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
m
Non performing loans
119
278
Total provisions
233
Coverage
As at March 03
Strong coverage European average 80
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Asset Quality - 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
64
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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 2001, 2002 2003
• Wholesale market used only for liquidity

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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 1 compound per annum
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Superior Return to Shareholders
Future
Past
30
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