NCB makeover

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Anglo Irish Bank Merrion Growth Stock Conference
Sean FitzPatrick Chief Executive 26 September
2002 angloirishbank.com
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Total Assets
bn
5 year CAGR 39
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Profits
m
EPS 5 year CAGR 35
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Cost/Income Ratio

Lowest in Europe
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Return on Equity

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Sector Comparison
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Share Performance

• Market Capitalisation 1986 1m
• 2002 2.2bn

• 7th largest, 5th most profitable

• Best performing financial stock 1/3/5 years

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What do we do?

• Not a full services provider
• Bespoke Business Bank with a Private Banking Arm
• Focus on specific - markets
• - sectors
• - products/services
• Relationship Bank

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Operations

• Business Lending Ireland, UK, US
• Term, secured lending
• Service sector
• Old economies

• Treasury Services Ireland, UK, US
• Funding
• FX and interest rate

• Wealth Management IRL, IOM, Aus, Switz
• Private Banking
• Funds Management
• Wealth creation/preservation

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Growth in Advances
bn
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Growth in Funding
bn
Ratings upgrades 01 02
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Dispelling some Myths

• SME Lending? - Mid-market
• - Professional
• - High net-worth
• Property Lending - Financial services
• - Retailer
• - Distributor

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Lending by sector
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Growth on the back of the Celtic Tiger?
1995
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Customer Deposits by Region
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Asset Quality

• Interest collection
• Quarterly reviews
• Provisioning
• Coverage ratio

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Underwriting

• Traditional lending - cash flow
• - security
• - personal recourse
• Centralised model
• Clear focus

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Provisions NPLs
Mar Sep 02
96 Provisions Specific 64 32
General 181 18 245 50 NPLs
94 55 Provisions/NPLs 260
93 NPLs/Book 0.7 2.9
m
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How do we compare?
Provisions
m
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Capital Resources

• Model employed - cocktail approach
• Capital increases 64 over one year
• 229 over three years
• Current year - share placing
• - second securitisation
• - TONICS
• Return on equity 30

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The Future

• Consistent strategy
• Centralised Business Model
• Transportable
• Resources people, funding, capital
• Market awareness
• EPS Target 15 p.a.

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