Anglo Irish Bank Sean FitzPatrick Chief Executive

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Anglo Irish BankSean FitzPatrickChief
Executive
ABN AMRO PAN EUROPEAN BANKING CONFERENCE
18 June 2002
www.angloirishbank.com
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Moving Goalposts
Late 80s/ Early 90s

• Stagnation in Ireland
• UK downturn
• Currency crises

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Managing Through the Cycle
1990s

• Celtic Tiger
• Steady UK economy
• Euro

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Moving Goalposts
2000-2002

• US slowdown
• Foot Mouth
• September 11

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What have we achieved?
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Total Assets
bn
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Profits
m
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Return on Equity

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How do we compare?
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Our Business

• A bespoke business bank
• Focused on specific
• markets
• sectors
• Operations
• Business lending
• Treasury
• Wealth Management
• A relationship bank

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Business Model
Focused
Relationship

• Centralised
• Control

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Features of the Business

• Sustainable income
• Consistent margins
• Significant and growing Fee Income
• Geographic and Sectoral Diversification

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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

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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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Lending by region
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Lending by sector
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Provisions
Total Provisions - 245m
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Coverage
Total Provisions 245 Non Performing
Loans 94
m
Provisions/NPLs 260 Total
Provisions/Loan Balances 1.85
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Treasury

• Funding
• Manage Interest Rates/Foreign Exchange
• Products for customers
• Dealing lt 2 of Total Income

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Deposit Growth
bn
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Treasury

• Funding
• Manage Interest Rates/Foreign Exchange
• Products for customers
• Dealing lt 2 of Total Income

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Wealth Management

• Different locations
• Vienna, Dublin, IOM, Geneva
• Private Banking
• Funds Management

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Cost/Income Ratio
50
Lowest in Europe
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46
44
40
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35
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33
30
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96
97
98
99
00
01
02
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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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Summary

• Goalposts, Cycles
• Focus
• markets
• sectors
• Acquisition / Diversification
• Consistent Strategy
• EPS 15 p.a.

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