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Anglo Irish Bank Annual Report Annual Report & Accounts / 2007

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Anglo Irish Bank Annual Report Annual Report & Accounts / 2007 Anglo Irish Bank Annual Report & Accounts / 2007 Annual Report & Accounts / 2007 www.angloirishbank.com There is a Difference Business Lending / Treasury / Wealth Management Front cover Main photo: The Ritz-Carlton Powerscourt, Ireland. Top photos [L to R]: The Apthorp, New York; RTÉ National Symphony Orchestra; Irish International Women’s Rugby team. Back cover Photos [L to R]: 45 Milk Street, Boston; Thistle Hotel Haydock, Merseyside; Junior Achievement Ireland students. Anglo Irish Bank locations Dublin Cork London Glasgow Geneva Head Office Anglo Irish Bank House 10 Old Jewry 180 St. Vincent Street 7 Rue des Alpes Stephen Court 11 Anglesea Street London EC2R 8DN Glasgow G2 5SG P.O. Box 1380 18/21 St. Stephen’s Green Cork Tel: +44 207 710 7000 Tel: +44 141 204 7270 1211 Geneva 1 Dublin 2 Tel: +353 21 453 7300 Fax: +44 207 710 7050 Fax: +44 141 204 7299 Tel: +41 22 716 3636 Tel: +353 1 616 2000 Fax: +353 21 453 7399 Fax: +41 22 716 3619 Fax: +353 1 616 2411 Private Banking Leeds www.angloirishbank.com Galway 6 Stratton Street 1 Whitehall Riverside Lisbon Anglo Irish Bank House London W1J 8LD Whitehall Road Avenida da Liberdade Registrar Correspondence Forster Street Tel: +44 207 016 1500 Leeds LS1 4BN 190- 5° A Computershare Investor Galway Fax: +44 207 016 1555 Tel: +44 113 205 3100 1250-147 Lisbon Services (Ireland) Limited Tel: +353 91 536 900 Fax: +44 113 205 3111 Tel: +351 210 438 300 Heron House Fax: +353 91 536 931 Banbury Fax: +351 210 438 333 Corrig Road Town Centre House Manchester Sandyford Industrial Estate Southam Road Vienna Dublin 18 Limerick 1 Marsden Street Banbury Rathausstrasse 20 Tel: +353 1 216 3100 Anglo Irish Bank House Manchester M2 1HW Oxon OX16 2EN P.O. Box 306 Freephone: 1800 225 125 98 Henry Street Tel: +44 161 214 3020 Tel: +44 1295 755 500 A-1011 Vienna (Shareholder enquiries) Limerick Fax: +44 161 214 3030 Fax: +44 1295 755 510 Tel: +43 1 406 6161 www.computershare.com Tel: +353 61 461 800 Fax: +353 61 461 899 Isle of Man Fax: +43 1 405 8142 E Belfast 1,243m Private Banking Jubilee Buildings Boston Connaught House Sligo 14/18 Great Victoria Street Victoria Street Belfast BT2 7BA record profit before 1 Burlington Road Connacht House Douglas (Representative Office) Tel: +44 2890 333 100 Dublin 4 Markievicz Road Isle of Man IM1 2SH 265 Franklin Street Fax: +44 2890 269 090 tax up 46% Tel: +353 1 631 0000 Sligo Tel: +44 1624 698 000 Boston MA 02110 Fax: +353 1 631 0098 Tel: +353 71 911 9400 Fax: +44 1624 698 001 Tel: +1 617 720 2577 Birmingham Fax: +353 71 911 9499 Fax: +1 617 720 6099 1 Colmore Square Jersey Waterford Birmingham B4 6AJ 31 The Parade Chicago Tel: +44 121 232 0800 Anglo Irish Bank House St Helier (Representative Office) Fax: +44 121 232 0808 Maritana Gate Jersey JE2 3QQ 71 South Wacker Drive Canada Street Tel: +44 1534 611 500 Chicago IL 60606 Waterford Fax: +44 1534 605 055 Tel: +1 312 924 2200 Tel: +353 51 849 300 Fax: +1 312 924 2222 Improved Fax: +353 51 849 399 New York (Representative Office) cost to income 222 East 41st Street New York NY 10017 ratio 22% Tel: +1 212 503 3000 Fax: +1 212 503 3033 Forward looking statements This report contains certain forward looking statements with respect to the financial condition, results of operations and businesses of Anglo Irish Bank. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements. The statements are based on current expected market and economic conditions, the existing regulatory environment and interpretations of IFRS applicable to past, current and future periods. Nothing in this report should be construed as a profit forecast. This report is printed on Revive Silk Paper which Anglo Irish Bank Corporation plc is regulated has a fibre source of 50% de-inked post-consumer by the Financial Regulator in Ireland. www.designbankltd.com For further information, please email: [email protected] waste, 25% pre-consumer waste. Anglo Irish Bank Annual Report & Accounts 2007 // Another year of strong growth and investment across the Bank // Customer deposit growth of E16.7bn1 up 46% Contents 30% return 02 Financial highlights 04 Group profile 07 Chairman’s statement on equity 13 Group Chief Executive’s review 20 Board of Directors 24 Corporate Responsibility 31 Report of the Directors 32 Statement of Directors’ responsibilities 33 Corporate governance statement 38 Independent Auditors’ report High quality 40 Consolidated income statement 41 Consolidated balance sheet growth in customer 42 Bank balance sheet 43 Statement of recognised income 1 lending of E and expense 18bn 44 Cash flow statement 46 Notes to the financial statements up 37% 134 Consolidated income statement (USD, GBP, CHF) 135 Consolidated balance sheet (USD, GBP, CHF) 136 Shareholder information 1 On a constant currency basis 1 01 Financial highlights 2007 2006 Profit before taxation (€m) 1,243 850 Earnings per share (cent) 134.7 93.7 Dividends per share1 (cent) 19.49 16.24 Cost to income ratio 22.3% 26.5% Customer lending2 (€m) 67,076 50,227 Total assets (€m) 96,652 73,290 Total funding (€m) 83,875 62,193 Shareholders’ funds (€m) 4,052 2,689 02 Anglo Irish Bank Annual Report & Accounts 2007 // Delivering excellent performance across all divisions with growth in earnings per share of 44% // 1,243 1243.0 134.7 134.699997 19.49 16.24 994.4 107.759998 850 93.7 13.54 745.8 80.819998 11.28 71.0 615 9.40 57.3 504 497.2 53.879999 6.27 347 39.0 261 29.1 248.6 26.939999 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 0.0 0.000000 Profit before taxation (Em) Earnings per share (cent) Dividends per share1 (cent) 96.7 96.699997 83.9 83.900002 67.1 77.359998 67.120001 73.3 62.2 50.2 1 Includes proposed final dividend 2 Includes funding provided 58.019998 50.340001 to customers of Anglo Irish 49.6 42.1 34.6 Assurance Company under investment contracts and also securitised loans 38.679999 33.560001 34.3 29.1 24.4 The basis of numbers in the 25.5 22.4 18.1 financial highlights are as 16.9 14.3 19.4 19.339999 16.780000 follows: 2006 to 2007 - IFRS 2005 - Pro-forma IFRS 2002 to 2004 - Irish GAAP 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 2002 2003 2004 2005 2006 2007 0.000000 0.000000 Total assets (Ebn) Total funding (Ebn) Customer lending2 (Ebn) 033 Group profile Anglo Irish Bank is a relationship based business bank operating in three core areas – Business Lending, Treasury and Wealth Management. Not a universal bank, we focus on providing bespoke differentiated products where we can deliver superior service to our customers. The Bank operates a centralised business model which facilitates quick decision making, consistent risk management and effective delivery for our customers. This model, together with our focused strategy over the last two decades, has enabled the Bank to achieve consistent above market returns, with compound annual growth rates in excess of 35% on both pre-tax profits and total assets over the past twenty years. This organically driven growth has seen the Bank’s 2007 pre-tax profits exceed E1.2 billion and total assets reach almost E100 billion. A key element in the Bank’s development to date is the skill, professionalism and commitment of our people. Now numbering almost 1,900 they remain central to the Bank’s continued success. USA Ireland Isle of Man UK Jersey Portugal Switzerland Austria Boston Dublin Douglas London St Helier Lisbon Geneva Vienna Chicago Cork Banbury New York Galway Belfast Limerick Birmingham Sligo Glasgow Waterford Leeds Manchester 04 Anglo Irish Bank Annual Report & Accounts 2007 Business Treasury Wealth Lending Management Secured term lending is the Bank’s core The primary role of our Treasury Division is The Bank’s Wealth Management Division offering and the main driver of revenues and to ensure that the Bank manages its funding operates as a niche provider of private profitability. and liquidity requirements effectively. banking services to high net worth clients. It is also responsible for managing the Many of these clients are also customers of Business Lending operates through a Bank’s interest rate and foreign exchange our Business Lending divisions. network of 16 offices in three main markets – exposures, as well as generating additional Ireland, the United Kingdom and the United In addition to traditional private banking income through corporate treasury activities. States. We apply the same relationship services the Division specialises in the Funding, liquidity and all aspects of risk based model to our business lending development of unique tailored investment management for the Group are managed activities in all geographic locations. solutions for clients, with an emphasis on centrally. creating and preserving wealth. This model focuses on lending to Historically, customer funding has been experienced business professionals on The private bank in Ireland is a long the primary source of funding for the Bank. transactions that are supported by secure established successful franchise and, in Customer deposits are raised through well cash flows and strong collateral.
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