Anglo Irish Bank Interim Management Statement1 and Chairmans Address to the Annual General Meeting, 1 February 2008
Summary
Sean FitzPatrick Chairman Anglo Irish Bank 1 February 2008 1 For the four months ended 31 January 2008 2 On a constant currency basis ### Dublin, Ireland, February 01, 2008 --( PR.com )-- 2007 has been another year of outstanding achievement for your Bank with record earnings, strong lending growth, excellent asset quality and continued development of our franchises in Ireland, the UK and North America.This excellent performance is grounded in the Group’s disciplined and focused business model, prudent risk appetite and very limited exposure to areas affected by current credit market issues.Key highlights of the Bank’s performance include:Positive earnings momentum• Record underlying profit before tax of €1,221 million, an increase of 44%• 41% growth in underlying earnings per share to 131.7 cent• Improved cost to income ratio of 22.3%• Specific impairment charge unchanged on 2006 at 9 basis points• Strong return on equity of 30%• Proposed final dividend of 13.01 cent per share bringing total dividend for the year to 19.49 cent, an increase of 20% on 2006Significant balance sheet strength• Record growth in funding of €25.5 billion2 with customer deposits up by €16.7 billion2 or 46%• Growth in customer lending of €18.0 billion2, an increase of 37%• Continued robust asset quality with impaired loans representing only 0.50% of closing loan balances• Strongest capital position in the Bank’s history – core equity grew by €1.4 billion to in excess of €4 billion.Strong underlying client cash flows, normally based on long-term contractual rental incomes derived from diverse sectors of the service economy underpin all transactions.The Bank’s low loss outcome in the event of a default is further strengthened by personal guarantees and by the fact that close to 100% of the loan book is secured by a first legal charge on tangible assets, typically on a cross-collateralised basis.Loans must be individually approved at central credit committee in Dublin, chaired independently by Group Risk Management.Nevertheless, we remain as vigilant as ever.Funding and liquidity – a platform of financial strengthThe Bank’s total funding and capital stood at €93.2 billion at year end, reflecting record growth of €25.5 billion2.Customer depositsThe Bank’s customer deposit franchise, which dates back over three decades, delivered an outstanding performance in 2007, growing by 46% or €16.7 billion2.This significant activity, aligned with the Bank’s consistent strategy of raising market funding well in advance of requirements, has aided the Bank to insulate itself from the effects of the current turbulence in credit markets.Throughout our considerable growth over the past three decades, we have always been keenly aware of the importance of maintaining a robust liquidity profile.I also believe that those who have managed their businesses tightly and have carefully underwritten risk will differentiate themselves over time.The fundamentals of the Irish economy remain sound and provide a base for relative economic strength in the future, albeit at lower growth levels.