Interim Report 2008 (PDF, 257KB) - Anglo Irish Bank

ANGLO IRISH BANK CORPORATION PLC
Interim results for the six months ended 31 March 2008
H I G H L I G H T S
Anglo Irish Bank today (Wednesday 7 May 2008) releases its Interim Report for the six
month period to 31 March 2008. Key highlights include:
Profitability and shareholder value
� Reported profit before taxation of €667 million, up 16%
� Underlying profit before taxation of €647 million, up 17%
� Underlying earnings per share of 69.7 cent, an increase of 15%
� Strong return on equity of 26%
� Interim dividend of 7.78 cent, an increase of 20%
Operational performance
� Controlled lending growth of €6.1 billion, up 10% on a constant currency basis to
€69 billion
� Excellent asset quality with impaired loans representing 0.52% of total loan balances and
an annualised impairment charge of 0.10%
� Strong growth in funding of €9.9 billion on a constant currency basis with customer
deposits up €5.6 billion, or 11%
� Over 90% of new customer lending funded by growth in customer funding
� Active cost management with cost to income ratio improving from 22% to 19%
� Strong capital position with Tier 1 and Total Capital ratios of 8.7% and 11.9% respectively
Commenting on the results, David Drumm, Group Chief Executive, said:
“The Bank has delivered another strong performance in the six months ending 31 March
2008, with underlying earnings per share increasing 15% to 69.7 cent.
An unwavering commitment to asset quality, stable net interest margins, excellent liquidity
and a robust funding franchise position the Bank well for the remainder of 2008 and beyond.
The relevance of our strict underwriting criteria and relationship focused business model has
been underlined by the current challenging environment for all banks. Organic potential in
each of our core markets combined with the strength of our franchise creates significant
opportunity for our business in the medium to long term.”
-ends-
For further information, please contact:
David Drumm, Group Chief Executive Billy Murphy
Willie McAteer, Finance Director & Drury Communications
Chief Risk Officer Tel: +353 1 260 5000
Matt Moran, Chief Financial Officer
Anglo Irish Bank
Tel: +353 1 616 2000
Full details of our interim results are available on our website www.angloirishbank.com

Chairman’s statement
Anglo Irish Bank has performed strongly in the six months to 31 March 2008,
reporting profit before tax of €667 million and underlying earnings per share growth 1
of 15%. Profitability in our core banking business has grown at a significantly higher
rate but we maintain a prudent stance in relation to the valuation of assets impacted
by the current dislocation in global credit markets.
We have a resilient funding platform with almost two thirds of total funding provided
by customer sources and with continued strong access to wholesale markets. Over
90% of loan growth for the six months was funded through increased customer
deposits.
The strength of the Bank’s balance sheet is demonstrated by robust capitalisation,
a significant liquidity buffer and minimal term debt maturities during 2008. Lending
asset quality remains excellent. There are no emerging systemic trends causing
material concern though we remain highly vigilant.
Highlights for the period include:
Continued strong profitability
� Profit before tax of €647 million (excluding €20 million profit on the disposal of our
Swiss private bank), a rise 1 of 17%
� Prudent approach to valuation of assets impacted by market dislocation
� 15% increase in earnings per share 1 to 69.7 cent
� Active cost management with cost to income ratio improving by three percentage
points from 22% to 19%
� Annualised specific lending impairment charge of 0.10%
� Strong return on equity of 26%
� Stable net interest margins
� Continuing strong dividend trend, increasing interim dividend by 20% to 7.78 cent
Significant balance sheet strength
� Lending growth of €6.1 billion, up 10% on a constant currency basis in the six
months
� Excellent asset quality with impaired loans representing 0.52% of total loan
balances
� Strong growth in funding of €9.9 billion on a constant currency basis with
customer deposits up €5.6 billion, an increase of 11% in the six months
� Excellent liquidity position with treasury assets of €28 billion
� Increase in core equity to €4.6 billion 2 with robust Core, Tier 1 and Total Capital
ratios of 5.6%, 8.7% and 11.9% respectively

Balance sheet growth (constant currency)
€ billion
Assets
31 March
2008
30 September
2007 *
Change
Change %
Total customer lending 69.0 62.9 6.1 10%
Interbank treasury assets 18.5 12.1 6.4 53%
Other treasury assets 9.5 12.5 (3.0) (24%)
Other assets 4.4 3.7 0.7 19%
Total assets 101.4 91.2 10.2 11%
Equity & liabilities
Customer deposits 54.5 48.9 5.6 11%
Debt securities 22.1 22.4 (0.3) (1%)
Interbank deposits 11.6 7.4 4.2 57%
Capital & sub. debt 9.5 9.1 0.4 4%
Other liabilities 3.7 3.4 0.3 9%
Total equity & liabilities 101.4 91.2 10.2 11%
* Balances restated using currency exchange rates as at 31 March 2008
Business Lending – controlled high quality growth
Total customer lending (including lending associated with our assurance company)
stood at €69 billion at 31 March 2008, reflecting net loan growth of €6.1 billion 3 in the
six months, an increase of 10%. This compares to €9.3 billion and €8.7 billion of net
loan growth in the six months to March and September 2007 respectively. We
continue to apply a highly selective and cautious approach to new lending
opportunities.
Lending asset quality
Lending asset quality is excellent. The specific impairment charge at 0.10% of
average customer loans is in line with the previous year. Impaired loans at
€358 million represent 0.52% of the closing loan book, similar to 2006 and 2007
levels of 0.52% and 0.50% respectively. Total balance sheet lending provisions
amount to €273 million, covering close to 80% of impaired loans before taking the
Bank’s collateral security into account.
The Group operates a strict underwriting model. We lend to experienced business
people and professional investors, providing senior term debt on a secured basis.
The Bank does not engage in speculative or unsecured development lending. The
cornerstone of our consistent record on asset quality is strong underlying client cash
flows, normally based on long-term contractual rental incomes derived from diverse
sectors of the service economy. These sectors continue to perform solidly.

Loans are individually presented and approved at central credit committee in Dublin,
chaired independently by Group Risk Management. This team also undertakes a
complete on-site review of all loans at least twice a year, stress testing each and
every client on a loan-by-loan basis to assess the impact of increased interest rates
and lower cash flows. The most recent review of the Bank’s loan book, completed in
April 2008, confirmed that overall client equity and liquidity streams continue to be
strong and well diversified.
The Bank’s low loss outcome in the event of a default is further underpinned 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.
Consistent and proactive management of our asset base, from initial underwriting
and throughout the life of each loan, ensures that we are close to our clients. As a
result, potential issues are recognised and dealt with at an early stage, thereby
mitigating risk. We remain vigilant to ensure the quality of our assets.
Lending – Ireland
At the end of March 2008 loans to Irish customers stood at €40.6 billion, up
€3.7 billion 3 in the first six months. Customer activity has centred primarily on Irish
and mainland European markets.
Price reductions and a significant decline in the supply of new homes have helped
provide some stability to the Irish residential market. The development component of
our Irish residential activities continues to perform well under difficult market
conditions. Typically, our clients’ developments are substantially pre-sold and loan
facilities are cross-collateralised with other income producing assets. Most of our
clients operating in this area are long-established, experienced developers with
significant net worth who have diversified their business interests over the past
number of years, both in Ireland and internationally. Reflecting current market
conditions, there are a limited number of smaller relationships which require more
active monitoring.
The commercial property sector in Ireland is performing solidly with stable rents and
low vacancy rates. As expected, new investment activity has moderated considerably
from the record levels of 2007.
Growth in the Irish economy, whilst positive, has slowed. However, many of the
fundamentals remain sound with consensus forecasts indicating a gradual pick-up in
2009. This follows many years of significant wealth generation for our clients. We are
well positioned to create further value with them over time.
Lending – UK
The Bank’s UK lending business increased loan balances by 5% 3 to €20.1 billion.
This performance reflects general business conditions in the UK market where
activity levels have reduced significantly as buyers encounter a backdrop of more
restricted funding opportunities and sellers have been reluctant to trade assets at
lower levels.

This is our 23 rd year operating in the UK, building a strong relationship banking
franchise over this period. The loan book is performing well with client repayment
capacity remaining strong, supported by improved income and rental levels.
There are emerging signs of potential opportunities in the commercial property
market following the recent pricing correction and the downward trend in long-term
interest rates. Looking further ahead, we see considerable opportunity to develop
and expand our business, especially given our relatively modest market share and
our proven ability to develop meaningful client relationships.
Lending – North America
Our North American lending business delivered a solid performance in the first six
months with net loan growth of €1.4 billion 3 . The Bank is established and represented
in three prime markets – Boston, New York and Chicago. Sentiment and confidence
in the US economy has deteriorated significantly in recent quarters. Clearly, we are
not immune to the effects of the economic downturn. However, our geographic focus
and proven underwriting model position the Bank strongly. The entire book is fully
performing and we have no exposure to the subprime sector.
As with the UK, the opportunity in this market in the medium to long term is
significant given our small market share. Over the past decade we have maintained a
highly selective approach to this business, as evidenced by a client base of less than
300. We will continue with this prudent policy.
Treasury – delivering in challenging market conditions
Our Treasury division has performed strongly in the first half of 2008, providing a
robust, diversified funding and capital platform, maintaining excellent liquidity and
managing the Bank’s interest rate and foreign currency risks whilst servicing the
needs of our treasury clients.
This performance is reflected in:
� a significant liquidity buffer with liquid assets of €28 billion
� customer deposits comprising close to two-thirds of total funding
� customer deposits, term funding and capital representing 116% of customer loans
� minimal term debt maturities to calendar year end 2008 of €3 billion
Customer deposits
Our customer deposit franchise has again delivered in a highly competitive market
with balances increasing by €5.6 billion 3 or 11%, taking total customer funding to
€54.5 billion. Customer deposits fund 80% of cumulative lending and over 90% of
lending growth in the period, thereby protecting Bank liquidity. Deposit growth was
well spread throughout all target markets. The Bank’s customer deposit business
dates back over three decades in Ireland, two decades in the UK and now spans 16
different geographic markets across Europe and North America. The continuing
success of the Bank’s customer funding activities, both retail and non-retail, is
premised on consistently competitive pricing and a strong customer service ethos.

In line with the rest of the market, the cost of customer funding has increased
reflecting sustained competition. Rather than seeking to generate profit, the goal of
our customer deposit business has always been to enhance and diversify the Bank’s
funding base. Consequently, the impact on our net interest margin is comparatively
low.
Retail customer balances now stand at €20.7 billion, with in excess of 50,000 new
customers added in the period. More than half of these new customers have invested
in term products with durations of one year or longer. Customer retention remains
excellent at over 95%.
Our non-retail customer deposit business, which most recently has expanded into the
United States, has grown strongly with balances outstanding of €33.8 billion, an
increase of 13% 3 . This strong, relationship focused business provides ongoing
granular funding by targeting a diverse base of long term holders of cash, such as
small and medium sized corporates, charities, investment managers, local authorities
and credit unions. The average non-retail customer balance is €4 million. As well as
continuing strength in our traditional core markets of Ireland, the UK, the Isle of Man
and Austria, we have also experienced strong growth in the wider European market.
Market funding
The Bank continues to attract significant levels of market funding with new issuance
comfortably exceeding redemptions. Whilst the public longer term capital markets
have been restricted for all participants, we have raised €2 billion of term funding in
the period through private placings and interbank activity. The Bank has also
benefited from strong activity in commercial paper and certificates of deposits with
durations out to one year whilst maintaining pricing discipline at sub-libor levels.
Gross issuance in the period amounted to over €12 billion, resulting in current
balances increasing by more than 25% on year end.
Term funding at close to €16 billion is consistent with the level outstanding at year
end. Looking forward, we are well positioned with just €3 billion of term funding, or
3% of the Group balance sheet, maturing during the remainder of calendar 2008.
Liquidity
The Bank is highly liquid with a customer loan to deposit ratio of 127% and over
€28 billion of liquid assets and short term bank placings. Access to a wide range of
funding sources has remained strong throughout the current turbulence in credit
markets. We have continued to be a significant net lender to the repo and inter-bank
market.
The Group operates within the regulatory liquidity rules of the Irish Financial
Regulator, considered to be one of the most stringent regimes in Europe. The Bank
always maintains a significant buffer over these requirements.

The Bank is further enhancing its liquidity through the external rating of pools of
customer lending assets. This process, primarily in the form of repo-eligible covered
bonds, provides access to close to €10 billion of additional secured market funding.
Our recently completed $10 billion US 144a capital and term debt programme will
provide another previously untapped funding source as markets become less
constrained.
Assets impacted by the current capital markets dislocation
In order to protect future earnings we have taken a prudent approach to the valuation
of assets impacted by the credit market dislocation. The Bank has only limited
residual exposure to these asset classes.
Following cumulative write-downs and disposals, the Bank’s exposure to structured
investment vehicle assets is €3 million.
We have no direct exposure to US or other subprime sectors. Following cumulative
write-downs through the income statement and reserves of €111 million and
€76 million respectively, the carrying value of assets indirectly linked to US subprime
is €63 million.
The Bank has minimal trading activities. This is reflected in our low trading Value at
Risk which, at a 99% confidence level, averages €0.3 million, stemming solely from
the management of customer related positions.
Wealth Management
Our Wealth Management division is a niche provider of tailored financial products
and solutions to a high net worth clientele. Operating profit for the six months grew by
6% to €36 million. In addition, a gain of €20 million was recognised on the recent sale
of our private bank in Switzerland. The Swiss business, which did not contribute
towards lending or funding, accounted for less than 1% of Group profit in 2007.
Cost management
Cost management has always been a significant focus for the Bank. This, together
with the inherent flexibility in our cost base, is a key operating and strategic
advantage, evidenced by our cost to income ratio improving from 22% in 2007 to
19%. Notwithstanding this, we are continuing core investment across the Group.
Capital strength
Retentions will continue to deliver significant equity capital generation to support the
Bank’s growth. Core equity has increased to €4.6 billion 2 , bringing the Bank’s core
ratio to 5.6%. In addition, Tier 1 and Total Capital ratios are robust at 8.7% and
11.9% respectively.

The Capital Requirements Directive/Basel II became effective on 1 January 2008.
Our capital requirements are currently calculated using the Standardised method
pending a move to the Internal Ratings Based approach.
The annuity and low volatility nature of the Group’s income stream and its efficient
cost structure result in consistent capital generation. We expect our core equity ratio
to further strengthen in the second half of the year. In addition, the Bank does not
need to raise Tier 1 or Tier 2 debt capital before late 2009.
Credit ratings
External independent rating agencies, Standard & Poor’s, Moody’s, Fitch and
Dominion Bond Rating Service have each recently reviewed and reaffirmed all of our
ratings with a stable outlook.
Dividend growth
The Board maintains its progressive dividend policy, declaring a 20% increase in the
Bank’s interim dividend to 7.78 cent per ordinary share.
The dividend will be paid on 15 July 2008 to shareholders on the Bank’s register as
at close of business on 16 May 2008. Withholding tax may apply on the dividend
depending on the tax status of each shareholder. Shareholders will again be offered
the opportunity of receiving dividends in the form of cash or shares.
People
I take this opportunity to thank our people for their outstanding contribution during
these challenging times for the banking sector. Their collective commitment reaffirms
my belief in our unique culture of ownership and delivery and gives me great
confidence for the Group’s performance in the years ahead.
Outlook
We maintain full year guidance of 15% earnings per share growth. However, there
continues to be risk to profitability across the banking sector associated with further
financial market disruption and the potential impact of a protracted deterioration in
the wider economic climate.
Prudent management of asset quality and strict liquidity discipline are our primary
areas of focus in the current environment. We will continue to invest and create
additional capacity in our diversified funding franchise. We anticipate that lending
growth will be in the region of €10 billion for the full year, supported by current
lending work-in-progress of €6.8 billion. As always, this will be funded through
customer deposits and longer term debt.

The current challenging environment for the banking sector underlines the relevance
of our relationship focused business model, strict underwriting criteria and strong
ownership culture. These position the Bank to maximise the potential in each of our
core markets and increase market share, particularly in the UK and US, in the
medium to long term. Accordingly, we see significant opportunity to sustain our
delivery of above market returns for our shareholders.
Sean FitzPatrick
Chairman
6 May 2008
1
Excludes profit on disposal of Swiss private bank in 2008 and Isle of Man trust business in 2007
2
Excludes preference share capital and non income statement reserve movements
3
On a constant currency basis

Statement of Directors' responsibilities
The Directors are responsible for preparing the Interim Report in accordance with International
Accounting Standard 34 (‘IAS 34’), the Transparency (Directive 2004/109/EC) Regulations 2007 and
the Transparency Rules of the Irish Financial Services Regulatory Authority.
The Directors confirm that the condensed set of financial statements have been prepared in
accordance with IAS 34 and that they give a true and fair view of the assets, liabilities, financial
position and profit of the Group and that, as required by the Transparency (Directive 2004/109/EC)
Regulations 2007, the Interim Report includes a fair review of:
� important events that have occurred during the six months ended 31 March 2008;
� the impact of those events on the condensed financial statements;
� a description of the principal risks and uncertainties for the remaining six months of the financial
year; and
� details of any related party transactions that have materially affected the Group’s financial position
or performance in the six months ended 31 March 2008.
Directors:
David Drumm (Group Chief Executive),
William McAteer (Executive Director),
Pat Whelan (Executive Director).
Secretary:
Natasha Mercer.

Consolidated income statement (unaudited)
For the six months ended 31 March 2008
Note
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Interest and similar income 3,333 2,453 5,371
Interest expense and similar charges (2,375) (1,730) (3,805)
Net interest income 958 723 1,566
Fee and commission income 85 77 177
Fee and commission expense (5) (7) (16)
Dealing profits 11 13 19
Fair value movements 2 (112) (3) (6)
Other operating (expense)/income (1) 5 21
Other (expense)/income (22) 85 195
Total operating income 936 808 1,761
Administrative expenses (164) (192) (368)
Depreciation (5) (5) (11)
Amortisation of intangible assets - software (8) (6) (14)
Total operating expenses (177) (203) (393)
Operating profit before provisions for
impairment
Provisions for impairment:
759 605
1,368
Loans and advances to customers (33) (56) (82)
Other (79) - (67)
3 (112) (56) (149)
Operating profit 647 549 1,219
Share of results of joint ventures - 3 2
Profit on disposal of businesses 4 20 22 22
Profit before taxation 667 574 1,243
Taxation 5 (125) (110) (235)
Profit for the period 542 464 1,008
Attributable to:
Equity holders of the parent 548 462 998
Minority interest (6) 2 10
Profit for the period 542 464 1,008
Basic earnings per €0.16 ordinary
share 6 72.4c 63.6c
Diluted earnings per €0.16 ordinary
share 6 72.0c 62.9c
134.7c
133.2c

Consolidated balance sheet (unaudited)
As at 31 March 2008
Note €m
31 March 30 September 31 March
2008 2007 2007
€m €m
Assets
Cash and balances with central banks 1,093 848 953
Financial assets at fair value through profit or loss
- held on own account 264 430 379
- held in respect of liabilities to customers under
investment contracts 528
644 366
Derivative financial instruments 2,323 1,355 964
Loans and advances to banks 17,416 12,051 12,880
Assets classified as held for sale 278 288 -
Available-for-sale financial assets 9,231 12,530 9,935
Loans and advances to customers 67,972 65,949 57,865
Interests in joint ventures 80 88 116
Intangible assets - software 14 17 21
Intangible assets - goodwill
Investment property
- 46 47
- held on own account 21 25 36
- held in respect of liabilities to customers under
investment contracts 1,766
2,090 2,528
Property, plant and equipment 32 37 37
Retirement benefit assets 7 29 23
Deferred taxation 68 47 37
Other assets 274 143 107
Prepayments and accrued income 28 35 38
Total assets 101,395 96,652 86,332
Liabilities
Deposits from banks 11,631 7,601 8,494
Customer accounts 54,536 52,686 45,361
Derivative financial instruments 1,868 1,175 1,054
Debt securities in issue 22,045 23,588 21,530
Liabilities to customers under investment contracts 1,364 1,779 1,802
Current taxation 137 63 125
Other liabilities 150 175 29
Accruals and deferred income 160 190 181
Retirement benefit liabilities 5 7 7
Deferred taxation 47 49 48
Subordinated liabilities and other capital instruments 5,070 5,274 4,067
Total liabilities 97,013 92,587 82,698
Share capital 123 122 122
Share premium 1,155 1,139 1,136
Other reserves 7 (217) (92) (17)
Retained profits 3,314 2,883 2,386
Shareholders' funds 4,375 4,052 3,627
Minority interest 7 13 7
Total equity 8 4,382 4,065 3,634
Total equity and liabilities 101,395 96,652 86,332
Contingent liabilities
Guarantees 899 1,524 1,528
Commitments
Commitments to lend 6,840 9,775 9,235

Consolidated statement of recognised
income and expense (unaudited)
For the six months ended 31 March 2008
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Profit for the period 542 464 1,008
Net actuarial (losses)/gains in retirement benefit schemes,
after tax (19) 6
12
Net change in cash flow hedging reserve, after tax 82 (17) 5
Net change in available-for-sale reserve, after tax (200) (12) (107)
Foreign exchange translation (8) - (8)
Net expense recognised directly in equity (145) (23) (98)
Total recognised income and expense for the period 397 441 910
Attributable to:
Equity holders of the parent 403 439 900
Minority interest (6) 2 10
Total 397 441 910

Consolidated condensed cash flow
statement (unaudited)
For the six months ended 31 March 2008
Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Net cash flows from operating activities before taxation 4,318 5,310 6,682
Tax paid (56) (29) (217)
Net cash flows from operating activities 4,262 5,281 6,465
Cash flows from investing activities
Net decrease/(increase) in available-for-sale financial assets
Interest received on available-for-sale financial assets net of
2,658 (4,797) (7,623)
associated hedges 358
89
332
Net decrease/(increase) in assets classified as held for sale 10 - (288)
Proceeds on disposal of businesses 114 44 44
Purchases of property, plant and equipment (2) (5) (12)
Proceeds on disposals of property, plant and equipment - - 1
Additions to intangible assets - software (7) (3) (7)
Investments in joint venture interests (1) (47) (42)
Proceeds on disposals of joint venture interests - - 13
Distributions received from joint venture interests 1 2 10
Purchases of investment property held on own account - - (1)
Proceeds on disposals of investment property held on own
account -
-
11
Net cash flows from investing activities 3,131 (4,717) (7,562)
Cash flows from financing activities
Proceeds of equity share issues 17 542 552
Proceeds from issues of subordinated liabilities and other
capital instruments
Redemptions of subordinated liabilities and other
-
- 1,259
capital instruments
Coupons paid on subordinated liabilities and other capital
(30)
(99)
(104)
instruments
(152)
(79)
(205)
Equity dividends paid (87) (45) (86)
Purchases of own shares (16) (4) (17)
Net cash flows from financing activities (268) 315 1,399
Net increase in cash and cash equivalents 7,125 879 302
Opening cash and cash equivalents 10,832 10,800 10,800
Effect of exchange rate changes on cash and cash equivalents (668) (100) (270)
Closing cash and cash equivalents 17,289 11,579 10,832

Notes to the interim report
For the six months ended 31 March 2008
1. Basis of preparation
This Interim Report for the six months ended 31 March 2008 has been prepared in accordance with the
requirements of the European Union ('EU') Transparency Directive and IAS 34 'Interim Financial Reporting',
as adopted by the EU. The accounting policies applied in preparing this Interim Report are consistent with
those set out in the Annual Report and Accounts for the year ended 30 September 2007.
From 1 October 2007 the Group has applied IFRIC Interpretation 10 'Interim Financial Reporting and
Impairment'. It clarifies that any impairment losses on goodwill and equity instruments recognised in an
interim period may not be reversed in subsequent interim periods. This does not have a material impact on
the Group.
The Group will adopt the amendment to IAS 1 'Presentation of Financial Statements' in respect of capital
disclosures and IFRS 7 'Financial Instruments: Disclosures' in its Annual Report and Accounts for the year
ended 30 September 2008.
Both the interim figures for the six months ended 31 March 2008 and the comparative amounts for the six
months ended 31 March 2007 are unaudited. The summary financial statements for the year ended
30 September 2007, as presented in this Interim Report, represent an abbreviated version of the Group's
full accounts for that year, on which the independent auditors issued an unqualified audit report without
reference to any matters of emphasis and which have been filed in the Companies Registration Office in
Ireland.
2. Fair value movements Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Net movement in financial assets designated at fair
value held on own account (112) (3) (6)
The net movement in financial assets designated at fair value held on own account in the six months ended
31 March 2008 reflects the change in fair value of certain financial assets containing embedded derivatives.
These assets were designated at fair value through profit or loss at inception in accordance with IFRS and
form part of a portfolio of assets which are held for long-term investment purposes.

Notes to the interim report (continued)
For the six months ended 31 March 2008
3. Provisions for impairment Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Loans and advances to customers
Specific 33 31 51
Collective - 25 31
33 56 82
Available-for-sale financial assets - specific
Structured investment vehicles 40 - 67
Other debt securities 39 - -
79 - 67
112 56 149
In the six months ended 31 March 2008 the Group charged a specific impairment provision of €40m on
Structured investment vehicles (‘SIVs’). After provisions, disposals and restructurings the carrying value of
SIVs at 31 March 2008 is €3m (30 September 2007: €67m).
4. Profit on disposal of businesses Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Profit on disposal of Anglo Irish Bank (Suisse) S.A. 20 - -
Profit on disposal of Isle of Man trust business - 22 22
20 22 22
5. Taxation Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
€m €m €m
Current taxation 130 103 229
Deferred taxation (5) 7 6
125 110 235

Notes to the interim report (continued)
For the six months ended 31 March 2008
6. Earnings per €0.16 ordinary share Six months Six months Year
ended ended ended
31 March 31 March 30 September
2008 2007 2007
Profit attributable to ordinary shareholders €548m €462m €998m
Less: profit after tax on disposal of businesses (€20m) (€22m) (€22m)
Adjusted profit €528m €440m €976m
Weighted average number of shares in issue during
the period 757m 726m 741m
Dilutive effect of options outstanding 4m 8m 8m
Diluted weighted average number of shares 761m 734m 749m
Basic
Basic earnings per €0.16 ordinary share 72.4c 63.6c 134.7c
Adjusted basic earnings per €0.16 ordinary share 69.7c 60.6c 131.7c
Diluted
Diluted earnings per €0.16 ordinary share 72.0c 62.9c 133.2c
Adjusted diluted earnings per €0.16 ordinary share 69.4c 59.9c 130.3c
The calculation of basic earnings per ordinary share is based on the profit attributable to ordinary
shareholders divided by the weighted average number of ordinary shares in issue excluding own shares
held to satisfy share options granted or to be granted under the Anglo Irish Bank Employee Share
Ownership Plan, shares held in respect of the Deferred Share Scheme and shares purchased by Anglo Irish
Assurance Company Limited for the benefit of policyholders.
Adjusted basic and adjusted diluted earnings per share have been presented to exclude the impact of the
profit arising on the disposal of Anglo Irish Bank (Suisse) S.A. on the results for the period ended
31 March 2008 and the impact of the profit arising on the disposal of the Isle of Man trust business on the
results for the periods ended 31 March 2007 and 30 September 2007.

Notes to the interim report (continued)
For the six months ended 31 March 2008
7. Other reserves 31 March
30 September 31 March
2008 2007 2007
€m €m €m
Share-based payments reserve 33 32 26
Available-for-sale reserve (300) (100) (5)
Cash flow hedging reserve 63 (19) (41)
Exchange translation reserve (14) (6) 2
Non-distributable capital reserve 1 1 1
(217) (92) (17)
The available-for-sale reserve represents the unrealised change in the fair value of available-for-sale
financial assets as adjusted for any impairment charge recognised in the income statement.
8. Total equity Six months Year Six months
ended ended ended
31 March 30 September 31 March
2008 2007 2007
€m €m €m
Total equity at beginning of period 4,065 2,692 2,692
Profit for the period 542 1,008 464
Equity dividends (99) (127) (78)
Share placing - 537 537
Options exercised and scrip dividends 29 56 39
Net movement in own shares (16) (17) (4)
Share-based payments 8 16 6
Net expense recognised directly in equity (145) (98) (23)
Other movements (2) (2) 1
Total equity at end of period 4,382 4,065 3,634
9. Related party transactions
There were no related party transactions that materially affected the Group's financial position or
performance in the six months ended 31 March 2008.

Notes to the interim report (continued)
For the six months ended 31 March 2008
10. Segmental reporting
Business segments Six months ended 31 March 2008
Inter-
Business Wealth Group segment
Lending Treasury Management items eliminations Group
€m €m €m €m €m €m
Revenue from external
customers 2,581 596 139 - - 3,316
Inter-segment revenue - 1,805 - - (1,805) -
Total revenue 2,581 2,401 139 - (1,805) 3,316
Operating profit
Share of results of joint
756 (132) 36 (13) - 647
ventures
Profit on disposal of Anglo
- - - - - -
Irish Bank (Suisse) S.A. - - 20 - - 20
Profit before taxation 756 (132) 56 (13) - 667
External assets 65,481 30,240 5,510 164 - 101,395
Inter-segment assets 1,196 57,621 - 9,710 (68,527) -
Total assets 66,677 87,861 5,510 9,874 (68,527) 101,395
Business segments Six months ended 31 March 2007
Business Wealth Group
Intersegment
Lending Treasury Management items eliminations Group
€m €m €m €m €m €m
Revenue from external
customers 1,837 577 131 - - 2,545
Inter-segment revenue - 1,241 - - (1,241) -
Total revenue 1,837 1,818 131 - (1,241) 2,545
Operating profit
Share of results of joint
532 34 34 (51) - 549
ventures
Profit on disposal of Isle of
- - 3 - - 3
Man trust business - - 22 - - 22
Profit before taxation 532 34 59 (51) - 574
External assets 55,810 25,047 5,304 171 - 86,332
Inter-segment assets 923 48,895 - 7,921 (57,739) -
Total assets 56,733 73,942 5,304 8,092 (57,739) 86,332

Notes to the interim report (continued)
For the six months ended 31 March 2008
10. Segmental reporting continued
Business segments Year ended 30 September 2007
Inter-
Business Wealth Group segment
Lending Treasury Management items eliminations Group
€m €m €m €m €m €m
Revenue from external
customers 4,138 1,166 278 - - 5,582
Inter-segment revenue - 2,833 - - (2,833) -
Total revenue 4,138 3,999 278 - (2,833) 5,582
Operating profit
Share of results of joint
1,207 (4) 71 (55) - 1,219
ventures
Profit on disposal of Isle of
- - 2 - - 2
Man trust business - - 22 - - 22
Profit before taxation 1,207 (4) 95 (55) - 1,243
External assets 63,146 27,152 6,210 144 - 96,652
Inter-segment assets 1,229 55,025 - 9,569 (65,823) -
Total assets 64,375 82,177 6,210 9,713 (65,823) 96,652
Revenue includes interest and similar income, fee and commission income, dealing profits, fair value
movements and other operating (expense)/income. Inter-segment transactions are conducted on an arm's
length basis. Group items include the return earned on the Group's equity capital, the margin cost of
subordinated debt and other capital instruments and central overheads.
On 1 October 2007 certain loans and advances and the related income were transferred from Wealth
Management to Business Lending. Prior period comparatives have been adjusted to reflect these changes.
11. Dividends
On 6 May 2008, subsequent to the interim balance sheet date, an interim dividend of 7.78 cent per
ordinary share was declared by the Board of Directors for payment on 15 July 2008. The interim dividend
amounts to €60 million and has not been recorded as a liability on the balance sheet. Shareholders will be
offered the option of receiving the dividend in the form of shares or cash.
A final dividend of 13.01 cent per ordinary share was declared in respect of the year ended
30 September 2007. This was paid on 14 February 2008, €87 million in cash and €12 million by way of
scrip dividend.
12. Approval
The interim financial statements were approved by the Board of Directors on 6 May 2008.

Independent review report to the Directors of
Anglo Irish Bank Corporation plc
Introduction
We have been engaged by Anglo Irish Bank Corporation plc (‘the Bank’) to review the condensed set
of financial statements in the Interim Report for the Bank for the six months ended 31 March 2008
which comprises the Consolidated income statement, the Consolidated balance sheet, the
Consolidated statement of recognised income and expense, the Consolidated condensed cash flow
statement, and the related notes. We have read the other information contained in the Interim Report
and considered whether it contains any apparent misstatements or material inconsistencies with the
information in the condensed set of financial statements.
This report is made solely to the Bank’s Directors, as a body, in accordance with guidance contained
in International Standard on Review Engagements (UK and Ireland) 2410, ‘Review of Interim Financial
Information Performed by the Independent Auditor of the Entity’ issued by the Auditing Practices
Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Bank and the Bank’s Directors as a body, for our work, for this report, or for the
conclusions we have formed.
Directors’ responsibilities
This Interim Report is the responsibility of, and has been approved by, the Directors. The Directors are
responsible for preparing this Interim Report in accordance with the Transparency (Directive
2004/109/EC) Regulations 2007 and the Transparency Rules of the Irish Financial Services
Regulatory Authority.
As disclosed in note 1, the annual financial statements of the Bank are prepared in accordance with
International Financial Reporting Standards as adopted by the European Union. The condensed set of
financial statements included in this Interim Report has been prepared in accordance with
International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European
Union.
Our responsibility
Our responsibility is to express to the Bank’s Directors a conclusion on the condensed set of financial
statements in the Interim Report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and
Ireland) 2410, ‘Review of Interim Financial Information Performed by the Independent Auditor of the
Entity’ issued by the Auditing Practices Board for use in the United Kingdom and Ireland. A review of
interim financial information consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed
set of financial statements in the Interim Report for the six months ended 31 March 2008 is not
prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted
by the European Union, the Transparency (Directive 2004/109/EC) Regulations 2007 and the
Transparency Rules of the Irish Financial Services Regulatory Authority.
Ernst & Young
Dublin
6 May 2008