Interim Report 2008 (PDF, 257KB) - Anglo Irish Bank
Interim Report 2008 (PDF, 257KB) - Anglo Irish Bank
Interim Report 2008 (PDF, 257KB) - Anglo Irish Bank
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Chairman’s statement<br />
<strong>Anglo</strong> <strong>Irish</strong> <strong>Bank</strong> has performed strongly in the six months to 31 March <strong>2008</strong>,<br />
reporting profit before tax of €667 million and underlying earnings per share growth 1<br />
of 15%. Profitability in our core banking business has grown at a significantly higher<br />
rate but we maintain a prudent stance in relation to the valuation of assets impacted<br />
by the current dislocation in global credit markets.<br />
We have a resilient funding platform with almost two thirds of total funding provided<br />
by customer sources and with continued strong access to wholesale markets. Over<br />
90% of loan growth for the six months was funded through increased customer<br />
deposits.<br />
The strength of the <strong>Bank</strong>’s balance sheet is demonstrated by robust capitalisation,<br />
a significant liquidity buffer and minimal term debt maturities during <strong>2008</strong>. Lending<br />
asset quality remains excellent. There are no emerging systemic trends causing<br />
material concern though we remain highly vigilant.<br />
Highlights for the period include:<br />
Continued strong profitability<br />
� Profit before tax of €647 million (excluding €20 million profit on the disposal of our<br />
Swiss private bank), a rise 1 of 17%<br />
� Prudent approach to valuation of assets impacted by market dislocation<br />
� 15% increase in earnings per share 1 to 69.7 cent<br />
� Active cost management with cost to income ratio improving by three percentage<br />
points from 22% to 19%<br />
� Annualised specific lending impairment charge of 0.10%<br />
� Strong return on equity of 26%<br />
� Stable net interest margins<br />
� Continuing strong dividend trend, increasing interim dividend by 20% to 7.78 cent<br />
Significant balance sheet strength<br />
� Lending growth of €6.1 billion, up 10% on a constant currency basis in the six<br />
months<br />
� Excellent asset quality with impaired loans representing 0.52% of total loan<br />
balances<br />
� Strong growth in funding of €9.9 billion on a constant currency basis with<br />
customer deposits up €5.6 billion, an increase of 11% in the six months<br />
� Excellent liquidity position with treasury assets of €28 billion<br />
� Increase in core equity to €4.6 billion 2 with robust Core, Tier 1 and Total Capital<br />
ratios of 5.6%, 8.7% and 11.9% respectively
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