Annual Report & Accounts 2009 - Anglo Irish Bank

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Notes to the financial statements continued 37. Deposits from banks 31 December 30 September 31 December 30 September 2009 2008 2009 2008 €m €m €m €m Deposits repayable on demand 359 691 6,211 5,147 Sale and repurchase agreements - central banks 23,680 7,594 23,680 7,594 Sale and repurchase agreements - banks 7,238 4,803 7,238 4,803 Other deposits by banks with agreed maturity dates 1,694 7,365 2,007 6,982 Amounts include: 32,971 20,453 39,136 24,526 Due to Group undertakings 6,423 4,477 38. Customer accounts 102 The Group The Bank Sale and repurchase agreements with central banks include €12.2bn (30 September 2008: €7.6bn) borrowed under open market operations from central banks and €11.5bn (30 September 2008: €nil) borrowed under a Master Loan Repurchase Agreement ('MLRA') with the Central Bank and Financial Services Authority of Ireland. The interest rate on this facility is set by the Central Bank and advised at each rollover, and is currently linked to the European Central Bank marginal lending facility rate. Collateral assigned under these agreements is derived from the Bank's customer lending assets (note 27). During the period the Group increased the level of assets eligible for secured funding, primarily through the establishment of Anglo Irish Mortgage Bank and through the expansion of the Group's covered bond and CMBS programmes (note 27). These assets have been pledged as collateral under open market operations with monetary authorities at the period end. The decrease in other deposits by banks with agreed maturity dates is attributable to a reduction in interbank activity due to Bank specific concerns. In addition, €1.4bn of term bilateral loan agreements were repaid following the nationalisation of the Bank as a result of change of control covenants within those loan agreements. Deposits from banks include €0.3bn (30 September 2008: €0.6bn) of cash collateral received from counterparties to offset credit risk arising from derivative contracts. Other deposits by banks with agreed maturity dates in the Group include €258m (30 September 2008: €339m) of funding provided to policyholders by external banks in respect of liabilities to customers under investment contracts (note 40). The Group The Bank 31 December 30 September 31 December 30 September 2009 2008 2009 2008 €m €m €m €m Repayable on demand Other deposits by customers with agreed 7,852 3,015 11,932 8,602 maturity dates 19,362 48,484 16,964 43,808 Amounts include: 27,214 51,499 28,896 52,410 Due to Group undertakings 5,268 6,514 Customer type Retail deposits 14,715 19,156 12,013 14,744 Non-retail deposits 12,499 32,343 16,883 37,666 27,214 51,499 28,896 52,410 The movement in balances in the above table includes foreign currency movements. Customer accounts have decreased by €21.5bn on a constant currency basis since 30 September 2008 with non-retail balances decreasing by €18.5bn and retail balances decreasing by €3.0bn. The decrease in non-retail funding was driven by a fall in deposits from insurance companies, asset managers, pension funds and other more granular corporate deposits due to a reduction in corporate cash balances, and risk aversion towards banking in general, including Bank specific and Ireland concerns. In addition €7.3bn of customer deposits received from Irish Life Assurance plc matured early in the period (note 22).
Average total customer deposits for the fifteen months to 31 December 2009 were €35.2bn (30 September 2008: €50.1bn). The Group's customer accounts include €304m (30 September 2008: €1,262m) relating to securities sold under agreements to repurchase. Customer accounts also include €10m (30 September 2008: €11m) received from equity-accounted joint venture interests. The Bank's customer accounts include €129m (30 September 2008: €178m) of deposits held in respect of liabilities to customers under investment contracts (note 40). These deposits eliminate on consolidation in the Group customer accounts balances. 39. Debt securities in issue 31 December 30 September 31 December 30 September 2009 2008 2009 2008 €m €m €m €m Medium term note programme 13,000 10,622 13,000 10,622 Covered bonds 670 1,361 665 1,361 Extendible notes - 228 - 228 Short term programmes: Commercial paper 776 3,488 776 3,488 Certificates of deposit 702 1,581 702 1,581 15,148 17,280 15,143 17,280 Debt securities in issue have decreased by €2bn on a constant currency basis due to the challenging capital market environment. €7.4bn of medium term notes, all of which is Government guaranteed and matures by September 2010, were issued in the period. Maturities and redemptions during the period were €5.9bn. Short term markets were volatile during the period given market wide risk aversion towards the banking sector and Bank and country specific factors. Balances decreased from €5.1bn at 30 September 2008 to €1.5bn at 31 December 2009. Bonds issued under the Group's covered bond programme are secured on certain loans and advances to customers (note 27). 40. Liabilities to customers under investment contracts The Group The Bank Anglo Irish Bank Annual Report & Accounts 2009 The Group 31 December 30 September 2009 2008 €m €m Assets held in respect of liabilities to customers under investment contracts: Investment property 1,143 1,796 Financial assets at fair value through profit or loss 244 469 Derivative financial instruments - 13 Loans and advances to banks 18 148 Ordinary shares in parent Bank - 4 Subordinated liabilities and other capital instruments - Group - 13 Total Less: 1,405 2,443 Funding provided by parent Bank (771) (1,006) Funding provided by external banks (258) (339) Derivative financial instruments (86) (8) Net asset value attributable to external unitholders Add: (36) (77) Funds on deposit with parent Bank 129 178 Liabilities to customers under investment contracts at fair value 383 1,191 103
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Annual Report & Accounts 2009
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Contents Page Chairman’s statemen
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Legacy matters The Bank is continui
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Jim Brydie was appointed Head of Gr
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Business review This business revie
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Divisional lending balances by sect
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holdings, reduced investment cash f
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30 September 2008. Average total cu
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Income statement - treasury impairm
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to acquire these assets they are in
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Board of Directors Donal O’Connor
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In keeping with our environmental p
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Principal risks and uncertainties T
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Credit risk Credit risk is the risk
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Report of the Directors The Directo
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Corporate governance statement On 1
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Corporate governance statement cont
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Independent Auditors' report to the
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Consolidated income statement For t
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Consolidated statement of financial
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Consolidated statement of changes i
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Statement of cash flows For the 15
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Notes to the financial statements I
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Notes to the financial statements c
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Supplementary information Consolida
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www.angloirishbank.com Anglo Irish
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Annual Report & Accounts 2009 - Anglo Irish Bank

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