Annual Report & Accounts 2009 - Anglo Irish Bank

(a)
(b)
(c)
(d)
Core Tier 1 capital has been significantly impacted by the loss for the period ended 31 December 2009. Also included in
Core Tier 1 capital is €4bn of ordinary share capital subscribed for during the period by the Bank's Shareholder and the
€8.3bn capital contribution. Further details on these capital transactions are provided in notes 43 and 44.
Prudential filters and regulatory adjustments primarily comprise the reversal of movements on available-for-sale and cash
flow hedging reserves and the deduction of intangible assets. The available-for-sale reserve has reduced considerably
during the period as indicated in note 45.
The amount of perpetual preferred securities and subordinated debt instruments included in the Bank's regulatory capital
resources has decreased significantly due to the completion of a liability management exercise in August 2009, which
generated €1.8bn of Core Tier 1 capital. Details of this liability management exercise are provided in notes 7 and 42.
Anglo Irish Bank
Annual Report & Accounts 2009
Risk weighted assets are calculated in line with the Standardised Approach to Basel II which the Bank has adopted since
1 January 2008. The level of risk weighted assets has reduced primarily due to the significant increase in specific
impairment charges incurred in the period to 31 December 2009 and the impact of the derogation from the requirement
to apply a risk weight of 150% to certain Irish commercial property loans. These reductions have been offset somewhat by
an increase in the amount of exposures that are 90 days past due and risk weighted at 150% and also the impact of
exchange rate fluctuations on the Bank's asset base.
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