Annual Report & Accounts 2009 - Anglo Irish Bank

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Notes to the financial statements continued 55. Related party transactions continued 154 Deposits and investments by key management personnel Deposit balance movements during the period and the aggregate amounts outstanding at period end from persons who, at any time during the period, were key management personnel were: At beginning of period Deposits received during the period Deposits withdrawn during the period Other movements At end of period Number of persons * Excludes Executive Directors 15 months ended Year ended 31 December 2009 30 September 2008 Other key Other key Directors management * Directors management * €m €m €m €m 10 1 9 1 38 1 140 2 (38) (2) (137) (1) (2) 1 (2) (1) 8 1 10 1 10 8 12 2 Deposits by key management personnel are at commercial interest rates. During the period the Group incurred interest of €1.2m (30 September 2008: €1.6m) on these deposits. Shortly before 30 September 2008, the former Chairman and another former Director withdrew deposits of €22m which were used to repay their loan balances with the Bank. These amounts were subsequently re-deposited by the former Directors shortly after the year end following the re-drawing of loan facilities. Other movements include the impact of foreign exchange rate changes on non-euro denominated deposits and changes to the composition of the Board and other key management personnel. The Group's Private Bank offers a range of products to its clients. Key management personnel have invested in these products on which the Group has earned fees, charged at commercial rates, of €0.2m (30 September 2008: €0.4m). At 31 December 2009 23 persons, inclusive of Directors, (30 September 2008: 14) who were key management personnel during the period held investments totalling €22m (30 September 2008: €49m). Investments held by Directors remaining in office at 31 December 2009 totalled €nil (30 September 2008: €nil). The former Chairman, Sean FitzPatrick, and another former Director, Lar Bradshaw, along with other investors, have invested in a UK property fund which invested in a number of partnerships. The Bank has provided loans to two of these partnerships. These loans are secured, in common with all other investors, against the partnership investments and there is no personal recourse to the investors. Sean FitzPatrick and Lar Bradshaw's percentage holdings in the first partnership were 0.47% and 0.31% respectively. The loan balance at the end of the period on the first partnership was €54.1m (30 September 2008: €60.8m) (maximum euro balance: €62.3m). It had provisions in respect of anticipated failure to repay of €2.9m at 31 December 2009. The facility was initially approved in June 2006, the most recent renewal was in October 2009 and it is due to expire in July 2011 and November 2011 (two tranches). The margin on the loan is 1.25% and there was an arrangement fee of £240,000. It is secured and there is recourse to the assets only. The facility is on an interest only basis. Sean FitzPatrick and Lar Bradshaw's percentage holdings in the second partnership were 0.70% and 0.47% respectively. The loan balance at the end of the period on this partnership was €35.2m (30 September 2008: €39.2m) (maximum euro balance: €40.2m). It had interest fallen due but not paid of €0.3m and provisions in respect of anticipated failure to repay of €8.4m at 31 December 2009. The facility was initially approved in January 2007, the most recent renewal was in October 2009 and it is due to expire in February 2012. The margin on the loan ranges between 1.25% and 2.28% and there was an arrangement fee of between 0.5% and 1%. It is secured and there is recourse to the asset only. Repayment is due upon sale.
Loans to Directors The following information is provided in respect of transactions, arrangements or agreements which are required to be included pursuant to the Companies Act, 1990 (as amended by the Companies (Amendment) Act, 2009). 30 September 2008 31 December 2009 Table 55.1 - Loans to Directors Table 55.2 Table 55.3 Table 55.4 Table 55.2 Table 55.3 Table 55.4 Loans in a Loans Loans Loans in a Loans Loans personal to to personal to to capacity partnerships co-ownerships Total capacity partnerships co-ownerships Total € € € € € € € € Directors in office at 31 December 2009 A.M.R. (Mike) Aynsley - - - - - - - - Donal O'Connor - - - - 420,675 - - 420,675 Alan Dukes - - - - - - - - Maurice Keane - - - - - - - - - - - - 420,675 - - 420,675 Former Directors Frank Daly - - - - - - - - Anne Heraty - - - - - - - - David Drumm 8,354,720 - - 8,354,720 8,111,796 - - 8,111,796 Declan Quilligan 3,821,109 - - 3,821,109 4,143,612 - - 4,143,612 Gary McGann 10,645,609 - - 10,645,609 10,866,896 - - 10,866,896 Lar Bradshaw 27,332,695 1,179,901 - 28,512,596 19,482,567 931,484 - 20,414,051 Michael Jacob 109,506 - - 109,506 1,331,673 - - 1,331,673 Ned Sullivan 716,462 - - 716,462 1,258,835 - - 1,258,835 Noël Harwerth - - - - - - - - Pat Whelan 5,815,034 - - 5,815,034 5,683,608 - - 5,683,608 Sean FitzPatrick 85,255,613 942,251 2,551,423 88,749,287 79,562,901 936,913 2,812,339 83,312,153 William McAteer 8,535,828 - - 8,535,828 8,272,219 - - 8,272,219 150,586,576 2,122,152 2,551,423 155,260,151 138,714,107 1,868,397 2,812,339 143,394,843 Directors who retired in the period to 30 September 2008 16,624,360 18,257,624 - 34,881,984 Loans to Directors 150,586,576 2,122,152 2,551,423 155,260,151 155,759,142 20,126,021 2,812,339 178,697,502 Provisions for impairment (108,326,302) (128,204) (471,054) (108,925,560) - - - - Loans to Directors after provisions for impairment 42,260,274 1,993,948 2,080,369 46,334,591 155,759,142 20,126,021 2,812,339 178,697,502 Anglo Irish Bank Annual Report & Accounts 2009 All tables in this note are presented in euro, which is the Bank's functional and presentation currency. Loan balances denominated in foreign currencies are retranslated at the functional currency rate of exchange ruling at the end of the reporting period. The maximum balances represent the maximum euro liability during the period. Balances at 30 September 2008 represent the balances at the beginning of the current period. Table 55.2 details loans to Directors in a personal capacity. Table 55.3 details loans advanced by the Bank to investment partnership structures in which Directors have invested. The amounts included above represent their share of personal recourse on these loans. Table 55.4 details loans advanced by the Bank to co-ownership structures in which Directors have invested. The amounts included above represent their share of personal recourse on these loans. 155
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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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Page 180: www.angloirishbank.com Anglo Irish
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Annual Report & Accounts 2009 - Anglo Irish Bank

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