Annual Report & Accounts 2009 - Anglo Irish Bank

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Notes to the financial statements continued 10. Share-based payment schemes continued 68 Movements in options Movements in options granted under Group share incentive plans were as follows: ESOS Weighted Weighted Number average Number average of options exercise price of options exercise price '000 € '000 € Outstanding at beginning of period 14,401 9.82 16,219 8.91 Granted - - 1,976 9.93 Exercised - - (3,118) 5.01 Forfeited (1,200) 6.72 (676) 10.51 Extinguished (13,201) 10.10 - - Outstanding at end of period - - 14,401 9.82 Exercisable at end of period - - 3,129 5.37 ESOP Weighted Weighted Number average Number average of options exercise price of options exercise price '000 € '000 € Outstanding at beginning of period 3,264 11.65 3,200 11.54 Granted - - 662 9.92 Exercised - - (399) 7.60 Forfeited - - (199) 12.28 Extinguished (3,264) 11.65 - - Outstanding at end of period - - 3,264 11.65 Exercisable at end of period - - 727 7.90 SAYE 15 months ended Year ended 31 December 2009 30 September 2008 15 months ended Year ended 31 December 2009 30 September 2008 15 months ended Year ended 31 December 2009 30 September 2008 Weighted Weighted Number average Number average of options exercise price of options exercise price '000 € '000 € Outstanding at beginning of period 3,895 5.08 2,574 7.76 Granted - - 4,688 5.61 Exercised - - (641) 3.43 Forfeited (3,331) 4.96 (2,726) 8.69 Extinguished (564) 5.19 - - Outstanding at end of period - - 3,895 5.08 Exercisable at end of period - - 71 6.64
11. Retirement benefits The parent Bank operates two defined benefit non-contributory pension schemes in Ireland. The assets of these schemes are held in separate trustee-administered funds. These schemes have been closed to new members since January 1994. New Irish employees after that date join a funded scheme on a defined contribution basis. There are also funded defined contribution pension plans covering eligible Group employees in other locations as well as unfunded defined benefit pension plans relating to certain Austrian employees. In the case of a number of Austrian employees whose employment contracts commenced prior to 1 January 2003, Austrian law requires employers to pay lump sums upon retirement or termination of employment if the employee has been with a company for at least three years. The amount payable is calculated based on length of service and salary. The Group's liability in respect of the Austrian unfunded defined benefit pension plans was transferred on the sale of Anglo Irish Bank (Austria) A.G. on 19 December 2008. Neither the Group nor the Bank operates a post-employment medical benefit scheme. Details of defined benefit schemes Retirement benefits under the Bank’s Irish defined benefit plans are calculated by reference to pensionable service and pensionable salary at normal retirement date. The pension charge in the income statement relating to the two defined benefit pension schemes is based on the advice of an independent actuary. An actuarial valuation for the purposes of IAS 19 has been prepared as at 31 December 2009 by an independent actuary using the projected unit method. Using this method the current service cost will increase as the members of closed schemes approach retirement. The principal assumptions used, which are based on the advice of an independent actuary, are set out in the table below: Financial assumptions 31 December 30 September 2009 2008 % p.a. % p.a. Discount rate for liabilities of the schemes 6.00 Rate of increase in salaries 3.00 Rate of increase in pensions 2.00 to 3.00 2.50 to 3.00 Inflation rate 2.00 Mortality assumptions The key mortality assumptions used in estimating the actuarial value of the schemes' liabilities are: Longevity at age 60 for current pensioners (years) Males 26.2 Females 29.3 Longevity at age 60 for future pensioners (years) Males 27.4 Females 30.5 6.00 4.00 2.50 31 December 30 September 2009 2008 Sensitivity analysis Sensitivity analysis for each of the principal assumptions used to measure the schemes' liabilities at 31 December 2009 is as follows: Impact on scheme liabilities Anglo Irish Bank Annual Report & Accounts 2009 25.3 28.4 26.5 29.6 Change in increase by increase by assumption % €m Discount rate Decrease 0.5% 9.8% 9 Rate of increase in salaries Increase 0.5% 1.5% 1 Inflation rate Increase 0.5% 3.7% 3 Life expectancy Increase by 1 year 2.2% 2 69
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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
Page 19 and 20: to acquire these assets they are in
Page 21 and 22: Board of Directors Donal O’Connor
Page 23 and 24: In keeping with our environmental p
Page 25 and 26: Principal risks and uncertainties T
Page 27 and 28: Credit risk Credit risk is the risk
Page 30 and 31: Report of the Directors The Directo
Page 32 and 33: Corporate governance statement On 1
Page 34 and 35: Corporate governance statement cont
Page 36 and 37: Independent Auditors' report to the
Page 38 and 39: Consolidated income statement For t
Page 40 and 41: Consolidated statement of financial
Page 42 and 43: Consolidated statement of changes i
Page 44 and 45: Statement of cash flows For the 15
Page 46 and 47: Notes to the financial statements I
Page 48 and 49: Notes to the financial statements c
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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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