Annual Repor T & Accounts 2005: Twenty Years of Uninterrupted Profit Growth

COVER ARTWORK_l 12/9/05 9:44 AM Page 1
Dublin EXPERIENCE THE DIFFERENCE
Cork
Galway
Limerick
Waterford
London
Banbury
Belfast
Annual Repor t & Accounts 2005

Birmingham
2005
Glasgow Twenty years of uninterrupted profit growth
Manchester
Isle of Man
Geneva
Prague
Vienna
Boston
New York
Dubai

Anglo Irish Bank
Business Lending
Treasur y
Wealth Management
www.angloirishbank.com
2005 was a year of record growth and investment for the

Group. The Bank continues to leverage and strengthen its
franchise in all target markets through the execution of
its focused strategy. We are confident that by consistently
delivering for our customers, the Group will create and
sustain superior returns for shareholders into the future.
20 years of uninterrupted profit growth
Contents
01 Financial highlights 38 Consolidated profit and loss account

02 Group profile 39 Consolidated balance sheet
04 Chairman’s statement 40 Company balance sheet
10 Group Chief Executive’s review 41 Consolidated cash flow statement
18 Board of Directors 42 Statement of total recognised gains and losses
20 Senior Executive Board 42 Reconciliation of movements in shareholders’ funds
24 Corporate social responsibility 43 Notes to the financial statements
30 Report of the Directors 100 Consolidated profit and loss account (USD, GBP, CHF)
31 Statement of Directors’ responsibilities 101 Consolidated balance sheet (USD, GBP, CHF)
32 Corporate governance statement 102 Shareholder information
36 Independent Auditors’ report 104 Anglo Irish Bank locations
Front cover, left to right: 222 East 41st Street, New York; Head Office, St. Stephen’s Green, Dublin;
Reception, Head Office, St. Stephen’s Green, Dublin;Warrenmount Secondary School, Dublin.
Back cover:The Whitgift Centre, Croydon, London.
Designed and produced by Designbank Ltd. Tel: 6604177.

01
685.2 73.21 13.54
An excellent year
11.28
57.26
504.1
Five year compound annual 9.40
growth rate in pre-tax profits

and customer lending of 39% 346.5
39.02
6.27
and 33% respectively
29.07 5.22
261.3
4.35
194.8 21.59
16.78
133.6
2000
2001
2002
2003
2004
2005
2000
2001
2002
2003
2004
2005
2000
2001
2002
2003
2004
2005
Profit before taxation (€m) Earnings per share (cent) Dividends per share (cent)
48,264 41,716 34,421
34,340 24,390
29,096
25,520 22,426 18,077
19,412 16,853 14,297
15,771 13,844 11,522
11,058 9,852 8,304

2000
2001
2002
2003
2004
2005
2000
2001
2002
2003
2004
2005
2000
2001
2002
2003
2004
Total assets (€m) Total funding (€m) Advances to customers* (€m) 2005
€m 2005 2004
Financial highlights Profit before taxation 685.2 504.1
Earnings per share 73.21c 57.26c
Dividends per share 13.54c 11.28c
Return on ordinary equity 34% 35%
Total assets 48,264 34,340
Advances to customers* 34,421 24,390
Total funding 41,716 29,096
Total capital resources 4,647 3,873
*Including securitised assets
02 ANGLO IRISH BANK Annual Report & Accounts
Group profile
Anglo Irish Bank, with total assets in excess of €48 billion, is Ireland’s third largest bank and fourth largest
company listed on the Irish Stock Exchange.Through the consistent application of a focused strategy, the
Group has been one of the best performing banks globally over the past ten years.
We operate in three core areas – business lending, treasury and wealth management. Not a universal bank, we
focus on providing tailored, differentiated products where we can deliver superior service to our customers.
The success of our offering is firmly based upon the commitment of our people, now in excess of 1,400
across eight countries.
The Bank’s centralised business model is a key factor enabling consistent delivery for our customers and
successful risk management. It also provides significant operational leverage resulting in an efficient cost income
ratio of below 30%, delivering €70 of every €100 of incremental revenue to profits.
Business Lending Treasury

Secured term lending is the Bank’s core area of Treasury’s primary responsibility is the origination
expertise and main driver of income and of funding and management of the Bank’s liquidity
profitability. We lend principally to the mid- and interest rate risk. It also contributes significant
corporate and professional sectors. income through its trading, international finance and
corporate treasury sales activities.
Lending services are offered in three core markets:
Ireland, the United Kingdom and North Eastern USA Group funding, liquidity and risk management are
– where the Bank has built strong, indigenous client co-ordinated centrally, with funding primarily
franchises. The Group has extensive experience and sourced through the Bank’s personal and corporate
expertise in assisting customers in both local and deposit taking operations in Ireland, the United
cross border transactions in these markets and in Kingdom, the Isle of Man and Austria.The Bank has
Europe. also developed an excellent franchise in the
international capital markets, enhancing its funding
The Bank’s model is identical across all regions.
profile and capital base.
We seek to build relationships with strong people,
where cashflows are secure and supported by The Bank is also a significant participant in the
collateral. Lending transactions are approved at the international interbank markets, managing a treasury
Group’s centralised credit committee in Dublin.The relationship with over 350 banks.
regular participation of all lenders at credit
Our Corporate Treasury Sales Division is positioned
committee, either physically or by video
as a specialist provider of foreign exchange and
conference, uniquely empowers them in their
interest rate management services.These are
dealings with customers whilst ensuring consistent,
provided in Ireland, the United Kingdom,Austria
high quality underwriting.
and through our representative office in Boston.
Products Trade finance business is conducted in Ireland and
• Corporate lending the United Kingdom.
• Commercial mortgages
• Asset finance
Products
• Interest rate risk management
• Invoice discounting
• Foreign exchange risk management
• Film finance
• Corporate deposits
• Personal deposits
• International finance
• Capital markets
03
Czech
USA Ireland Isle of Man UK Switzerland Austria Republic UAE
Boston Dublin Douglas London Geneva Vienna Prague Dubai

New York Cork Banbury
Galway Belfast
Limerick Birmingham
Waterford Glasgow
Manchester
Wealth Management
Wealth Management provides private banking, funds
management and retirement planning services from
offices in Ireland, the United Kingdom, the Isle of
Man, Austria, Switzerland and most recently, the UAE.
Operating as a single cohesive division, we are
positioned as a niche provider of tailored investment
opportunities to a high net worth client base. Our
emphasis is on the protection and creation of
wealth through financial planning and asset
diversification. In addition,Anglo Irish Assurance
Company, an integral part of Wealth Management,
provides a range of investment and retirement
solutions.
Products
• Investment products
• Deposits
• Funds management
• Inheritance planning
• Retirement planning
Chairman’s
statement
Sean FitzPatrick Chairman

05
Anglo Irish Bank had an impressive year with your People

Group producing its best results to date. This Our success is firmly based upon the skill,
demonstrates the continuing ability of our focused professionalism and commitment of our people.
strategy and business model to deliver strong profit On behalf of all stakeholders, I thank them for once
growth and excellent returns to shareholders. again delivering this year.
Pre-tax profits increased by 36% to €685 million.
The Bank invests significantly in the recruitment,
EPS and profit attributable to ordinary shareholders
training and development of talented professionals.
grew by 28% and 29% to 73.21 cent and €491
We will continue to benefit from this important
million respectively, generating a return on ordinary
investment in future years.
equity of 34%. Your Bank’s performance in 2005 has
contributed to a five-year total shareholder return Board
in excess of 800%, making it the leader amongst We announced recently the appointment of
its peers. Declan Quilligan as Chief Executive Designate of
the Group’s UK operations, succeeding John Rowan
Dividend
who retires from the Bank at the end of 2005. John
Your Board recommends a final ordinary dividend
joined the Bank in 1985 and was appointed to the
of 9.03 cent per share, bringing the total dividends
Board in 1998. Over the last 20 years he has played
for the year to 13.54 cent, an increase of 20%. The
a very significant role in the successful building of
total amount payable to shareholders in the form
our franchise in the UK and in the overall
of ordinary dividends for 2005 is €91.4 million.
management of the Group. On behalf of the Board,
Dividend cover remains strong at 5.4 times as the
I thank John for all he has given to Anglo Irish Bank
Bank retains significant capital directed at future
and wish him every success for the future.
growth opportunities in each of our markets.
I look forward to welcoming Declan to the Board
It is proposed that the final ordinary dividend be
in December. A member of the Senior Executive
paid on 13 February 2006 to shareholders on the
Board since 1999, Declan joined the Bank in 1990
Bank’s register as at the close of business on
and has held a variety of senior management
2 December 2005. Withholding tax may apply on
positions, most recently as Director of the Banking
the dividend depending on the tax status of each
Ireland Division. Your Board is confident that under
shareholder. Shareholders will again be offered the
Declan’s leadership our UK team will take full
option of receiving dividends in the form of cash
advantage of the significant opportunities available
or shares.
to the Bank to grow its franchise in this major
market over the coming years.
The scale of opportunities available to the Bank remains very significant. I believe
the strength, flexibility and scalability of our centralised business model will enable
the Bank to capitalise on these opportunities, thereby delivering strong returns for
our shareholders.We look forward to a strong performance in 2006 and beyond.
Corporate Social Responsibility (‘CSR’) Our organically focused growth will be delivered
Leading successful financial services companies with full regard for all matters concerning risk.
around the world are those that not only deliver
Outlook
superior investor returns and excellent customer
Your Board is confident of the Bank’s future
service, but who also consider ethical, social and
prospects. The seamless management transition is
environmental issues for all stakeholders. The Bank
reflected in the current year’s record performance
recognises its wider obligations to society and the
across all businesses.
community it serves and believes there is a strong
link between CSR and long-term success. The Economic growth during 2005 was strong in the
annual report includes details of the Group’s key regions in which we operate and that trend is
activities and achievements in the CSR area. expected to continue into next year.
Strategy The scale of opportunities available to the Bank
The Bank is well positioned and the fundamentals remains very significant. I believe the strength,
of our business model and strategy remain as flexibility and scalability of our centralised business
relevant today as ever before. Business lending will model will enable the Bank to capitalise on these
continue to be the key driver of the Group’s opportunities, thereby delivering strong returns for
growth. We will seek to further deepen our lending our shareholders. We look forward to a strong
franchise with new and existing clients in Ireland, performance in 2006 and beyond.
the UK and North America.
The success of Treasury provides an excellent
platform to deliver the Group’s funding needs
whilst also providing a highly efficient and valuable
source of revenue diversification. Our Wealth
Management Division’s aim is to become the
leading niche provider of financial management Sean FitzPatrick
services to high net worth clients. This makes it a Chairman
natural and complementary offering to the Bank’s
wider customer base. 22 November 2005
07
Anglo Irish Bank

Head Office is located
at St. Stephen’s Green,
Dublin 2, Ireland.
08
Anglo arranged and structured the syndicated project finance and long-term facilities for Dundrum Town Centre,
the development of Dundrum Town Centre in Dublin. Located just south of Dublin’s city Dublin
centre, it is Ireland’s largest shopping complex, and is let to many well-known Irish and UK
tenants on long-term leases. As part of the transaction structuring, our Treasury Division
provided a comprehensive interest rate risk management solution to our customer.
ANGLO IRISH BANK Annual Report & Accounts 09
Group
Chief Executive’s
review
David Drumm Group Chief Executive

11
2005 was a year of record growth and investment bringing year-end loan balances to €34.4 billion.
for the Group. This excellent performance was This represents an increase of 40% on a constant
achieved across all our divisions and geographies. currency basis.
The Bank continues to leverage and strengthen its
franchise in all target markets through the The record performance has been achieved right
consistent execution of its focused strategy. across our chosen markets and sectors. Despite the
continuing competitive nature of the sector, our
The performance highlights for the period include: lending margins remain stable. This reflects the
Bank’s unique service offering, distinguished by a
Profitability
consistent delivery and ability to execute for
• Pre-tax profits of €685 million, an increase
customers. Strong levels of repeat business in each
of 36%
market bear testament to this.
• Record EPS of 73.21 cent, an increase of 28%
Our Bank’s model of backing proven operators
Shareholder Value with secure cash flows supported by collateral
• Return on ordinary equity of 34% ensures consistent underwriting. Asset quality is
paramount. Every loan is individually assessed and
• 20% increase in ordinary dividends to stress tested to ensure the transaction would
13.54 cent per share survive tougher conditions. As demonstrated by the
Bank’s growth, our centralised model has the
Operational Performance
capacity to continue delivering for customers while
• Record growth in lending of €9.8 billion, an
maintaining effective risk management.
increase of 40%
Non-performing loans represent just 0.54% of total
• Excellent asset quality with non-performing
Group lending, continuing the improving trend of
loans representing 0.54% of closing loan
the last number of years.We acknowledge that the
balances
economic climate in 2005 remained benign. The
• Total funding increased by 43% to €41.7 billion current high quality of the book leaves the Bank
well positioned to move forward with confidence.
• Strong Tier 1 Capital Ratio at 8.4%
Lending – Ireland
• Employee numbers grew to 1,411, a
Irish business lending grew very strongly from
17% increase year-on-year
€13.3 billion to €19.4 billion, an increase of 46%.
• Cost income ratio highly efficient at 27% Each of our offices; Cork, Dublin, Galway, Limerick
and Waterford contributed to this performance.
• Lending work in progress of €6.0 billion The consolidation of our lending operations into a
at year-end single Ireland Lending Division from the beginning
Operations of the year has worked well and ensures consistent
service delivery to our clients across the entire
Business Lending market.
Focused business lending remains the Bank’s core
The level of growth evidences the continued
activity and key profit driver. The 2005 results are
strength of the Bank’s Irish franchise. During the
based on record net loan growth of €9.8 billion
year deals were completed across the spectrum of
small through to larger ticket transactions, Lending – UK

highlighting the Bank’s ability to deliver to the Loan growth generated by our UK Division
needs of all our clients. continued to flourish with a 27% net increase in
loan balances to €12.5 billion. This represents a
Over the past number of years certain Irish clients
strong performance in a highly liquid market.
have sought high quality investment opportunities in
the UK, USA and Europe. Often working in close The Bank’s franchise is now well recognised in its
collaboration with local market incumbents, these target market and we are experiencing significant
clients bring valuable expertise to particular growth from our existing customers as well as a
opportunities, whilst achieving selective diversification steady increase in high quality new referrals.
in their asset portfolio.
Our footprint has expanded in the UK during 2005.
We have now placed an experienced team on the We moved to new and larger premises in both
ground in Prague, to work with all our clients who Birmingham and Manchester to facilitate expansion
choose to invest in Europe. Unlike in our core of our teams on the ground in these markets. The
markets, we are not seeking to build an indigenous Bank recruited experienced lenders at all levels in
European lending franchise. However, we see this as the UK. This investment reflects our strong belief
an excellent opportunity to further deepen and that there is significant potential across key urban
enhance relationships with some key longstanding regions in the UK.
clients of the Group. More importantly, given our
visibility of cash flows and cross collateralisation of Amongst the larger European economies, the UK
the client’s total asset base, we can undertake such has performed strongly. The upward movement in
business on a low risk basis. interest rates would appear to have peaked. We
believe that the continuing positive outlook for
We look forward to significant growth opportunities employment should provide a sound platform for
in future years. The outlook for the Irish economy economic activity going forward.
remains positive. Strong GDP and employment
growth, significant infrastructural investment, buoyant We are confident in our UK business and believe
consumer demand, low inflation and favourable that it will be a key growth engine of the Group in
demographics all combine to support this sentiment. the future.
We expect interest rates to increase from current Lending – North America
historical low levels, but in a measured and controlled The Bank has continued to build on the foundations
manner. This environment will assist our customers established over the last seven years with loan
and I am confident that the Bank will continue to balances increasing 81% from 2004 levels to almost
enhance and capitalise on the strength of our €2.5 billion, on a constant currency basis.
existing business and relationships.
During the year we invested significantly in both
people and infrastructure. Our team in Boston
has grown to in excess of 40 people today. In
December the Bank moved to new and larger
premises to facilitate our planned future growth.
Our North American business demonstrates the
international mobility of our business model. As a
response to clients’ needs we have established a
13
Looking out further, our unique service offering to customers, based on a secured
lending model, has proven to be both transportable and scalable and provides
long-term potential to build upon our existing franchises in all our key markets.
representative office in New York. All credit Ireland, the UK and Austria. In addition, we have
decisions and business support remain at head begun to replicate the success of our established
office in Dublin which ensures the consistent retail funding activities in Ireland and the Isle of
quality of loans and client service. Man into the UK.
The regional economy in the North East of the Corporate Treasury Sales recorded strong revenue
USA continues to perform well having absorbed growth, particularly in the UK and North American
the continuing increase in interest rates to more markets, by providing innovative solutions to corporate
normal levels. Growth in employment and real customers in managing their interest rate and
incomes continues to be strong. Our small position foreign exchange exposures. All treasury activity is
makes correlation with the wider economy of less channelled through our centralised trading desk in
relevance. However, the general strength of the Dublin enabling highly effective risk and cost control.
market is beneficial.
Wealth Management
Growth levels in the USA during this period were Wealth Management had an excellent year with a
clearly exceptional. However, the Bank does expect particularly strong performance by our Irish Private
to generate high quality organic growth through Bank. The Division has operations in Austria, Ireland,
repeat business and a widening client base, as we Isle of Man, Switzerland, the UK and most recently
build upon the strong foundations now in place. the UAE with the opening of a representative office
in Dubai.
Treasury
Our Treasury Division had an exceptional year. It The growth potential of this business is significant.
continued to provide a strong and well-diversified It also provides a compelling entrée to new
funding base to facilitate the Bank’s controlled asset potential customers of the Group while deepening
growth and also generated record fee income relationships with existing clients, thereby protecting
through corporate treasury sales. the Bank’s franchise. Our core objective remains to
position the business as a niche provider of financial
Total funding increased by a record €12.5 billion
wealth management services for a high net worth
on a constant currency basis to €41.7 billion, an
client base.
increase of 43%. Retail and corporate customer
deposits increased 29% to €25.2 billion
demonstrating the inherent ability of the Bank to
deliver in such a competitive environment. The
Bank has a strong corporate funding franchise in
Capital It is important to recognise that this change in

Record profit retentions in the year helped bring reporting requirements has no impact on the
the Bank’s ordinary equity base to nearly €1.7 economics, cash flows or strength of the business.
billion. This represents an increase of 36% in the It mainly reflects timing differences in the recognition
period. Driven primarily by strong retentions, our of income and expense and presentation changes to
ordinary equity base has expanded fivefold since the income statement and balance sheet.
2000.
Investment
In June, the Bank further enhanced its capital base This year was one of significant investment in our
with the issue of Stg£300 million Tier 1 eligible people base, growing staff by 17% to just over
preference shares. The issue was well received by 1,400. Investment was well spread throughout
the market. This followed the issue of €600 million divisions and geographies with about two thirds in
Tier 1 eligible securities in September 2004. These direct client management and the remainder in
transactions, together with the significant internal Finance, IT, Risk and other key support functions.
capital generation, provide an excellent foundation We continued to devote sizeable resources to
for future growth. The Bank’s Tier 1 and Total people development and training during the year.
Capital ratios now stand at 8.4% and 11.8%
Considerable infrastructural investment has also
respectively.
been undertaken with the implementation of a
International Financial Reporting single platform, multi-location Wealth Management
Standards (IFRS) back office support system, and the ongoing
Our results for the year ended 30 September development of a new bespoke banking engine.We
2005 are prepared under Irish generally accepted also engaged in the further enhancement of certain
accounting practices (Irish GAAP). In line with all Treasury systems. In addition, the Bank undertook
listed entities in the European Union,Anglo Irish moves to new office space in Birmingham, Boston,
Bank is required to adopt IFRS for accounting Manchester, New York and Waterford during the
periods commencing after 1 January 2005. year providing flexible expansion solutions for the
Accordingly, the Bank’s first full reporting period under future.
IFRS will be the year ended 30 September 2006.
These ongoing investments provide an excellent
In June this year, we provided our assessment of structural platform for the Bank to underpin future
the anticipated impact of the change to IFRS on the business growth opportunities in an efficient and
Bank.We indicated that EPS for the six months controlled manner.
ended 31 March 2005 would have been circa 4%
Notwithstanding this level of investment, the Bank’s
lower than under Irish GAAP and that the impact
cost income ratio is 27%, demonstrating the
on our Tier 1 regulatory capital was expected to be
inherent efficiency of our model.
marginally positive. We estimate that the impact on
our full year numbers to 30 September 2005 will
be of a similar magnitude.
It is our intention to provide restated IFRS 2005
comparative numbers to the market in March 2006.
15
Board Outlook
I wish to echo the sentiments of our Chairman and I am confident of the Bank’s future prospects.
thank John Rowan for his significant contribution Our record lending growth of €9.8 billion in 2005,
over the past 20 years. John’s greatest legacy is together with a sizeable pipeline at 30 September
undoubtedly the strong team and franchise which of €6.0 billion, mean we enjoy a strong start to the
the Bank has established in the UK. I am confident 2006 financial year. Looking out further, our unique
that Declan Quilligan’s appointment as Chief service offering to customers, based on a secured
Executive – UK will enable the Bank to further lending model, has proven to be both transportable
exploit the undoubted opportunity that this major and scalable and provides long-term potential to
market offers. build upon our existing franchises in all our key
markets.
Strategy
The Bank will retain its focus on our core business Accordingly, I believe the Bank will continue to
of secured senior debt financing in our three create and sustain superior returns for shareholders
established markets of Ireland, the UK and the into the future.
USA. The diverse sources of funding and capital
available to the Bank provide ample scope to
exploit the significant growth opportunities
available to us. As always, asset quality will remain
the cornerstone of our lending model.
Our Treasury and Wealth Management businesses
enjoyed another excellent year and we look David Drumm
forward to further growth. Group Chief Executive
Given the considerable opportunities available to us 22 November 2005

in our key markets the Board’s strategy continues
to be based on organic growth. However, we will
consider acquisition opportunities as they arise
where they meet the stringent criteria we impose.
The Bank’s ability to deliver upon its strategy is
predicated on the commitment and talent of our
people. I thank them for their continued
outstanding contribution during 2005. We will
further invest in our people to enable us execute
this clear and focused strategy.
16
The Whitgift Centre, one of the UK’s busiest shopping centres comprising over one million The Whitgift Centre,
square feet of prime retail and office space, is situated in Croydon, London’s largest Croydon, London
borough. Several leading national retailers anchor the centre with the UK Government
occupying 75% of the office space. In addition to financing the acquisition debt, our Wealth
Management Division raised significant equity from private clients, providing them with the
opportunity to invest alongside a professional investment property customer of the Bank.
The transaction was structured through our 100% subsidiary, Anglo Irish Assurance
Company and our Treasury Division provided an interest rate risk management solution
in respect of the long-term debt.
Board of
Directors
Sean FitzPatrick (57) David Drumm (39) Lar Bradshaw (45)

was appointed Chairman in January 2005, was appointed Group Chief Executive in who joined the Board in October 2004,
having been Chief Executive of Anglo Irish January 2005, having been Divisional is a former Director of McKinsey Inc. and
Bank Corporation plc since 1986. A Director and Head of Lending Ireland Managing Director of McKinsey Ireland.
Chartered Accountant, he also serves as since 2003. A Chartered Accountant, he He holds an MBA degree from the
Non-executive Director of the Dublin joined the Bank in 1993 following a International Institute for Management
Docklands Development Authority, number of years in corporate finance. Development in Switzerland and has
Greencore plc, Aer Lingus, Gartmore Irish After working initially in the Banking been Chairman of the Dublin Docklands
Growth Fund plc and as a member of the Division in Dublin, he established the Development Authority since 1997.
Council of the Institute of Chartered North American Division in 1998.
Accountants in Ireland.
Patricia Jamal (62) William McAteer (55) Gary McGann (55)

joined the Board in January 2003. She a Chartered Accountant, was appointed who joined the Board in January 2004,
is a former Managing Director and Head Finance Director of the Group in June is Chief Executive Officer of the Jefferson
of Global Financial Institutions in 1992. He was previously Managing Smurfit Group. He is Chairman of the
Barclays Capital. Director of Yeoman International Leasing Dublin Airport Authority and is President
Limited, prior to which he was a Partner of IBEC. He is also a Director of Aon
with Price Waterhouse. McDonagh Boland Group and United
Drug plc. He holds a BA degree from
University College Dublin, a Masters
degree in Management Science and is a
Fellow of the Association of Chartered
Certified Accountants.
19
Executive Director
An independent Non-executive Director
A member of the Audit Committee
A member of the Nomination and Succession Committee
A member of the Remuneration Committee
A member of the Risk and Compliance Committee
Tom Browne (43) Fintan Drury (47) Michael Jacob (60)

who joined the Board in January 2004, is who joined the Board in May 2002, is has been a Director since 1988 and
responsible for lending operations in Chairman of the RTE Authority, Paddy is a Fellow of the Chartered Institute
Ireland and the Bank’s Wealth Power plc and Platinum One, a sports, of Management Accountants. He is
Management Division. He joined the Bank sponsorship and event management Chairman of the Lett Group of
in 1990 and was appointed Head of Dublin agency. He is a former news journalist Companies, Deputy Chairman of SIAC
Banking in 1997. He holds MBS and BBS with RTE and in 1988 founded Drury Construction Limited, President of the
degrees and is a member of both the Communications, a corporate Royal Dublin Society and a Director
Institute of Bankers and the Institute of communications consultancy from of other companies.
Marketing in Ireland. which he retired in 1999.
John Rowan (47) Ned Sullivan (57) Patrick Wright (64)

joined the Board in October 1998. A who joined the Board in November 2001, joined the Board in February 2000. He is
Chartered Accountant, he joined the Bank is Chairman of Greencore plc and Chairman of Aon McDonagh Boland
in 1985 and is Chief Executive of the McInerney Holdings plc. He is the former Group and former Chairman of the RTE
Bank’s operations in the United Kingdom. Chairman of the President's Award – Authority. He is an Honorary Fellow of
Gaisce, former Group Managing Director the National College of Ireland and a
of Glanbia plc and previously held a Fellow of the Irish Management Institute.
number of senior management positions
in Grand Metropolitan plc. He holds
B.Comm and MBS degrees.
Senior Executive
Board
Pat Whelan Declan Quilligan David Drumm William McAteer Bernard Daly
joined the Bank in joined the Bank in joined the Bank in has been with the joined the Bank in
1989 and has held a 1990. Previously 1993. After working Bank since 1992. 1993 having spent
number of senior Director of Lending initially in Lending He holds the position 15 years in various
management Ireland, he was Ireland, he of Group Finance executive positions in
positions in our appointed Chief established the US Director. the Central Bank of
lending operations. Executive Designate Banking Division in Ireland. He became
He is currently of the Group’s UK 1998. He returned to Director of Treasury
Director of Group operations in head up Lending in 2001 and assumed
Risk and Operations. September 2005. Ireland in 2003 and his current role as
was appointed Group Group Company
Chief Executive in Secretary in
January 2005. September 2003.
21
John Rowan Peter Butler Brian Murphy Tom Browne Tony Campbell
has been with the joined the Bank in is Director of Group joined the Bank in joined the Bank in
Bank since 1985 and 1987 and assumed his Treasury. He joined 1990. He is Managing 1991. He held
is due to retire from current role as the Bank in 2003 Director for lending several senior
his position as Chief Managing Director of after 20 years in operations throughout management
Executive – UK at the Wealth Management senior banking roles Ireland and the Bank’s positions in Lending
end of 2005. Ireland Division in both in Ireland and Wealth Management before moving on to
January 2005. overseas. Division. establish Private
Banking in Ireland.
He is now Chief
Executive of the
Bank’s North
American Division.
22
In 2005 the Bank provided a facility to refinance the acquisition debt of Earls Court and Earls Court and
Olympia. A world famous London icon with an exceptionally powerful brand, it attracts Olympia, London
millions of visitors each year to exhibitions, conferences, concerts and other large events.
This prominent transaction, where the Bank provided a combined debt finance and
interest rate risk management solution to our client, reflects the broadening and
strengthening of the Bank’s UK franchise.
Corporate social
responsibility
Leading companies are those that not only deliver superior shareholder returns and excellent customer
service but also consider ethical, social and environmental issues for all stakeholders.The Bank recognises its
wider obligations to its employees, society and the community it serves and believes there is a strong link
between Corporate Social Responsibility (‘CSR’) and long-term success.
The Bank aspires to a set of values which recognises the interests of all stakeholders and the contributions
they make.To this end, we adopt the highest standards of integrity, corporate governance, environmental
awareness and community support.We recognise that being a good corporate citizen not only involves
achieving our business aims but embraces a wider contribution to the interests of all our stakeholders.
The Market Place At a corporate level, we adopt the highest standards

Our customers are fundamental to the Bank’s of compliance with regulatory requirements and
growth and our ability to continue to develop the aim to operate to the spirit and not just the letter
business. Financial services is an intensely of regulations.
competitive market. If we do not offer the highest
We aim to treat our suppliers with the same
standards of product and service then our
courtesy with which we treat our customers.We
customers will take their business elsewhere.
have service level agreements with all our major
Anglo Irish Bank does not adopt a ‘one size fits all’ suppliers which ensure, amongst other things, that
approach to the service we provide our customers. they are paid for their goods and services promptly
Each client has individual needs and our aim is to and efficiently.
provide a personalised approach which responds to
The Workplace
those specific requirements.
The Bank is its people.Without a talented,
To ensure that we continue to provide the highest dedicated and motivated staff, the Bank cannot
quality service and commitment, our customer aspire to provide the excellent level of service
support staff are divided into specialised and highly which our customers deserve. For this reason, staff
focused teams who understand the individual needs recruitment, training and development are given the
of our customers. Each team provides a point of highest priority. Our people, who now number over
contact for a specified group of customers and this 1,400 in 19 locations in 8 countries, are the key to
personalised approach allows us to respond the Bank’s success over the past 20 years.
efficiently and effectively to their specific
The Bank is fully committed to equal opportunities
requirements. Moreover we have a comprehensive
recruitment and employment. Our strategy is to
internal complaints procedure which is structured to
recruit the best, whatever the level and provide
deal comprehensively with any instance of customer
them with comprehensive training and support to
dissatisfaction.
allow them maximise their long-term potential.
25
Anglo Irish Bank volunteers

This is achieved through: The Bank also recently announced its intention to
and students from
• Regular communication on the performance of further invest in its people through the introduction
Warrenmount Secondary
the Bank’s various divisions and of our future of enhanced pension benefits, recognising the
School.
plans and strategies; importance of making adequate provision for
retirement. Staff who participate in the Bank’s
• Ensuring staff are challenged, supported and Defined Contribution Plan will be incentivised to
empowered and those with ambitions to rise make additional voluntary contributions (‘AVCs’).
within the organisation have the opportunity to The Bank will match AVCs on a one-for-one basis
do so; and up to predefined levels.This places the Group at the
• Adopting a meritocratic approach which ensures forefront of pensions best practice.We believe this
that high achievers are motivated and adequately new initiative will greatly assist in attracting new
rewarded. people to the Bank while underpinning our strong
record of staff retention.
It is the policy of Anglo Irish Bank that our people
share in the Bank’s success. Employee share
ownership, which fosters a proprietorial approach
among staff, is actively encouraged. Since 2000, a
Save As You Earn scheme has allowed staff in
applicable locations to acquire shares at a discount
to the prevailing market price.The scheme was
further extended in 2005 to include our staff in
Vienna and will be offered to staff in Geneva and
North America before the end of this year.
It is a source of great strength to the Bank that a
very significant number of staff now hold shares.
The Community Under this programme employees make donations

CSR extends beyond the work place and the to the GAYE scheme by monthly deduction from
market place and this has been endorsed and salary and the contributions are matched euro for
promoted at the highest level within the Bank. euro by the Bank. On average, more than one third
of the Bank’s employees donate to the GAYE
We strongly believe that CSR in the community scheme resulting in an annual contribution to
does not simply mean making passive financial Children Direct of almost €100,000.
contributions to charities and other organisations.
To this end, the Bank and many of our employees In all locations staff are encouraged to nominate
are actively engaged in assisting a number of social charities towards which the Bank will make
development projects, not least our involvement donations. During the year the Bank made substantial
since 2000 in a mentoring programme for contributions to a wide range of Irish, UK and
secondary level pupils of Warrenmount School in worldwide charities.
the heart of Dublin’s historic Liberties district.
Community life is enriched by cultural and sporting
Our involvement with Warrenmount has been activities and support for these activities is a core
recognised by the Chambers of Commerce of part of the Bank’s CSR programme.
Ireland in its CSR Awards.
In the past year, the Bank has continued its long
To date the Bank has supported more than 70 staff time association with the Abbey Theatre through
members’ participation in the Warrenmount our sponsorship of the Writer-in-Association
initiative which has the ultimate aim of encouraging, award. Playwright and director, Conor McPherson is
motivating and supporting students to reach their the recipient of this year’s award, following in the
full potential by helping them to develop their footsteps of such theatrical luminaries as Tom
social, interpersonal, communication and workplace Murphy, Frank McGuinness, Bernard Farrell and
skills. The Bank has also made a financial Thomas Kilroy. The Bank has also continued its
commitment to the school over the seven year long standing sponsorship of the RTE National
period of the programme. Symphony Orchestra’s (‘NSO’) annual concert
series.
In the UK the Bank is also a member of Business in
the Community and we will be embarking on a We feel that the Abbey Theatre, the NSO and
volunteer programme with schools in the Tower other cultural organisations contribute to social
Hamlets area of London. and cultural life in Ireland and we remain fully
committed to maintaining and strengthening the
For the past two years, the Bank has been involved links between business and the arts.
in a Give As You Earn (‘GAYE’) scheme with
Children Direct, a partnership of five respected
childrens’ charities:Temple Street Childrens’
Hospital; the ISPCC; Enable Ireland; Focus Ireland
and ACTIONAID Ireland.
27
The Bank’s involvement in supporting sporting

activities is highlighted by our sponsorship of the
Irish Sailing Association and the Anglo Irish Bank
Munster National steeplechase at Limerick
Racecourse. But we believe that our commitment
to both cultural and sporting activities must extend
beyond high profile sponsorships and to this end
the Bank has contributed directly to some 250 local
sports clubs and community based cultural activities.
The Environment
The Bank adopts environmentally aware practices
throughout all its operations.We believe that if
employees adopt an environmentally sensitive
approach at work then they can adopt that same
approach outside the workplace.
Below: maintaining the link between
The Bank has implemented a waste management business and the arts – the RTE National
and recycling initiative across the Group. Staff are Symphony Orchestra and The Abbey
encouraged to maximise electronic communication Theatre. (L to R) David Drumm, Conor
and reduce paper usage. A range of energy saving McPherson and Fiach MacConghail.
measures have been introduced and all computer
consumables are recycled in line with our
environmental policies.
Summary
Corporate Social Responsibility may be seen by
some as a cost factor with no discernible return on
the investment involved. At Anglo Irish Bank
however, we have no doubt that the initiatives we
have implemented in the market place, in the work
place and in the community will benefit the Bank,
its shareholders, customers, employees and the
community at large and we look forward to further
developing our CSR initiatives in the years ahead.
28
222 East 41st Street is a prime, recently renovated office building located in central 222 East 41st Street,
Manhattan, New York. It is occupied on long-term leases by well established tenants in the Manhattan, New York
professional service and government sectors.The acquisition of this property was led by
our Private Bank in Dublin, whose clients provided the equity.They worked closely with the
New York office, who provided local market expertise, a suitable debt structure for the
transaction and appropriate interest rate risk management.
30
Report of the Directors
The Directors present their report and the audited financial Substantial shareholdings
statements for the year ended 30 September 2005. Details of interests in excess of 3% of the ordinary share capital
which have been notified to the Company are shown on page 102.
Results
The Group profit on ordinary activities before taxation for the Group undertakings and foreign branches
year amounted to €685.2 million and has been dealt with as Particulars of the principal subsidiary undertakings within the
shown in the consolidated profit and loss account on page 38. Group required to be declared under Section 16 of the
Companies (Amendment) Act, 1986 are shown in note 17. The
Review of activities
Company has established branches, within the meaning of EU
The principal activity of the Group is the provision of banking
Council Directive 89/666/EEC, in Austria and the United
services. The Chairman’s statement and the Group Chief
Kingdom.
Executive’s review on pages 4 to 15 report on developments
during the year, on events since 30 September 2005 and on likely Corporate governance
future developments. The financial statements for the year ended The Directors’ corporate governance statement appears on
30 September 2005 are set out in detail on pages 38 to 99. pages 32 to 35.
Dividends Books and accounting records

An interim dividend of 4.51c per share was paid on 18 July 2005. The Directors are responsible for ensuring that proper books
Subject to shareholders’ approval, it is proposed to pay a final and accounting records, as outlined in Section 202 of the
dividend on 13 February 2006 of 9.03c per share to all registered Companies Act, 1990, are kept by the Company. To ensure
shareholders at the close of business on 2 December 2005. compliance with these requirements the Directors have
Dividend withholding tax (‘DWT’) may apply on the proposed appointed professionally qualified accounting personnel with
final dividend depending on the tax status of each shareholder. appropriate expertise and have provided adequate resources to
the finance function. These books and accounting records are
Shareholders will be offered the choice of taking new ordinary
maintained at the Company’s registered office at Stephen Court,
shares in lieu of the proposed final dividend, after deduction of
18/21 St. Stephen’s Green, Dublin 2.
DWT where applicable.
Auditors
Capital resources
The Auditors, Ernst & Young, have expressed their willingness to
Details of changes in capital resources during the year are
continue in office.
included in notes 28 to 34 of the financial statements.
Directors: Sean FitzPatrick, David Drumm,William McAteer.
Directors and Secretary
Secretary: Bernard Daly.
The names of the current Directors appear on pages 18 and 19,
together with a short biographical note on each Director. 22 November 2005
Tiarnan O Mahoney retired from the Board on 2 December
2004. Peter Murray and Anton Stanzel retired as Directors on
28 January 2005. John Rowan will retire from the Board on
31 December 2005. Sean FitzPatrick and Fintan Drury retire by
rotation as Directors in accordance with the articles of
association and, being eligible, offer themselves for re-election.
Michael Jacob offers himself for re-election as, having served
more than nine years on the Board, he is subject to annual
re-election under the Combined Code. Declan Quilligan will be
co-opted to the Board on 31 December 2005. Bernard Daly
served as Secretary throughout the year. The interests of the
current Directors and Secretary in the share capital of the
Company are shown in the Remuneration Committee’s report
on behalf of the Board set out in note 46 to the financial
statements.
Statement of Directors’ responsibilities
The following statement, which should be read in conjunction The Directors are responsible for keeping proper books of
with the Auditors’ report on pages 36 and 37, is made with a account which disclose with reasonable accuracy at any time the
view to distinguishing for shareholders the respective financial position of the Company and which enable them to
responsibilities of the Directors and of the Auditors in relation ensure that the financial statements are prepared in accordance
to the financial statements. with accounting standards generally accepted in Ireland and
comply with the Companies Acts, 1963 to 2005 and the European
Irish company law requires the Directors to prepare financial
Communities (Credit Institutions:Accounts) Regulations, 1992.
statements for each financial year which give a true and fair view
They also have general responsibility for taking such steps as are
of the state of affairs of the Company and of the Group as at the
reasonably open to them to safeguard the assets of the Company
end of the financial year and of the profit or loss of the Group
and of the Group and to prevent and detect fraud and other
for that year.With regard to the financial statements on pages 38
irregularities.
to 99, the Directors have determined that it is appropriate that
they continue to be prepared on a going concern basis and
consider that in their preparation:
• suitable accounting policies have been selected and applied
consistently;
• judgements and estimates that are reasonable and prudent
have been made; and
• applicable accounting standards have been followed.
32
Corporate governance statement
The Directors of the Company are committed to maintaining the The Group Chief Executive has the responsibility to ensure that
highest standards of corporate governance and, in particular, have the strategic direction agreed by the Board is followed and
regard to the principles set out in ‘The Combined Code on formulates policy proposals for the Board’s consideration. He
Corporate Governance’ published in July 2003. provides leadership, both through his advice to the Board and his
management of the day-to-day operations of the Bank, including
This Corporate Governance statement describes how the
the management of human, financial and physical resources. He
Company applies the principles of the Combined Code and
has the central role in maintaining and enhancing a culture of high
comments also on its compliance with the Code’s provisions.
performance and motivation in the Bank. Together with the
Except where stated, the Directors believe that the Group has
Finance Director, he has responsibility for ongoing relationships
complied fully with the provisions of the Combined Code
with shareholders.
throughout the financial year ended 30 September 2005.
Independence of the Board
Board of Directors
The Board has determined that each of the Non-executive
The Board provides leadership and control for the Bank. It
Directors is independent. In reaching that conclusion, the Board
delegates the management and day-to-day running of the Bank to
took into account a number of factors that might appear to affect
the Group Chief Executive and senior management but keeps
the independence of some of the Directors, including length of
reserved specific items for its decision. These include agreement
service on the Board and cross-directorships. In each case the
of strategic objectives, annual plans and performance targets,
Board is completely satisfied that the independence of the
monitoring and control of operations, review of the performance
relevant Directors is not compromised.
of Board Committees and approval of specific senior appointments.
The Board consists of twelve Directors, eight of whom are Appointments to the Board
Non-executive Directors. A short biographical note on each The Board has put in place a rigorous and transparent procedure
Director is set out on pages 18 and 19. Michael Jacob is the for the appointment of new Directors. Directors are appointed
senior independent Non-executive Director. initially for a three year term and may be appointed for further
three year terms. New Directors are proposed for election at
The Non-executive Directors have varied backgrounds, skills and
the Annual General Meeting following their appointment.
experience and are independent of management. All Directors
bring their independent judgement to bear on issues of strategy, Appointments to the Board are made based on merit and using
performance, resources, key appointments and standards of objective criteria. The terms and conditions of appointment of
conduct. Non-executive Directors are available for inspection at the
registered office during normal business hours, and at the Annual
The Board meets at least nine times annually. Additional meetings
General Meeting.
are arranged if required. It has a formal written schedule of
matters reserved to it for decision. The Board receives regular Induction is provided to all Directors on appointment and
management reports and information on corporate and business Directors regularly update and refresh their skills and knowledge.
issues to enable reviews of performance against business targets The induction process includes provision of an opportunity for
and objectives to be undertaken. Details of attendance by new Non-executive Directors to meet major shareholders.
Directors at scheduled meetings of the Board and its Committees
during the year ended 30 September 2005 are set out on page 35. The Directors have access to the advice and services of the
Group Company Secretary who is responsible for ensuring that
Roles of Chairman and Group Chief Executive Board procedures are followed and that there is compliance with
The roles of the Chairman and Group Chief Executive are applicable rules and regulations. The Directors also have access
distinct and separate, with a clear division of responsibilities. to independent professional advice, at the Group’s expense, if and
These responsibilities are set out in writing and have been when required. Committees of the Board have similar access.
approved by the Board.
Performance evaluation
The Chairman is responsible for the leadership and effectiveness The Board and its Committees undertake an annual evaluation of
of the Board and the Non-executive Directors. He promotes their performance. The Committees report their findings and any
continuing high standards of corporate governance and ensures resulting recommendations to the Board. In addition, the
there is effective communication with shareholders. Chairman conducts evaluations of the performance of the Board,
individual Directors and Board Committees annually.
An evaluation of the performance of the Chairman is conducted The Audit Committee has unrestricted access to both the Group
by the senior independent Non-executive Director, taking into internal and external Auditors. It meets with the external
account the views of the other Directors. Auditors at least once each year. The independence and
objectivity of the external Auditors is considered periodically
The Chairman meets at least once a year with the Non-executive
together with the scope and results of the audit and its cost
Directors without the Executive Directors and has a private
effectiveness.The Committee’s terms of reference are available,
discussion at least once a year with every Director on a wide
on request through the Group Company Secretary, and on the
range of issues affecting the Group, including any matters which
Bank’s website.
the Directors, individually, wish to raise. Each Director discusses
his or her own performance with the Chairman. Risk and Compliance Committee
Members: Michael Jacob (Chairman),Tom Browne, Fintan Drury
The Board discusses the results of the evaluation and uses the
and Patricia Jamal.
process to constructively improve the effectiveness of the Board.
The Risk and Compliance Committee’s role is to oversee risk
Re-election
management and compliance. It reviews, on behalf of the Board,
Any term of office for a Director beyond six years (two three
the key risks and compliance issues inherent in the business and
year terms) is subject to rigorous review and terms longer than
the system of internal control necessary to manage them and
nine years (three terms) are subject to annual re-election.
presents its findings to the Board. The Committee meets at least
All Directors must submit themselves for re-election every three
five times during the year and reviews its processes and
years. The names of Directors submitted for election or
effectiveness annually. The Committee’s terms of reference are
re-election are accompanied by biographical and other details
available, on request through the Group Company Secretary, and
in order to allow shareholders to make an informed decision.
on the Bank’s website.
Board Committees
Nomination and Succession Committee
There are four Board Committees and each has specific terms of
Members: Sean FitzPatrick (Chairman), David Drumm, Fintan
reference, which are reviewed periodically.
Drury, Michael Jacob, Ned Sullivan and Patrick Wright.
Remuneration Committee This Committee is responsible for recommending the
Members: Michael Jacob (Chairman), Sean FitzPatrick and appointment of Directors to the Board and for reviewing senior
Ned Sullivan. management succession plans. Its key roles are recommending to
All members of the Remuneration Committee are Non-executive the Board all appointments to and removals from the Board as
Directors. The Committee is responsible for the formulation of well as re-appointments; ensuring a suitable induction programme
the Group’s policy on remuneration in relation to all Executive is in place for all new Directors; regularly reviewing the Board’s
Directors and other senior executives. The Committee’s terms of structure, size, composition and balance; ensuring adequate
reference are available, on request through the Group Company succession planning is in place, particularly for the Chairman and
Secretary, and on the Bank’s website. The Committee’s report on Group Chief Executive; reviewing all appointments to and
behalf of the Board on Directors’ remuneration and interests is departures from the Senior Executive Board; encouraging the
set out in note 46 to the financial statements. establishment of formal management development programmes.
External search consultants have been used in the past for the
Audit Committee appointment of Non-executive Directors. The Committee’s terms
Members: Ned Sullivan (Chairman), Lar Bradshaw, Gary McGann of reference are available, on request through the Group
and Patrick Wright. Company Secretary, and on the Bank’s website.
The Audit Committee receives reports on various aspects of Internal controls
control, reviews the Group’s financial statements, determines as The Directors acknowledge their overall responsibility for the
to whether proper books of account have been kept in Group’s system of internal control and for reviewing its
accordance with the Companies Acts and ensures that no effectiveness. The system is designed to manage rather than
restrictions are placed on the scope of the statutory audit or on eliminate the risk of failure to achieve the Group’s business
the independence of the Internal Audit function. objectives and provides reasonable but not absolute assurance
against material financial misstatement or loss.
34
Corporate governance statement

continued
Such losses could arise because of the nature of the Group’s establishing that appropriate action is being taken by management
business in undertaking a wide range of financial services that to address issues highlighted. The Audit Committee also meets
inherently involve varying degrees of risk. with and receives reports from the external Auditors.
The Board confirms that during the year under review and up to Following each meeting of the Audit Committee and the Risk and
the date of approval of the annual report and financial statements Compliance Committee, the Committee Chairmen report to the
there was in place an ongoing process for identifying, evaluating Board and minutes of such meetings are circulated to all members
and managing the significant risks faced by the Group and that of the Board.
this process is regularly reviewed by the Board and accords with
The Directors confirm that, with the assistance of reports from
the Code.The key elements of the procedures established by the
the Audit Committee and the Risk and Compliance Committee,
Board to provide effective internal control include:
they have reviewed, in accordance with the Combined Code, the
• An organisation structure with clearly defined authority limits effectiveness of the systems of internal control in existence in the
and reporting mechanisms to higher levels of management and Group for the year ended 30 September 2005 and for the period
to the Board, which supports the maintenance of a strong up to and including the date of approval of the financial statements.
control environment. The review undertaken covers all aspects of control including
financial, operational and compliance controls and risk management.
• A Group Risk Management function and a Group Compliance
function with responsibility for ensuring that risks are Going concern
identified, assessed and managed throughout the Group. The The Directors confirm that they are satisfied that the Company
Group Credit Committee together with the Group Asset and and the Group have adequate resources to continue to operate
Liability Committee provide support to the Audit Committee for the foreseeable future and are financially sound. For this
and the Risk and Compliance Committee in ensuring that reason, they continue to adopt the going concern basis in preparing
efficient procedures are in place to manage risk. the financial statements.
• An annual budgeting and monthly financial reporting system Relations with shareholders
for all Group business units which enables progress against The Group gives relations with shareholders a high priority. The
plans to be monitored, trends to be evaluated and variances Directors are kept informed on shareholder relations through
to be acted upon. regular reports to the Board by the Group Chief Executive and
• A comprehensive set of policies and guidelines relating to Finance Director and through feedback from shareholders,
capital expenditure, computer security, business continuity brokers and investment bankers. There is regular dialogue with
planning, asset and liability management (including interest, individual institutional shareholders, financial analysts and brokers.
currency and liquidity risk), operational risk management, Presentations are given at the time of major announcements and
credit risk management and compliance. these provide opportunities for Directors to hear the views of
shareholders directly.
The Group Internal Audit function reports to the Group Chief
Executive and the Audit Committee. It helps the Group All shareholders are encouraged to attend the Annual General
accomplish its objectives by bringing a systematic and disciplined Meeting and notice is sent to shareholders at least twenty one
approach to evaluating and improving the effectiveness of the risk working days in advance of the meeting. At the Annual General
management, control and governance processes. Meeting separate resolutions are proposed on each substantially
separate issue.When an issue has been determined at the
Group Internal Audit also systematically reviews the controls meeting on a show of hands, the Chairman indicates to the
listed above, which are embedded within the operations of the meeting the number and proportion of proxy votes for and
Group. Emphasis is focused on areas of greatest risk as identified against that resolution. The Chairmen of the Remuneration
by risk analysis. In addition, the systems of internal control are Committee,Audit Committee, Risk and Compliance Committee
subject to regulatory supervision by the Irish Financial Regulator and Nomination and Succession Committee are available to
and other regulators overseas. answer relevant questions at the Annual General Meeting.
The Audit Committee and the Risk and Compliance Committee The Group uses its internet site (www.angloirishbank.com) to
review the effectiveness of the Group’s internal controls annually. provide investors with the full text of each annual and interim
This involves reviewing the work and the reports of the Internal report, and copies of presentations to analysts and investors.
Audit, Risk Management and Compliance functions and
The website also provides detailed financial data, Company

information, information on credit ratings and all Stock Exchange
and other press releases.
Shareholders can access annual reports and accounts and interim
reports for the previous five years. The website allows shareholders
to subscribe to automatic e-mail alerts for the above mentioned
information.
Attendance at scheduled meetings during the year ending 30 September 2005
Name Board Audit Remuneration Risk and Nomination

Compliance and Succession
A* B* A* B* A* B* A* B* A* B*
Sean FitzPatrick, 10 10 - - 2 2 - - 3 3
Chairman
David Drumm, 10 10 - - - - - - 3 3
Group Chief Executive
Lar Bradshaw 10 10 7 4+ - - - - - -
Tom Browne 10 10 - - - - 6 1 ++ - -
Fintan Drury 10 9 - - - - 6 4 3 3
Michael Jacob 10 10 - - 2 2 6 6 3 3
Patricia Jamal 10 10 - - - - 6 6 - -
William McAteer 10 10 - - - - - - - -
Gary McGann 10 7 7 6 - - - - - -
Peter Murray 10 3 - - 2 - - - 3 1
(Retired 28/01/2005)
Tiarnan O Mahoney 10 2 - - - - 6 1 - -
(Retired 2/12/2004)
John Rowan 10 9 - - - - - - - -
Ned Sullivan 10 10 7 7 2 2 - - 3 3
Anton Stanzel 10 3 7 3 - - - - - -
(Retired 28/01/2005)
Patrick Wright 10 5 7 5 - - - - 3 3
* Column A indicates the number of scheduled meetings held and Column B indicates the number of scheduled meetings attended during the period the Director was a member of the Board or
Committee and was eligible to attend.
+ Lar Bradshaw was appointed to the Audit Committee on 25 February 2005.
++ Tom Browne was appointed to the Risk and Compliance Committee on 22 March 2005.
36
Independent Auditors’ report to the members of

Anglo Irish Bank Corporation plc
We have audited the Group’s financial statements for the year We also report to you if, in our opinion, any information specified
ended 30 September 2005, which comprise the consolidated by law or the Listing Rules regarding Directors’ remuneration and
profit and loss account, consolidated balance sheet, company transactions with the Group is not given and, where practicable,
balance sheet, consolidated cash flow statement, statement of include such information in our report.
total recognised gains and losses, reconciliation of movements in
We review whether the corporate governance statement reflects
shareholders’ funds and the related notes 1 to 49. These financial
the Company’s compliance with the nine provisions of the 2003
statements have been prepared on the basis of the accounting
Financial Reporting Council’s Code specified for our review by
policies set out therein.
the Listing Rules of the Irish Stock Exchange and we report if it
This report is made solely to the Company’s members, as a body, does not.We are not required to consider whether the Board’s
in accordance with Section 193 of the Companies Act, 1990. Our statements on internal control cover all risks and controls, or
audit work has been undertaken so that we might state to the form an opinion on the effectiveness of the Group’s corporate
Company’s members those matters we are required to state to governance procedures or its risk and control procedures.
them in an Auditors’ report and for no other purpose. To the
We read other information contained in the annual report and
fullest extent permitted by law, we do not accept or assume
consider whether it is consistent with the audited financial
responsibility to anyone other than the Company and the
statements. This other information comprises the Directors’
Company’s members as a body, for our audit work, for this
report, Chairman’s statement, Group Chief Executive’s review and
report, or for the opinions we have formed.
the corporate governance statement.We consider the
Respective responsibilities of Directors and Auditors implications for our report if we become aware of any apparent
The Directors’ responsibilities for preparing the annual report misstatements or material inconsistencies with the financial
and the financial statements in accordance with applicable Irish statements. Our responsibilities do not extend to any other
law and accounting standards are set out in the statement of information.
Directors’ responsibilities.
Our responsibility is to audit the financial statements in
accordance with relevant legal and regulatory requirements,
Auditing Standards issued by the Auditing Practices Board for use
in Ireland and the United Kingdom and the Listing Rules of the
Irish Stock Exchange.
We report to you our opinion as to whether the financial
statements give a true and fair view and are properly prepared in
accordance with the Companies Acts.We also report to you our
opinion as to: whether proper books of account have been kept
by the Company; whether proper returns adequate for our audit
have been received from branches not visited by us; whether at
the balance sheet date there exists a financial situation which may
require the convening of an Extraordinary General Meeting of
the Company; and whether the information given in the
Directors’ report is consistent with the financial statements. In
addition, we state whether we have obtained all the information
and explanations necessary for the purposes of our audit and
whether the Company’s balance sheet is in agreement with the
books of account and returns.
37
Basis of audit opinion In our opinion the information given in the Directors’ report is
We conducted our audit in accordance with Auditing Standards consistent with the financial statements.
issued by the Auditing Practices Board. An audit includes
In our opinion the Company balance sheet does not disclose a
examination, on a test basis, of evidence relevant to the amounts
financial situation which, under Section 40(1) of the Companies
and disclosures in the financial statements. It also includes an
(Amendment) Act, 1983, would require the convening of an
assessment of the significant estimates and judgements made by
Extraordinary General Meeting of the Company.
the Directors in the preparation of the financial statements, and
of whether the accounting policies are appropriate to the Group’s Ernst & Young
circumstances, consistently applied and adequately disclosed. Registered Auditors
Dublin
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary in
22 November 2005
order to provide us with sufficient evidence to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial
statements.
Opinion
In our opinion the financial statements give a true and fair view
of the state of affairs of the Company and of the Group as at 30
September 2005 and of the profit of the Group for the year then
ended and have been properly prepared in accordance with the
provisions of the Companies Acts, 1963 to 2005 and the European
Communities (Credit Institutions:Accounts) Regulations, 1992.
We have obtained all the information and explanations we
consider necessary for the purposes of our audit. In our opinion
proper books of account have been kept by the Company and
proper returns adequate for the purpose of our audit have been
received from branches not visited by us. The Company’s balance
sheet is in agreement with the books of account and returns.
The following two notes have been added to the Auditors’ report in compliance with the guidance issued by the Auditing Practices
Board in bulletin 2001/1 ‘The electronic publication of auditors’ reports’.
Notes:
1. The maintenance and integrity of the Anglo Irish Bank website is the responsibility of the Directors; the work carried out by the
Auditors does not involve consideration of these matters and, accordingly, the Auditors accept no responsibility for any changes
that may have occurred to the financial statements since they were initially presented on the website.
2. Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
38
Consolidated profit and loss account

FOR THE YEAR ENDED 30 SEPTEMBER 2005
2005 2004
Notes €m €m
Interest receivable and similar income

Interest receivable and similar income arising from
Debt securities and other fixed income securities 110.2 50.4
Other interest receivable and similar income 1,966.6 1,402.5
Interest payable and similar charges (1,356.8) (929.4)
Net interest income 720.0 523.5
Other income
Fees and commissions receivable 241.5 183.9
Fees and commissions payable (22.3) (16.3)
Dealing profits 16.0 12.8
Other operating income 21.8 19.3
Total operating income 977.0 723.2
Operating expenses
Administrative expenses 2 247.2 185.4
Depreciation and goodwill amortisation 15.2 14.6
Provisions for bad and doubtful debts - specific 13 29.4 19.1
291.8 219.1
Group profit on ordinary activities before taxation 3 685.2 504.1
Taxation on profit on ordinary activities 4 (140.2) (107.7)

Group profit on ordinary activities after taxation 545.0 396.4
Minority interests 5 (45.8) (17.0)

Dividends on preference shares 6 (8.2) -
Group profit attributable to ordinary shareholders 7 491.0 379.4
Dividends on €0.16 ordinary shares 8 (91.4) (75.2)

Group profit retained for year 34 399.6 304.2
Basic earnings per €0.16 ordinary share 9 73.21c 57.26c
Diluted earnings per €0.16 ordinary share 9 71.74c 56.19c
Dividends per €0.16 ordinary share 8 13.54c 11.28c
Directors: Sean FitzPatrick, David Drumm,William McAteer. Secretary: Bernard Daly.

Consolidated balance sheet

A S AT 3 0 S E P T E M B E R 2 0 0 5
2005 2004
Notes €m €m
Assets
Cash and balances at central banks 10 566.7 363.2
Loans and advances to banks 11 6,253.6 5,847.4
Loans and advances to customers 12 34,099.0 23,723.8
Securitised assets 14 322.0 666.0
Less: non-returnable proceeds 14 (307.0) (634.8)
15.0 31.2
Debt securities 15 4,933.1 2,534.4
Equity shares 16 46.7 26.1
Intangible fixed assets - goodwill 18 65.5 69.6
Tangible fixed assets 19 88.9 59.4
Other assets 20 776.7 577.7
Prepayments and accrued income 474.3 439.4
47,319.5 33,672.2
Life assurance assets attributable to policyholders 22 944.1 667.6
Total assets 48,263.6 34,339.8
Liabilities
Deposits by banks 23 7,150.7 2,605.9
Customer accounts 24 25,159.7 19,546.0
Debt securities in issue 25 9,405.1 6,944.5
Proposed ordinary dividends 8 61.0 50.1
Other liabilities 26 433.1 255.6
Accruals and deferred income 457.3 392.0
Provisions for liabilities and charges 27 5.3 5.4
42,672.2 29,799.5
Capital resources
Subordinated liabilities 28 1,181.7 1,133.3
Perpetual capital securities 29 661.1 656.2
Equity and non-equity minority interests 30 692.4 843.4
2,535.2 2,632.9
Called up share capital 31 108.9 107.1
Share premium account 32 600.2 157.6
Other reserves 33 2.4 0.9
Profit and loss account 34 1,400.6 974.2
Total shareholders’ funds including non-equity interests 2,112.1 1,239.8
Total capital resources 4,647.3 3,872.7
47,319.5 33,672.2
Life assurance liabilities attributable to policyholders 22 944.1 667.6
Total liabilities and capital resources 48,263.6 34,339.8
Memorandum items
Contingent liabilities
Guarantees 36 2,169.5 910.4
Commitments
Commitments to lend 36 6,011.0 4,055.0

40
Company balance sheet

A S AT 3 0 S E P T E M B E R 2 0 0 5
2005 2004
Notes €m €m
Assets
Cash and balances at central banks 10 558.2 345.3
Loans and advances to banks 11 4,693.0 4,844.8
Loans and advances to customers 12 33,392.2 22,495.7
Securitised assets 14 322.0 666.0
Less: non-returnable proceeds 14 (307.0) (634.8)
15.0 31.2
Debt securities 15 4,921.6 2,523.4
Equity shares 16 11.4 3.2
Investments in Group undertakings 17 612.9 602.0
Intangible fixed assets - goodwill 18 0.4 0.4
Tangible fixed assets 19 28.2 20.5
Other assets 20 398.5 236.9
Prepayments and accrued income 420.1 350.1
Total assets 45,051.5 31,453.5
Liabilities
Deposits by banks 23 9,667.5 4,629.0
Customer accounts 24 22,320.5 17,437.8
Debt securities in issue 25 9,226.2 6,748.9
Proposed ordinary dividends 8 61.0 50.1
Other liabilities 26 397.6 235.2
Accruals and deferred income 398.0 267.2
Provisions for liabilities and charges 27 0.2 0.2
42,071.0 29,368.4
Capital resources
Subordinated liabilities 28 1,181.7 1,133.3
Called up share capital 31 108.9 107.1

Share premium account 32 600.2 157.6
Other reserves 33 1.3 1.3
Profit and loss account 34 1,088.4 685.8
Total shareholders’ funds including non-equity interests 1,798.8 951.8
Total capital resources 2,980.5 2,085.1
Total liabilities and capital resources 45,051.5 31,453.5
Memorandum items
Guarantees 36 2,140.1 873.1
Commitments
Commitments to lend 36 4,837.4 3,098.3

Consolidated cash flow statement

2005 2004
Note €m €m
Reconciliation of operating profit to net operating cash flows

Operating profit 685.2 504.1
Increase in accruals and deferred income 56.7 124.8
Increase in prepayments and accrued income (27.3) (178.6)
Financing costs of subordinated liabilities 45.7 32.2
Financing costs of perpetual capital securities 53.2 52.8
Interest earned on debt securities and other fixed income securities (101.5) (48.3)
Amortisation of premiums and discounts on debt securities (8.7) (2.1)
Provisions for bad and doubtful debts 29.4 19.1
Loans and advances written off net of recoveries (10.2) (11.7)
Depreciation and goodwill amortisation 15.2 14.6
Profit on disposal of debt securities and equity shares (6.8) (0.3)
Net cash flow from trading activities 730.9 506.6
Net increase in deposits 12,619.1 6,670.8

Net increase in loans and advances to customers (10,378.2) (6,463.0)
Net increase in loans and advances to banks (667.6) (1,561.3)
Net increase in other assets (195.9) (160.1)
Net increase/(decrease) in other liabilities 174.6 (8.2)
Exchange and other movements 12.0 (1.6)
Net cash flow from operating activities 2,294.9 (1,016.8)
Returns on investment and servicing of finance 37 (50.7) (57.2)

Tax paid (134.2) (104.1)
Capital expenditure and financial investment 37 (2,442.5) (1,225.2)
Acquisitions and disposals 37 (5.8) -
Equity dividends paid (51.2) (49.9)
Financing 37 331.6 1,303.7
Decrease in cash 37 (57.9) (1,149.5)
42
Statement of total recognised gains and losses

2005 2004
€m €m
Group profit attributable to ordinary shareholders 491.0 379.4

Investment properties revaluation 1.5 -
Total recognised gains since last annual report 492.5 379.4
Reconciliation of movements in shareholders’ funds

2005 2004
€m €m
Group profit attributable to ordinary shareholders 491.0 379.4
Dividends on ordinary shares (91.4) (75.2)
399.6 304.2
Preference shares issued 431.6 -
Ordinary shares issued in lieu of cash dividends 29.3 21.0
Ordinary share options exercised 12.8 4.2
Investment properties revaluation 1.5 -
Net movement in own shares (2.5) (0.8)
Net addition to shareholders’ funds 872.3 328.6
Opening shareholders’ funds 1,239.8 911.2
Closing shareholders’ funds 2,112.1 1,239.8
Equity interests 1,680.5 1,239.8

Non-equity interests 431.6 -
Closing shareholders’ funds 2,112.1 1,239.8
Note of historical cost profit and loss

There is no significant difference between the results as disclosed in the profit and loss account and the results on an unmodified
historical cost basis.
Notes to the financial statements
1. Accounting policies
These financial statements have been prepared under the historical cost convention as modified by the revaluation of financial
instruments held for dealing purposes, assets attributable to policyholders’ interests in the assurance business and investment
properties. The financial statements comply with applicable accounting standards issued by the Accounting Standards Board and
Statements of Recommended Practice issued by the British Bankers’ Association and the Irish Bankers’ Federation. Accounting
policies are reviewed regularly to ensure that they are the most appropriate to the circumstances of the Group for the purposes of
giving a true and fair view.
There have been no changes in accounting policies since last year. The principal accounting policies adopted are as follows:
a) Consolidation
The consolidated financial statements include the accounts of the Company and all its Group undertakings to 30 September 2005.
Where a subsidiary undertaking is acquired during the financial year, the consolidated accounts include the attributable results from
the date of acquisition up to the end of the financial year.
In order to reflect the different nature of the policyholders’ interests in the assurance business, the assets and liabilities attributable
to policyholders are classified separately in the consolidated balance sheet. All intergroup transactions and balances are eliminated on
consolidation with the exception of transactions and balances between the banking business and policyholders of the life assurance
business.
b) Provisions for bad and doubtful debts

Loans and advances are stated in the balance sheet after deduction of provisions for bad and doubtful debts. The provisions arise as
a result of a detailed appraisal of the lending portfolio. Specific provisions are made on a case-by-case basis to reduce the carrying
value of each case to its expected net realisable value after taking into account factors such as the financial condition of the
borrower, security held and costs of realisation. A general provision is also made to cover latent loan losses which are present in any
lending portfolio but which have not been specifically identified.
Loans and advances are written off when there is no longer any realistic prospect of recovery. The charge to the profit and loss
account reflects new provisions made during the year, plus write-offs not previously provided for, less existing provisions no longer
required and recoveries of bad debts already written off.
c) Income recognition
Interest on loans and advances is accounted for on an accruals basis. Interest is not taken to profit where recovery is doubtful.
Credit has been taken for finance charges on instalment credit and finance leasing accounts by spreading the income on each
contract over the primary period of the agreement by the sum of digits method, save that an amount equivalent to the set-up costs
on each agreement is credited to income at the date of acceptance. The finance charges on certain tax-based finance leases are
credited to income on an after-tax actuarial basis.
Lending arrangement fees are recognised as income when receivable except when they are charged in lieu of interest in which case
they are credited to income over the contractual life of the loan. Other fees arising on development loans are recognised upon
practical completion of the underlying development.
All other fees and commissions which represent a return for services provided or risk borne are credited to income over the period
during which the service is performed or the risk is borne as appropriate.
d) New business costs

Initial costs of obtaining new business have been charged in arriving at the profit for the year except in the case of introductory
commission paid on instalment credit and finance leasing agreements which is charged against revenue over the primary period of
each agreement by the sum of digits method.
44
Notes to the financial statements continued
1. Accounting policies continued
e) Debt securities
Debt securities are held for investment purposes. Premiums and discounts on debt securities having a fixed redemption date are
amortised over the period from the date of purchase to the date of maturity. These investments are included in the balance sheet at
amortised cost. Gains and losses arising on the realisation of debt securities, net of amortisation adjustments, are taken to the profit
and loss account as and when realised.
Debt securities may be lent or sold subject to a commitment to repurchase them. Securities sold are retained on the balance sheet
where substantially all the risks and rewards of ownership remain with the Group.
f) Tangible fixed assets and depreciation

Tangible fixed assets other than investment properties are stated at cost and depreciation is provided on a straight line basis over
their expected useful lives as follows:
Freehold properties 2% per annum

Fixtures and fittings 12.5% to 25% per annum
Computer equipment and software 25% per annum
Motor vehicles 20% per annum
Leasehold properties are depreciated on a straight line basis over the shorter of twenty years or the period of the lease or the
period to the first break clause date in the lease. Only external costs incurred on computer software development are capitalised.
Investment properties are included in the balance sheet at their open market value. No depreciation is charged on freehold
investment properties in accordance with the requirements of Statement of Standard Accounting Practice 19-‘Accounting for
Investment Properties’. This is a departure from the requirements of the European Communities (Credit Institutions:Accounts)
Regulations, 1992. The Directors consider that the depreciation policy adopted for investment properties is necessary for the
accounts to give a true and fair view.
g) Deferred taxation
Except as outlined below full provision is made for deferred taxation in respect of all timing differences that have originated but
not reversed. Deferred tax assets are recognised to the extent that they are expected to be recovered. Calculations are on an
undiscounted basis using taxation rates expected to apply when timing differences reverse.
Deferred taxation is not provided in respect of timing differences arising from the sale of investment properties at their revalued
amount unless, by the balance sheet date, there is a binding agreement to sell the revalued assets. Deferred taxation is not provided
on the potential additional tax that may be payable on the payment of a dividend by a subsidiary where no commitment has been
made to pay a dividend.
h) Foreign currencies
Assets and liabilities denominated in foreign currencies and commitments for the purchase and sale of foreign currencies are
translated into Euro at the appropriate spot and forward rates of exchange ruling at the balance sheet dates. Profits and losses in
foreign currencies are translated into Euro at the closing rates of exchange or at hedge rates where appropriate.
Exchange differences, net of hedging gains and losses, which arise from the application of closing rates of exchange to the opening
net assets held in foreign currencies are recorded as exchange translation adjustments on reserves.
All other exchange profits and losses, which arise from normal trading activities, are included in the profit and loss account.
i) Goodwill
Purchased goodwill represents the excess of the purchase consideration over the fair value ascribed to the net tangible assets
acquired. Purchased goodwill arising on acquisitions on or after 1 October 1998 is capitalised as an intangible asset and amortised
over the estimated useful economic lives of these acquisitions, subject to a maximum period of twenty years. Prior to that date
purchased goodwill had been written off against reserves in the year of acquisition. The carrying value of goodwill is reviewed for
impairment if events or changes in circumstances indicate that the carrying value may not be recoverable.
j) Capital instruments
The issue expenses of capital instruments other than equity and non-equity shares are deducted from the proceeds of issue and,
where appropriate, are amortised in the profit and loss account so that the finance costs are allocated to accounting periods over
the economic life of these instruments at a constant rate based on their carrying amount. The issue expenses of equity and
non-equity capital instruments with an indeterminate economic life are not amortised.
Premiums arising on the issue of equity and non-equity shares are credited to the share premium account. Premiums and discounts
arising on the issue of other non-equity capital instruments are included as part of the balance sheet liability and are amortised in
the profit and loss account over the economic life of these instruments at a constant rate based on their carrying amount.
k) Derivatives
Derivative instruments used for trading purposes include swaps, futures, forwards, forward rate agreements and options in the
interest rate and foreign exchange markets. These derivatives, which include all customer and proprietary transactions together with
any associated hedges, are measured at fair value. Income earned on customer transactions is included in fees and commissions
receivable. Other gains and losses are included in dealing profits.Where market prices are not readily available internally generated
prices are used. These prices are calculated using recognised formulae for the type of transaction. Unrealised gains and losses are
reported gross in other assets or other liabilities after allowing for the effects of qualifying netting agreements where the Group has
the right to insist on net settlement that would survive the insolvency of the counterparty.
Derivative instruments used for hedging purposes include swaps, futures, forwards, forward rate agreements and options in the
interest rate, foreign exchange and equity markets. Gains and losses on these derivatives which are entered into for specifically
designated hedging purposes are taken to the profit and loss account in accordance with the accounting treatment of the underlying
transaction. Profits and losses related to qualifying hedges of firm commitments and anticipated transactions are deferred and taken
to the profit and loss account when the hedged transactions occur.
The criteria required for an instrument to be classified as a designated hedge are:

(i) Adequate evidence of the intention to hedge must be established at the outset of the transaction.
(ii) The transaction must match or eliminate a proportion of the risk inherent in the assets, liabilities, positions or cash flows being
hedged. Changes in the derivative’s fair value must be highly correlated with changes in the fair value of the underlying hedged
item for the entire life of the contract.
Where these criteria are not met transactions are measured at fair value.
Hedge transactions which are superseded, cease to be effective or are terminated early are measured at fair value. Any profit or loss
arising is deferred and reported in other assets or other liabilities. This profit or loss is amortised over the remaining life of the
asset, liability, position or cash flow which had previously been hedged.
When the underlying asset, liability or position is terminated, or an anticipated transaction is no longer likely to occur, the hedging
transaction is measured at fair value and any profit or loss arising is recognised in full in dealing profits. The unrealised profit or loss
is reported in other assets or other liabilities.
46
1. Accounting policies continued
l) Operating leases
Rentals on operating leases are charged to the profit and loss account in equal instalments over the lease term.
m) Trading properties
Trading properties are held for resale and are stated at the lower of cost and net realisable value.
n) Securitised assets
Assets sold under securitisation arrangements whereby the Group retains significant rights to benefits but where its maximum loss is
limited to a fixed monetary amount are included in the balance sheet at their gross amount less the non-returnable proceeds
received on securitisation using a linked presentation. The contribution earned from securitised assets is included in other operating
income.
o) Equity shares
Investments in equity shares and other similar instruments are stated at cost less provisions for permanent diminution in value.The
Group has made investments where its interest is 20% or more. The results of these undertakings are not equity accounted in the
Group results as these interests form part of an investment portfolio.
p) Pensions
The Group’s contributions to defined benefit pension schemes are based on the recommendations of an independent qualified
actuary and are charged in the profit and loss account so as to spread pension costs over eligible employees’ service lives at stable
contribution rates.Variations from the regular cost are spread over the average remaining service life of the relevant employees. The
costs of the Group’s defined contribution pension schemes are charged in the profit and loss account in the year in which these
costs are incurred. Differences between the amounts funded and the amounts charged in the profit and loss account are treated as
either provisions or prepayments in the balance sheet.
q) Dividends
Dividends proposed after the year end are recorded as a liability at the balance sheet date in accordance with applicable Irish
legislation.
Scrip dividends are initially recorded at the cash amount as an appropriation in the profit and loss account.When scrip shares are
issued in place of dividends the cash equivalent, net of dividend withholding tax where applicable, is written back to retained profits.
Shares issued in lieu are set-off against the share premium account.
r) Share options
When share options are granted to employees the charge expensed to the profit and loss account is the difference between the
market value of the shares at the time the grant invitations are made and the payments due from employees. Under the terms of the
Group’s Save As You Earn (‘SAYE’) schemes employees may have the option to purchase shares at a discount to the market price at
the time these options are granted. In accordance with the exemption for SAYE schemes permitted by Urgent Issue Task Force 17
this discount to the market price is not expensed to the profit and loss account.
All non-SAYE options have been granted at the market price on the invitation date so no share option expense has occurred.
s) Own shares
The cost of shares in the parent Company held by employee share trusts which have not vested unconditionally in the employees is
deducted in arising at consolidated shareholders’ funds. Dividend income received on these shares is excluded in arriving at Group
profit before taxation and deducted from the aggregate of dividends paid and proposed. Shares held by these employee share trusts
are excluded from the earnings per share calculations.
t) Fiduciary and trust activities

The Group acts as trustee and in other fiduciary capacities that result in the holding or placing of assets on behalf of individuals, unit
trusts, investment trusts and pension schemes. These assets are not consolidated in the accounts as the Group does not have
beneficial ownership. Fees and commissions earned in respect of these activities are included in the profit and loss account.
2. Administrative expenses 2005 2004
€m €m
Staff costs:
Wages and salaries 138.2 97.3
Social welfare costs 16.7 10.6
Pension costs 10.1 9.5
Other staff costs 2.0 2.6
167.0 120.0
Other administrative costs 80.2 65.4
247.2 185.4
The average number of persons employed by the Group during the year,
analysed by geographic location, was as follows: 2005 2004
Republic of Ireland 740 691

United Kingdom and Isle of Man 393 327
Rest of the World 190 143
1,323 1,161
3. Group profit on ordinary activities before taxation 2005 2004

€m €m
The Group profit on ordinary activities before taxation is arrived at
after charging:
Auditors’ remuneration 0.7 0.6

Depreciation of tangible fixed assets 11.1 10.5
Amortisation of intangible fixed assets – goodwill 4.1 4.1
Operating lease rentals – property 9.0 8.0
– equipment 2.3 1.4
Financing costs of subordinated liabilities 45.7 32.2
Financing costs of perpetual capital securities 53.2 52.8
and after crediting:
Income from listed investments 93.1 50.4

Income from unlisted investments 17.1 -
Finance leasing and hire purchase income 32.8 32.7
Profit on disposal of investment securities – debt securities 4.3 0.3
– equity shares 2.5 -
Dealing profits – interest rate contracts 7.9 7.4
– foreign exchange contracts 8.1 5.4
The Group profit on ordinary activities before taxation is not materially affected by the results of acquisitions or discontinued
operations during the year.
48
4. Taxation on profit on ordinary activities 2005 2004

€m €m
Current tax
Irish Corporation Tax – current year 80.1 56.2
– prior years (1.5) 0.1
Double taxation relief (23.9) (19.2)
Irish Bank Levy 5.2 5.2
Foreign tax – current year 85.3 65.8
– prior years (2.3) (0.1)
142.9 108.0
Deferred tax
Current year (2.7) (0.3)
140.2 107.7
Effective tax rate 20.5% 21.4%
The deferred tax credit arising from the origination and reversal of timing differences was 2005 2004
as follows: €m €m
Leased assets (3.6) 0.7

Other timing differences 0.9 (1.0)
(2.7) (0.3)
The reconciliation of current tax on profits on ordinary activities at the standard Irish
Corporation Tax rate to the Group’s actual current tax charge is analysed as follows:
Profit on ordinary activities before taxation at 12.5% 85.7 63.0

Effects of:
Foreign earnings subject to different rates of tax 50.6 38.5
Irish Bank Levy 5.2 5.2
Leasing rentals in excess of capital allowances 3.6 (0.7)
Prior years (3.8) -
Other 1.6 2.0
Current tax 142.9 108.0
In 2003 the Irish Government introduced a levy based on the domestic deposit taking business of Irish banks and building
societies. The Group’s share of this levy is €5.2m per annum for the three years to 31 December 2005. The Government
indicated that the levy will not be continued beyond 2005.
5. Minority interests 2005 2004

€m €m
The profit attributable to minority interests is analysed as follows:
Non-equity interests (Note 30) 44.7 16.2

Equity interests 1.1 0.8
45.8 17.0
6. Dividends on preference shares 2005 2004

€m €m
Accrued dividend on preference shares 8.2 -
7. Group profit attributable to ordinary shareholders
€465.1m (2004: €331.7m) of the Group profit attributable to ordinary shareholders is dealt with in the accounts of the parent
undertaking. As permitted by Regulation 5 (2) of the European Communities (Credit Institutions:Accounts) Regulations, 1992 a
separate profit and loss account for the parent undertaking has not been presented.
8. Dividends on €0.16 ordinary shares 2005 2004

€m €m
Paid
Interim dividend of 4.51c per share (2004: 3.76c) 30.4 25.1
Proposed
Final dividend of 9.03c per share (2004: 7.52c) 61.0 50.1
91.4 75.2
In accordance with the scrip dividend scheme, shares to the value of €29.3m (2004: €21.0m) were issued in lieu of dividends.
This amount has been added to the profit and loss account reserve (Note 34). The comparative dividends per share have been
adjusted for the two-for-one share split on 22 April 2005.
9. Earnings per €0.16 ordinary share
The calculation of basic earnings per share is based on the Group profit of €491.0m (2004: €379.4m) which is after taxation,
minority interests and preference dividends and on the weighted average number of equity shares in issue of 670.7m (2004:
662.6m). In accordance with Financial Reporting Standard 14 – ‘Earnings per Share’, dividends arising on shares held by employee
share trusts (Note 35) are excluded in arriving at profit before taxation and deducted from the aggregate of dividends paid and
proposed. The weighted average number of shares held by the trusts are excluded from the earnings per share calculations. The
effect of options granted under the employee share option and SAYE schemes is to increase the weighted average number of
equity shares for the calculation of diluted earnings per share by 13.7m (2004: 12.6m) to 684.4m (2004: 675.2m). The
comparative earnings per share calculations have been adjusted for the two-for-one share split on 22 April 2005.
10. Cash and balances at central banks
These amounts include only those balances at central banks which may be withdrawn without notice.
11. Loans and advances to banks The Group The Company

2005 2004 2005 2004
€m €m €m €m
Repayable on demand 682.1 943.5 554.6 868.9

Other loans and advances to banks
Analysed by remaining maturity:
Three months or less 3,649.1 3,574.5 2,224.3 2,920.7
One year or less but over three months 1,599.4 1,106.6 1,610.3 845.3
Five years or less but over one year 323.0 222.8 303.8 209.9
6,253.6 5,847.4 4,693.0 4,844.8
Amounts include:
Due from Group undertakings 40.2 -
50
12. Loans and advances to customers The Group The Company

2005 2004 2005 2004
€m €m €m €m
Amounts receivable under finance leases 144.4 172.4 116.5 166.6

Amounts receivable under hire purchase contracts 323.4 289.5 106.2 105.9
Other loans and advances to customers 33,631.2 23,261.9 33,169.5 22,223.2
34,099.0 23,723.8 33,392.2 22,495.7
Amounts include:
Due from Group undertakings 2,392.7 876.1
Remaining maturity analysis:

Repayable on demand 4,528.4 3,957.9 6,343.3 4,549.4
One year or less but over three months 6,392.4 3,687.2 5,557.8 3,250.3
Five years or less but over one year 13,702.1 8,896.7 12,613.2 8,119.3
Over five years 6,701.2 4,875.9 6,319.4 4,480.1
34,408.4 24,012.8 33,680.4 22,765.3
Provisions for bad and doubtful debts (309.4) (289.0) (288.2) (269.6)
34,099.0 23,723.8 33,392.2 22,495.7
There are no significant concentrations of loans and advances to customers by individual sector or industry. A geographic
analysis is included in Note 40. The cost of assets acquired by the Group during the year for letting under finance leases and
hire purchase contracts amounted to €269.2m (2004: €286.6m).
13. Provisions for bad and doubtful debts The Group The Company
2005 2004 2005 2004
€m €m €m €m
At beginning of year 289.0 280.6 269.6 261.1

Exchange movements 1.2 1.0 1.1 0.7
Charge against profits – specific 29.4 19.1 27.1 18.5
Write-offs (12.6) (12.3) (11.9) (11.1)
Recoveries of previous write-offs 2.4 0.6 2.3 0.4
At end of year 309.4 289.0 288.2 269.6
Specific 77.0 57.8 73.7 56.2

General 232.4 231.2 214.5 213.4
Total 309.4 289.0 288.2 269.6
Non-performing loans 186.8 148.3 172.5 137.2
Non-performing loans are loans and advances on which interest is no longer being credited to the profit and loss account.
14. Securitised assets 2005 2004

€m €m
Securitised assets 322.0 666.0

Less: non-returnable proceeds (307.0) (634.8)
15.0 31.2
Anglo Irish Bank Corporation plc (‘Anglo’) sold portfolios of commercial investment property loans from its United Kingdom
loan book to Monument Securitisation (CMBS) No. 1 plc and Monument Securitisation (CMBS) No. 2 Limited (‘the Monument
companies’) in September 2000 and June 2002 respectively. The Group does not own directly or indirectly any of the share
capital of the Monument companies or their parent companies.
Anglo receives fee income for continuing to administer the loans under the terms of servicing agreements with the Monument
companies. The Monument companies funded these transactions by issuing mortgage-backed notes, the lowest ranking of which
were purchased by Anglo. The issue terms of the notes include provisions whereby neither the Monument companies nor the
noteholders have recourse to the Group and no Group Company is obliged or intends to support any losses of the Monument
companies or the noteholders should they arise. Anglo is not obliged to repurchase any of the assets from the Monument
companies. The Monument companies entered into certain interest rate hedges to manage their interest rate positions. These
contracts were entered into with third party banks.
The contribution earned by the Group during the year in respect of securitised assets is included in other operating income and
is analysed as follows:
2005 2004
€m €m
Interest receivable 34.3 49.8

Interest payable (30.2) (41.7)
Fee income 0.6 0.4
Operating expenses (1.6) (2.0)
Contribution from securitised assets 3.1 6.5
On 7 February 2005 the Group exercised its option to repurchase the remaining mortgages outstanding on Monument
Securitisation (CMBS) No. 1 plc. The balances on these mortgages had reduced to €122.2m at the time of repurchase.
52
15. Debt securities 2005 2004

Book Market Book Market
Value Value Value Value
€m €m €m €m
The Group
Listed:
Government stocks 224.6 233.1 166.4 177.3
Other listed public bodies 10.0 10.0 12.4 12.5
Private sector investments 4,097.3 4,117.5 2,355.6 2,378.4
4,331.9 4,360.6 2,534.4 2,568.2
Unlisted:
Bank and building society certificates of deposit 601.2 601.7 - -
4,933.1 4,962.3 2,534.4 2,568.2
Due within one year 1,986.1 669.5

Due one year and over 2,947.0 1,864.9
4,933.1 2,534.4
The Company
Listed:
Government stocks 215.7 224.1 156.8 167.2
Other listed public bodies 10.0 10.0 12.4 12.5
Private sector investments 4,094.7 4,114.4 2,354.2 2,376.9
4,320.4 4,348.5 2,523.4 2,556.6
Unlisted:
Bank and building society certificates of deposit 601.2 601.7 - -
4,921.6 4,950.2 2,523.4 2,556.6
Due within one year 1,977.3 666.6

Due one year and over 2,944.3 1,856.8
4,921.6 2,523.4
Market value is market price for quoted securities and Directors’ estimate for unquoted securities. At 30 September 2005 the
amount of unamortised premiums net of discounts on debt securities held as financial fixed assets was €1.0m (2004: €8.5m net
discounts) for the Group and €1.1m (2004: €8.5m net discounts) for the Company. At 30 September 2005 debt securities held
by the Group and the Company subject to repurchase agreements amounted to €1,625.8m (2004: €379.7m).
16. Equity shares The Group The Company

2005 2004 2005 2004
€m €m €m €m
Equity shares and other similar instruments
Unlisted investments at cost less amounts written off

Held as financial fixed assets 46.7 26.1 11.4 3.2
In the opinion of the Directors the value of the individual unlisted investments is not less than their book amount.
17. Investments in Group undertakings 2005 2004

€m €m
Investments in subsidiary undertakings at cost less amounts written off 612.9 602.0
Principal subsidiary undertakings Principal activity Country of registration

Anglo Irish Asset Finance plc Finance United Kingdom
Anglo Irish Asset Management Limited Fund management Republic of Ireland
Anglo Irish Assurance Company Limited Life assurance and pensions Republic of Ireland
Anglo Irish Bank (Austria) A.G. Banking Austria
Anglo Irish Bank Corporation (I.O.M.) P.L.C. Banking Isle of Man
Anglo Irish Bank (Suisse) S.A. Banking Switzerland
Anglo Irish Capital Funding Limited Finance Cayman Islands
Anglo Irish International Financial Services Limited Finance Republic of Ireland
Anglo Irish Limited Finance Isle of Man
Anglo Irish Property Lending Limited Finance United Kingdom
Anglo Irish Trust Company Limited Trust services Isle of Man
Buyway Group Limited Investment holding Republic of Ireland
CDB (U.K.) Limited Investment holding United Kingdom
Irish Buyway Limited Finance Republic of Ireland
Knightsdale Limited Finance Republic of Ireland
Sparta Financial Services Finance Republic of Ireland
Steenwal B.V. Investment holding The Netherlands
Anglo Aggmore Limited Partnership Property United Kingdom
Anglo Irish Capital UK Limited Partnership Finance United Kingdom
All of the Group undertakings are included in the consolidated accounts. The Group holds 75% of the capital contributed to the
Anglo Aggmore Limited Partnership. The capital contributors earn a return of 10% per annum on their capital and thereafter the
Group is entitled to 50% of the remaining profits of this partnership. The Group is the general partner of Anglo Irish Capital UK
Limited Partnership.
The Group owns all of the issued ordinary share capital of each of the other subsidiary undertakings listed. Each subsidiary
undertaking operates principally in the country in which it is registered. A complete listing of Group undertakings will be
annexed to the annual return of the Company in accordance with the requirements of the Companies Acts. Investments in
certain subsidiary undertakings operating as credit institutions are not directly held by the parent undertaking.
54
18. Intangible fixed assets – goodwill The The

Group Company
€m €m
Cost
At 1 October 2004 and 30 September 2005 82.9 0.6
Accumulated amortisation
At 1 October 2004 13.3 0.2
Charge for the year 4.1 -
At 30 September 2005 17.4 0.2
Net book value

At 30 September 2005 65.5 0.4
At 30 September 2004 69.6 0.4
The goodwill arising on acquisitions completed after 30 September 1998 is amortised in equal instalments over its estimated
useful economic life of twenty years. The cumulative amount of positive goodwill which has been eliminated against reserves to
30 September 1998, net of goodwill attributable to disposed businesses, amounted to €47.2m. This goodwill was eliminated as a
matter of accounting policy [see Note 1(i)].
19. Tangible fixed assets Freehold Equipment

investment Freehold Leasehold and motor
The Group properties properties properties vehicles Total
€m €m €m €m €m
Cost or valuation
At 1 October 2004 25.3 5.1 12.5 60.8 103.7
Exchange movement 0.2 - - 0.1 0.3
Additions 12.6 - 11.9 14.6 39.1
Disposals - - (0.3) (1.3) (1.6)
Revaluation 2.6 - - - 2.6
Writedown (1.0) - - - (1.0)
At 30 September 2005 39.7 5.1 24.1 74.2 143.1
Accumulated depreciation
At 1 October 2004 - 0.9 4.8 38.6 44.3
Charge for the year - 0.1 1.7 9.3 11.1
Disposals - - (0.3) (0.9) (1.2)
At 30 September 2005 - 1.0 6.2 47.0 54.2
Net book value

At 30 September 2005 39.7 4.1 17.9 27.2 88.9
At 30 September 2004 25.3 4.2 7.7 22.2 59.4
19. Tangible fixed assets continued Equipment

Leasehold and motor
The Company properties vehicles Total
€m €m €m
Cost
At 1 October 2004 11.7 39.5 51.2
Exchange movement - 0.1 0.1
Additions 1.6 12.4 14.0
Disposals (0.3) (1.0) (1.3)
At 30 September 2005 13.0 51.0 64.0
Accumulated depreciation
At 1 October 2004 4.6 26.1 30.7
Charge for the year 0.9 5.0 5.9
Disposals (0.2) (0.6) (0.8)
At 30 September 2005 5.3 30.5 35.8
Net book value

At 30 September 2005 7.7 20.5 28.2
At 30 September 2004 7.1 13.4 20.5
The open market value of the freehold investment properties is estimated by the Directors at €39.7m (2004: €25.3m). All of
the Group’s leasehold properties are in respect of leases with a duration of less than fifty years. The Group occupies properties
with a net book value of €16.0m (2004: €11.9m) in the course of carrying out its own activities. As at 30 September 2005 the
Group had annual commitments under non-cancellable operating leases as set out below.
Property Equipment
€m €m
Operating leases which expire:
Within one year - 0.2

One to five years 2.0 2.0
Over five years 8.2 1.0
10.2 3.2
56
20. Other assets The Group The Company

2005 2004 2005 2004
€m €m €m €m
Foreign exchange and interest rate contracts 371.2 214.6 362.0 207.4
Trading properties 366.1 326.4 - -
Deferred taxation (Note 21) 37.6 34.5 35.5 28.3
Sundry debtors 1.8 2.2 1.0 1.2
776.7 577.7 398.5 236.9
21. Deferred taxation The Group The Company

2005 2004 2005 2004
€m €m €m €m

Credit for year 2.7 0.3 4.8 0.8
Group transfer - - 2.2 -
Exchange movement and other adjustments 0.4 0.3 0.2 0.3
At end of year 37.6 34.5 35.5 28.3
Analysis of deferred taxation:

General bad debt provisions 44.2 43.9 39.8 39.6
Capital allowances on assets leased to customers (7.5) (11.1) (6.2) (12.7)
Other timing differences 0.9 1.7 1.9 1.4
37.6 34.5 35.5 28.3
It is estimated that a taxation liability of €0.4m would arise if the freehold investment properties were sold at their open
market value on 30 September 2005. This potential tax liability has not been recognised in the financial statements. No deferred
taxation has been provided on the unremitted profits of foreign subsidiaries. As these profits are continually reinvested by the
Group, no tax is expected to be payable on them in the foreseeable future.
22. Life assurance business
The assets and liabilities attributable to policyholders are classified separately in the consolidated balance sheet. The life
assurance assets attributable to policyholders consist of:
2005 2004
€m €m
Property 413.0 255.9

Cash 241.3 228.1
Equities 147.9 125.1
Managed funds 141.9 58.5
944.1 667.6
At 30 September 2005 the above life assurance assets attributable to policyholders included 894,369 (2004: 682,880 after
adjusting for the two-for-one share split) ordinary shares in Anglo Irish Bank Corporation plc with a market value of €10.1m
(2004: €5.0m). The Group has no beneficial interest in these shares.
23. Deposits by banks The Group The Company

2005 2004 2005 2004
€m €m €m €m
Repayable on demand 21.3 21.4 291.4 302.3

Other deposits by banks with agreed maturity dates
One year or less but over three months 133.9 30.5 263.8 30.5
Over five years - - - 2.9
7,150.7 2,605.9 9,667.5 4,629.0
Amounts include:
Due to Group undertakings 2,537.1 2,033.2
24. Customer accounts The Group The Company

2005 2004 2005 2004
€m €m €m €m
Repayable on demand 2,893.5 3,768.9 1,403.2 2,354.6

Other deposits by customers with agreed maturity dates or
Periods of notice analysed by remaining maturity:
One year or less but over three months 1,625.2 1,843.1 1,476.0 1,747.8
Over five years 130.5 87.9 128.4 86.5
25,159.7 19,546.0 22,320.5 17,437.8
Amounts include:
Due to Group undertakings 212.9 189.3
58
25. Debt securities in issue The Group The Company

2005 2004 2005 2004
€m €m €m €m
Medium term note programme 5,795.0 4,524.2 5,795.0 4,524.2

Other debt securities in issue:
Commercial paper programme 1,824.3 1,223.8 1,824.3 1,223.8
Certificates of deposits 1,547.2 990.9 1,547.2 990.9
Other 238.6 205.6 59.7 10.0
9,405.1 6,944.5 9,226.2 6,748.9
Medium term note programme
Three months or less 543.3 295.3 543.3 295.3
One year or less but over three months 819.9 1,228.5 819.9 1,228.5
Five years or less but over one year 4,429.8 3,000.4 4,429.8 3,000.4
Over five years 2.0 - 2.0 -
Other debt securities in issue
One year or less but over three months 297.3 373.2 277.3 366.6
Five years or less but over one year - 10.0 - 10.0
9,405.1 6,944.5 9,226.2 6,748.9
26. Other liabilities The Group The Company

2005 2004 2005 2004
€m €m €m €m
Foreign exchange and interest rate contracts 351.7 187.2 342.8 180.3
Current taxation 57.2 48.5 31.7 41.4
Deferred acquisition consideration - 5.8 - -
Sundry liabilities 24.2 14.1 23.1 13.5
433.1 255.6 397.6 235.2
27. Provisions for liabilities and charges The Group The Company
2005 2004 2005 2004
€m €m €m €m
Pension provisions 5.1 5.2 - -

Other provisions for liabilities and charges 0.2 0.2 0.2 0.2
5.3 5.4 0.2 0.2
The pension provisions relate to an unfunded defined contribution plan for the Group’s Austrian employees. This scheme is
administered in accordance with best local practice and regulations in Austria.
28. Subordinated liabilities 2005 2004

€m €m
US$20m 9.1% Subordinated Notes 2006 16.6 16.1

US$15m 9.05% Subordinated Notes 2009 (a) - 12.1
US$100m 8.53% Subordinated Notes 2011 (b) - 80.5
US$25m Floating Rate Subordinated Notes 2011 (c) - 20.1
€150m Floating Rate Subordinated Notes 2011 (d) 149.9 149.7
€750m Floating Rate Subordinated Notes 2014 (e) 747.0 746.2
US$165m Subordinated Notes Series A 2015 (f) 136.7 -
US$35m Subordinated Notes Series B 2017 (g) 29.0 -
Stg£50m Undated Subordinated Notes (h) 73.3 72.7
Other subordinated liabilities 29.2 35.9
1,181.7 1,133.3
Repayable as follows:
One year or less 28.8 6.7
Between one and two years 7.7 28.3
Between two and five years 9.3 29.1
Over five years 1,135.9 1,069.2
1,181.7 1,133.3
All of the above issues have been issued by the Parent Bank and are unsecured and subordinated in the right of repayment
to the ordinary creditors, including depositors of the Bank.The prior approval of the Irish Financial Regulator is required to
redeem these issues prior to their final maturity date.There is no foreign exchange rate exposure as the proceeds of these
issues are retained in their respective currencies.
(a) The US$15m 9.05% Subordinated Notes 2009 were redeemed on 15 October 2004.
(b) The US$100m 8.53% Subordinated Notes 2011 were redeemed on 28 September 2005.
(c) The US$25m Floating Rate Subordinated Notes 2011 were redeemed on 28 September 2005 and bore interest at six
month LIBOR plus 1.5% per annum to 28 September 2005.
(d) The €150m Floating Rate Subordinated Notes 2011 bear interest at three month EURIBOR plus 1.7% per annum to
5 April 2006 and thereafter at three month EURIBOR plus 2.7% per annum.
(e) The €750m Floating Rate Subordinated Notes 2014 bear interest at three month EURIBOR plus 0.45% per annum to
25 June 2009 and thereafter at three month EURIBOR plus 0.95% per annum.
(f) The US$165m Subordinated Notes Series A 2015 were issued on 28 September 2005 and bear interest at 4.71% per
annum to 28 September 2010 and thereafter at three month LIBOR plus 0.92% per annum.
(g) The US$35m Subordinated Notes Series B 2017 were issued on 28 September 2005 and bear interest at 4.80% per
annum to 28 September 2012 and thereafter at three month LIBOR plus 0.93% per annum.
(h) Interest on the Stg£50m Undated Subordinated Notes is fixed at 9.875% per annum to 13 March 2006 and thereafter at the
then current five year gross redemption yield on United Kingdom government security plus 2.9% per annum, reset every
five years.
On 5 October 2005 the Parent Bank issued Stg£300m Cumulative Callable Fixed to Floating Rate Undated Subordinated
Securities (‘securities’).This issue raised Stg£296.2m net of discount and issue costs. Interest on these securities is fixed at 5.25%
per annum to 5 October 2015 and thereafter resets at three month LIBOR plus 1.68% per annum.
60
29. Perpetual capital securities The Group

2005 2004
€m €m
Stg£200m Step-up Callable Perpetual Capital Securities 291.6 289.2

Stg£250m Tier One Non-Innovative Capital Securities 369.5 367.0
661.1 656.2
On 28 June 2001 Anglo Irish Asset Finance plc (‘issuer’) issued Stg£200m 8.5325% Step-up Callable Perpetual Capital Securities
(‘securities’) at par value which have the benefit of a subordinated guarantee by Anglo Irish Bank Corporation plc (‘guarantor’).
The securities are perpetual securities and have no maturity date. However, they are redeemable in whole or in part at the
option of the issuer, subject to the prior approval of the Irish Financial Regulator and of the guarantor, at their principal amount
together with any outstanding payments on 28 June 2011 or on any coupon payment date thereafter.
The securities bear interest at a rate of 8.5325% per annum to 28 June 2011 and thereafter at a rate of 4.55% per annum above
the gross redemption yield on a specified United Kingdom government security, reset every five years. The interest is payable
semi-annually in arrears on 28 June and 28 December.
On 23 July 2002 Anglo Irish Asset Finance plc issued Stg£160m 7.625% Tier One Non-Innovative Capital Securities (‘TONICS’)
at an issue price of 99.362%. A further tranche of Stg£90m TONICS was issued on 21 March 2003 at an issue price of 106.378%
plus accrued interest. These issues also have the benefit of a subordinated guarantee by Anglo Irish Bank Corporation plc.
The TONICS are perpetual and have no maturity date. However, they are redeemable in whole but not in part at the option of
the issuer, subject to the prior approval of the Irish Financial Regulator and of the guarantor, at their principal amount together
with any outstanding payments on 23 July 2027 or on any coupon payment date thereafter.
Interest is payable annually in arrears on 23 July on the TONICS at a rate of 7.625% per annum until 23 July 2027. Thereafter,
the TONICS will bear interest at a rate of 2.4% per annum above six month LIBOR, payable semi-annually in arrears.
The rights and claims of the holders of the securities and the TONICS are subordinated to the claims of the senior creditors
of the issuer or of the guarantor (as the case may be) in that no payment in respect of the securities or the TONICS or the
guarantees in respect of them shall be due and payable except to the extent that the issuer or the guarantor (as applicable)
is solvent and could make such a payment and still be solvent immediately thereafter and the guarantor is in compliance with
applicable regulatory capital adequacy requirements. Upon any winding up of the issuer or the guarantor, the holders of the
securities and the TONICS will rank pari passu with the holders of preferred securities and preference shares issued by or
guaranteed by the issuer or the guarantor and in priority to all other shareholders of the issuer and of the guarantor.
30. Equity and non-equity minority interests The Group

2005 2004
€m €m
Equity interests in subsidiary undertakings 3.5 1.8
Non-equity interests in subsidiary undertakings:

€600m Perpetual Preferred Securities 588.5 588.5
US$125m Series A Preference Shares 100.4 97.5
€160m Series B Preference Shares - 155.6
692.4 843.4
On 30 September 2004 the limited partners of the Anglo Irish Capital UK Limited Partnership (‘issuer’) contributed capital in
the form of 600,000 Non-Voting Non-Cumulative Perpetual Preferred Securities (‘preferred securities’) of €1,000 each issued at
par. The preferred securities have the benefit of a subordinate guarantee by Anglo Irish Bank Corporation plc (‘guarantor’). The
issuer is a limited partnership organised under the laws of England and Wales and its general partner is Anglo Irish Capital GP
Limited, a wholly owned subsidiary of the guarantor. The transaction raised €588.5m net of issue costs.
The preferred securities are perpetual and have no repayment date. However, they are redeemable in whole, but not in part, at
the option of Anglo Irish Capital GP Limited and subject to the prior approval of the Irish Financial Regulator, at their issue price
together with any outstanding payments on 30 March 2010 or on any distribution date thereafter.
Cash distributions to the limited partners are payable semi-annually in arrears on 30 March and 30 September. The distribution
rate on the preferred securities was fixed at 6% per annum to 30 September 2005 and thereafter resets every six months at a
rate linked to the Euro ten year constant maturity swap, subject to a cap of 9% per annum.
Anglo Irish Capital Funding Limited (‘issuer’) issued 5,000,000 Series A Floating Rate Non-Cumulative Guaranteed Non-Voting
Preference Shares of US$25 each on 4 June 1997. On 24 March 1999 a further 6,400,000 Series B 7.75% Non-Cumulative
Guaranteed Non-Voting Preference Shares of €25 each were issued which netted €155.6m after issue costs. Both these issues
have the benefit of a subordinate guarantee by Anglo Irish Bank Corporation plc (‘guarantor’). The 6,400,000 Series B 7.75%
Non-Cumulative Guaranteed Non-Voting Preference Shares of €25 each were redeemed at par on 31 December 2004.
The holders of the US$ preference shares are entitled to receive a non-cumulative preferential dividend in four quarterly
instalments in arrears on 4 March, 4 June, 4 September and 4 December in each year. The coupon rate is three month US
Dollar LIBOR plus 2.5% per annum. The holders of the Euro preference shares were entitled to receive a non-cumulative
preferential dividend of 7.75% per annum in four quarterly instalments in arrears on 31 March, 30 June, 30 September and 31
December in each year.
The US$ preference shares are redeemable at the option of the issuer, subject to the prior consent of the guarantor and the
Irish Financial Regulator, in whole or in part, at par on any dividend date from 4 June 2002.
Anglo Irish Bank Corporation plc has guaranteed the holders of the preferred securities and the US$ preference shares with
respect to their rights to distributions and on liquidation. These guarantees give, as nearly as possible, the holders of the
preferred securities and the US$ preference shares rights equivalent to those which the holders would be entitled to if they
held preferred securities or preference shares in Anglo Irish Bank Corporation plc itself. No distributions can be paid in respect
of the preferred securities or the US$ preference shares by the issuers or the guarantor if the guarantor is not in compliance
with applicable regulatory capital adequacy requirements.
The distribution entitlements on the preferred securities and the preference shares are accrued on a daily basis and the total
cost of €44.7m (2004: €16.2m) is included in minority interests in the profit and loss account (Note 5).
62
31. Called up share capital 2005 2004

€m €m
Authorised
760,000,000 Ordinary shares of €0.16 each 121.6 121.6
50,000,000 Non-cumulative preference shares of €1 each 50.0 -
50,000,000 Non-cumulative preference shares of Stg£1 each 73.3 -
50,000,000 Non-cumulative preference shares of US$1 each 41.5 -
286.4 121.6
Allotted, called up and fully paid

Equity:
Ordinary shares of €0.16 each 108.5 107.1
Non-equity:
Non-cumulative preference shares of Stg£1 each 0.4 -
108.9 107.1
Ordinary shares
On 28 January 2005 the shareholders approved a resolution to sub-divide each existing ordinary share of €0.32 in the share
capital of the Company into two ordinary shares of €0.16 each, thereby doubling the number of ordinary shares in issue. The
resolution was brought into effect from the close of business on 22 April 2005. For ease of comparison all ordinary share
amounts and prices in this note have been adjusted to reflect the two-for-one share split.
During the year ended 30 September 2005 the allotted, called up and fully paid ordinary share capital was increased from
669,079,274 to 678,130,548 ordinary shares as follows:
In February 2005 2,227,220 ordinary shares were issued to those holders of ordinary shares who elected, under the terms of
the scrip dividend election offer, to receive additional ordinary shares at a price of €8.62 instead of all or part of the cash
element of their final dividend entitlement in respect of the year ended 30 September 2004.
In July 2005 1,077,457 ordinary shares were issued to those holders of ordinary shares who elected, under the terms of the
scrip dividend election offer, to receive additional ordinary shares at a price of €9.36 instead of all or part of the cash element
of their interim dividend entitlement in respect of the year ended 30 September 2005.
During the year 4,931,746 ordinary shares were issued to option holders on the exercise of options under the terms of the
employee share option scheme at prices ranging from €1.17 to €6.30 and 814,851 ordinary shares were issued to option
holders on the exercise of options under the terms of the SAYE scheme at prices ranging from €0.90 to €7.14.
The Company operates a number of share incentive plans. The purpose of these plans is to motivate Group employees to
contribute towards the creation of long-term shareholder value. Before being adopted all of the share incentive plans were
approved by shareholders and complied with the guidelines operated by the Irish Association of Investment Managers. Further
details are given below:
Employee Share Option Scheme

On 15 January 1999 the shareholders approved the establishment of the employee share option scheme which replaced the
scheme originally approved by shareholders in 1988.
Under the terms of the scheme all qualifying employees may be invited to participate in the scheme at the discretion of the
Directors. Options are granted at the middle market price on the day on which the shares were dealt in immediately preceding
the date of the invitation. During the continuance of the scheme each participant is limited to a maximum entitlement of
scheme shares equivalent to an aggregate value of four times that employee’s annual emoluments. Basic tier options may not be
transferred or assigned and may be exercised only between the third and tenth anniversaries of their grant, or at such earlier
time as approved by the Directors. Second tier options may not be transferred or assigned and may be exercised only between
the fifth and tenth anniversaries of their grant, or at such earlier time as approved by the Directors.
In the ten year period from 15 January 1999 the maximum number of basic and second tier options granted under the scheme
may not exceed 10% of the issued ordinary share capital of the Company from time to time. Both the basic and second tier
options which may be granted are each restricted to 5% of the issued ordinary share capital of the Company from time to time.
The exercise of basic tier options granted since 15 January 1999 is conditional upon earnings per share growth of at least 5%
compound per annum more than the increase in the Irish consumer price index. The exercise of second tier options granted
since 15 January 1999 is conditional upon earnings per share growth of at least 10% compound per annum more than the
increase in the Irish consumer price index and the Company’s shares must also rank in the top quartile of companies as regards
growth in earnings per share on the Irish Stock Exchange.
At 30 September 2005 options were outstanding over 18,516,000 (2004: 18,397,746) ordinary shares at prices ranging from
€1.17 to €10.93 per share. These options may be exercised at various dates up to September 2015. During the year options
over 5,170,000 shares were granted and options over 120,000 shares lapsed.
SAYE Scheme
On 14 January 2000 the shareholders approved the establishment of the Anglo Irish Bank SAYE scheme. This scheme has Irish,
UK and Austrian versions in order to conform with relevant revenue legislation in these jurisdictions.
The Irish version permits eligible employees to enter into a savings contract with the Company for a three, five or seven year
period to save a maximum of €320 per month for the appropriate contract period and to use the proceeds of the savings
contract to fund the exercise of options granted under the scheme. At 30 September 2005 options were outstanding over
2,763,028 (2004: 3,213,778) ordinary shares at option prices ranging from €0.90 to €7.14, which represented a 25% discount to
the market price on the date that employees were invited to enter into these contracts. These options are exercisable, provided
the participants’ savings contracts are completed, at various dates between October 2005 and July 2012.
A variation of the Anglo Irish Bank SAYE scheme was introduced for all UK staff of the Group in 2001. This scheme permits
eligible employees to enter into a savings contract with an outside financial institution for a three, five or seven year period to
save a maximum of Stg£250 per month for the appropriate contract period and to use the proceeds of the savings contract to
fund the exercise of options granted under the scheme. At 30 September 2005 options were outstanding over 775,381 (2004:
791,094) ordinary shares at option prices ranging from Stg£1.05 to Stg£5.73, which represented a 20% discount to the average
market price over the week preceding the date that employees were invited to enter into these contracts. These options are
exercisable at various dates between September 2006 and April 2013.
64
31. Called up share capital continued
A further variation of the Anglo Irish Bank SAYE scheme was introduced during the year for all Austrian staff. This scheme
permits eligible employees to save up to a maximum of €320 per month for five years and to use the proceeds of the savings
contract to fund the exercise of options granted under the scheme. At 30 September 2005 options were outstanding over
138,830 ordinary shares at an option price of €7.13, which represented a 25% discount to the market price on the date that
employees were invited to enter into these contracts. These options are exercisable, provided the participants’ savings contract
are completed, between June 2010 and December 2010.
ESOP
On 14 January 2000 the shareholders also approved the establishment of the Anglo Irish Bank Employee Share Ownership Plan
(‘ESOP’). The plan’s trustee may purchase ordinary shares of the Company in the open market. Eligible employees may be
granted options to acquire shares held by the trustee on similar terms and exercise conditions as those applicable to basic tier
options under the employee share option scheme. At 30 September 2005 options were outstanding over 1,486,700 (2004:
422,008) shares at prices ranging from €1.20 to €10.93. During the year options over 1,240,000 shares were granted.
The total number of ordinary shares which may be the subject of ESOP options may not, when aggregated with the ordinary
shares the subject of options granted under the SAYE scheme, exceed 5% of the issued ordinary share capital of the Company
from time to time.
Preference shares
On 28 January 2005 the shareholders increased the authorised share capital by approving the creation of 50,000,000
non-cumulative preference shares of €1 each, 50,000,000 non-cumulative preference shares of Stg£1 each and 50,000,000
non-cumulative preference shares of US$1 each. On 15 June 2005 300,000 non-cumulative preference shares of Stg£1 each were
issued at a price of Stg£997.99 per share. The issue raised Stg£294.3m after issue expenses.
The holders of these preference shares are entitled to a non-cumulative preference dividend of 6.25% per annum based on a
principal amount of Stg£1,000 per share payable annually in arrears on 15 June in each year to 15 June 2015. Thereafter
dividends are due to be paid quarterly in arrears on 15 March, 15 June, 15 September and 15 December in each year based on a
principal amount of Stg£1,000 per share and on the three month LIBOR rate plus 1.66% per annum. No preference dividends
can be paid if the issuer is not in compliance with applicable regulatory capital requirements.
These preference shares are redeemable at Stg£1,000 per share in whole, but not in part, at the option of the issuer, subject to
the prior consent of the Irish Financial Regulator, on 15 June 2015 and on any dividend date thereafter.
Upon any winding up of the issuer these preference shares rank in priority to the ordinary shares in the Company and equally
among themselves and any other present and future Tier 1 capital issues of the Group. Holders of these preference shares are
not entitled to vote at any general meetings of the Company, except in certain restricted circumstances.
Treasury shares
Under resolutions approved by shareholders on 23 January 2004 and 28 January 2005 the Company has the authority to make
market purchases of any class of its own shares to the extent of 10% of its then issued share capital and to hold these shares as
treasury shares. This authority has not been exercised.
32. Share premium account 2005 2004

€m €m
At beginning of year 157.6 154.7

Premium arising on issue of preference shares 431.2 -
Premium on share option exercises 12.0 3.5
Final scrip dividend (0.4) (0.4)
Interim scrip dividend (0.2) (0.2)
At end of year 600.2 157.6
33. Other reserves The Group The Company

2005 2004 2005 2004
€m €m €m €m
Non-distributable capital reserve 1.3 1.3 1.3 1.3

Investment properties revaluation reserve 1.5 - - -
Exchange translation reserve (0.4) (0.4) - -
2.4 0.9 1.3 1.3
34. Profit and loss account The Group The Company

2005 2004 2005 2004
€m €m €m €m

Profit retained for year 399.6 304.2 373.3 256.1
Ordinary shares issued in lieu of cash dividends 29.3 21.0 29.3 21.0
Net movement in own shares (2.5) (0.8) - -
At end of year 1,400.6 974.2 1,088.4 685.8
35. Own shares The Group

2005 2004
€m €m
Ordinary shares in Anglo Irish Bank Corporation plc (‘own shares’) at cost 9.5 7.0
Own shares are held to satisfy share options granted or to be granted to employees under the Anglo Irish Bank Employee Share
Ownership Plan (‘ESOP’) which was approved by shareholders in January 2000 (Note 31) and also to honour conditional share
awards made to employees under the Anglo Irish Bank Deferred Share Scheme (‘DSS’).
The trustee of the ESOP borrowed funds from a Group subsidiary undertaking, interest free, to enable the trustee to purchase
own shares in the open market. At 30 September 2005 options were outstanding over 1,486,700 (2004: 422,008) own shares at
prices ranging from €1.20 to €10.93. These options may be exercised at various dates up to September 2015. The proceeds of
option exercises are used to repay the loan.
66
35. Own shares continued
At 30 September 2005 the trustee of the DSS held 956,661 (2004: 883,622) own shares to honour conditional share awards
granted between December 2002 and August 2005 to eligible Group employees as part of their remuneration package. These
shares were purchased in the open market and are also funded by interest free borrowings from a Group subsidiary
undertaking. These share awards are conditional on the relevant employees remaining in the Group’s employment for three
years from their grant date. The costs of providing these awards has been fully provided in the profit and loss account.When
the awards vest the trustee’s borrowings are fully reimbursed by the sponsoring Group employer.
As at 30 September 2005 the trustees held 3,103,783 (2004: 3,176,096) own shares with a market value of €35.2m (2004:
€23.4m). The dividend income received during the year on own shares of €0.4m (2004: €0.4m) is excluded in arriving at the
Group profit before taxation.
For ease of comparison all ordinary share amounts and prices in this note have been adjusted to reflect the two-for-one share
split on 22 April 2005.
36. Memorandum items The Group The Company

2005 2004 2005 2004
€m €m €m €m
Guarantees and irrevocable letters of credit 2,095.6 819.9 2,066.2 782.6
Performance bonds,VAT guarantees and
Other transaction related contingencies 73.9 90.5 73.9 90.5
2,169.5 910.4 2,140.1 873.1
Commitments
Credit lines and other commitments to lend 6,011.0 4,055.0 4,837.4 3,098.3
Other contingencies
The Parent Company has given guarantees in respect of the liabilities of certain of its subsidiaries.
37. Notes to the cash flow statement
(i) Cash flows 2005 2004

€m €m
Returns on investment and servicing of finance
Interest received on debt securities and other fixed income securities 93.9 44.1
Interest paid on subordinated liabilities (45.7) (32.2)
Interest paid on perpetual capital securities (53.0) (52.6)
Interest paid on perpetual preferred securities (36.0) -
Preference dividends paid to minority interests (8.5) (16.2)
Share of profits paid to minority interests (1.4) (0.3)
(50.7) (57.2)
Capital expenditure and financial investment
Net purchases of debt securities (2,385.7) (1,166.8)
Purchase of tangible fixed assets (39.1) (37.6)
Net purchases of equity shares (18.1) (21.6)
Proceeds of tangible fixed asset disposals 0.4 0.8
(2,442.5) (1,225.2)
Acquisitions and disposals
Payment of deferred consideration for trust services business
acquired in Isle of Man (5.8) -
Financing
Proceeds from issue of preference shares 431.6 -
Proceeds of subordinated bond issues 165.7 746.2
Proceeds of preferred securities issue in subsidiary - 588.5
Redemption of preference shares in subsidiary undertakings (160.0) -
Redemption of subordinated bonds (119.4) (35.8)
Proceeds of equity share issues 12.8 4.2
Capital introduced by minority interest 0.9 0.6
331.6 1,303.7
(ii) Analysis of subordinated liabilities
At beginning of year 1,133.3 429.0
New issues of subordinated bonds 165.7 746.2
Redemption of subordinated bonds (119.4) (35.8)
Exchange and other movements 2.1 (6.1)
At end of year 1,181.7 1,133.3
(iii) Analysis of perpetual capital securities
At beginning of year 656.2 645.0
Exchange and other movements 4.9 11.2
At end of year 661.1 656.2
(iv) Analysis of cash movements
At end of year
Loans and advances to banks repayable on demand 682.1 943.5
Cash and balances at central banks 566.7 363.2
At beginning of year
Loans and advances to banks repayable on demand (943.5) (2,122.7)
Cash and balances at central banks (363.2) (333.5)
Decrease in cash (57.9) (1,149.5)
68
38. Pensions
The Group operates three 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 an unfunded defined contribution pension plan in
relation to the Group’s Austrian employees (Note 27).
The Group has continued to account for pensions in accordance with Statement of Standard Accounting Practice 24 -
‘Accounting for Pension Costs’ (‘SSAP 24’). A new accounting standard on pensions was issued in November 2000 - Financial
Reporting Standard 17 (‘FRS 17’) and it was amended in November 2002. It requires additional transitional disclosures on a
phased basis in respect of defined benefit pension schemes.
SSAP 24 pension disclosures

The total pension costs for the Group for the year were €10.1m (2004: €9.5m) of which €3.9m (2004: €4.4m) represents the
costs of defined benefit schemes and €6.2m (2004: €5.1m) relates to defined contribution pension plans.
The pension costs relating to all defined benefit pension schemes have been assessed in accordance with the advice of an
independent qualified actuary. Full formal actuarial valuations are carried out triennially. The last such valuations were carried out
as at 1 October 2002 using the attained age method. The actuarial valuations are only available for inspection by members of
the schemes. The principal actuarial assumptions adopted in these valuations were that the investment returns would be 2%
higher than the annual salary increases and 3% higher than the annual pension increases.
At 1 October 2002 the market value of the schemes’ assets was €51.0m and this represented 99.2% of the schemes’ liabilities
at that date. The employer’s contribution rate over the average remaining service life of the members of the schemes takes
account of the current actuarial funding level. The contributions paid to the defined benefit schemes during the year were
€28.5m. There were €61.1m (2004: €36.5m) of prepaid contributions in respect of these schemes at the year end included in
prepayments and accrued income.
FRS 17 pension disclosures

For the purposes of the FRS 17 disclosures the latest full actuarial valuations have been updated by a qualified independent
actuary using the projected unit method mandated by FRS 17. Using this method the current service cost will increase as the
members of closed schemes approach retirement. The major assumptions used by the actuary at the financial year end
were as follows:
2005 2004 2003
% % %
Discount rate for liabilities of the schemes 4.30 5.00 5.25
Rate of increase in salaries 4.00 4.00 4.00
Rate of increase in pensions 2.25 to 3.00 2.25 to 3.00 2.25 to 3.00
Inflation rate 2.25 2.25 2.25
The assets in the schemes and the expected long-term rates of return at 30 September were:
Market Market Market

Expected value Expected value Expected value
return of assets return of assets return of assets
2005 2005 2004 2004 2003 2003
% €m % €m % €m
Equities 6.60 55.0 7.50 38.3 7.75 31.0

Bonds 3.10 6.5 4.50 5.6 4.75 6.7
Property 4.60 3.6 5.50 3.2 6.25 3.1
Hedge funds 5.60 6.6 6.00 6.7 - -
Cash 2.00 35.4 2.00 30.1 3.50 24.6
Total 107.1 83.9 65.4
The following amounts at 30 September were measured in accordance with the requirements of FRS 17:
2005 2004 2003

€m €m €m
Total market value of schemes’ assets 107.1 83.9 65.4

Present value of schemes’ liabilities (98.4) (80.1) (67.3)
Surplus/(deficit) in the schemes 8.7 3.8 (1.9)
Related deferred tax (1.1) (0.5) 0.2
Net pension asset/(liability) 7.6 3.3 (1.7)
If FRS 17 had been implemented the effect on the Group’s financial statements would have been as follows:
Analysis of the amount that would have been charged to operating profit 2005 2004
€m €m
Current service cost 2.6 2.9

Past service cost 4.2 4.0
Settlements and curtailments 2.0 -
Total operating cost 8.8 6.9
Expected return on assets of pension schemes (4.3) (3.8)

Interest on liabilities of pension schemes 4.0 3.5
Finance credit (0.3) (0.3)
Net charge before tax 8.5 6.6
Amount that would have been recognised in the statement of total recognised
gains and losses
Actual return less expected return on assets of the pension schemes 6.3 1.9
Experience losses on liabilities of the pension schemes (4.3) (0.8)
Change in assumptions underlying the present value of schemes’ liabilities (17.1) (3.2)
Actuarial loss in the statement of total recognised gains and losses (15.1) (2.1)
70
38. Pensions continued 2005 2004

€m €m
Movement in surplus during the year
Surplus/(deficit) at beginning of year 3.8 (1.9)
Current service cost (2.6) (2.9)
Past service cost (4.2) (4.0)
Settlements and curtailments (2.0) -
Expected return on assets of pension schemes 4.3 3.8
Interest on liabilities of pension schemes (4.0) (3.5)
Contributions paid 28.5 14.4
Actuarial loss during year (15.1) (2.1)
Surplus at end of year 8.7 3.8
Net assets
Net assets in consolidated accounts 2,112.1 1,239.8
Pension asset on SSAP 24 basis (61.1) (36.5)
Pension asset on FRS 17 basis 7.6 3.3
Net assets on FRS 17 basis 2,058.6 1,206.6
Profit and loss account

Profit and loss account in consolidated accounts 1,400.6 974.2
Pension asset on SSAP 24 basis (61.1) (36.5)
Pension asset on FRS 17 basis 7.6 3.3
Profit and loss account on FRS 17 basis 1,347.1 941.0
History of experience gains and losses 2005 2004 2003

€m €m €m
Difference between actual and expected return on assets 6.3 1.9 (0.3)
Percentage of schemes’ assets at year end 5.9% 2.3% 0.5%
Experience losses on liabilities (4.3) (0.8) (6.5)
Percentage of schemes’ liabilities at year end 4.4% 1.0% 9.7%
Total amount recognised in statement of total recognised gains and losses (15.1) (2.1) (10.1)
Percentage of schemes’ liabilities at year end 15.3% 2.6% 15.0%
The three Irish defined benefit pension schemes were amalgamated into one scheme on 1 July 2005.
39. Related party transactions
Subsidiary undertakings
Details of the principal subsidiary undertakings are shown in Note 17. In accordance with Financial Reporting Standard 8 –
‘Related Party Disclosures’ (‘FRS 8’), transactions or balances between Group entities that have been eliminated on
consolidation are not reported.
Pension funds
The Group provides normal investment fund management and banking services to pension funds operated by the Group for the
benefit of its employees. These services are provided on similar terms as third party transactions and are not material to the
Group.
Directors
Details of transactions with Directors requiring disclosure under FRS 8 are included in the report of the Remuneration
Committee in Note 46.
40. Segmental analysis
The Group’s income and assets are principally attributable to banking activities. The analysis of gross income, profit before
taxation, loans and advances to customers and assets by geographic location is as follows:
2005
Republic Rest of
of Ireland UK & IOM the World Group
€m €m €m €m
Gross income:
Interest receivable 1,027.5 1,005.8 43.5 2,076.8
Fees and commissions receivable 122.5 87.6 31.4 241.5
Dealing profits 16.0 - - 16.0
Other operating income 7.8 14.0 - 21.8
Total gross income 1,173.8 1,107.4 74.9 2,356.1
Profit on ordinary activities before taxation 407.8 266.7 10.7 685.2
Net assets 1,303.9 714.1 94.1 2,112.1
Loans and advances to customers 21,988.5 11,991.7 118.8 34,099.0
Gross assets 30,432.0 16,155.2 1,676.4 48,263.6
2004
Republic Rest of
of Ireland UK & IOM the World Group
€m €m €m €m
Gross income:
Interest receivable 792.4 627.0 33.5 1,452.9
Fees and commissions receivable 82.0 72.2 29.7 183.9
Dealing profits 12.8 - - 12.8
Other operating income 2.7 16.6 - 19.3
Total gross income 889.9 715.8 63.2 1,668.9
Profit on ordinary activities before taxation 292.6 202.7 8.8 504.1
Net assets 730.0 424.5 85.3 1,239.8
Loans and advances to customers 14,686.7 8,916.2 120.9 23,723.8
Gross assets 20,886.5 11,949.3 1,504.0 34,339.8
The analysis by geographic segment is based on the location of the office recording the transaction. The loans and advances to
customers for the Republic of Ireland include €2,475.5m (2004: €1,328.5m) sourced in the USA. Income on capital is included
in the geographical results and reflects allocations from a Group capital pool rather than representing underlying income on
capital within individual operations.
72
41. Risk management and control
The Board of Directors approves Group policy on banking and treasury credit risk which is set out in a detailed credit policy
statement. The Board of Directors delegates its monitoring and control responsibilities to the Main Credit Committee for
credit matters, the Group Asset and Liability Committee for market risk and liquidity issues and the Board Risk and Compliance
Committee for operational risk issues. The members of these Committees include senior management from throughout
the Group.
The Board Risk and Compliance Committee currently comprises three Non-executive Directors and one Executive Director. Its
main role is to oversee risk management and compliance. It reviews, on behalf of the Board of Directors, the key risks and
compliance issues inherent in the business and the system of control necessary to manage them and presents its findings to the
Board of Directors.
Group Risk Management, Group Finance and Group Internal Audit are central control functions, independent of line
management, whose roles include monitoring the Group’s activities to ensure compliance with financial and operating controls.
The general scheme of risk, financial and operational control is designed to safeguard the Group’s assets while allowing sufficient
operational freedom for the business units to earn a satisfactory return for shareholders.
Credit risk
The Group’s policy on banking and treasury credit risk is set out in a detailed credit policy manual which has been reviewed by
the Board Risk and Compliance Committee and approved by the Board of Directors. The policy manual, which is regularly
updated, is provided to all relevant staff and forms the core of our credit risk ethos. Strict parameters for all types of credit
exposure are set down and all applications for credit are assessed within these parameters. The risk asset grading system allows
the Group to balance the level of risk on any transaction with the return generated by the transaction.
The Group operates a tiered system of discretions which ensures that all credit exposures are authorised at an appropriately
senior level. The Main Credit Committee, which is the most important forum for approving credit exposures, includes Executive
Directors and senior management. All credit Committees must come to a consensus before authorising a credit exposure and
each credit must be signed by a valid quorum. Additionally, a Non-executive Director must countersign all exposures over a
certain threshold.
Credit risk on all treasury clients and interbank facilities is regularly assessed. All such treasury lines must be formally reviewed
at least once a year.
All lending exposures are monitored on an ongoing basis with the senior executive responsible for Group Risk Management
regularly meeting each individual lender and examining their loan portfolio in detail. This ensures that potential problems are
identified promptly and appropriate remedial action taken.
An independent Group Risk Management function monitors credit risk on a portfolio-wide basis and, in particular, looks at the
entire Group’s exposure to geographic and industrial sectors. Sectoral guidelines are in place. Restrictions on sectoral exposures
are imposed when considered prudent.
Market risk
Market risk is the potential adverse change in Group income or the value of the Group’s net worth arising from movements in
interest rates, exchange rates or other market prices. Market risk arises from the structure of the balance sheet, the execution
of customer and interbank business and proprietary trading. The Group recognises that the effective management of market risk
is essential to the maintenance of stable earnings, the preservation of shareholder value and the achievement of the Group’s
corporate objectives.
The Group’s exposure to market risk is governed by policies prepared by Group Risk Management and Group Treasury and
approved by the Group Asset and Liability Committee. These policies set out the nature of risk which may be taken, the types
of financial instruments which may be used to increase or reduce risk and the way in which risk is controlled. In line with these
policies the Group Asset and Liability Committee approves all risk limits, which are also notified to the Board Risk and
Compliance Committee.
Exposure to market risk is permitted only in specifically designated business units and is centrally managed by Group Treasury in
Dublin. In other units market risk is eliminated by way of appropriate hedging arrangements with Group Treasury.
Market risk throughout the Group is measured and monitored by the Group Risk Management team, operating independently of
the risk-taking units.
Non-trading book
The Group’s non-trading book consists of personal and corporate deposits and the lending portfolio, as well as Group Treasury’s
interbank cash book and investment portfolio. In the non-trading areas interest rate risk arises primarily from the Group’s core
banking business. This exposure is centrally managed by Group Treasury in Dublin using interest rate swaps and other
conventional hedging instruments.
The Group’s non-trading book exposure is analysed by its maturity profile in each currency. Limits by currency and maturity are
formally approved by the Group Asset and Liability Committee and notified to the Board Risk and Compliance Committee.
These limits are then subject to independent monitoring by the Group Risk Management team.
Trading book – foreign exchange risk

Traded foreign exchange risk is confined to Group Treasury and arises from the Group’s lending and funding activities, corporate
and interbank foreign exchange business and from proprietary trading. It is monitored independently by Group Risk Management
by way of open position limits and stoploss limits on a daily, monthly and annual basis.
Trading book – interest rate risk

The interest rate trading book consists of Group Treasury’s mark to market interest rate book. The trading book consists of
interest rate swaps, currency swaps, interest rate futures, forward rate agreements and options. The risks arising from these
items are monitored through a combination of position and loss constraints. These limits are formally approved by the Group
Asset and Liability Committee, notified to the Board Risk and Compliance Committee and monitored daily by Group Risk
Management.
74
41. Risk management and control continued
Structural foreign exchange risk

Structural foreign exchange risk represents the currency risk arising from the translation of the Group’s net investments in
operations whose functional currency is not denominated in Euro. It is Group policy to eliminate this risk by matching all
material foreign currency investments in such operations with liabilities in the same currency. The Group’s structural foreign
exchange exposures at 30 September 2005 were as follows:
Liabilities in
functional currency for Remaining structural
Functional currency Net investment hedging purposes currency exposure
of operation €m €m €m
Sterling 691.9 (691.9) -

US Dollars 1.8 (1.8) -
Swiss Francs 71.3 (71.3) -
765.0 (765.0) -
Liquidity risk
It is Group policy to ensure that resources are at all times available to meet the Group’s obligations arising from the withdrawal
of customer deposits or interbank lines, the drawdown of customer facilities and asset expansion. The development and
implementation of this policy is the responsibility of the Group Asset and Liability Committee. Group Treasury looks after the
day to day management of liquidity and this is monitored by Group Risk Management.
Limits on potential cash flow mismatches over defined time horizons are the principal means of liquidity control. The cash flow
mismatch methodology involves estimating the net volume of funds which must be refinanced in particular time periods, taking
account of the value of assets which could be liquidated during these periods. Limits are placed on the net mismatch in specified
time periods out to six months.
Operational risk
Operational risk represents the risk that failed or inadequate processes, people or systems, or exposure to external events
could result in unexpected losses. The risk is associated with human error, systems failure, and inadequate controls and
procedures.The Group operates such measures of risk identification, assessment, monitoring and management as are necessary
to ensure that operational risk management is consistent with the approach, aims and strategic goals of the Group and is
designed to safeguard the Group’s assets while allowing sufficient operational freedom to earn a satisfactory return to
shareholders.
The Group manages operational risk under an overall strategy which is implemented by accountable executives. Potential risk
exposures are assessed and appropriate controls are put in place. Recognising that operational risk cannot be entirely
eliminated, the Group implements risk mitigation controls including fraud prevention, contingency planning and incident
management.Where appropriate this strategy is further supported by risk transfer mechanisms such as insurance.
Derivatives
A derivative is an off-balance sheet agreement which defines certain financial rights and obligations which are contractually
linked to interest rates, exchange rates or other market prices. Derivatives are an efficient and cost effective means of managing
market risk and limiting counterparty exposures. As such they are an indispensable element of treasury management, both for
the Group and for many of its corporate customers. Further details are disclosed in note 43. The accounting policy on
derivatives is set out on page 45.
It is recognised that certain forms of derivatives can introduce risks which are difficult to measure and control. For this reason it
is Group policy to place clear boundaries on the nature and extent of its participation in derivatives markets and to apply the
industry regulatory standards to all aspects of its derivatives activities.
The Group’s derivatives activities are governed by policies approved by the Group Asset and Liability Committee. These policies
relate to the management of the various types of risk associated with derivatives, including market risk, liquidity risk and
credit risk.
76
42. Interest rate repricing
Interest rate repricing – Euro

Non-trading book 30 September 2005
Over three Over six Over one
months but months but year but
Not more not more not more not more Over Non
than three than six than one than five five interest
months months year years years bearing Total
€m €m €m €m €m €m €m
Assets
Cash and balances at central banks 554 - - - - - 554
Loans and advances to banks 1,666 216 561 96 - - 2,539
Loans and advances to customers 14,503 152 248 542 197 - 15,642
Debt securities 3,033 32 30 268 164 - 3,527
Other assets - - - - - 498 498
Total assets 19,756 400 839 906 361 498 22,760
Liabilities
Deposits by banks (4,729) (22) (89) (20) - - (4,860)
Customer accounts (10,260) (260) (234) (585) (108) - (11,447)
Debt securities in issue (4,225) (224) (58) (176) - - (4,683)
Other liabilities - - - - - (474) (474)
Capital resources (900) (591) (6) (17) - (1,681) (3,195)
Total liabilities (20,114) (1,097) (387) (798) (108) (2,155) (24,659)
Net amounts due from/(to)

Group units 1,962 - - - - - 1,962
Off-balance sheet items (1,333) (120) (216) 1,010 596 - (63)
Interest rate repricing gap 271 (817) 236 1,118 849 (1,657) -
Cumulative interest rate

repricing gap 271 (546) (310) 808 1,657 - -
Interest rate repricing – Euro

€m €m €m €m €m €m €m
Assets
Debt securities 1,566 167 59 160 84 - 2,036
Other assets - - - - - 1,122 1,122
Total assets 13,398 579 236 945 391 1,122 16,671
Liabilities
Deposits by banks (1,369) - - (20) - - (1,389)
Debt securities in issue (3,869) (294) (98) - - - (4,261)
Other liabilities - - - - - (1,090) (1,090)
Capital resources (902) - (588) (30) (156) (1,240) (2,916)
Total liabilities (14,596) (580) (919) (763) (244) (2,330) (19,432)

Group units 16 2,126 (44) 147 161 - 2,406
Off-balance sheet items (1,095) (849) 186 1,894 219 - 355
Interest rate repricing gap (2,277) 1,276 (541) 2,223 527 (1,208) -

repricing gap (2,277) (1,001) (1,542) 681 1,208 - -
78
42. Interest rate repricing continued
Interest rate repricing – Stg£

€m €m €m €m €m €m €m
Assets
Loans and advances to banks 1,290 344 - - - - 1,634
Securitised assets 276 1 3 41 1 - 322
Less: non-returnable proceeds (307) - - - - - (307)
(31) 1 3 41 1 - 15
Debt securities 322 431 154 7 12 - 926
Other assets - - - - - 802 802
Total assets 16,101 1,242 305 488 224 802 19,162
Liabilities
Deposits by banks (1,561) (14) - - - - (1,575)
Debt securities in issue (2,225) (147) (1) (553) - - (2,926)
Capital resources - (73) - - (1,092) (4) (1,169)
Total liabilities (13,524) (744) (339) (614) (1,101) (411) (16,733)

Group units (2,062) - - - - - (2,062)
Off-balance sheet items (2,382) 51 169 554 1,241 - (367)
Interest rate repricing gap (1,867) 549 135 428 364 391 -

repricing gap (1,867) (1,318) (1,183) (755) (391) - -
Interest rate repricing – Stg£

€m €m €m €m €m €m €m
Assets
Loans and advances to banks 1,469 116 117 - - - 1,702
Securitised assets 544 6 10 97 9 - 666
Less: non-returnable proceeds (635) - - - - - (635)
(91) 6 10 97 9 - 31
Debt securities 130 12 - 6 7 - 155
Other assets - - - - - 562 562
Total assets 11,094 832 237 673 272 562 13,670
Liabilities
Deposits by banks (622) - - - - - (622)
Customer accounts (6,644) (338) (759) (24) - - (7,765)
Debt securities in issue (1,474) (88) (106) - - - (1,668)
Capital resources - - - (73) (656) (2) (731)
Total liabilities (8,740) (426) (865) (97) (656) (235) (11,019)

Group units (68) (2,064) 20 49 35 - (2,028)
Off-balance sheet items (570) (611) 292 (41) 307 - (623)
Interest rate repricing gap 1,716 (2,269) (316) 584 (42) 327 -

repricing gap 1,716 (553) (869) (285) (327) - -
80
42. Interest rate repricing continued
Interest rate repricing – US$

€m €m €m €m €m €m €m
Assets
Debt securities 305 9 22 34 16 - 386
Other assets - - - - - 75 75
Total assets 3,524 401 192 399 133 75 4,724
Liabilities
Deposits by banks (696) - - - - - (696)
Debt securities in issue (787) (4) (65) (52) - - (908)
Capital resources (100) - (17) (137) (29) - (283)
Total liabilities (3,834) (108) (154) (193) (30) (28) (4,347)

Group units 39 - - - - - 39
Off-balance sheet items (657) 4 43 221 (27) - (416)
Interest rate repricing gap (928) 297 81 427 76 47 -

repricing gap (928) (631) (550) (123) (47) - -
Interest rate repricing – US$

€m €m €m €m €m €m €m
Assets
Loans and advances to banks 876 212 97 126 - - 1,311
Debt securities 214 - 18 64 10 - 306
Other assets - - - - - 87 87
Total assets 2,189 275 166 422 126 87 3,265
Liabilities
Deposits by banks (444) (24) - - - - (468)
Customer accounts (1,602) (15) (14) (2) - - (1,633)
Debt securities in issue (223) (41) (96) - - - (360)
Capital resources (98) (20) (80) (28) - - (226)
Total liabilities (2,367) (100) (190) (30) - (33) (2,720)

Group units 102 (115) 21 (193) (186) - (371)
Off-balance sheet items (679) 221 348 31 (95) - (174)
Interest rate repricing gap (755) 281 345 230 (155) 54 -

repricing gap (755) (474) (129) 101 (54) - -
82
43. Derivative transactions
In the normal course of business the Group is party to various types of financial instruments used to generate incremental
income, to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest and exchange
rates and equity prices. These financial instruments involve to varying degrees exposure to loss in the event of a default by a
counterparty (‘credit risk’) and exposure to future changes in interest and exchange rates and equity prices (‘market risk’).
Details of the objectives, policies and strategies arising from the Group’s use of financial instruments, including derivative
financial instruments, are presented in Note 41 on risk management and control.
In respect of interest rate, exchange rate and equity contracts, underlying principal amount is used to express the volume of
these transactions, but the amounts potentially subject to credit risk are much smaller. Replacement cost provides a better
indication of the credit risk exposures facing a bank. Replacement cost is the gross cost of replacing all contracts with external
parties that have a positive fair value, without giving effect to offsetting positions with the same counterparty. The underlying
principal amount and replacement cost, by residual maturity, of the Group’s over the counter and other non-exchange traded
derivatives at 30 September 2005 were as follows:
2005 2004
Within One to five Over five
one year years years Total Total
€m €m €m €m €m
Underlying principal amount
Exchange rate contracts 17,489.8 1,169.1 4.0 18,662.9 27,724.3
Interest rate contracts 12,316.5 31,313.0 14,842.1 58,471.6 48,884.7
Equity contracts 19.9 89.4 136.4 245.7 136.6
Replacement cost
Exchange rate contracts 86.7 5.6 - 92.3 148.7
Interest rate contracts 66.9 253.4 293.1 613.4 224.1
Equity contracts 5.6 23.0 12.3 40.9 35.8
The replacement cost of the Group’s over the counter and other non-exchange traded derivatives as at 30 September 2005
analysed into financial and non-financial counterparties for exchange rate, interest rate and equity contracts were as follows:
2005 2004
Non-
Financial financial Total Total
€m €m €m €m
Exchange rate contracts 69.6 22.7 92.3 148.7

Interest rate contracts 402.0 211.4 613.4 224.1
Equity contracts 40.9 - 40.9 35.8
512.5 234.1 746.6 408.6
The Group maintains trading positions in derivatives. Most of these positions are as a result of activity generated by corporate
customers while others represent trading decisions of the Group’s derivative and foreign exchange traders with a view to
generating incremental income. The following table represents the underlying principal amount and fair value by class of
instrument utilised in the trading activities of the Group at 30 September 2005.
30 September 2005
Underlying
principal Fair
amount value
Trading book €m €m
Interest rate contracts
Interest rate swaps 38,962.3
in a favourable position 430.6
in an unfavourable position (417.7)
Forward rate agreements 987.9
Interest rate futures 4,099.8
in a favourable position -
in an unfavourable position -
Interest rate caps, floors and options held 4,147.5
Interest rate caps, floors and options written 4,344.8
Exchange traded options held 1,553.1
Exchange traded options written 1,148.4
Foreign exchange contracts
Forward foreign exchange 10,921.6
Foreign exchange options 3,623.8
Currency swaps 4.0
84
43. Derivative transactions continued
The following table represents the underlying principal amount, weighted average maturity and fair value by class of
instrument utilised in the trading activities of the Group at 30 September 2005.
Underlying Weighted
principal average Fair
amount maturity value
Trading book €m in years €m
Interest rate swaps-receive fixed
1 year or less 3,110.5 0.5 19.9
1 to 5 years 10,358.1 2.9 149.1
5 to 10 years 4,270.4 7.6 184.2
Over 10 years 682.8 16.9 25.7
Interest rate swaps-pay fixed
1 year or less 5,428.5 0.4 (57.8)
1 to 5 years 9,743.0 2.9 (133.2)
5 to 10 years 4,573.1 7.6 (156.8)
Over 10 years 693.3 16.6 (17.6)
Interest rate swaps-pay and receive floating
1 year or less 29.1 0.8 (0.2)
1 to 5 years 73.5 1.4 (0.4)
5 to 10 years - - -
Forward rate agreements-loans
1 year or less 294.6 0.6 (0.2)
1 to 5 years 100.0 1.2 -
Forward rate agreements-deposits
1 year or less 393.3 0.4 -
1 to 5 years 200.0 1.2 0.2
Interest rate futures
1 year or less 2,606.4 0.7 -
1 to 5 years 1,493.4 1.5 -
5 to 10 years - - -
Interest rate caps, floors and options held
1 year or less 529.6 0.5 1.1
1 to 5 years 3,313.1 2.9 13.5
5 to 10 years 300.5 6.6 3.9
Over 10 years 4.3 13.8 0.2
Interest rate caps, floors and options written
1 year or less 606.1 0.5 (1.1)
1 to 5 years 3,427.1 2.8 (13.1)
5 to 10 years 307.3 6.5 (3.9)
Over 10 years 4.3 13.8 (0.1)
Exchange traded options held
1 year or less 1,553.1 0.3 -
Exchange traded options written
1 year or less 1,148.4 0.3 -
Forward foreign exchange
1 year or less 10,194.0 0.2 6.5
1 to 5 years 727.6 1.4 0.7
Foreign exchange options
1 year or less 3,485.0 0.3 0.8
1 to 5 years 138.8 1.5 0.1
Currency swaps
5 to 10 years 4.0 5.7 (0.3)
The following table represents the underlying principal amount and fair value by class of instrument utilised in the trading
activities of the Group at 30 September 2004.
30 September 2004
Underlying
principal Fair
amount value
Trading book €m €m
Interest rate swaps 25,874.3
Forward rate agreements 2,901.6
Interest rate futures 5,207.5
Interest rate caps, floors and options held 2,582.8
Interest rate caps, floors and options written 2,786.6
Exchange traded options held 1,254.9
Exchange traded options written 1,133.0
Forward foreign exchange 17,187.3
Foreign exchange options 4,131.4
Currency swaps 2.1
86
The following table represents the underlying principal amount, weighted average maturity and fair value by class of instrument
utilised in the trading activities of the Group at 30 September 2004. Underlying Weighted
Trading book €m in years €m
1 year or less 2,851.3 0.4 24.4
1 to 5 years 6,414.5 2.7 72.9
5 to 10 years 3,097.7 7.5 78.3
Over 10 years 273.0 11.7 9.4
1 year or less 3,386.6 0.4 (30.8)
1 to 5 years 6,420.8 2.6 (72.6)
5 to 10 years 3,059.2 7.5 (72.7)
Over 10 years 230.0 11.5 (7.5)
1 year or less 27.8 0.8 (0.8)
1 to 5 years 88.4 2.2 (0.3)
5 to 10 years 25.0 8.0 (0.6)
1 year or less 1,161.5 0.7 (0.5)
1 to 5 years 406.0 1.2 1.2
1 year or less 908.2 0.7 0.4
1 to 5 years 425.9 1.2 (0.9)
Interest rate futures
1 year or less 2,773.1 0.7 -
1 to 5 years 2,429.4 1.6 -
5 to 10 years 5.0 7.3 -
Interest rate caps, floors and options held
1 year or less 43.7 0.4 -
1 to 5 years 2,151.9 3.3 8.9
5 to 10 years 367.2 7.5 4.9
Over 10 years 20.0 10.5 -
1 to 5 years 2,274.8 3.2 (9.1)
5 to 10 years 403.9 7.6 (5.6)
Over 10 years 20.0 10.5 -
Exchange traded options held
1 year or less 1,254.9 0.4 -
Exchange traded options written
1 year or less 1,133.0 0.4 -
1 year or less 16,089.9 0.3 18.5
1 to 5 years 1,097.4 1.5 (0.9)
Foreign exchange options
1 year or less 4,124.8 0.4 12.6
1 to 5 years 6.6 1.1 -
Currency swaps
5 to 10 years 2.1 6.7 (0.3)
Non-trading derivatives
The operations of the Group are exposed to the risk of interest rate fluctuations to the extent that assets and liabilities mature
or reprice at different times or in differing amounts. Derivatives allow the Group to modify the repricing or maturity
characteristics of assets and liabilities in a cost efficient manner. This flexibility helps the Group to achieve liquidity and risk
management objectives.
Derivatives fluctuate in value as interest or exchange rates rise or fall just as on-balance sheet assets and liabilities fluctuate in
value. If the derivatives are purchased or sold as hedges of balance sheet items, the appreciation or depreciation of the
derivatives as interest or exchange rates change, will generally be offset by the unrealised appreciation or depreciation of the
hedged items. To achieve its risk management objectives the Group uses a combination of derivative financial instruments,
particularly interest rate and currency swaps, futures and options, as well as other contracts.
Unrecognised gains and losses on hedges

Gains and losses on instruments used for hedging are recognised in line with the underlying items which are being hedged.
Based on market rates prevailing at the close of business on 30 September 2005, the unrecognised net losses on instruments
used for hedging as at 30 September 2005 were €40.5m (2004: €10.9m). The net loss expected to be recognised in the year to
30 September 2006 is €17.5m (2004: €0.7m) and thereafter a net loss of €23.0m (2004: €10.2m) is expected.
The net loss recognised in the year to 30 September 2005 in respect of previous years was €0.7m (2004: €4.2m) and the net
loss arising in the year to 30 September 2005 which was not recognised in that year was €30.3m (2004: €28.3m).
Non-trading derivative deferred balances

Deferred balances relating to settled derivative transactions are released to the profit and loss account in the same periods as
the income and expense flows from the underlying transactions. The table below summarises the deferred gains and losses at
30 September 2005.
Total net
Deferred Deferred deferred
gains losses gains/(losses)
€m €m €m
As at I October 2004 16.2 (17.8) (1.6)

Gains and losses arising in previous years
that were recognised this year 3.9 (4.7) (0.8)
Gains and losses arising before I October 2004 that were
not recognised in the year ended 30 September 2005 12.3 (13.1) (0.8)
Gains and losses arising in the year ended
30 September 2005 that were not recognised in that year 23.4 (24.9) (1.5)
As at 30 September 2005 35.7 (38.0) (2.3)
Of which:
Gains and losses expected to be recognised in
the year ended 30 September 2006 10.1 (10.2) (0.1)
Anticipatory hedges
The Group entered into forward foreign exchange contracts to partly hedge against the exchange risk arising on the translation
into Euro of future net profits expected to be earned from activities conducted in foreign currencies. There were unrecognised
losses of €13.3m (2004: €5.6m gains) based on the fair value of these contracts at the year end.
88
The following table sets out details of all derivatives used in the Group’s non-trading activities at 30 September 2005.
Underlying Weighted
Non-trading book €m in years €m
1 year or less 1,846.3 0.3 33.6
1 to 5 years 2,726.7 2.3 44.0
5 to 10 years 1,286.3 7.7 41.1
Over 10 years 837.9 12.8 18.6
1 year or less 74.2 0.5 (2.5)
1 to 5 years 359.1 2.4 (8.8)
5 to 10 years 246.6 6.8 (25.0)
Over 10 years 93.1 17.4 (18.6)
1 to 5 years 848.1 2.1 (11.2)
5 to 10 years 20.0 8.0 (0.1)
Over 10 years 600.0 29.0 (5.8)
1 year or less - - -
1 to 5 years - - -
1 to 5 years - - -
1 to 5 years 164.3 2.0 (1.8)
5 to 10 years 322.2 6.2 -
Over 10 years 600.0 29.0 (23.3)
1 year or less 3,810.8 0.1 5.7
1 to 5 years 302.7 1.6 (4.2)
Equity contracts
Equity index-linked contracts
1 year or less 19.9 1.0 5.6
1 to 5 years 89.4 3.6 23.0
5 to 10 years 136.4 5.7 8.2
The following table sets out details of all derivatives used in the Group’s non-trading activities at 30 September 2004.
Underlying Weighted
Non-trading book €m in years €m
1 year or less 2,990.2 0.4 20.5
1 to 5 years 2,628.6 2.1 62.4
5 to 10 years 724.7 6.6 42.1
Over 10 years 406.6 21.9 13.8
1 year or less 1,745.6 0.2 (19.9)
1 to 5 years 1,409.0 2.7 (36.7)
5 to 10 years 674.8 6.4 (56.3)
Over 10 years 105.1 16.8 (14.8)
1 year or less 65.1 0.7 (2.5)
1 to 5 years 119.3 4.2 0.7
5 to 10 years 603.6 10.0 7.3
Over 10 years 600.0 30.0 8.3
1 to 5 years 40.8 1.3 0.1
1 year or less 370.5 0.9 -
1 to 5 years 690.8 1.1 (0.9)
1 to 5 years 131.0 3.7 -
5 to 10 years 673.7 6.7 (1.3)
Over 10 years 760.0 28.9 (22.0)
1 year or less 5,753.5 0.4 18.0
1 to 5 years 650.0 1.6 7.9
Equity contracts
Equity index-linked contracts
1 year or less 27.1 0.9 12.5
1 to 5 years 76.6 3.6 19.1
5 to 10 years 32.9 6.0 4.2
90
44. Fair value of financial assets and financial liabilities
The Group has estimated fair value wherever possible using market prices. In certain cases, however, including advances to
customers, there are no ready markets. Accordingly, the fair value has been calculated by discounting expected future cash flows
using market rates applicable at the year end. This method is based upon market conditions at that date which may not
necessarily be indicative of any subsequent fair value. As a result, readers of these financial statements are advised to use caution
when using this data to evaluate the Group’s financial position.
The concept of fair value assumes realisation of financial instruments by way of a sale. However, in many cases, particularly in
respect of lending to customers, the Group intends to realise assets through collection over time. As such, the fair value
calculated does not represent the value of the Group as a going concern at the year end.
The following table represents the carrying amount and the fair value of the Group’s financial assets and liabilities at the year end.
2005 2004
Carrying Fair Carrying Fair
amount value amount value
Non-trading financial instruments €m €m €m €m
Financial assets
Cash and balances at central banks 566.7 566.7 363.2 363.2
Loans and advances to banks 6,253.6 6,235.7 5,847.4 5,837.2
Loans and advances to customers 34,099.0 34,222.3 23,723.8 23,776.2
Securitised assets 322.0 323.1 666.0 673.1
Less: non-returnable proceeds (307.0) (308.3) (634.8) (635.3)
15.0 14.8 31.2 37.8
Debt securities 4,933.1 4,962.3 2,534.4 2,568.2
Equity shares 46.7 46.7 26.1 26.1
Financial liabilities
Deposits by banks 7,150.7 7,148.3 2,605.9 2,606.3
Customer accounts 25,159.7 25,219.6 19,546.0 19,583.4
Debt securities in issue 9,405.1 9,400.7 6,944.5 6,944.1
Subordinated liabilities 1,181.7 1,190.1 1,133.3 1,151.3
Perpetual capital securities 661.1 801.0 656.2 772.4
Non-equity minority interests 688.9 635.2 841.6 864.3
Preference shares 431.6 445.2 - -
Derivative financial instruments held for trading purposes
Interest rate contracts 13.4 13.4 (1.0) (1.0)
Foreign exchange contracts 7.8 7.8 29.9 29.9
Derivative financial instruments utilised for non-trading activities
Interest rate contracts 40.2 0.8
Foreign exchange contracts 1.5 25.9
Equity contracts 36.8 35.8
The fair value of loans and advances to customers and securitised assets are calculated by discounting expected future cash flows
(excluding margin for credit risk) using market rates applicable at the year end. The fair value applied to the debt securities assets
and the subordinated liabilities, perpetual capital securities, non-equity minority interests and preference shares are the quoted
market values for these items at the year end. The fair value of the other financial assets and liabilities are calculated by discounting
expected future cash flows using market rates applicable at the year end. The fair value of customer accounts with equity trackers
includes the fair value of associated index-linked equity contracts. The derivatives are marked to market at the year end.
45. Currency information The Group The Company

2005 2004 2005 2004
€m €m €m €m
Denominated in Euro 22,760.2 16,671.0 21,955.0 15,303.8

Denominated in other currencies 25,503.4 17,668.8 23,096.5 16,149.7
Total assets 48,263.6 34,339.8 45,051.5 31,453.5
Denominated in Euro 24,659.0 19,432.0 23,617.0 17,464.8

Denominated in other currencies 23,604.6 14,907.8 21,434.5 13,988.7
Total liabilities and capital resources 48,263.6 34,339.8 45,051.5 31,453.5
Due to off-balance sheet items the above analysis should not be considered to demonstrate foreign exchange risk exposures.
46. Report on Directors’ remuneration and interests
This report on Directors’ remuneration and interests has been prepared by the Remuneration Committee on behalf of the Board
of Directors in accordance with the requirements of the Irish Stock Exchange’s Combined Code on Corporate Governance.
Remuneration Committee
All members of the Remuneration Committee are Non-executive Directors. Its current members are Michael Jacob (Chairman),
Sean FitzPatrick and Ned Sullivan. This Committee is responsible for the formulation of the Group’s policy on remuneration in
relation to all Executive Directors and other senior executives. The remuneration of the Executive Directors is determined by
the Board of Directors on the recommendations of the Remuneration Committee. The recommendations of the Remuneration
Committee are considered and approved by the Board of Directors.
Remuneration policy
The remuneration policy adopted by the Group is to reward its Executive Directors competitively having regard to comparable
companies and the need to ensure that they are properly rewarded and motivated to perform in the best interests of
shareholders. The policy is based heavily on rewarding performance. The Group Chief Executive is fully consulted about
remuneration proposals in relation to other Directors. From time to time the Remuneration Committee takes advice from
external pay consultants. Included in the remuneration package for Executive Directors are basic salary, a performance related
bonus and an ability to participate in employee share incentive plans. They also participate in either a personal Revenue
approved defined contribution pension plan or the Group defined benefit pension scheme.
Remuneration for Non-executive Directors is a matter for the Chairman in consultation with the Group Chief Executive and the
Group Company Secretary. Neither the Chairman nor any Director is involved in decisions relating to his or her remuneration.
Performance bonus
The level of performance bonus is determined for each individual Executive Director. The level earned in any one year is paid
out of a defined pool and depends on the Remuneration Committee’s assessment of each individual’s performance against
predetermined targets for that year and also an assessment of the overall performance of the Group.
The performance bonus is split into two components. Part of the performance bonus is paid annually and is determined by
reference to the economic profit generated by the Group. The other element of the performance bonus is calculated by
reference to total shareholder return and compared to a peer group and the payment of this bonus is deferred to the earlier of
three years or the individual’s retirement date. Its cost is accrued immediately in the accounts.
92
46. Report on Directors’ remuneration and interests continued
Share incentive plans

It is Company policy to motivate its Executive Directors by granting them share options. These options have been granted
under the terms of the employee share incentive plans approved by shareholders. Further details in relation to these plans are
given in Note 31 to the financial statements. Non-executive Directors are not eligible to participate in the employee share
incentive plans.
Loans to Directors
Loans to Directors are made in the ordinary course of business on commercial terms in accordance with established policy. At
30 September 2005 the aggregate amount outstanding in loans to persons who at any time during the year were Directors was
€21.7m (2004: €10.2m) in respect of thirteen (2004: twelve) individuals.
Contracts
Other than in the normal course of business, there have not been any contracts or arrangements with the Company or any
subsidiary undertaking during the year in which a Director of the Company was materially interested and which were significant
in relation to the Group’s business. There are no service contracts in existence for any Director with the Company or any of its
subsidiary undertakings.
Pensions
Executive Directors participate in either a defined contribution scheme or the Group defined benefit scheme. All pension
benefits are determined solely in relation to basic salary. Fees paid to Non-executive Directors are not pensionable.
Directors’ remuneration – 2005
Annual Deferred
performance performance Pension Former
Salary Fees bonus bonus Benefits contribution Directors Total
€000 €000 €000 €000 €000 €000 €000 €000
Executive Directors
David Drumm 663 - 900 600 37 154 - 2,354
Sean FitzPatrick
(to 28 January 2005) 320 - 533 - 28 131 - 1,012
Tom Browne 397 - 600 400 49 79 - 1,525
William McAteer 418 - 600 400 43 83 - 1,544
Tiarnan O Mahoney (1) 115 - - - 10 47 - 172
John Rowan 432 - 1,000 - 37 156 - 1,625
Non-executive Directors
Sean FitzPatrick
(from 29 January 2005) - 167 - - - - - 167
Peter Murray (2) - 72 - - - - - 72
Lar Bradshaw (3) - 63 - - - - - 63
Fintan Drury - 65 - - - - - 65
Michael Jacob - 94 - - - - - 94
Patricia Jamal - 65 - - - - - 65
Gary McGann - 65 - - - - - 65
Anton Stanzel (4) - 33 - - - - - 33
Ned Sullivan - 75 - - - - - 75
Patrick Wright - 65 - - - - - 65
Former Directors - - - - - - 48 48
Total 2,345 764 3,633 1,400 204 650 48 9,044
(1) Retired on 2 December 2004. In addition,Tiarnan O Mahoney received €3,650,000 on his retirement and €250,000 was
contributed to his personal pension scheme, in recognition of his substantial contribution to the Group.
(2) Retired as Chairman on 28 January 2005.
(3) Co-opted on 12 October 2004.
(4) Retired on 28 January 2005.
94
Directors’ remuneration – 2004
Annual Deferred
performance performance Pension Former
Salary Fees bonus bonus Benefits contribution Directors Total
€000 €000 €000 €000 €000 €000 €000 €000
Executive Directors
Sean FitzPatrick 775 - 1,600 - 52 294 - 2,721
Tom Browne (1) 218 - 348 278 25 44 - 913
David Drumm (2) 6 - 7 4 1 1 - 19
Peter Killen (3) 123 - - - 14 50 - 187
William McAteer 392 - 500 400 42 78 - 1,412
Tiarnan O Mahoney 458 - 1,000 - 42 186 - 1,686
John Rowan 412 - 500 400 47 168 - 1,527
Non-executive Directors
Peter Murray - 217 - - - - - 217
Fintan Drury - 63 - - - - - 63
Michael Jacob - 85 - - - - - 85
Patricia Jamal - 63 - - - - - 63
Gary McGann (1) - 43 - - - - - 43
Anton Stanzel - 73 - - - - - 73
Ned Sullivan - 74 - - - - - 74
Patrick Wright - 63 - - - - - 63
Former Directors - - - - - - 15 15
Total 2,384 681 3,955 1,082 223 821 15 9,161
(1) Co-opted on 20 January 2004

(2) Co-opted on 22 September 2004
(3) Retired on 10 February 2004
Directors’ pension benefits

The Group makes payments to defined contribution pension plans for Tom Browne and William McAteer. All of the other
Executive Directors are members of the Group defined benefit pension scheme. Details are as follows:
Defined
Defined Benefit Contribution
Increase in
accrued annual Total accrued Transfer value
pension benefit pension benefit of increase in Group
during year at year end accrued benefit contribution
€000 €000 €000 €000
Sean FitzPatrick - 533 - -

David Drumm 186 231 2,055 -
Tom Browne - - - 79
William McAteer - - - 83
Tiarnan O Mahoney - 308 - -
John Rowan 11 175 129 -
197 1,247 2,184 162
The increase in accrued annual pension benefit during the year excludes any increase for inflation. The total accrued pension
benefit at the year end is that which would be paid annually on normal retirement date, based on service to the year end.The
transfer value of the increase in accrued benefit has been calculated by an independent actuary.
Sean FitzPatrick retired as Chief Executive on 28 January 2005 with an entitlement to an annual pension of €0.533m.The
transfer value paid to his personal pension fund to extinguish his accrued pension benefit was €2.562m greater than the
actuarially calculated minimum transfer value of his accrued pension benefit at 30 September 2004.The transfer value paid was
approved by the pension fund trustee as being in the best interests of the pension fund as it represented a considerable cash
saving when compared with the potential cost of purchasing an annuity to honour the fund’s obligations.
Fees paid to Non-executive Directors are not pensionable.

96
Directors’ and Company Secretary’s interests
The beneficial interests of the current Directors and Secretary and of their spouses and minor children in the shares of the
Company are included in the following table:
Interests in ordinary shares 30 September 2005 30 September 2004

Ordinary Share Ordinary Share
Shares Options Shares Options
Directors
Sean FitzPatrick 4,446,132 - 3,775,852 625,000
David Drumm 177,989 1,527,596 75,214 527,596
Lar Bradshaw 50,331 - *- *-
Tom Browne 892,892 1,608,330 891,280 1,608,330
Fintan Drury 52,816 - 52,250 -
Michael Jacob 746,766 - 746,766 -
Patricia Jamal 30,471 - 30,144 -
William McAteer 2,388,376 1,477,696 2,386,786 1,477,696
Gary McGann 100,630 - 50,242 -
John Rowan 698,851 1,491,058 696,168 1,491,058
Ned Sullivan 422,607 - 418,066 -
Patrick Wright 381,570 - 454,438 -
Secretary
Bernard Daly 31,830 308,100 62,186 308,100
* or date of appointment if later
There have been no changes in the Directors’ and Secretary’s shareholdings between 30 September 2005 and 22 November
2005. The Directors and Secretary and their spouses and minor children have no other interests in the shares of the Company
or its Group undertakings as at 30 September 2005. The comparative amounts have been adjusted to reflect the two-for-one
share split on 22 April 2005.
Share options granted to Directors

Options to subscribe for ordinary shares in the Company granted to and exercised by Directors during the year to
30 September 2005 are included in the following table:
Market
Options at Options granted Options exercised price at Options at 30 September 2005 Weighted
1 October since since exercise Date from average
2004 1 October 2004 1 October 2004 date which Expiry Exercise exercise
Number Number Price € Number Price € Price € Number exercisable date price € price €
Sean FitzPatrick 625,000 - 625,000 1.18 9.36 -
David Drumm 124,900 - - 124,900 #Sept 05 Sept 10 1.18

200,000 - - 200,000 Sept 06 Sept 13 4.68
200,000 - - 200,000 #Sept 08 Sept 13 4.68
- 500,000 7.97 - 500,000 Nov 07 Nov 14 7.97
- 500,000 7.97 - 500,000 #Nov 09 Nov 14 7.97
2,696 - - 2,696 *Feb 07 Aug 07 4.51
527,596 1,000,000 - 1,527,596 6.55
Tom Browne 300,000 - - 300,000 Feb 05 Feb 12 2.25

300,000 - - 300,000 #Feb 07 Feb 12 2.25
500,000 - - 500,000 Sept 06 Sept 13 4.68
500,000 - - 500,000 #Sept 08 Sept 13 4.68
8,330 - - 8,330 *July 07 Jan 08 2.54
1,608,330 - - 1,608,330 3.76
William McAteer 475,000 - - 475,000 #Sept 05 Sept 10 1.18

500,000 - - 500,000 Dec 06 Dec 13 6.30
500,000 - - 500,000 #Dec 08 Dec 13 6.30
2,696 - - 2,696 *Feb 07 Aug 07 4.51
1,477,696 - - 1,477,696 4.65
John Rowan 475,000 - - 475,000 #Sept 05 Sept 10 1.18

500,000 - - 500,000 Dec 06 Dec 13 6.30
500,000 - - 500,000 #Dec 08 Dec 13 6.30
16,058 - - 16,058 *Sept 06 Mar 07 1.54
1,491,058 - - 1,491,058 4.62
# Second tier options

* SAYE scheme options
Details of options outstanding at 30 September 2005 are shown in the Register of Directors’ and Secretary’s Interests, which
may be inspected at the Company’s registered office. The closing market price of the Company’s ordinary shares at
30 September 2005 was €11.33 (2004: €7.38) and the range during the year to 30 September 2005 was from €7.38 to €11.45.
All the figures have been adjusted to reflect the two-for-one share split on 22 April 2005.
98
47. Comparative figures
The comparative figures have been reclassified where necessary on a basis consistent with the current year.
48. International Financial Reporting Standards
All listed groups in the European Union (‘EU’) will be required to prepare their financial statements using International Financial
Reporting Standards (‘IFRS’) as endorsed by the EU for accounting periods commencing on or after 1 January 2005.
The Group’s first results prepared under IFRS will be published in its interim report for the six months to 31 March 2006. It is
intended that audited comparative data for 2005 will be filed with the Irish and London Stock Exchanges in March 2006.
In certain respects these new standards are significantly different from existing accounting standards that are generally accepted
in Ireland. The major differences identified between accounting policies currently adopted by the Group as set out in Note 1
and those expected under IFRS are set out below.
Provisions for bad and doubtful debts

Under IFRS impairment provisions can only be made for losses that have already been incurred at the balance sheet date.
Impairment is based on objective evidence and the impairment provision is the difference between the present value of future
cash flows discounted at the asset’s original effective interest rate and the book value of the asset. The charge in the income
statement for impairment losses under IFRS is expected to be more cyclical in the future as provisions will reflect economic
conditions at each reporting date.
Derivatives and hedging

Under IFRS all derivatives are measured at fair value with changes in their value either going through the income statement or
being dealt with through reserves. Hedge accounting is permitted but the conditions that must be complied with under IFRS are
onerous compared with existing requirements making IFRS compliant hedge accounting more difficult to achieve.
The hedging strategies used by the Group have been reviewed with a view to designing and implementing IFRS compliant hedge
accounting strategies where practical. However, the primary objective is to continue to provide economic hedges against the
Group’s market risk exposures.
Effective interest rates and lending arrangement fees

IFRS requires most lending arrangement fees to be recognised as interest income over the expected life of the relevant loan
using the effective interest rate. The effective interest rate is the rate that discounts all estimated cash flows on the loan over its
expected life to its net carrying amount.
Debt securities
The majority of debt securities held for investment purposes will be designated as ‘available for sale’ under IFRS.‘Available for
sale’ assets are measured at fair value under IFRS with changes in fair value (unrealised gains and losses) being recorded as
movements in reserves.
Life assurance presentation

IFRS requires the line by line consolidation of the results and balance sheet of the life assurance subsidiary including those assets
and liabilities attributable to policyholders.
Securitised assets
IFRS does not permit the linked presentation treatment of the Group’s securitised assets. Instead the relevant assets and
liabilities will be included on a gross basis in the balance sheet.
Equity and liabilities presentation

Under IFRS capital instruments must be classified between equity and liabilities in the consolidated accounts in accordance with
the substance of the contractual arrangements.
Offset
Netting of derivative exposures by counterparty is not permitted by IFRS unless active netting is taking place. This means that
for certain counterparties assets and liabilities arising on foreign exchange and interest rate contracts will have to be grossed up
on both sides of the balance sheet under IFRS.
Goodwill
Goodwill arising on acquisitions since October 1998 is currently amortised to the profit and loss account over its estimated
useful economic life. Under IFRS goodwill will no longer be amortised but will be tested annually for impairment and written
down if necessary.
Pensions
Under IFRS defined benefit pension scheme liabilities are discounted to their present value using the market rate on high quality
corporate bonds. Any difference between pension scheme liabilities and the fair value of pension scheme assets is recorded on
the balance sheet. IFRS permits actuarial gains and losses to be recognised immediately through the statement of total
recognised income and expense.
Dividends
IFRS requires proposed dividends to be recorded in the accounting period in which they are authorised and approved rather
than in the period to which they relate.
Computer software
Currently external costs incurred on computer software development are capitalised within tangible fixed assets and after the
software has been brought into use it is depreciated over its estimated useful life of four years. Under IFRS computer software
has to be reclassified as an intangible asset. Both directly attributable internal costs and external costs incurred on computer
software development must be capitalised as intangible assets and amortised over its expected useful life.
Share options
Under IFRS the fair value of share options granted to employees will have to be expensed in the income statement over the
vesting period of the options. This new requirement will apply to all share options granted after 7 November 2002 that have not
vested before 1 January 2005.
The above analysis relates only to the major differences identified in accounting policies between those currently applied by the
Group and those expected under IFRS for the year ending 30 September 2006. The IFRS in effect for that year may differ due to
decisions that could be taken by the EU on endorsement, interpretative guidance that may be issued by the International
Accounting Standards Board and the International Financial Reporting Interpretations Committee and future changes in
company legislation.
The Group continues to evaluate the balance sheet and income statement effects of adopting IFRS and therefore the audit of
the impact of transition to IFRS has not been completed at the date of this report. Until this work has been completed, it is
possible that further IFRS transition issues not discussed above will be identified. Interim guidance on the expected impact of
IFRS transition was given in June 2005 and is available on the Company’s website at www.angloirishbank.com.
49. Approval of financial statements
The Group financial statements were approved by the Board of Directors on 22 November 2005.
100
Consolidated profit and loss account

USDm GBPm CHFm
Interest receivable and similar income

Interest receivable and similar income arising from
Debt securities and other fixed income securities 132.7 75.2 171.5
Other interest receivable and similar income 2,368.2 1,341.1 3,060.2
Interest payable and similar charges (1,633.9) (925.3) (2,111.3)
Net interest income 867.0 491.0 1,120.4
Other income
Fees and commissions receivable 290.8 164.7 375.8
Fees and commissions payable (26.9) (15.2) (34.7)
Dealing profits 19.3 10.9 24.9
Other operating income 26.3 14.9 33.9
Total operating income 1,176.5 666.3 1,520.3
Operating expenses
Administrative expenses 297.7 168.6 384.7
Depreciation and goodwill amortisation 18.3 10.4 23.7
Provisions for bad and doubtful debts 35.4 20.0 45.7
351.4 199.0 454.1
Group profit on ordinary activities before taxation 825.1 467.3 1,066.2
Taxation on profit on ordinary activities (168.8) (95.6) (218.1)

Group profit on ordinary activities after taxation 656.3 371.7 848.1
Minority interests (55.1) (31.3) (71.3)

Dividends on preference shares (9.9) (5.6) (12.8)
Group profit attributable to ordinary shareholders 591.3 334.8 764.0
Dividends on €0.16 ordinary shares (110.1) (62.3) (142.2)

Group profit retained for year 481.2 272.5 621.8
Basic earnings per €0.16 ordinary share 88.16c 49.93p Chf 1.14
Diluted earnings per €0.16 ordinary share 86.39c 48.92p Chf 1.12
Dividends per €0.16 ordinary share 16.30c 9.23p Chf 0.21
Exchange rates used at 30 September 2005

One Euro = USD 1.2042 / GBP 0.68195 / CHF 1.5561
Consolidated balance sheet

A S AT 3 0 S E P T E M B E R 2 0 0 5
USDm GBPm CHFm
Assets
Cash and balances at central banks 682 386 882
Loans and advances to banks 7,531 4,264 9,731
Loans and advances to customers 41,062 23,254 53,062
Securitised assets 388 219 501
Less: non-returnable proceeds (370) (209) (478)
18 10 23
Debt securities 5,941 3,364 7,676
Equity shares 56 32 73
Intangible fixed assets - goodwill 79 45 102
Tangible fixed assets 107 61 138
Other assets 935 530 1,209
Prepayments and accrued income 571 323 738
56,982 32,269 73,634
Life assurance assets attributable to policyholders 1,137 644 1,469
Total assets 58,119 32,913 75,103
Liabilities
Deposits by banks 8,611 4,876 11,127
Customer accounts 30,297 17,157 39,151
Debt securities in issue 11,326 6,414 14,635
Proposed ordinary dividends 73 42 95
Other liabilities 522 295 674
Accruals and deferred income 551 312 712
Provisions for liabilities and charges 6 4 8
51,386 29,100 66,402
Capital resources
Subordinated liabilities 1,423 806 1,839
Perpetual capital securities 796 451 1,029
Equity and non-equity minority interests 834 472 1,077
3,053 1,729 3,945
Called up share capital 131 74 169
Share premium account 723 409 934
Other reserves 3 2 4
Profit and loss account 1,686 955 2,180
Total shareholders’ funds including non-equity interests 2,543 1,440 3,287
Total capital resources 5,596 3,169 7,232
56,982 32,269 73,634
Life assurance liabilities attributable to policyholders 1,137 644 1,469
Total liabilities and capital resources 58,119 32,913 75,103
Exchange rates used at 30 September 2005

One Euro = USD 1.2042 / GBP 0.68195 / CHF 1.5561
102
Shareholder information
Substantial shareholdings
As at 22 November 2005 the following interests in the ordinary share capital had been notified to the Company.
Number % of issued ordinary

of shares share capital
UBS AG 38,990,286 5.7
Bank of Ireland Nominees Limited 24,539,364 3.6
The above shareholders have informed the Company that their holdings are not beneficially owned but are held on behalf of a
range of clients none of whom, so far as the Directors are aware, hold more than 3% of the issued ordinary share capital.
Size analysis of shareholdings at 30 September 2005

Shareholdings Shares
Number % Number %
1 - 5,000 11,414 74.0 15,717,825 2.3
5,001 - 10,000 1,627 10.5 11,592,807 1.7
10,001 - 25,000 1,309 8.5 20,740,561 3.1
25,001 - 50,000 471 3.1 16,588,338 2.5
50,001 - 100,000 232 1.5 16,458,224 2.4
100,001 - 500,000 232 1.5 49,016,797 7.2
Over 500,000 146 0.9 548,015,996 80.8
15,431 100.0 678,130,548 100.0
Financial calendar
Publication of results Half year to 31 March 2005 4 May 2005

Dividend (ordinary shares) Interim dividend paid 18 July 2005
Publication of results Year to 30 September 2005 23 November 2005
Share transfer books closed 2 December 2005
Accounts posted to shareholders 19 December 2005
Annual General Meeting 27 January 2006
Dividend (ordinary shares) Proposed final dividend payment 13 February 2006
103
Anglo Irish Bank

locations
104
Anglo Irish Bank locations
Dublin Waterford Isle of Man

Head Office Anglo Irish Bank House Jubilee Buildings
Stephen Court Maritana Gate Victoria Street
18/21 St. Stephen’s Green Canada Street Douglas
Dublin 2 Waterford Isle of Man IM1 2SH
Tel: +353 1 616 2000 Tel: +353 51 849 300 Tel: +44 1624 698 000
Fax: +353 1 616 2411 Fax: +353 51 849 398 Fax: +44 1624 698 001
London Geneva
Registrar Correspondence 10 Old Jewry 7 Rue des Alpes
Computershare Investor London EC2R 8DN P.O. Box 1380
Services (Ireland) Limited Tel: +44 207 710 7000 1211 Geneva 1
Heron House Fax: +44 207 710 7050 Tel: +41 22 716 3636
Corrig Road Fax: +41 22 716 3618
Sandyford Industrial Estate Banbury
Dublin 18 Town Centre House Prague
Tel: +353 1 216 3100 Southam Road Wenceslas Square 19
Freephone: 1800 225 125 Banbury 11000 Prague 1
(Shareholder enquiries) Oxon OX16 2EN Tel: +420 234 656 127
www.computershare.com Tel: +44 1295 755 500 Fax: +420 234 656 138
Fax: +44 1295 755 510
Private Banking Vienna
61 Fitzwilliam Square Belfast Rathausstrasse 20
Dublin 2 14/18 Great Victoria Street P.O. Box 306
Tel: +353 1 631 0000 Belfast BT2 7BA A-1011 Vienna
Fax: +353 1 631 0098 Tel: +44 2890 333 100 Tel: +43 1 406 6161
Fax: +44 2890 269 090 Fax: +43 1 405 8142
Cork
Anglo Irish Bank House Birmingham Boston
11 Anglesea Street 1 Colmore Square (Representative Office)
Cork Birmingham B4 6AJ 265 Franklin Street
Tel: +353 21 453 7300 Tel: +44 121 232 0800 Boston MA 02110
Fax: +353 21 453 7399 Fax: +44 121 232 0808 Tel: +1 617 720 2577
Fax: +1 617 720 6099
Galway Glasgow
Anglo Irish Bank House 180 St.Vincent Street New York
Forster Street Glasgow G2 5SG (Representative Office)
Galway Tel: +44 141 204 7270 222 East 41st Street
Tel: +353 91 536 900 Fax: +44 141 204 7299 New York NY 10017
Fax: +353 91 536 931 Tel: +1 212 503 3000
Manchester Fax: +1 212 503 3033
Limerick 1 Marsden Street
Anglo Irish Bank House Manchester M2 1HW Dubai
98 Henry Street Tel: +44 161 214 3020 (Representative Office)
Limerick Fax: +44 161 214 3030 P.O. Box 119691
Tel: +353 61 461 800 Emaar Business Park
Fax: +353 61 461 899 Building No. 4
Office 611
Sheikh Zayed Road
Dubai
Tel: +971 4361 9046
Fax: +971 4361 9036
For further information, please email: enquiries@ angloirishbank.ie

Dublin EXPERIENCE THE DIFFERENCE
Cork
Galway
Limerick
Waterford
London
Banbury
Belfast

Birmingham
2005
Glasgow Twenty years of uninterrupted profit growth
Manchester
Isle of Man
Geneva
Prague
Vienna
Boston
New York
Dubai

Anglo Irish Bank
Business Lending
Treasur y
Wealth Management

Annual Repor T & Accounts 2005: Twenty Years of Uninterrupted Profit Growth

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COVER ARTWORK_l 12/9/05 9:44 AM Page 1

Dublin EXPERIENCE THE DIFFERENCE

Annual Repor t & Accounts 2005

Annual Repor t & Accounts 2005

2005 was a year of record growth and investment for the

20 years of uninterrupted profit growth

01 Financial highlights 38 Consolidated profit and loss account

Designed and produced by Designbank Ltd. Tel: 6604177.

685.2 73.21 13.54

growth rate in pre-tax profits

48,264 41,716 34,421

25,520 22,426 18,077

19,412 16,853 14,297

15,771 13,844 11,522

11,058 9,852 8,304

Business Lending Treasury

Boston Dublin Douglas London Geneva Vienna Prague Dubai

Sean FitzPatrick Chairman

Anglo Irish Bank had an impressive year with your People

Anglo Irish Bank

David Drumm Group Chief Executive

small through to larger ticket transactions, Lending – UK

Capital It is important to recognise that this change in

Given the considerable opportunities available to us 22 November 2005

Sean FitzPatrick (57) David Drumm (39) Lar Bradshaw (45)

Patricia Jamal (62) William McAteer (55) Gary McGann (55)

Tom Browne (43) Fintan Drury (47) Michael Jacob (60)

John Rowan (47) Ned Sullivan (57) Patrick Wright (64)

The Market Place At a corporate level, we adopt the highest standards

Anglo Irish Bank volunteers

The Community Under this programme employees make donations

The Bank’s involvement in supporting sporting

Report of the Directors

Dividends Books and accounting records

Statement of Directors’ responsibilities

Corporate governance statement

Corporate governance statement

The website also provides detailed financial data, Company

Attendance at scheduled meetings during the year ending 30 September 2005

Name Board Audit Remuneration Risk and Nomination

Independent Auditors’ report to the members of

Consolidated profit and loss account

Interest receivable and similar income

Group profit on ordinary activities before taxation 3 685.2 504.1

Taxation on profit on ordinary activities 4 (140.2) (107.7)

Minority interests 5 (45.8) (17.0)

Dividends on €0.16 ordinary shares 8 (91.4) (75.2)

Basic earnings per €0.16 ordinary share 9 73.21c 57.26c

Diluted earnings per €0.16 ordinary share 9 71.74c 56.19c

Dividends per €0.16 ordinary share 8 13.54c 11.28c

Directors: Sean FitzPatrick, David Drumm,William McAteer. Secretary: Bernard Daly.

Consolidated balance sheet

Directors: Sean FitzPatrick, David Drumm,William McAteer. Secretary: Bernard Daly.

Company balance sheet

Called up share capital 31 108.9 107.1

Total capital resources 2,980.5 2,085.1

Total liabilities and capital resources 45,051.5 31,453.5

Directors: Sean FitzPatrick, David Drumm,William McAteer. Secretary: Bernard Daly.

Consolidated cash flow statement

Reconciliation of operating profit to net operating cash flows

Net increase in deposits 12,619.1 6,670.8

Returns on investment and servicing of finance 37 (50.7) (57.2)

Statement of total recognised gains and losses