Annual Report & Accounts Annual Report & Accounts: Document2 12/23/04 12:07 PM Page 1

Document2 12/23/04 12:07 PM Page 1
EXPERIENCE THE DIFFERENCE
Annual Report & Accounts 2004

A
lR
t &A
t 2004
Anglo Irish Bank Business Lending Treasury Wealth Management

A
l I i hB
k
Maintaining our focus
The Group’s performance in 2004 and for

many years has demonstrated the success
of the Bank’s clear strategy.Your Board
and our people are confident that through
its continued implementation the Bank can
provide a differentiated and valuable offering
to our customers and accordingly create
increasing value for shareholders.
Contents
01 Financial highlights 24 Consolidated profit and loss account

02 Group profile 25 Consolidated balance sheet
04 Chairman’s statement 26 Company balance sheet
08 Chief Executive’s review 27 Consolidated cash flow statement
12 Board of Directors 28 Statement of total recognised gains and losses
14 Strategic Management Board 28 Reconciliation of movements in shareholders’ funds
15 Executive Management Board 29 Notes to the financial statements
16 Corporate social responsibility 86 Consolidated profit and loss account (USD, GBP, CHF)
18 Report of the Directors 87 Consolidated balance sheet (USD, GBP, CHF)
19 Statement of Directors’ responsibilities 88 Shareholder information
20 Corporate governance statement 88 Financial calendar
22 Independent Auditors’ report
12978 Anglo AR Acc FA 4.0 12/23/04 12:16 PM Page 1
Anglo Irish Bank Annual Report & Accounts
Another successful year

Five year compound annual growth rate in pre-tax profits of 41%
114.53
22.56
504.1
18.80
78.03
346.5
58.14 12.53
261.3
10.44
43.18 8.70
194.8
33.56 7.24
133.6
22.49
89.1
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004
Profit before taxation (€m) Earnings per share (cent) Dividends per share (cent)
34,340 29,096 24,390
25,520 22,426
18,077
19,412 16,853 14,297
15,771 13,844 11,522
9,852 8,304
11,058
7,939 7,057 5,613
1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004 1999 2000 2001 2002 2003 2004
Total assets (€m) Total funding (€m) Advances to customers* (€m)
Financial highlights
€m 2004 2003
Profit before taxation 504.1 346.5

Profit after taxation 396.4 270.1
Basic earnings per share 114.53c 78.03c
Dividends per share 22.56c 18.80c
Total assets 34,339.8 25,520.1
Total funding 29,096.4 22,425.6
Advances to customers* 24,389.8 18,076.5
Total capital resources 3,872.7 2,245.3
*Including securitised assets
01
Group profile
US
Boston
New York
Business Lending Treasury

Secured lending is the Bank’s core area of expertise and the main driver Treasury’s primary responsibility is the origination of Group funding and
of income and profit growth. Our strategy is clearly defined and we have the management of the associated liquidity and interest rate risk. It also
remained focused on our chosen sectors and markets. contributes significant fee income through its international finance and
corporate treasury sales activities.
Lending services are offered in Ireland, the United Kingdom and also in
the greater Boston area of the United States.We lend principally to the Group funding, liquidity and risk management are co-ordinated centrally,
mid-corporate and professional sectors with advances supported by with funding sourced through the Bank’s personal and corporate deposit
recurring stable cash flows while retaining a charge on assets as security. taking operations in Ireland, the United Kingdom, the Isle of Man and
Our lending model is based on a client-focused approach providing Austria.The Bank also uses the international banking and capital markets
efficient underwriting, deal structuring aligned with customer needs and to supplement its deposit taking efforts and to expand capital resources.
above all, certainty of execution.Asset quality has been the cornerstone
of our year-on-year profit growth and this will continue as we grow the The Bank is also a significant participant in the international interbank
business in the future. markets, managing a treasury relationship with more than 350 banks.
Corporate treasury sales consist of foreign exchange and interest rate

Products
management services.These are provided in Ireland, the United Kingdom,
Corporate lending
Austria and through our representative offices in Boston and New York.
Commercial mortgages
Trade finance business is conducted in Ireland and the United Kingdom.
Film finance
Invoice discounting
Products
Asset & motor finance
Corporate treasury sales
Corporate deposits
Personal deposits
International finance
Capital markets
02
Ireland Isle of Man UK Switzerland Austria

Belfast Douglas Banbury Geneva Vienna
Cork Birmingham
Dublin Glasgow
Galway
Limerick
London
Manchester Wealth Management
Waterford Wealth Management, with operations in Austria, Ireland, the Isle of Man,
Switzerland and the United Kingdom, is concentrated in the areas of
private banking, funds management and retirement planning.
Our objective is to develop long-term relationships with clients

through the protection and creation of their wealth. Operating as
a single cohesive division, we provide clients with a wide range of
investment opportunities tailored to their individual requirements.
Products
Private banking
Funds management
Retirement planning
Asset management
03
Chairman’s statement
Peter Murray
Chairman
2004 was an excellent year with your Bank extending its record of uninterrupted profit growth to 19 years.
This performance demonstrates the strength of the Bank’s strategy and the real efforts made by our people
to ensure its consistent delivery. The highlights of our performance this year include:
Profits
• Record pre-tax profits of €504.1m, an increase of 45%
• ‘Like for like’ profits (profits before general bad debt provisions) increased by 28%
• Cost/income ratio improved to 27.7%
Shareholder Value
• Record EPS of 114.53 cent
• Return on equity up to 35.3%
• Proposed final dividend of 15.04 cent, resulting in a total annual dividend of 22.56 cent, an increase of 20%
Operational Performance
• Record growth in lending of €6.3Bn, representing an increase of 35%
• Non-performing loans account for 0.61% of closing customer loan balances (30 September 2003: 0.72%)
• Customer deposits increased by 34% to €19.5Bn
• Total Capital Ratio now stands at 13.9%
• Number of employees grew from 1,088 to 1,207
Dividends
The Board recommends a final dividend of 15.04 cent per share, bringing total dividends for the year to
22.56 cent per share, an increase of 20%. Our dividend cover remains strong at 5 times.
It is proposed that the final dividend be paid on 14 February 2005 to shareholders on the Bank’s register as
at the close of business on 3 December 2004. Withholding tax may apply on the dividend depending on the
tax status of each shareholder. Shareholders will again be offered the option of receiving dividends in the
form of cash or shares.
04
2004 was an excellent year with your Bank extending its

record of uninterrupted profit growth to 19 years.
Business Lending
Business lending recorded the highest absolute level of net loan growth in the Bank’s history of €6.3Bn
and follows the previous record growth achieved of €4.6Bn in 2003. The continued strengthening of our
franchise throughout our markets and the scalability of our business model is reflected in the 35% growth
in loan balances which now stand at €24.4Bn. Asset quality, the cornerstone of long-term sustainable
profit growth, remains excellent throughout all our operations. The Bank’s focused offering positions it
well to take advantage of future opportunities in its core lending markets.
Treasury
2004 was a momentous year for our Treasury division. Customer deposits grew by nearly €5Bn, an
increase of 34% contributing to a record €6.7Bn growth in funding. In addition, Corporate Treasury Sales
showed strong growth with revenues up some 30%.
The Bank’s robust profitability, its excellent asset quality and its strengthening funding profile was reflected
in the upgrade in March 2004 by Moody’s Investors Service, the leading international credit rating agency, of
the Group’s long-term and short-term ratings to A2 and P-1 respectively.
The Bank further strengthened its capital base in the period through two very significant capital issues. In
June 2004 the Group issued €750m of subordinated Tier 2 notes and in September 2004 the Group raised
€600m of perpetual preferred Tier 1 eligible securities. Both transactions clearly demonstrate the Group’s
high standing in the capital markets. The Group’s Total Capital Ratio now stands at 13.9%.
Wealth Management
The Group’s Wealth Management division achieved excellent revenue and profit growth.This illustrates
the strong position developed in the areas we have targeted. Servicing the high net worth sector, the
division benefits from the clear synergies with the Bank’s client base across other divisions, in particular
our lending operations. Our centrally co-ordinated product offering, combined with expertise in chosen
markets, provides significant opportunities for the future.
People
We continue to invest significantly in our people ensuring a solid platform for the future. Notwithstanding
this, the momentum of our business and the inherent strength of the Bank’s model resulted in further
improvement in the Group’s cost/income ratio to 27.7%.This demonstrates how incremental revenues
are highly accretive to shareholder value.
In July your Board announced that Sean FitzPatrick will retire as Chief Executive of the Bank in January 2005
and will become its Non-executive Chairman. Under his leadership the Bank has achieved 19 consecutive
years of profit growth from €1m in 1986 to €504m in 2004.The Group’s market capitalisation has grown
from €8m to exceed €5Bn in the same period thus placing the Bank as one of the best performing financial
05
Chairman’s statement continued
institutions in Europe and indeed beyond. I wish, on behalf of your Board, our people and you the
shareholders, to express our deepest gratitude to Sean for his years of dedication and the exceptional
leadership and vision that have driven the success of Anglo Irish Bank over the past two decades. I am
certain that our management team will continue this trend and also that the Board will continue to
benefit from Sean’s experience and counsel when he becomes Chairman.
David Drumm has been appointed to succeed Sean as Group Chief Executive.A member of the Strategic
Management Board, David joined the Group in 1993 and held several senior positions in our Lending
operations. Having established our US operations in Boston in the late 1990s he returned to Dublin in 2003
as Head of Lending.Your Board is delighted that David will lead the Bank over the coming years.
The Bank announced recently that Tiarnan O Mahoney will retire from the Board in December 2004.
Tiarnan joined the Bank in 1985 as Head of Treasury and played a very significant role in building our
business. He was appointed to the Board in 1993 and became Chief Operating Officer in 2002. I thank
Tiarnan for the enormous contribution he has made to Anglo Irish Bank.
Anton Stanzel retires as a Non-executive Director of the Bank in January 2005. His broad experience of
international business and regulatory matters was of great value to the Board and I would like to pay
tribute to the contribution he has made to the Group during his term of office.
In October 2004 Lar Bradshaw was appointed to the Board as a Non-executive Director. Lar, who is
Chairman of the Dublin Docklands Development Authority, was a Director of McKinsey Inc. and Managing
Director of McKinsey Ireland since 1995 until his recent retirement. I again welcome Lar to the Board.
In this, my last time writing to you as Chairman and Director, I would like to thank all of Anglo’s people
and my colleagues on the Board for raising the bar in terms of performance year after year. It has been a
privilege to be associated with the Bank’s success over the past 11 years and to work alongside such a
dedicated, talented and focused team. I wish David and Sean every success in their new roles. I believe
that the composition of your Board and management provides a strong and well-balanced leadership
team for the future.
Maintaining our Focus

The Group’s performance in 2004 and for many years has demonstrated the success of the Bank’s clear
strategy.Your Board and our people are confident that through its continued implementation the Bank can
provide a differentiated and valuable offering to our customers and accordingly create increasing value for
shareholders.
06
Sean FitzPatrick with Peter Murray
The Bank will continue to focus on its core businesses in its existing markets.This, we believe, will offer
significant growth opportunities over the coming years. We will take advantage of the strength of our
franchise in these markets and the growth opportunities they will naturally provide. Importantly, we will
continue to remain vigilant on all risk issues and asset quality.
As always the Board’s strategic objectives are based on organic growth. We will continue to evaluate
acquisition opportunities as they arise, but we will only execute transactions which satisfy our long-term
strategic objectives and meet the stringent criteria we impose.
Outlook
Your Board is confident on the Bank’s future prospects. Across any range of metrics your Bank is well
placed.The strength and proven scalability of our model will, we believe, enable us to deliver above
market returns in the future.
Lending work in progress at 30 September 2004 is almost €4.1Bn and represents a record level for the
Bank. Experience shows that a large proportion of this will convert to quality loans and indeed all divisions
of the Group have enjoyed a strong start to fiscal year 2005.The economies of our core markets remain
strong and we anticipate significant opportunities in each area of business.
We look forward to your Bank performing strongly in 2005 and remain very positive on its ability to
enhance its position in core markets in future years.
Peter Murray
Chairman
23 November 2004
07
Chief Executive’s review
Sean FitzPatrick
Chief Executive
Anglo Irish Bank’s core objective – the creation of value for our shareholders – has remained consistent
over the past two decades. 2004 has again been an excellent year with the Bank generating a 35% return
on equity and bringing its five year compound annual growth in pre-tax profits to 41%. In attaining its
objective the Bank has maintained a very clear focus and has followed a consistent strategy in building a
strong franchise across its target markets.
Operations
Business Lending
Secured lending is the Group’s core area of expertise and the main driver of income and profit growth.
The Bank delivered record net new lending of €6.3Bn, bringing total loans to €24.4Bn, an increase of 35%.
All lending operations delivered very strong growth. The consistent performance of our lending businesses
highlights the Bank’s ability to grow its franchise across chosen markets. The international applicability of
our business model is now well proven.
Asset quality remains excellent, the Bank having built a diversified, high quality and well secured loan book.
Specific provisions charged in the year were just 0.08% of closing loan balances - one of the lowest charges
in the European banking sector. Non-performing loans represent 0.61% of our closing loan book, down
from the already low level of 0.72% at 30 September 2003. Total provisions at €289m equate to 195% of
non-performing loans. Moreover, taking into account the value of security held against these loans the
Bank’s coverage ratio is even higher.
We are conscious that we are operating in benign times with low interest rates in each of our markets.
However, the Bank’s focus on asset quality will never be compromised to achieve volume growth, regardless
of the economic environment.
Lending – Ireland
Lending by our Irish operations continued the historical trend of strong growth with loan balances
increasing by in excess of 30%. We have built on our franchise for efficient client service and are now well
established in the Irish market. This positions us well to take advantage of a robust economy, as reflected by
record lending work in progress in Ireland which stands at €2.2Bn.
08
The Bank delivered record net new lending of €6.3Bn,

bringing total loans to €24.4Bn, an increase of 35%.
We look forward to significant growth opportunities in future years and will work hard to build on existing,
and develop new, business relationships within the Irish market.
Lending – UK
Our UK lending operations grew loan balances by a record amount in 2004 and it now represents some
40% of the Group’s total loans.The Bank’s success in the UK highlights the scalable nature of our lending
model which continues to offer significant future potential. Since entering the UK market in the mid 1980’s
we have acquired a detailed knowledge and expertise of our target sectors. The Bank has been fortunate in
attracting and retaining high quality people and developing a franchise that is now well recognised in the market.
We are confident that the Bank will continue to build on and expand this franchise in the coming years.
Lending – Boston
The Bank’s lending operations in Boston continue to perform strongly with loan balances increasing by 20%,
on a constant currency basis, to €1.3Bn. Having established our representative office in the late 1990’s we
have built, on an organic basis, a business which delivers high quality and repeatable earnings. It operates in
a highly efficient manner with all support functions provided by head office. After a relatively short period,
the Bank has developed a base that will, we believe, provide strong revenue and profit growth over the
medium and long term.
Treasury
Our Treasury division had an excellent year across all fronts. Total funding grew by €6.7Bn to €29.1Bn.
Corporate and personal deposits recorded growth of nearly €5Bn, an increase of 34%. The success of the
Bank’s debt securities programme continues to enhance both the mix and tenor of funding resources. The
continuously improving quality of Group funding was reflected in the upgrade of the Bank’s credit ratings
received from Moody’s Investors Service in March 2004.
Fee income from our Corporate Treasury Sales division grew significantly in the period. We continue to
expand this area of the business as a valuable service to both our lending and non-lending clients and the
Bank benefits from the diversification this brings to our sources of income. Our approach of placing people
in local markets, while channelling all business through our single central dealing room, has been successful
from both a profit and risk management perspective.
Wealth Management
The Group’s Wealth Management division had a successful year achieving record revenues and strong profit
growth. Directed towards high net worth clients, the division’s success can be attributed to focused
management and the development of tailored investment products across many asset classes. The Bank has
established operations in Ireland, Geneva, the Isle of Man and Vienna, and more recently in the UK, all of
which are co-ordinated from Dublin. This structure facilitates a consistent and differentiated service to our
clients and creates opportunities to enhance customer relationships throughout the Group.
09
Chief Executive’s review continued
Capital
The Bank has continued its record of strong internal capital generation, increasing shareholders’ funds by
36% to €1,240m. Driven by retentions, shareholders’ funds have grown by over €750m in the past
three years. During the year the Bank further enhanced its regulatory capital base by issuing €750m of
subordinated Tier 2 notes and €600m Tier 1 eligible securities. Both capital issues were raised at attractive
prices and were substantially oversubscribed. These transactions, some of the largest by an Irish institution,
provide a solid capital base from which to grow going forward. Total capital ratio now stands at 13.9%.
People
On behalf of my colleagues and myself, I wish to express our gratitude to the Bank’s Chairman, Peter
Murray, who retires from the Board in January 2005. Peter brought a wealth of experience to our Board
since his appointment in 1993. His special leadership qualities enabled him to consistently deliver the full
potential of the entire Board, merging the skills and experience of Non-executives with an enthusiastic
management. The Bank has benefited immensely from Peter’s involvement over the past 12 years and from
his leadership during his tenure as Chairman.
I am very pleased that David Drumm will succeed me as Chief Executive. David was chosen from a high
calibre field and brings a depth of experience and a great feel for the culture of the Bank. I am certain that,
under his leadership, the Bank will continue to deliver strong, high quality growth and will maximise the full
potential of its people.
I would like to record my personal and sincere appreciation to both Peter Killen, who retired from the Board
in February 2004 and Tiarnan O Mahoney, who will retire in December 2004. Peter played a key role in
developing the Bank’s lending franchises in Ireland and the UK and in establishing our risk model. Tiarnan
contributed hugely in building the Bank’s Treasury and Wealth Management businesses and in various senior
roles with the Bank over the past 20 years.Their impact on the development of Anglo Irish Bank has been
enormous.They will always have the Bank’s and my personal support, friendship and good wishes for the future.
Anton Stanzel will shortly retire as Non-executive Director and I wish to reiterate the sentiments of our
Chairman in thanking him for his very significant service and contribution to the Board.
Lar Bradshaw and Gary McGann were appointed to the Board as Non-executive Directors during the
period. In addition,Tom Browne, who first joined the Bank in 1990 and has held various senior roles in
Wealth Management and Lending, was appointed an Executive Director. I am confident that they will all
play an important role and contribute greatly to the future growth and strategic direction of the Bank.
Finally, I wish to thank all of my colleagues in the Bank over the past two decades for your hard work and
10
Sean FitzPatrick with David Drumm
support to me as Chief Executive. You should be proud of the Bank’s significant achievements and I am very
grateful for the opportunity to have worked with such talented and committed people. I look forward with
great enthusiasm to becoming Non-executive Chairman and, given the strength of the management team and
quality of our people, I am confident of the Bank’s future success.
Strategy
The Bank will continue to focus on its core business areas of business lending, treasury and wealth
management. We provide secured lending in chosen sectors and markets.All lending is sanctioned centrally,
ensuring consistent client service and strong asset quality. Our Treasury division continues to diversify and
strengthen the quality of our funding base. In addition to managing the risk profile of the Bank it also
provides valuable corporate treasury services to our clients. Our Wealth Management division provides
investment and financial management services to high net worth clients, giving further diversification to our
income stream. Both divisions derive significant benefits from the strong synergies with our lending
operations. Organic growth will represent the mainstay of future expansion but we will of course give
careful consideration to acquisition opportunities which may present themselves.
Outlook
We look to the future with confidence. Lending work in progress is at record levels.The income contribution
from our Treasury and Wealth Management operations continues to strengthen.The Bank is well placed both
from a capital and funding position.The economies in which we operate continue to perform well and the
implementation of our strategy will yield strong returns.The strength, scale and mix of our businesses,
together with our people, provide us with an excellent platform as we look towards next year and beyond.
Sean FitzPatrick
Chief Executive
23 November 2004
11
Board of Directors
Sean FitzPatrick (56) Peter Murray (56) Lar Bradshaw (44)

has been the Chief Executive of Anglo Irish Bank has been a Director since November 1993. He was who joined the Board in October 2004, was a
Corporation plc since 1986. A Chartered appointed Chairman of the Bank in January 2002. Director of McKinsey Inc. and Managing Director
Accountant by qualification, he also serves as a He is a Fellow of the Institute of Chartered of McKinsey Ireland since 1995 until his recent
Non-executive Director of the Dublin Docklands Accountants in Ireland and is Chairman and/or a retirement. He holds an MBA degree from the
Development Authority, Greencore plc, Aer Lingus Director of a number of companies both in Ireland International Institute for Management Development
and as a member of the Council of the Institute of and overseas. in Switzerland and has been Chairman of the Dublin
Chartered Accountants in Ireland. Docklands Development Authority since 1997.
Executive Director
An independent Non-executive Director
Fintan Drury (46) Michael Jacob (59)
A member of the Audit Committee who joined the Board in May 2002, is Chairman of has been a Director since 1988 and is a Fellow of
A member of the Nomination Sports Management Company DSMI and of Paddy the Chartered Institute of Management Accountants.
Power plc and a Director of a number of other He is Chairman of the Lett Group of Companies,
and Succession Committee private companies. He is a former news journalist Deputy Chairman of SIAC Construction Limited,
A member of the Remuneration Committee with RTE and in 1988 founded Drury Communications, President of the Royal Dublin Society and a Director
a corporate communications consultancy from which of other companies.
A member of the Risk and Compliance Committee
he retired in 1999.
John Rowan (46) Anton Stanzel (65) Ned Sullivan (56)

joined the Board in October 1998. A Chartered who joined the Board in April 2001, is a former who joined the Board in November 2001, is the
Accountant, he joined the Bank in 1985 and is Director General of the Austrian Ministry of Finance former Group Managing Director of Glanbia plc and
Managing Director of the Bank’s operations in and a former Associate Professor of the University of previously held a number of senior management
the United Kingdom. Economics in Vienna. He is a senior consultant to the positions in Grand Metropolitan plc. He holds
Board of Casinos Austria International Holding B.Comm and MBS degrees. He is Chairman of
GmbH and a member of the Supervisory Board of Greencore plc and of McInerney Holdings plc and
Anglo Irish Bank (Austria) A.G. of the President's Award – Gaisce.
12
Tom Browne (42) David Drumm (38)

who joined the Board in January 2004, is Head of the was appointed Chief Executive Designate and joined
Bank's Wealth Management division and a member of the Board in September 2004.A Chartered
the Strategic Management Board. From 1990 to 2000 Accountant, he joined the Bank in 1993 after a
he was an Executive in the Dublin Lending division number of years in corporate finance. After working
and was appointed Head of Dublin Banking in 1997. initially in the Banking division in Dublin, he moved to
In 2002, he was appointed to his current position as the United States in 1998 to establish what is now
Head of Wealth Management. He holds MBS and BBS the US Banking division, based in Boston. In 2003 he
degrees and is a member of both the Institute of assumed his current position as Divisional Director
Bankers and the Institute of Marketing in Ireland. and Head of Banking.
William McAteer (54) Gary McGann (54) Tiarnan O Mahoney (45)

a Chartered Accountant, was appointed Finance who joined the Board in January 2004, is Chief joined the Board in November 1993, having worked
Director of the Group in June 1992. He was Executive Officer of the Jefferson Smurfit Group. He with the Group since 1985, and was appointed
previously Managing Director of Yeoman International is Chairman of the Dublin Airport Authority and is Chief Operating Officer in April 2002. He holds an
Leasing Limited, prior to which he was a Partner with President of IBEC. He is also a Director of Aon MBA degree and is an Associate of the Chartered
Price Waterhouse. McDonagh Boland Group and United Drug plc. He Institute of Management Accountants.
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.
Patrick Wright (63) Patricia Jamal (61)

joined the Board in February 2000. He is Chairman joined the Board in January 2003. She is a former
of the RTE Authority and of Aon McDonagh Boland Managing Director and Head of Global Financial
Group. He is an Honorary Fellow of the National Institutions in Barclays Capital.
College of Ireland and a Fellow of the Irish Management
Institute.
13
Strategic Management Board

The Strategic Management Board meets monthly to consider the ongoing development and
implementation of the Bank’s strategic plan including risk management, potential acquisitions,
capital strategy and material contracts.
left to right Sean FitzPatrick, Pat Whelan,

David Drumm, Declan Quilligan
left to right Bernard Daly, Tom Browne,

Brian Murphy, John Rowan
left to right Peter Butler,Tiarnan O Mahoney,

William McAteer
14
Executive Management Board

The Executive Management Board meets monthly to focus on operational issues within the Bank
with a view to maximising performance and efficiencies in day to day operations.
left to right Jim Springham, Pat Whelan,

Gordon Parker, Declan Quilligan,
Declan McAdams
left to right Matt Moran, Mike Campbell,

Tony Campbell
left to right John O’Connell, Des Whyte,

Bernard Daly, Brian Murphy
left to right David Drumm, Helen Cahill,

Owen O’Neill, Ian Duffy,
Kieran Duggan
left to right Des O’Houlihan, Brian Linehan,

Ruairi Conneely, David Murray
15
Corporate social responsibility
At Anglo Irish Bank we believe that Corporate Social • Regular communication with all staff of the financial
Responsibility extends to all stakeholder groupings, including performance of all divisions and of our future business
our shareholders, our customers, our employees and the plans and strategies;
communities and environment in which we operate.The Group
• Ensuring that our staff feel challenged, supported and
has always aspired to a set of values which recognises the
empowered with a strong sense of ownership and
interests of these stakeholders and which embodies the highest
identification with the Bank; and
standards of integrity, corporate governance, environmental
performance and community action. • Maintaining a meritocracy whereby high achievers are
appreciated and rewarded.
The development of a more formal approach to Corporate
Social Responsibility builds on a long tradition in the Bank of As part of our objective to ensure our people share in the
recognising that being a good corporate citizen goes beyond success of the Bank, we encourage employee share ownership
stating our business principles. through various initiatives. As a consequence, over 90% of
staff hold shares in the Bank.
The Market Place
The Bank takes pride in its renowned commitment to our Since 2000 the Save As You Earn scheme allows all staff in
customers.We believe that providing superior value and applicable locations to acquire shares in the Bank at a
exceptional customer care is central to the future development discounted price and provides a convenient way to save.This
of our business across the Group.To ensure high levels of scheme assists in the Bank’s desire to promote a proprietorial
service and commitment, our customer support areas are culture among its employees.
divided into specialist and highly focused teams. Each team
provides a point of contact to a specific group of customers In 2004, we launched our first Give As You Earn employee
and has ownership and responsibility for a complete and scheme. Children Direct, a group of five childrens’ charities
personalised service. receive monthly donations from employees via salary
deduction.The Bank matches these donations every month.
Our customers are the foundation of our business.We
seek to maintain the highest standards of regulatory The Community
compliance and ensure necessary safeguards are in place. Anglo Irish Bank endeavours to respond positively to
We have a comprehensive internal complaints procedure charitable and other requests which have a strong community
and are compliant with Codes of Practice issued by the Irish ethos. The Bank makes financial contributions to both
Financial Services Regulatory Authority, the UK Financial national and international causes on an annual basis.
Services Authority and other relevant regulatory bodies.
The Bank’s compliance rules are key to our commitment
to Corporate Social Responsibility.
In line with our purchasing policy we have service level

agreements in place with the Bank’s suppliers.
The Workplace
Anglo Irish Bank is an equal opportunities employer.We strive
to recruit, train and develop the most committed and talented
individuals to our team of over 1,200 staff across 16 locations
in 7 countries.
Our people are the key to the delivery of customer service

excellence. In this context, the Bank focuses on three main
objectives:
16
We have a number of employee volunteer programmes across The Environment

the Group.The Bank has participated in Business in the We believe that there is no better place to start behaving in
Community’s Business Schools’ Partnership since 2000. In this an environmentally responsible manner than in our own
programme we are partnered with a second level school in workplace.We have implemented a waste management and
the south inner city of Dublin. Under this initiative, more recycling initiative across the Group.
than 40 staff from the Bank engage in a student mentoring
programme.Volunteers mentor senior cycle students and The Bank encourages staff to reduce the use of paper and
support them in choosing a career path.At junior cycle, the maximise the use of electronic communications, where
volunteers’ focus is on improving student literacy skills. These possible.We have reduced energy consumption through a
activities have had a beneficial impact on the students, the range of measures introduced throughout the Bank.We also
school and our own staff. The Bank has also made a financial recycle all computer consumables in line with our
commitment to the school over a seven year period environmental policy.
commencing in 2000.
Corporate Social Responsibility is an integral part of how we
Enriching the community through the support of the arts and operate and the above illustrates some examples of our
sport is also a key objective of the Bank.We have contributed activity in this area.We look forward to building on these
to over 250 local sports clubs through various programme initiatives during 2005 and beyond.
and sponsorship initiatives. In addition to this, we are
committed to supporting the arts in all our communities.
We have a long-standing relationship with the Abbey Theatre,
Ireland’s National Theatre.We have supported the Writer in
Association Award for the past 15 years which helps to fund
Irish playwrights.We are committed to the link between art
and business.
17
Report of the Directors
The Directors present their report and the audited financial Substantial shareholdings
statements for the year ended 30 September 2004. Details of interests in excess of 3% of the ordinary share
capital which have been notified to the Company are shown
Results on page 88.
The Group profit on ordinary activities before taxation for the
year amounted to €504.1 million and has been dealt with as Group undertakings and foreign branches
shown in the consolidated profit and loss account on page 24. Particulars of the principal subsidiary undertakings within
the Group required to be declared under Section 16 of the
Review of activities Companies (Amendment) Act, 1986 are shown in note 16.
The principal activity of the Group is the provision of banking The Company has established branches, within the meaning
services.The Chairman’s statement and the Chief Executive’s of EU Council Directive 89/666/EEC, in Austria and the
review on pages 4 to 11 report on developments during the United Kingdom.
year, on likely future developments and on events since
30 September 2004. Safety, Health and Welfare at Work Act, 1989
It is Group policy to attach a high priority and commitment to
Dividends the safety, health and welfare of its employees and visitors to
An interim dividend of 7.52c per share was paid on 16 July its premises by maintaining safe places and systems of work.
2004. Subject to shareholders’ approval, it is proposed to The Group continues to monitor and update its compliance
pay a final dividend on 14 February 2005 of 15.04c per share with legislation on an ongoing basis, including the Safety, Health
to all registered shareholders at the close of business on and Welfare at Work Act, 1989.A Safety Statement has been
3 December 2004. Dividend withholding tax (‘DWT’) may issued in accordance with the requirements of the Act.
apply on the proposed final dividend depending on the tax
status of each shareholder. Corporate governance
The Directors’ corporate governance statement appears on
Shareholders chose to receive 1,731,328 ordinary shares instead pages 20 and 21.
of cash dividends paid in January and July. Shareholders will be
offered the choice of taking new ordinary shares in lieu of the Books and accounting records
proposed final dividend, after deduction of DWT where applicable. The Directors are responsible for ensuring that proper books
and accounting records, as outlined in Section 202 of the
Capital resources Companies Act, 1990, are kept by the Company.To ensure
Details of the changes in capital resources during the year are compliance with these requirements the Directors have
included in notes 27 to 33 of the financial statements. appointed professionally qualified accounting personnel with
appropriate expertise and have provided adequate resources to
Directors and Secretary the finance function.These books and accounting records are
The names of the current Directors appear on pages 12 and maintained at the Company’s registered office at Stephen
13, together with a short biographical note on each Director. Court, 18/21 St. Stephen’s Green, Dublin 2.
Lar Bradshaw,Tom Browne, David Drumm and Gary McGann
were co-opted to the Board since the last report of the Auditors
Directors and, being eligible, offer themselves for re-election. The Auditors, Ernst & Young, have expressed their willingness
Peter Killen retired from the Board on 10 February 2004 and to continue in office.
Tiarnan O Mahoney will retire from the Board in December
2004. Peter Murray and Anton Stanzel will retire as Directors Directors Peter Murray, Sean FitzPatrick,William McAteer.
following the forthcoming Annual General Meeting. Michael Secretary Bernard Daly.
Jacob,William McAteer and Ned Sullivan retire by rotation as
Directors in accordance with the articles of association and, 23 November 2004
being eligible, offer themselves for re-election. 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 45 to the financial
statements.
18
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 22 and 23, is made with account which disclose with reasonable accuracy at any time
a view to distinguishing for shareholders the respective the financial position of the Company and which enable them
responsibilities of the Directors and of the Auditors in relation to ensure that the financial statements are prepared in
to the financial statements. accordance with accounting standards generally accepted in
Ireland and comply with the Companies Acts, 1963 to 2003
Irish company law requires the Directors to prepare financial and the European Communities (Credit Institutions:Accounts)
statements for each financial year which give a true and fair Regulations, 1992.They also have a general responsibility for
view of the state of affairs of the Company and of the Group taking such steps as are reasonably open to them to safeguard
as at the end of the financial year and of the profit or loss the assets of the Company and of the Group and to prevent
of the Group for that year.With regard to the financial and detect fraud and other irregularities.
statements on pages 24 to 85, 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.
19
Corporate governance statement

The Directors of the Company are committed to maintaining the highest standards of corporate governance.
This corporate governance statement describes how the Remuneration Committee

Company applies the principles set out in Section 1 of ‘The All members of the Remuneration Committee are Non-
Combined Code: Principles of Good Governance and Code executive Directors. Its members are Peter Murray (Chairman),
of Best Practice’ (the ‘Code’) appended to the Listing Rules Michael Jacob and Ned Sullivan.The Committee is responsible
of the Irish and London Stock Exchanges and comments on for the formulation of the Group’s policy on remuneration in
its compliance with the Code’s provisions.The Directors have relation to all Executive Directors and other senior executives.
also considered the many recent developments in corporate The Committee’s report on behalf of the Board on Directors’
governance and following the publication in July 2003 of new remuneration and interests is set out in note 45 to the financial
guidance ‘The Combined Code on Corporate Governance’ statements.
will have regard to the revised provisions of the Code when
they become effective for accounting periods commencing on Audit Committee
or after 1 November 2003. All members of the Audit Committee are Non-executive
Directors. Its current members are Ned Sullivan (Chairman),
Board of Directors Gary McGann,Anton Stanzel and Patrick Wright.The Audit
• The Board currently consists of fifteen Directors, nine of Committee receives reports on various aspects of control,
whom are Non-executive Directors.A short biographical note reviews the Group’s financial statements, determines as to
on each Director is set out on pages 12 and 13. whether proper books of account have been kept in accordance
with the Companies Acts and ensures that no restrictions are
• The roles of the Chairman and Chief Executive are separate
placed on the scope of the statutory audit or on the
with clearly defined responsibilities attaching to each role.
independence of the Internal Audit function.The Audit
• Michael Jacob is the senior independent Non-executive Committee meets at least four times during each year and
Director. reviews its processes and effectiveness annually.
• The Non-executive Directors have varied backgrounds, skills The Audit Committee has unrestricted access to both the Group
and experience and are independent of management and all internal and external Auditors. It meets with the external
Directors bring their independent judgement to bear on Auditors at least once each year.The independence and
issues of strategy, performance, resources, key appointments objectivity of the external Auditors is considered periodically
and standards of conduct. together with the scope and results of the audit and its cost
• The Board meets at least eight times annually and has a formal effectiveness.
schedule of matters specifically reserved to it for decision.
Additional meetings are arranged if required.The Board Risk and Compliance Committee
receives regular management reports and information on The role of this Committee has been expanded and now includes
corporate and business issues to enable reviews of Group compliance issues.The Risk and Compliance Committee
performance against business targets and objectives to be has three Non-executive Directors and one Executive Director.
undertaken. Its current members are Michael Jacob (Chairman), Fintan Drury,
Patricia Jamal and Tiarnan O Mahoney. Its role is to oversee risk
• Directors are initially appointed for a three year term and management and compliance and to review, on behalf of the
may be reappointed for further three year terms.All newly Board, the key risks and compliance issues inherent in the
appointed Directors are subject to election by shareholders at business and the system of internal control necessary to manage
the Annual General Meeting following their appointment.All them and to present its findings to the Board.
Directors must submit themselves for re-election at intervals
of not more than three years. On appointment Directors are Nomination and Succession Committee
briefed comprehensively on the activities of the Group and on The Nomination and Succession Committee currently comprises
their responsibilities as Directors of a listed company. Peter Murray (Chairman), Fintan Drury, Sean FitzPatrick, Michael
• The Directors have access to the advice and services of the Jacob, Ned Sullivan and Patrick Wright.This Committee is
Company Secretary who is responsible for ensuring that responsible for recommending the appointment of Directors to
Board procedures are followed and that there is compliance the Board and for reviewing senior management succession plans.
with applicable rules and regulations.The Directors also have
Internal controls
access to independent professional advice, at the Group’s
The Directors acknowledge their overall responsibility for the
expense, if and when required.
Group’s system of internal control and for reviewing its
Board Committees effectiveness.The system is designed to manage rather than
There are four Board Committees and each has specific terms of eliminate the risk of failure to achieve the Group’s business
reference which are reviewed periodically. objectives and provides reasonable but not absolute assurance
against material financial misstatement or loss. Such losses could
20
arise because of the nature of the Group’s business in These controls, which are embedded within the operations of
undertaking a wide range of financial services that inherently the Group, are reviewed systematically by Internal Audit, which
involve varying degrees of risk. has a group-wide role. Emphasis is focused on areas of greatest
risk as identified by risk analysis. In addition, the systems of
The Board confirms that during the year under review and up to internal control are also subject to regulatory supervision by
the date of approval of the annual report and financial statements the Irish Financial Services Regulatory Authority and other
there was in place an ongoing process for identifying, evaluating regulators overseas.
and managing the significant risks faced by the Group and that
this process is regularly reviewed by the Board and accords with The effectiveness of the Group’s internal controls is reviewed
the Turnbull Guidance. periodically by the Audit Committee and the Risk and Compliance
Committee.This involves reviewing the work and the reports of
The key elements of the procedures established by the Board to the Internal Audit, Risk Management and Compliance functions
provide effective internal control include: and establishing that appropriate action is being taken by
• An organisation structure with clearly defined authority limits management to address issues highlighted.The Audit Committee
and reporting mechanisms to higher levels of management also meets with and receives reports from the external Auditors.
and to the Board which supports the maintenance of a strong
The Directors confirm that, with the assistance of reports from
control environment.
the Audit Committee and the Risk and Compliance Committee,
• A Group Risk Management function with responsibility they have reviewed in accordance with the Turnbull Guidance the
for ensuring that risks are identified, assessed and managed effectiveness of the systems of internal control in existence in the
throughout the Group. The Group Credit Committee Group for the year ended 30 September 2004 and for the period
together with the Group Asset and Liability Committee up to and including the date of approval of the financial
provide support to the Audit Committee and the Risk and statements.The review undertaken covers all aspects of control
Compliance Committee in ensuring that efficient procedures including financial, operational and compliance controls and risk
are in place to manage risk. management.
• An annual budgeting and monthly financial reporting system Going concern
for all Group business units which enables progress against The Directors confirm that they are satisfied that the Company
plans to be monitored, trends to be evaluated and variances and the Group have adequate resources to continue to operate
to be acted upon. for the foreseeable future and are financially sound. For this
• The Group Internal Audit function reports to the Chief reason, they continue to adopt the going concern basis in
Executive and the Audit Committee and helps the Group preparing the financial statements.
accomplish its objectives by bringing a systematic and
disciplined approach to evaluating and improving the Communications with shareholders
effectiveness of the risk management, control and governance Communications with shareholders are given high priority.The
processes. Group uses its internet site (www.angloirishbank.com) to provide
investors with the full text of the annual and interim reports.
• A comprehensive set of policies and guidelines relating to There is regular dialogue with individual institutional
capital expenditure, computer security, business continuity shareholders, financial analysts and brokers and presentations are
planning, asset and liability management (including interest, given at the time of the release of the annual and interim results.
currency and liquidity risk), operational risk management and All shareholders are encouraged to attend the Annual General
credit risk management. Meeting and notice is sent to shareholders at least twenty
• The Audit Committee and the Risk and Compliance working days in advance of the meeting.At the Annual General
Committee, which on the Board’s behalf, review the Meeting separate resolutions are proposed on each substantially
effectiveness of the systems of financial, operational and separate issue and when an issue has been determined at the
compliance controls and whose membership and main meeting on a show of hands, the Chairman indicates to the
activities are set out in this statement. meeting the number and proportion of proxy votes for and
against that resolution.
• These Committees review and report to the Board on
the Group internal audit, compliance and risk management Compliance statement
programmes. The Directors confirm that the Company has complied
• Following each meeting of the Audit Committee and the Risk throughout the year ended 30 September 2004 with all the
and Compliance Committee, the Committee Chairmen report provisions set out in Section 1 of the Code.
to the Board and minutes of such meetings are circulated to
all members of the Board.
21
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
ended 30 September 2004, which comprise the consolidated specified by law or the Listing Rules regarding Directors’
profit and loss account, consolidated balance sheet, company remuneration and transactions with the Group is not given
balance sheet, consolidated cash flow statement, statement of and, where practicable, include such information in our report.
total recognised gains and losses, reconciliation of movements
in shareholders’ funds and the related notes 1 to 48.These We review whether the corporate governance statement
financial statements have been prepared on the basis of the reflects the Company’s compliance with the seven provisions
accounting policies set out therein. of the Combined Code specified for our review by the Listing
Rules and we report if it does not. We are not required to
This report is made solely to the Company’s members, consider whether the Board’s statements on internal control
as a body, in accordance with Section 193 of the Companies cover all risks and controls, or form an opinion on the
Act, 1990. Our audit work has been undertaken so that we effectiveness of the Group’s corporate governance procedures
might state to the Company’s members those matters we are or its risk and control procedures.
required to state to them in an Auditors’ report and
for no other purpose.To the fullest extent permitted by law, We read other information contained in the annual report
we do not accept or assume responsibility to anyone other and consider whether it is consistent with the audited
than the Company and the Company’s members as a body, financial statements.This other information comprises the
for our audit work, for this report, or for the opinions we Directors’ report, Chairman’s statement, Chief Executive’s
have formed. review and the corporate governance statement.We consider
the implications for our report if we become aware of any
Respective responsibilities of Directors and Auditors apparent misstatements or material inconsistencies with the
The Directors’ responsibilities for preparing the annual report financial statements. Our responsibilities do not extend to
and the financial statements in accordance with applicable Irish any other information.
law and accounting standards are set out in the statement of
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 the purposes of 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.
22
Basis of audit opinion In our opinion the information given in the Directors’ report
We conducted our audit in accordance with Auditing is consistent with the financial statements.
Standards issued by the Auditing Practices Board.An audit
includes examination, on a test basis, of evidence relevant In our opinion the Company balance sheet does not disclose a
to the amounts and disclosures in the financial statements. financial situation which, under Section 40(1) of the Companies
It also includes an assessment of the significant estimates and (Amendment) Act, 1983, would require the convening of an
judgements made by the Directors in the preparation of the Extraordinary General Meeting of the Company.
financial statements, and of whether the accounting policies
are appropriate to the Group’s circumstances, consistently Ernst & Young
applied and adequately disclosed. Registered Auditors
Dublin
We planned and performed our audit so as to obtain all the
23 November 2004
information and explanations which we considered necessary
in 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 2004 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 2003 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.
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.
23
Consolidated profit and loss account

FOR THE YEAR ENDED 30 SEPTEMBER 2004
2004 2003
Notes €m €m
Interest receivable and similar income
Interest receivable and similar income arising from
Debt securities and other fixed income securities 50.4 40.7
Other interest receivable and similar income 1,402.5 1,019.9
Interest payable and similar charges (929.4) (646.6)
Net interest income 523.5 414.0
Other income
Fees and commissions receivable 183.9 152.3
Fees and commissions payable (16.3) (12.7)
Dealing profits 12.8 6.4
Other operating income 19.3 11.2
Total operating income 723.2 571.2
Operating expenses
Administrative expenses 3 185.4 155.0
Depreciation and goodwill amortisation 14.6 12.2
Provisions for bad and doubtful debts - specific 12 19.1 10.1
- general 12 - 47.4
219.1 224.7
Group profit on ordinary activities before taxation 4 504.1 346.5
Taxation on profit on ordinary activities 5 (107.7) (76.4)

Group profit on ordinary activities after taxation 396.4 270.1
Minority interests 6 (17.0) (16.8)

Group profit attributable to ordinary shareholders 7 379.4 253.3
Dividends 8 (75.2) (61.6)

Group profit retained for year 33 304.2 191.7
Basic earnings per share 9 114.53c 78.03c
Diluted earnings per share 9 112.37c 76.24c
Dividends per ordinary share 8 22.56c 18.80c
Directors Peter Murray, Sean FitzPatrick,William McAteer. Secretary Bernard Daly.
24
Consolidated balance sheet

A S AT 3 0 S E P T E M B E R 2 0 0 4 2004 2003
(restated)
Notes €m €m
Assets
Loans and advances to banks 10 6,210.6 5,798.8
Loans and advances to customers 11 23,723.8 17,268.5
Securitised assets 13 666.0 808.0
Less: non-returnable proceeds 13 (634.8) (777.1)
31.2 30.9
Debt securities 14 2,534.4 1,365.2
Equity shares 15 26.1 4.5
Intangible fixed assets - goodwill 17 69.6 73.8
Tangible fixed assets 18 59.4 32.9
Other assets 19 577.7 417.0
Prepayments and accrued income 439.4 256.8
33,672.2 25,248.4
Life assurance assets attributable to policyholders 21 667.6 271.7
Total assets 34,339.8 25,520.1
Liabilities
Deposits by banks 22 2,605.9 3,290.1
Customer accounts 23 19,546.0 14,577.6
Debt securities in issue 24 6,944.5 4,557.9
Proposed dividends 8 50.1 45.8
Other liabilities 25 255.6 259.8
Accruals and deferred income 392.0 267.1
Provisions for liabilities and charges 26 5.4 4.8
29,799.5 23,003.1
Capital resources
Subordinated liabilities 27 1,133.3 429.0
Perpetual capital securities 28 656.2 645.0
Equity and non-equity minority interests 29 843.4 260.1
2,632.9 1,334.1
Called up share capital 30 107.1 105.8
Share premium account 31 157.6 154.7
Other reserves 32 0.9 0.9
Profit and loss account 33 974.2 649.8
Total shareholders’ funds (all equity interests) 1,239.8 911.2
33,672.2 25,248.4
Life assurance liabilities attributable to policyholders 21 667.6 271.7
Total liabilities and capital resources 34,339.8 25,520.1
Memorandum items
Contingent liabilities
Guarantees 35 910.4 764.6
Commitments
Commitments to lend 35 4,055.0 3,037.0
25
Company balance sheet

A S AT 3 0 S E P T E M B E R 2 0 0 4
2004 2003
Notes €m €m
Assets
Loans and advances to banks 10 5,190.1 5,130.8
Loans and advances to customers 11 22,495.7 16,395.8
Securitised assets 13 666.0 808.0
Less: non-returnable proceeds 13 (634.8) (777.1)
31.2 30.9
Debt securities 14 2,523.4 1,354.0
Equity shares 15 3.2 0.1
Investments in Group undertakings 16 602.0 475.7
Intangible fixed assets - goodwill 17 0.4 0.4
Tangible fixed assets 18 20.5 18.8
Other assets 19 236.9 239.7
Prepayments and accrued income 350.1 212.4
Total assets 31,453.5 23,858.6
Liabilities
Deposits by banks 22 4,629.0 5,333.6
Customer accounts 23 17,437.8 12,531.6
Debt securities in issue 24 6,748.9 4,380.5
Proposed dividends 8 50.1 45.8
Other liabilities 25 235.2 247.7
Accruals and deferred income 267.2 219.7
Provisions for liabilities and charges 26 0.2 0.2
29,368.4 22,759.1
Capital resources
Subordinated liabilities 27 1,133.3 429.0
Called up share capital 30 107.1 105.8

Share premium account 31 157.6 154.7
Other reserves 32 1.3 1.3
Profit and loss account 33 685.8 408.7
Total shareholders’ funds (all equity interests) 951.8 670.5
Total liabilities and capital resources 31,453.5 23,858.6
Memorandum items
Guarantees 35 873.1 742.5
Commitments
Commitments to lend 35 3,098.3 2,431.0
26
Consolidated cash flow statement

2004 2003
Note €m €m
Reconciliation of operating profit to net operating cash flows
Operating profit 504.1 346.5
Increase in accruals and deferred income 124.8 37.9
Increase in prepayments and accrued income (178.6) (24.0)
Financing costs of subordinated liabilities 32.2 29.1
Financing costs of perpetual capital securities 52.8 47.4
Interest earned on debt securities and other fixed income securities (48.3) (39.2)
Amortisation of debt securities and other fixed income securities (2.1) (1.5)
Provisions for bad and doubtful debts 19.1 57.5
Loans and advances written off net of recoveries (11.7) (17.9)
Depreciation and goodwill amortisation 14.6 12.2
Net cash flow from trading activities 506.9 448.0
Net increase in deposits 6,670.8 5,572.9

Net increase in loans and advances to customers (6,463.0) (3,945.5)
Net increase in loans and advances to banks (1,573.0) (693.4)
Net increase in other assets (160.1) (146.6)
Net (decrease)/increase in other liabilities (8.2) 43.4
Exchange and other movements (1.6) (99.9)
Net cash flow from operating activities (1,028.2) 1,178.9
Returns on investment and servicing of finance 36 (57.2) (49.9)

Tax paid (104.1) (80.1)
Capital expenditure and financial investment 36 (1,225.5) 77.5
Acquisitions and disposals 36 - (15.4)
Equity dividends paid (49.9) (34.1)
Financing 36 1,303.7 140.2
(Decrease)/increase in cash 36 (1,161.2) 1,217.1
27
Statement of total recognised gains and losses

2004 2003
€m €m
Group profit attributable to ordinary shareholders 379.4 253.3

Prior year adjustment (Note 2) (6.2)
Total recognised gains since last annual report 373.2
Reconciliation of movements in shareholders’ funds

2004 2003
(restated)
€m €m
Group profit attributable to ordinary shareholders 379.4 253.3
Dividends on equity shares (75.2) (61.6)
304.2 191.7
Ordinary shares issued in lieu of cash dividends 21.0 8.6
Other ordinary share capital issued 4.2 7.5
Net movement in own shares (0.8) (0.1)
Net addition to shareholders’ funds 328.6 207.7
Opening shareholders’ funds 911.2 709.6
Prior year adjustment (Note 2) - (6.1)
Closing shareholders’ funds 1,239.8 911.2
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.
28
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, investment properties and assets attributable to policyholders’ interests in the assurance
business.The financial statements comply with applicable accounting standards issued by the Accounting Standards Board,
pronouncements of its Urgent Issue Task Force (‘UITF’) 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.
The Group implemented UITF Abstract 38 ‘Accounting for employee share ownership plan (‘ESOP’) trusts’ in the preparation
of its accounts for the year ended 30 September 2004. Its effect is set out in Note 2.There were no other 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 2004.
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.
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 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.
29

CONTINUED
1 Accounting policies continued
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.
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 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.
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
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 based on the taxation rates expected
to apply when the timing differences reverse.
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.
30
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 20 years. Prior to that date
purchased goodwill had been written off against reserves in the year of acquisition.
j) Capital instruments
The issue expenses of capital instruments other than 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.
The premium arising on the issue of equity shares is credited to the share premium account. Premiums and discounts arising on
the issue of 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 a 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.
31

CONTINUED
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) 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.
p) 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 in the profit and
loss account. Shares issued in lieu are set-off against the share premium account.
q) 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 UITF 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.
r) 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.
32
2 Prior year adjustment
UITF 38 ‘Accounting for employee share ownership plan (‘ESOP’) trusts’ was issued in December 2003. It requires that until
such time as the Company’s own shares held by an ESOP trust vest unconditionally in its employees, the consideration paid
for the shares should be deducted in arriving at consolidated shareholders’ funds.This reduced consolidated total assets and
shareholders’ funds by €7.0m at 30 September 2004.The equivalent adjustments were €6.2m at 30 September 2003 and
€6.1m at 30 September 2002.
Prior year results have been restated to reflect this change in accounting policy.The adoption of UITF 38 had no effect on the
Group profit attributable to ordinary shareholders for this or previous years.
3 Administrative expenses 2004 2003

€m €m
Staff costs:
Wages and salaries 97.3 87.9
Social welfare costs 10.6 8.3
Pension costs 9.5 7.7
Other staff costs 2.6 2.3
120.0 106.2
Other administrative costs 65.4 48.8
185.4 155.0
The average number of persons employed by the Group during the year,
analysed by geographic location, was as follows: 2004 2003
Republic of Ireland 691 604

United Kingdom and Isle of Man 327 290
Rest of the World 143 137
1,161 1,031
4 Group profit on ordinary activities before taxation 2004 2003

€m €m
The Group profit on ordinary activities before taxation is arrived at
after charging:
Auditors’ remuneration 0.6 0.5

Depreciation of tangible fixed assets 10.5 8.1
Amortisation of intangible fixed assets - goodwill 4.1 4.1
Operating lease rentals - property 8.0 6.0
- equipment 1.4 1.4
Financing costs of subordinated liabilities 32.2 29.1
Financing costs of perpetual capital securities 52.8 47.4
and after crediting:
Finance leasing and hire purchase income 32.7 35.8

Profit on disposal of investment securities 0.3 0.3
Dealing profits - interest rate contracts 7.4 2.6
- foreign exchange contracts 5.4 3.8
The Group profit on ordinary activities before taxation is not affected by the results of acquisitions or discontinued operations
during the year.
33

CONTINUED
5 Taxation on profit on ordinary activities 2004 2003

€m €m
Current tax
Irish Corporation Tax - current year 56.2 45.2
- prior years 0.1 6.6
Double taxation relief (19.2) (13.8)
Irish Bank Levy 5.2 3.9
Foreign tax - current year 65.8 42.3
- prior years (0.1) (0.1)
108.0 84.1
Deferred tax
Current year (0.3) (7.7)
107.7 76.4
Effective tax rate 21.4% 22.0%
The deferred tax credit arising from the origination and reversal of timing differences was 2004 2003
as follows: €m €m
Leased assets 0.7 0.8

General bad debt provision - (8.5)
Other timing differences (1.0) -
(0.3) (7.7)
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% (2003: 13.375%) 63.0 46.4
Effects of:
Foreign earnings subject to different rates of tax 38.5 18.1
Irish Bank Levy 5.2 3.9
Disallowed general bad debt provision - 8.5
Prior years - 6.5
Other 1.3 0.7
Current tax 108.0 84.1
The legislated standard rate of Irish Corporation Tax for trading income has been reduced on a phased basis to 12.5%.The
standard rate was 16% for the 2002 calendar year and 12.5% from 1 January 2003. 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 has indicated that the levy will not be continued beyond 2005.
6 Minority interests 2004 2003

€m €m
The profit attributable to minority interests is analysed as follows:
Non-equity interests (Note 29) 16.2 16.7

Equity interests 0.8 0.1
17.0 16.8
34
7 Group profit attributable to ordinary shareholders
€331.7m (2003: €218.8m) 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 2004 2003

€m €m
Paid
Interim Dividend of 7.52c per share (2003: 4.87c) 25.1 15.8
Proposed
Final dividend of 15.04c per share (2003: 13.93c) 50.1 45.8
75.2 61.6
In accordance with the scrip dividend scheme, shares to the value of €21.0m (2003: €8.6m) were issued in lieu of dividends.
This amount has been added to the profit and loss account reserve (Note 33).
9 Earnings per share
The calculation of basic earnings per share is based on the Group profit of €379.4m (2003: €253.3m) which is after taxation
and minority interests and on the weighted average number of equity shares in issue of 331,275,176 (2003: 324,608,201).
In accordance with Financial Reporting Standard 14 - ‘Earnings per Share’, dividends arising on shares held by employee
share trusts (Note 34) 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 6,346,189 (2003: 7,642,651) to
337,621,365 (2003: 332,250,852).
10 Loans and advances to banks The Group The Company

2004 2003 2004 2003
€m €m €m €m
Repayable on demand 974.1 2,135.3 881.6 2,037.9

Other loans and advances to banks
Analysed by remaining maturity:
Three months or less 3,907.1 3,121.9 3,253.3 2,707.0
One year or less but over three months 1,106.6 401.0 845.3 245.3
Five years or less but over one year 222.8 140.6 209.9 140.6
6,210.6 5,798.8 5,190.1 5,130.8
Amounts include:
Due from Group undertakings - 0.9
35

CONTINUED
11 Loans and advances to customers The Group The Company

2004 2003 2004 2003
€m €m €m €m
Amounts receivable under finance leases 172.4 183.2 166.6 167.0

Amounts receivable under hire purchase contracts 289.5 217.0 105.9 90.4
Other loans and advances to customers 23,261.9 16,868.3 22,223.2 16,138.4
23,723.8 17,268.5 22,495.7 16,395.8
Amounts include:
Due from Group undertakings 876.1 989.9
Remaining maturity analysis:

Repayable on demand 3,957.9 2,425.0 4,549.4 3,284.8
One year or less but over three months 3,687.2 3,047.2 3,250.3 2,744.9
Five years or less but over one year 8,896.7 5,933.5 8,119.3 5,363.6
Over five years 4,875.9 4,155.6 4,480.1 3,954.6
24,012.8 17,549.1 22,765.3 16,656.9
Provisions for bad and doubtful debts (289.0) (280.6) (269.6) (261.1)
23,723.8 17,268.5 22,495.7 16,395.8
There are no significant concentrations of loans and advances to customers by individual sector or industry.A geographic
analysis is included in Note 39.The cost of assets acquired by the Group during the year for letting under finance leases and
hire purchase contracts amounted to €286.6m (2003: €231.2m).
12 Provisions for bad and doubtful debts The Group The Company
2004 2003 2004 2003
€m €m €m €m
At beginning of year 280.6 255.9 261.1 237.8
Exchange movements 1.0 (14.9) 0.7 (12.3)
Charge against profits - specific 19.1 10.1 18.5 9.3
- general - 47.4 - 42.4
Write-offs (12.3) (18.1) (11.1) (16.3)
Recoveries of previous write-offs 0.6 0.2 0.4 0.2
At end of year 289.0 280.6 269.6 261.1
Specific 57.8 49.9 56.2 48.2

General 231.2 230.7 213.4 212.9
Total 289.0 280.6 269.6 261.1
Non-performing loans 148.3 129.3 137.2 122.9
Non-performing loans are loans and advances on which interest is no longer being credited to the profit and loss account.
36
13 Securitised assets 2004 2003

€m €m
Securitised assets 666.0 808.0

Less: non-returnable proceeds (634.8) (777.1)
31.2 30.9
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:
2004 2003
€m €m
Interest receivable 49.8 54.9

Interest payable (41.7) (47.0)
Fee income 0.4 0.2
Operating expenses (2.0) (3.4)
Contribution from securitised assets 6.5 4.7
37

CONTINUED
14 Debt securities 2004 2003

Book Market Book Market
Value Value Value Value
€m €m €m €m
The Group
Government stocks 166.4 177.3 192.0 205.6
Other listed public bodies 12.4 12.5 96.1 96.4
Listed private sector investments 2,355.6 2,378.4 1,077.1 1,089.8
2,534.4 2,568.2 1,365.2 1,391.8
Due within one year 669.5 205.8

Due one year and over 1,864.9 1,159.4
2,534.4 1,365.2
The Company
Government stocks 156.8 167.2 182.5 195.4
Other listed public bodies 12.4 12.5 96.1 96.4
Listed private sector investments 2,354.2 2,376.9 1,075.4 1,088.2
2,523.4 2,556.6 1,354.0 1,380.0
Due within one year 666.6 205.8

Due one year and over 1,856.8 1,148.2
2,523.4 1,354.0
At 30 September 2004 the amount of unamortised discounts net of premiums on debt securities held as financial fixed assets
was €8.5m for both the Group and the Company.At 30 September 2004 debt securities held by the Group and the Company
subject to repurchase agreements amounted to €379.7m (2003: €311.7m).
15 Equity shares The Group The Company

2004 2003 2004 2003
€m €m €m €m
Equity shares and other similar instruments
Unlisted investments at cost less amounts written off
Held as financial fixed assets 26.1 4.5 3.2 0.1
In the opinion of the Directors the value of the individual unlisted investments is not less than their book amount.
38
16 Investments in Group undertakings 2004 2003

€m €m
Investments in subsidiary undertakings at cost less amounts written off 602.0 475.7
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 the 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.
39

CONTINUED
17 Intangible fixed assets - goodwill The The

Group Company
€m €m
Cost
At 1 October 2003 83.0 0.6
Exchange movement (0.1) -
At 30 September 2004 82.9 0.6
Accumulated amortisation
At 1 October 2003 9.2 0.2
Charge for the year 4.1 -
At 30 September 2004 13.3 0.2
Net book value

At 30 September 2004 69.6 0.4
At 30 September 2003 73.8 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)] and will be charged to the profit and loss account in the event of the subsequent
disposal of the businesses to which it relates.
18 Tangible fixed assets Freehold Equipment

investment Freehold Leasehold and motor
The Group properties properties properties vehicles Total
€m €m €m €m €m
Cost
At 1 October 2003 - 5.0 12.2 51.9 69.1
Exchange movement - - - 0.1 0.1
Additions 25.3 0.1 0.8 11.4 37.6
Disposals - - (0.5) (2.6) (3.1)
At 30 September 2004 25.3 5.1 12.5 60.8 103.7
Accumulated depreciation
At 1 October 2003 - 0.8 3.8 31.6 36.2
Charge for the year - 0.1 1.5 8.9 10.5
Disposals - - (0.5) (1.9) (2.4)
At 30 September 2004 - 0.9 4.8 38.6 44.3
Net book value

At 30 September 2004 25.3 4.2 7.7 22.2 59.4
At 30 September 2003 - 4.2 8.4 20.3 32.9
40
18 Tangible fixed assets continued Equipment

Leasehold and motor
The Company properties vehicles Total
€m €m €m
Cost
At 1 October 2003 11.0 33.9 44.9
Exchange movement - 0.1 0.1
Additions 0.7 7.8 8.5
Disposals - (2.3) (2.3)
At 30 September 2004 11.7 39.5 51.2
Accumulated depreciation
At 1 October 2003 3.3 22.8 26.1
Charge for the year 1.3 4.9 6.2
Disposals - (1.6) (1.6)
At 30 September 2004 4.6 26.1 30.7
Net book value

At 30 September 2004 7.1 13.4 20.5
At 30 September 2003 7.7 11.1 18.8
The open market value of the freehold investment properties is estimated by the Directors at its original cost of €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 €11.9m (2003: €12.6m) in the course of carrying out its own activities.As at 30 September 2004 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 1.0 1.2
Over five years 7.3 -
8.3 1.4
41

CONTINUED
19 Other assets The Group The Company

2004 2003 2004 2003
€m €m €m €m
Foreign exchange and interest rate contracts 214.6 214.9 207.4 210.8
Trading properties 326.4 135.1 - -
Deferred taxation (Note 20) 34.5 33.9 28.3 27.2
Sundry debtors 2.2 33.1 1.2 1.7
577.7 417.0 236.9 239.7
20 Deferred taxation The Group The Company

2004 2003 2004 2003
€m €m €m €m
At beginning of year 33.9 29.4 27.2 22.3

Credit for year 0.3 7.7 0.8 7.3
Exchange movement and other adjustments 0.3 (3.2) 0.3 (2.4)
At end of year 34.5 33.9 28.3 27.2
Analysis of deferred taxation:

General bad debt provisions 43.9 43.5 39.6 39.3
Capital allowances on assets leased to customers (11.1) (10.4) (12.7) (12.7)
Other timing differences 1.7 0.8 1.4 0.6
34.5 33.9 28.3 27.2
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.
42
21 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:
2004 2003
€m €m
Cash 228.1 115.8

Property 255.9 55.7
Managed funds 58.5 52.0
Equities 125.1 48.2
667.6 271.7
At 30 September 2004 the above life assurance assets attributable to policyholders included 341,440 (2003: 228,188) ordinary
shares in Anglo Irish Bank Corporation plc with a market value of €5.0m (2003: €2.1m).The Group has no beneficial interest in
these shares.
22 Deposits by banks The Group The Company

2004 2003 2004 2003
€m €m €m €m
Repayable on demand 21.4 12.6 302.3 5.0

Other deposits by banks
One year or less but over three months 30.5 88.0 30.5 88.0
Over five years - - 2.9 -
2,605.9 3,290.1 4,629.0 5,333.6
Amounts include:
Due to Group undertakings 2,033.2 2,051.1
23 Customer accounts The Group The Company

2004 2003 2004 2003
€m €m €m €m
Repayable on demand 3,768.9 3,667.0 2,354.6 2,410.2

Other deposits by customers
One year or less but over three months 1,843.1 1,035.2 1,747.8 955.4
Over five years 87.9 49.3 86.5 49.3
19,546.0 14,577.6 17,437.8 12,531.6
Amounts include:
Due to Group undertakings 189.3 193.1
43

CONTINUED
24 Debt securities in issue The Group The Company

2004 2003 2004 2003
€m €m €m €m
Medium term note programme 4,524.2 2,710.9 4,524.2 2,710.9

Other debt securities in issue:
Commercial paper programme 1,223.8 836.4 1,223.8 836.4
Certificates of deposits 990.9 823.2 990.9 823.2
Other 205.6 187.4 10.0 10.0
6,944.5 4,557.9 6,748.9 4,380.5
Medium term note programme
Three months or less 295.3 449.0 295.3 449.0
One year or less but over three months 1,228.5 655.1 1,228.5 655.1
Five years or less but over one year 3,000.4 1,606.8 3,000.4 1,606.8
Other debt securities in issue
One year or less but over three months 373.2 84.9 366.6 66.3
6,944.5 4,557.9 6,748.9 4,380.5
25 Other liabilities The Group The Company

2004 2003 2004 2003
€m €m €m €m
Foreign exchange and interest rate contracts 187.2 196.8 180.3 193.3
Current taxation 48.5 44.6 41.4 41.7
Deferred acquisition consideration 5.8 5.7 - -
Sundry liabilities 14.1 12.7 13.5 12.7
255.6 259.8 235.2 247.7
26 Provisions for liabilities and charges The Group The Company

2004 2003 2004 2003
€m €m €m €m
Pension provisions 5.2 4.6 - -

Other provisions for liabilities and charges 0.2 0.2 0.2 0.2
5.4 4.8 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.
44
27 Subordinated liabilities 2004 2003

€m €m
US$20m 9.1% Subordinated Notes 2006 16.1 17.1

US$15m 9.05% Subordinated Notes 2009 12.1 12.9
US$100m Subordinated Notes 2011 (a) 80.5 85.6
US$25m Floating Rate Subordinated Notes 2011 (b) 20.1 21.4
€150m Floating Rate Subordinated Notes 2011 (c) 149.7 149.5
€750m Floating Rate Subordinated Notes 2014 (d) 746.2 -
Stg£50m Undated Subordinated Notes (e) 72.7 71.3
Other subordinated liabilities 35.9 71.2
1,133.3 429.0
Repayable as follows:
One year or less 6.4 6.7
Between one and two years 28.3 6.4
Between two and five years 29.4 45.6
Over five years 1,069.2 370.3
1,133.3 429.0
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 Services Regulatory Authority 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) Interest on the US$100m Subordinated Notes 2011 is fixed at 8.53% per annum until 28 September 2005 and resets
at the then current five and a half year United States Treasury Note yield plus 3.5% per annum.
(b) The US$25m Floating Rate Subordinated Notes 2011 bear interest at six month LIBOR plus 1.5% per annum to
28 September 2005 and thereafter at six month LIBOR plus 2.5% per annum.
(c) 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.
(d) 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.
(e) 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.
45

CONTINUED
28 Perpetual capital securities The Group

2004 2003
€m €m
Stg£200m Step-up Callable Perpetual Capital Securities 289.2 284.0

Stg£250m Tier One Non-Innovative Capital Securities 367.0 361.0
656.2 645.0
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 Services Regulatory Authority 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 Services Regulatory Authority 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 the TONICS at a rate of 7.625% per annum until 23 July 2027.Thereafter, the TONICS
will bear interest at a rate 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.
46
29 Equity and non-equity minority interests The Group

2004 2003
€m €m
Equity interest in subsidiary undertaking 1.8 0.7
Non-equity interest in subsidiary undertakings:

€600m Perpetual Preferred Securities 588.5 -
US$125m Series A Preference Shares 97.5 103.8
€160m Series B Preference Shares 155.6 155.6
843.4 260.1
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 allowing for expected 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 Services Regulatory
Authority, 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 is 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$25 each on 4 June 1997. On 24 March 1999 a further 6,400,000 Series B 7.75% Non-Cumulative
Guaranteed Non-Voting Preference Shares of €25 each were issued which netted €155.6m after issue costs. Both these issues
have the benefit of a subordinate guarantee by Anglo Irish Bank Corporation plc (‘guarantor’).
The holders of the US$ 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 are 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 preference shares are redeemable at par at the option of the issuer, subject to the prior consent of the guarantor and the
Irish Financial Services Regulatory Authority, on any dividend date from 4 June 2002 in respect of the US$ preference shares and
on any dividend date from 31 March 2004 in respect of the Euro preference shares.
Anglo Irish Bank Corporation plc has guaranteed the holders of the preferred securities and the 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 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 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 €16.2m (2003: €16.7m) is included in minority interests in the profit and loss account (Note 6).
47

CONTINUED
30 Called up share capital 2004 2003

€m €m
Ordinary shares:
Authorised 121.6 121.6
Allotted, called up and fully paid

At beginning of year 105.8 104.1
Scrip on final dividend 0.4 0.2
Scrip on interim dividend 0.2 0.2
Share options exercised 0.7 1.3
At end of year 107.1 105.8
The authorised share capital of the Company consists of 380,000,000 ordinary shares of €0.32 each.
During the year ended 30 September 2004 the allotted, called up and fully paid ordinary share capital was increased from
330,467,157 to 334,539,637 ordinary shares as follows:
In January 2004 1,130,903 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 €11.99 instead of all or part of the cash element
of their final dividend entitlement in respect of the year ended 30 September 2003.
In July 2004 600,425 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 €12.42 instead of all or part of the cash element of
their interim dividend entitlement in respect of the year ended 30 September 2004.
During the year 1,419,473 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 €1.09 to €2.59 and 921,679 ordinary shares were issued to option
holders on the exercise of options under the terms of the SAYE scheme at prices ranging from €1.79 to €4.87.
Under a resolution approved by shareholders on 23 January 2004 the Company has the authority to make market purchases 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.
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.
48
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 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 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 2004 options were outstanding over 9,198,873 (2003: 6,176,496) ordinary shares at prices ranging from €2.34
to €13.52 per share.These options may be exercised at various dates up to August 2014. During the year options over
4,710,000 shares were granted and options over 268,150 shares lapsed.
SAYE Scheme
On 14 January 2000 the shareholders approved the establishment of the Anglo Irish Bank SAYE Scheme.This scheme has an
Irish and UK version in order to conform with relevant revenue legislation in both 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 €317 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 2004 options were outstanding over
1,606,889 (2003: 2,150,947) ordinary shares at option prices ranging from €1.79 to €9.02, 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 November 2004 and July 2011.
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 2004 options were outstanding over 395,547 (2003:
487,007) ordinary shares at option prices ranging from Stg£2.10 to Stg£6.85, 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 November 2004 and March 2012.
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 2004 options were outstanding over 211,004 (2003:
361,204) shares at prices ranging from €2.40 to €13.52. During the year options over 60,000 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.
49

CONTINUED
31 Share premium account 2004 2003

€m €m

Final scrip dividend (0.4) (0.2)
Interim scrip dividend (0.2) (0.2)
Premium on share options exercised 3.5 6.2
32 Other reserves The Group The Company

2004 2003 2004 2003
€m €m €m €m
Non-distributable capital reserve 1.3 1.3 1.3 1.3

Exchange translation reserve (0.4) (0.4) - -
0.9 0.9 1.3 1.3
33 Profit and loss account The Group The Company

2004 2003 2004 2003
€m €m €m €m
At beginning of year as previously reported 656.0 455.7 408.7 243.3

Prior year adjustment (Note 2) (6.2) (6.1) - -
As restated 649.8 449.6 408.7 243.3
Profit retained for year 304.2 191.7 256.1 156.8
Ordinary shares issued in lieu of cash dividends 21.0 8.6 21.0 8.6
Net movement in own shares (0.8) (0.1) - -
At end of year 974.2 649.8 685.8 408.7
34 Own shares The Group

2004 2003
€m €m
Ordinary shares in Anglo Irish Bank Corporation plc (‘own shares’) at cost 7.0 6.2
In accordance with the requirements of UITF 38 own shares are deducted in arriving at consolidated shareholders’ funds
(Note 2).These own shares are intended to satisfy options granted to employees under the Anglo Irish Bank Employee Share
Ownership Plan (‘ESOP’) which was approved by shareholders in January 2000 (Note 30) 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 2004 options were outstanding over 211,004 (2003 : 361,204) own shares at
prices ranging from €2.40 to €13.52.These options may be exercised at various dates up to August 2014.The proceeds of
option exercises are used to repay the loan.
50
34 Own shares continued
At 30 September 2004 the trustee of the DSS held 441,811 (2003: 573,419) own shares to honour conditional share awards
granted between December 2001 and May 2004 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 2004 the trustees held 1,588,048 (2003: 1,898,292) own shares with a market value of €23.4m (2003:
€17.6m).The dividend income received during the year on own shares of €0.4m (2003: €0.3m) is excluded in arriving at the
group profit before taxation.
35 Memorandum items The Group The Company

2004 2003 2004 2003
€m €m €m €m
Guarantees and irrevocable letters of credit 819.9 646.9 782.6 624.9
Performance bonds,VAT guarantees and other
Transaction related contingencies 90.5 117.7 90.5 117.6
910.4 764.6 873.1 742.5
Commitments
Credit lines and other commitments to lend 4,055.0 3,037.0 3,098.3 2,431.0
Other contingencies
The Parent Company has given guarantees in respect of the liabilities of certain of its subsidiaries.
51

CONTINUED
36 Notes to the cash flow statement

2004 2003
(i) Cash flows €m €m
Returns on investment and servicing of finance

Interest paid on subordinated liabilities (32.2) (30.1)
Interest paid on perpetual capital securities (52.6) (45.2)
Interest received on debt securities and other fixed income securities 44.1 42.4
Preference dividends paid to minority interests (16.2) (16.8)
Share of profits paid to minority interests (0.3) (0.2)
(57.2) (49.9)
Capital expenditure and financial investment

Net (purchases)/sales of debt securities (1,167.1) 92.7
Purchase of tangible fixed assets (37.6) (13.7)
Purchase of equity shares (21.6) (2.1)
Proceeds of tangible fixed asset disposals 0.8 0.6
(1,225.5) 77.5
Acquisitions and disposals

Payment for trust services business acquired in Isle of Man - (15.4)
Financing
Proceeds of subordinated bond issue 746.2 -
Proceeds of preferred securities issue in subsidiary 588.5 -
Proceeds from issue of perpetual capital securities - 135.7
Redemption of subordinated bonds (35.8) (3.0)
Proceeds of equity share issues 4.2 7.5
Capital introduced by minority interest 0.6 -
1,303.7 140.2
(ii) Analysis of subordinated liabilities

New issue of subordinated bonds 746.2 -
Redemption of subordinated bonds (35.8) (3.0)
Exchange and other movements (6.1) (35.3)
At end of year 1,133.3 429.0
(iii) Analysis of perpetual capital securities

New issues of perpetual capital securities - 135.7
Exchange and other movements 11.2 (55.4)
(iv) Analysis of cash movements

At end of year
Loans and advances to banks repayable on demand 974.1 2,135.3
At beginning of year
Loans and advances to banks repayable on demand (2,135.3) (918.2)
(Decrease)/increase in cash (1,161.2) 1,217.1
52
37 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 26).
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 €9.5m (2003: €7.7m) of which €4.4m (2003: €3.5m) represents the
costs of defined benefit schemes and €5.1m (2003: €4.2m) 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
€14.4m.There were €36.5m (2003: €26.5m) 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:
2004 2003 2002
% % %
Discount rate for liabilities of the schemes 5.00 5.25 5.50
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
53

CONTINUED
37 Pensions continued
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
2004 2004 2003 2003 2002 2002
% €m % €m % €m
Equities 7.50 38.3 7.75 31.0 8.00 24.9

Bonds 4.50 5.6 4.75 6.7 4.75 8.1
Property 5.50 3.2 6.25 3.1 6.50 2.9
Hedge funds 6.00 6.7 - - - -
Cash 2.00 30.1 3.50 24.6 3.50 15.1
Total 83.9 65.4 51.0
The following amounts at 30 September were measured in accordance with the requirements of FRS 17:
2004 2003 2002

€m €m €m
Total market value of schemes’ assets 83.9 65.4 51.0

Present value of schemes’ liabilities (80.1) (67.3) (53.0)
Surplus/(deficit) in the schemes 3.8 (1.9) (2.0)
Related deferred tax (0.5) 0.2 0.3
Net pension asset/(liability) 3.3 (1.7) (1.7)
If FRS 17 had been implemented at the year end 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 2004 2003
€m €m
Current service cost 2.9 2.3

Past service cost 4.0 0.1
Total operating cost 6.9 2.4
Expected return on assets of pension schemes (3.8) (3.1)

Interest on liabilities of pension schemes 3.5 2.9
Finance credit (0.3) (0.2)
Net charge before tax 6.6 2.2
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 1.9 (0.3)
Experience losses on liabilities of the pension schemes (0.8) (6.5)
Change in assumptions underlying the present value of schemes’ liabilities (3.2) (3.3)
Actuarial loss in the statement of total recognised gains and losses (2.1) (10.1)
54
2004 2003
€m €m
Movement in surplus/(deficit) during the year
Deficit at beginning of year (1.9) (2.0)
Current service cost (2.9) (2.3)
Past service cost (4.0) (0.1)
Expected return on assets of pension schemes 3.8 3.1
Interest on liabilities of pension schemes (3.5) (2.9)
Contributions paid 14.4 12.4
Actuarial loss during year (2.1) (10.1)
Surplus/(deficit) at end of year 3.8 (1.9)
Net assets
Net assets in consolidated accounts 1,239.8 911.2
Pension asset on SSAP 24 basis (36.5) (26.5)
Pension asset/(liability) on FRS 17 basis 3.3 (1.7)
Net assets on FRS 17 basis 1,206.6 883.0
Profit and loss account

Profit and loss account in consolidated accounts 974.2 649.8
Pension asset on SSAP 24 basis (36.5) (26.5)
Pension asset/(liability) on FRS 17 basis 3.3 (1.7)
Profit and loss account on FRS 17 basis 941.0 621.6
History of experience gains and losses 2004 2003 2002

€m €m €m
Difference between actual and expected return on assets 1.9 (0.3) (6.2)
Percentage of schemes’ assets at year end 2.3% 0.5% 12.2%
Experience losses on liabilities (0.8) (6.5) (3.0)
Percentage of schemes’ liabilities at year end 1.0% 9.7% 5.7%
Total amount recognised in statement of total recognised gains and losses (2.1) (10.1) (9.3)
Percentage of schemes’ liabilities at year end 2.6% 15.0% 17.5%
38 Related party transactions
Subsidiary undertakings
Details of the principal subsidiary undertakings are shown in Note 16. 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 45.
55

CONTINUED
39 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:
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
2003
Republic Rest of
of Ireland UK & IOM the World Group
€m €m €m €m
Gross income:
Interest receivable 571.4 452.2 37.0 1,060.6
Fees and commissions receivable 75.9 52.3 24.1 152.3
Dealing profits 6.4 - - 6.4
Other operating income 3.5 7.7 - 11.2
Total gross income 657.2 512.2 61.1 1,230.5
Profit on ordinary activities before taxation 200.5 135.1 10.9 346.5
Net assets 525.5 307.9 77.8 911.2
Loans and advances to customers 11,327.5 5,837.9 103.1 17,268.5
Gross assets 15,412.5 9,157.5 950.1 25,520.1
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 €1,328.5m (2003: €1,189.6m) made in Boston, Massachusetts. 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.
56
40 Risk management and control
The Board of Directors approves policies with respect to credit risk, market risk and liquidity risk and delegates its monitoring
and control responsibilities to the Main Credit Committee for credit matters and the Group Asset and Liability Committee for
market risk and liquidity issues.The Board of Directors also approves policy in respect of operational risk management and
delegates its monitoring and control responsibilities to the Executive Management Board.The members of these Committees
and the Executive Management Board are senior management from throughout the Group.
There is a Board Risk and Compliance Committee in place which currently comprises three Non-executive Directors and one
Executive Director. Its main role is to oversee risk management and compliance risks and to review, 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
to report 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 approved
by the Board of Directors and the Main Credit Committee.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
by the Main Credit Committee 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 limits are in place.When considered prudent further
restrictions on sectoral exposures are imposed.
57

CONTINUED
40 Risk management and control continued
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 Board of Directors.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 reviews all risk limits, which are also sent to the Board of Directors for approval.
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
reviewed by the Group Asset and Liability Committee and formally approved by the Board of Directors.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.
58
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 reviewed by the Group Asset and
Liability Committee, formally approved by the Board of Directors and monitored daily by Group Risk Management.
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 2004 were as follows:
Liabilities in functional
Functional currency currency for hedging Remaining structural
of operation Net investment purposes currency exposure
€m €m €m
Sterling 665.7 (665.7) -

US Dollars 4.5 (4.5) -
Swiss Francs 72.2 (72.2) -
742.4 (742.4) -
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 look 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.
59

CONTINUED
40 Risk management and control continued
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 control and
procedures.The Group’s exposure to operational risk is governed by policy approved by the Board of Directors.The policy
specifies that the Group will operate 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 42.The accounting policy on
derivatives is set out on page 31.
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 Board of Directors.These policies relate to the
management of the various types of risk associated with derivatives, including market risk, liquidity risk and credit risk.
60
41 Interest rate repricing
Interest rate repricing - Euro

Non-trading book 30 September 2004
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
Loans and advances to banks 2,141 290 82 77 - - 2,590
Loans and advances to customers 9,691 122 95 708 307 - 10,923
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)
Customer accounts (8,456) (286) (233) (713) (88) - (9,776)
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)
Net amounts due from/(to)

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) -
Cumulative interest rate

repricing gap (2,277) (1,001) (1,542) 681 1,208 - -
61

CONTINUED
41 Interest rate repricing continued
Interest rate repricing - Euro

€m €m €m €m €m €m €m
Assets
Debt securities 577 32 73 94 81 - 857
Other assets - - - - - 438 438
Total assets 10,737 256 218 916 448 438 13,013
Liabilities
Deposits by banks (1,557) (75) - (60) - - (1,692)
Other liabilities - - - - - (659) (659)
Capital resources (156) - - (35) (157) (911) (1,259)
Total liabilities (10,942) (535) (371) (703) (199) (1,570) (14,320)

Group units 1,413 - (8) (98) - - 1,307
Off-balance sheet items (1,027) (729) 654 1,012 90 - -
Interest rate repricing gap 181 (1,008) 493 1,127 339 (1,132) -

repricing gap 181 (827) (334) 793 1,132 - -
62
Interest rate repricing - Stg£

€m €m €m €m €m €m €m
Assets
Loans and advances to banks 1,477 116 117 - - - 1,710
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)
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) - -
63

CONTINUED
Interest rate repricing - Stg£

€m €m €m €m €m €m €m
Assets
Loans and advances to banks 1,254 - - - - - 1,254
Securitised assets 456 138 4 182 28 - 808
Less: non-returnable proceeds (777) - - - - - (777)
(321) 138 4 182 28 - 31
Debt securities 84 76 - 7 4 - 171
Other assets - 29 - - - 280 309
Total assets 6,940 478 101 912 282 280 8,993
Liabilities
Deposits by banks (824) - - - - - (824)
Debt securities in issue (734) (7) (97) - - - (838)
Capital resources - (29) - (71) (645) (1) (746)
Total liabilities (6,622) (188) (222) (107) (646) (164) (7,949)

Group units (1,130) - 8 78 - - (1,044)
Off-balance sheet items 300 (363) (16) (96) 175 - -
Interest rate repricing gap (512) (73) (129) 787 (189) 116 -

repricing gap (512) (585) (714) 73 (116) - -
64
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) - -
65

CONTINUED
Interest rate repricing -US$

€m €m €m €m €m €m €m
Assets
Loans and advances to customers 917 9 132 196 172 - 1,426
Debt securities 182 34 7 78 8 - 309
Other assets - - - - - 59 59
Total assets 2,188 143 197 289 180 59 3,056
Liabilities
Deposits by banks (677) (13) - - - - (690)
Customer accounts (1,326) (25) (27) - - - (1,378)
Debt securities in issue (480) - - - - - (480)
Capital resources (102) (22) (13) (103) - - (240)
Total liabilities (2,585) (60) (40) (103) - (15) (2,803)

Group units (271) - - 18 - - (253)
Off-balance sheet items 115 4 68 (29) (158) - -
Interest rate repricing gap (553) 87 225 175 22 44 -

repricing gap (553) (466) (241) (66) (44) - -
66
42 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 40 on risk management and control.
In respect of interest rate, exchange rate and equity contracts, underlying principal amounts are 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 amounts and replacement cost, by residual maturity, of the Group’s over the counter and other non-exchange traded
derivatives at 30 September 2004 were as follows:
2004 2003
Within One to five Over five
one year years years Total Total
€m €m €m €m €m
Underlying principal amounts
Exchange rate contracts 25,968.2 1,754.0 2.1 27,724.3 14,965.7
Interest rate contracts 13,638.4 23,201.8 12,044.5 48,884.7 31,079.7
Equity contracts 27.1 76.6 32.9 136.6 105.1
Replacement cost
Exchange rate contracts 138.3 10.4 - 148.7 113.9
Interest rate contracts 27.5 104.4 92.2 224.1 359.7
Equity contracts 12.5 19.1 4.2 35.8 20.1
The replacement cost of the Group’s over the counter and other non-exchange traded derivatives as at 30 September 2004
analysed into financial and non-financial counterparties for exchange rate, interest rate and equity contracts were as follows:
2004 2003
Non-
Financial financial Total Total
€m €m €m €m
Exchange rate contracts 118.7 30.0 148.7 113.9

Interest rate contracts 138.1 86.0 224.1 359.7
Equity contracts 35.8 - 35.8 20.1
292.6 116.0 408.6 493.7
67

CONTINUED
42 Derivative transactions continued
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 2004.
30 September 2004
Underlying
principal Fair
amount value
Trading book €m €m
Interest rate contracts
Interest rate swaps 25,874.3
in a favourable position 240.8
in an unfavourable position (241.1)
Forward rate agreements 2,901.6
Interest rate futures 5,207.5
Interest rate caps, floors and options held 2,582.8
in an unfavourable position -
Interest rate caps, floors and options written 2,786.6
in a favourable position -
Exchange traded options held 1,254.9
Exchange traded options written 1,133.0
Foreign exchange contracts
Forward foreign exchange 17,187.3
Foreign exchange options 4,131.4
Currency swaps 2.1
68
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
principal average Fair
amount maturity value
Trading book €m in years €m
Interest rate swaps-receive fixed
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
Interest rate swaps-pay fixed
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)
Interest rate swaps-pay and receive floating
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)
Forward rate agreements-loans
1 year or less 1,161.5 0.7 (0.5)
1 to 5 years 406.0 1.2 1.2
Forward rate agreements-deposits
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 (0.1)
1 to 5 years 2,429.4 1.6 -
5 to 10 years 5.0 7.3 (0.1)
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 -
Interest rate caps, floors and options written
1 year or less 87.9 0.6 -
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 0.1
Exchange traded options written
1 year or less 1,133.0 0.4 -
Forward foreign exchange
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)
69

CONTINUED
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 2003.
30 September 2003
Underlying
principal Fair
amount value
Trading book €m €m
Interest rate swaps 13,207.1
Forward rate agreements 945.4
Interest rate futures 2,809.3
Interest rate caps, floors and options held 2,116.2
Interest rate caps, floors and options written 2,151.0
Exchange traded options held 336.2
Exchange traded options written 479.4
Forward foreign exchange 10,133.2
Foreign exchange options 1,773.0
Currency swaps 2.0
70
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 2003.
Underlying Weighted
Trading book €m in years €m
1 year or less 894.0 0.4 8.5
1 to 5 years 3,716.8 2.5 89.7
5 to 10 years 1,563.9 7.5 73.4
Over 10 years 354.8 13.1 13.1
1 year or less 1,136.5 0.4 (17.6)
1 to 5 years 3,601.0 2.5 (97.2)
5 to 10 years 1,559.6 7.4 (70.8)
Over 10 years 274.0 12.8 (10.5)
1 year or less - - -
1 to 5 years 81.5 3.0 (0.1)
5 to 10 years 25.0 9.0 (0.5)
1 year or less 315.8 0.9 0.4
1 to 5 years 193.2 1.4 0.1
1 year or less 329.1 0.9 (0.2)
1 to 5 years 107.3 1.5 (0.1)
Interest rate futures
1 year or less 1,696.2 0.8 (0.4)
1 to 5 years 1,096.6 1.7 (1.1)
5 to 10 years 16.5 8.8 (0.4)
1 year or less 64.3 0.8 1.3
1 to 5 years 1,725.8 3.9 13.2
5 to 10 years 266.1 6.8 3.2
Over 10 years 60.0 10.1 0.2
1 year or less 65.8 0.8 (1.3)
1 to 5 years 1,759.1 3.9 (13.3)
5 to 10 years 266.1 6.8 (3.2)
Over 10 years 60.0 10.1 (0.2)
Exchange traded options held
1 year or less 314.8 0.6 -
1 to 5 years - - -
5 to 10 years 21.4 6.9 -
Exchange traded options written
1 year or less 457.9 0.6 -
1 to 5 years - - -
5 to 10 years 21.5 6.9 -
1 year or less 9,554.0 0.1 23.7
1 to 5 years 579.2 1.5 3.5
Foreign exchange options
1 year or less 1,757.7 0.3 1.0
1 to 5 years 15.3 1.2 -
Currency swaps
5 to 10 years 2.0 7.7 (0.3)
71

CONTINUED
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 2004, the unrecognised net losses on instruments
used for hedging as at 30 September 2004 were €10.9m (2003: €13.2m gain).The net loss expected to be recognised in the
year to 30 September 2005 is €0.7m (2003: €4.2m) and thereafter a net loss of €10.2m (2003: €17.4m gain) is expected.
The net loss recognised in the year to 30 September 2004 in respect of previous years was €4.2m (2003: €7.2m gain) and the
net loss arising in the year to 30 September 2004 which was not recognised in that year was €28.3m (2003: €34.2m gain).
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 2004. Total net
Deferred Deferred deferred
gains losses gains/(losses)
€m €m €m
As at 1 October 2003 18.7 (12.3) 6.4

Gains and losses arising in previous years
that were recognised this year 2.6 (3.2) (0.6)
Gains and losses arising before I October 2003 that were
not recognised in the year ended 30 September 2004 16.1 (9.1) 7.0
Gains and losses arising in the year ended
30 September 2004 that were not recognised in that year 0.1 (8.7) (8.6)
As at 30 September 2004 16.2 (17.8) (1.6)
Of which:
Gains and losses expected to be recognised in
the year ended 30 September 2005 3.9 (4.7) (0.8)
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
gains of €5.6m (2003: €19.6m) based on the fair value of these contracts at the year end.
72
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 - - -
5 to 10 years - - -
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 held
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
73

CONTINUED
The following table sets out details of all derivatives used in the Group’s non-trading activities at 30 September 2003.
Underlying Weighted
Non-trading book €m in years €m
1 year or less 2,049.2 0.4 37.4
1 to 5 years 2,973.8 2.3 106.2
5 to 10 years 777.3 7.2 61.8
Over 10 years 646.7 24.2 17.0
1 year or less 555.0 0.3 (6.8)
1 to 5 years 2,115.6 2.7 (81.4)
5 to 10 years 799.7 6.8 (61.3)
Over 10 years 552.7 21.2 (27.1)
1 year or less 154.6 0.5 (5.3)
1 to 5 years 723.7 3.0 (2.3)
5 to 10 years 39.4 6.3 -
1 year or less 14.3 0.7 0.1
1 to 5 years 13.3 3.0 0.2
5 to 10 years 39.2 5.7 0.6
1 year or less 254.0 0.6 (1.3)
1 to 5 years 644.0 2.8 (0.2)
5 to 10 years 147.5 6.9 (1.8)
Over 10 years 160.0 25.5 (7.0)
1 year or less 2,786.0 0.1 (15.3)
1 to 5 years 271.5 1.8 (0.6)
Equity contracts
Equity index-linked contracts held
1 year or less 13.6 0.5 1.3
1 to 5 years 63.6 2.9 14.4
5 to 10 years 27.9 5.7 4.4
74
43 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.
2004 2003
Carrying Fair Carrying Fair
amount value amount value
Non-trading financial instruments €m €m €m €m
Financial assets
Loans and advances to banks 6,210.6 6,200.4 5,798.8 5,795.0
Loans and advances to customers 23,723.8 23,776.2 17,268.5 17,330.6
Securitised assets 666.0 673.1 808.0 825.2
Less: non-returnable proceeds (634.8) (635.3) (777.1) (774.6)
31.2 37.8 30.9 50.6
Debt securities 2,534.4 2,568.2 1,365.2 1,391.8
Equity shares 26.1 26.1 4.5 4.5
Financial liabilities
Deposits by banks 2,605.9 2,606.3 3,290.1 3,291.9
Customer accounts 19,546.0 19,583.4 14,577.6 14,628.9
Debt securities in issue 6,944.5 6,944.1 4,557.9 4,558.5
Subordinated liabilities 1,133.3 1,151.3 429.0 460.1
Perpetual capital securities 656.2 772.4 645.0 773.1
Non-equity minority interests 841.6 864.3 259.4 324.0
Derivative financial instruments held for trading purposes

Interest rate contracts (1.1) (1.1) (13.8) (13.8)
Foreign exchange contracts 29.9 29.9 27.9 27.9
Derivative financial instruments utilised for non-trading activities

Interest rate contracts 0.8 28.8
Foreign exchange contracts 25.9 (15.9)
Equity contracts 35.8 20.1
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 perpetual capital securities, preferred securities and preference shares issued by subsidiary undertakings 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 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.
75

CONTINUED
44 Currency information
The Group The Company
2004 2003 2004 2003
€m €m €m €m
Denominated in Euro 16,671.0 13,012.6 15,303.8 12,284.3

Denominated in other currencies 17,668.8 12,507.5 16,149.7 11,574.3
Total assets 34,339.8 25,520.1 31,453.5 23,858.6
Denominated in Euro 19,432.0 14,319.9 17,464.8 13,591.6

Denominated in other currencies 14,907.8 11,200.2 13,988.7 10,267.0
Total liabilities and capital resources 34,339.8 25,520.1 31,453.5 23,858.6
Due to off-balance sheet items the above analysis should not be considered to demonstrate foreign exchange risk exposures.
45 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 members are Peter Murray (Chairman), Michael
Jacob 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 the
shareholders.The policy is based heavily on rewarding performance.The Chief Executive is fully consulted about remuneration
proposals and 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 the ability to participate in
employee share incentive plans.They are also entitled to participate in either a personal Revenue approved defined contribution
pension plan or a Group defined benefit pension scheme.
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 in the accounts.
76
45 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 30 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 2004 the aggregate amount outstanding in loans to persons who at any time during the year were Directors
was €10,238,000 (2003: €15,160,000) in respect of twelve (2003: eight) 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 Group defined benefit schemes.All pension benefits
are determined solely in relation to basic salary. Non-executive Directors are not entitled to any pension benefits.
77

CONTINUED
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
78
Directors’ remuneration - 2003

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 649 - 934 466 49 248 - 2,346
Peter Killen 334 - 467 233 30 127 - 1,191
William McAteer 358 - 510 255 23 70 - 1,216
Tiarnan O Mahoney 425 - 593 297 28 162 - 1,505
John Rowan 427 - 490 295 48 163 - 1,423
Non-executive Directors
Peter Murray - 205 - - - - - 205
Fintan Drury - 60 - - - - - 60
Michael Jacob - 80 - - - - - 80
Patricia Jamal (1) - 44 - - - - - 44
Anton Stanzel - 68 - - - - - 68
Ned Sullivan - 70 - - - - - 70
Patrick Wright - 60 - - - - - 60
Former Directors - - - - - - 46 46
Total 2,193 587 2,994 1,546 178 770 46 8,314
79

CONTINUED
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 Group defined benefit schemes. 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 57 533 1,185 -

Tom Browne (1) - - - 44
David Drumm (2) - 44 - -
Peter Killen (3) 48 283 971 -
William McAteer - - - 78
Tiarnan O Mahoney 152 308 2,780 -
John Rowan 27 187 292 -
284 1,355 5,228 122
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 retirement based on service to the year end.The transfer value
of the increase in accrued benefit has been calculated by an independent actuary.
Non-executive Directors are not entitled to any pension benefits.

(2) Co-opted on 22 September 2004
(3) Retired on 10 February 2004
80
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 issued by
the Company are included in the following table:
Interests in ordinary shares 30 September 2004 30 September 2003

Ordinary Share Ordinary Share
Shares Options Shares Options
Directors:
Peter Murray 121,866 - 99,700 -
Sean FitzPatrick 1,887,926 312,500 3,897,213 319,229
Lar Bradshaw * - * - * - * -
Tom Browne 445,640 804,165 * 445,640 * 804,165
David Drumm 37,607 263,798 * 37,607 * 263,798
Fintan Drury 26,125 - 26,000 -
Michael Jacob 373,383 - 373,281 -
Patricia Jamal 15,072 - 15,000 -
William McAteer 1,193,393 738,848 1,185,537 244,229
Gary McGann 25,121 - * 5,000 * -
Tiarnan O Mahoney 728,043 749,188 726,934 249,188
John Rowan 348,084 745,529 585,584 245,529
Anton Stanzel 1,260 - 1,239 -
Ned Sullivan 209,033 - 206,111 -
Patrick Wright 227,219 - 224,042 -
Secretary:
Bernard Daly 31,093 154,050 79,983 108,087
* or date of appointment if later
There have been no changes in the Directors’ and Secretary’s shareholdings between 30 September 2004 and 23 November
2004.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 2004.
81

CONTINUED
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 2004 are included in the following table:
Market
Options at Options granted Options exercised price at Options at 30 September 2004 Weighted
1 October since since exercise Date from average
2003 1 October 2003 1 October 2003 date which Expiry Exercise exercise
Number Number Price € Number Price € Price € Number exercisable date price € price €
Sean FitzPatrick 312,500 - - 312,500 # Sept 05 Sept 10 2.36

6,729 - 6,729 1.79 11.30 - * Oct 03 Apr 04 1.79
319,229 - 6,729 312,500 2.36
Tom Browne (1) 150,000 - - 150,000 Feb 05 Feb 12 4.50

150,000 - - 150,000 # Feb 08 Feb 12 4.50
250,000 - - 250,000 Sept 06 Sept 13 9.35
250,000 - - 250,000 # Sept 08 Sept 13 9.35
4,165 - - 4,165 * July 07 Jan 08 5.07
804,165 - - 804,165 7.52
David Drumm (1) 62,450 - - 62,450 # Sept 05 Sept 10 2.36

100,000 - - 100,000 Sept 06 Sept 13 9.35
100,000 - - 100,000 # Sept 08 Sept 13 9.35
1,348 - - 1,348 * Feb 07 Aug 07 9.02
263,798 - - 263,798 7.69
William McAteer 237,500 - - 237,500 # Sept 05 Sept 10 2.36

- 250,000 12.60 - 250,000 Dec 06 Dec 13 12.60
- 250,000 12.60 - 250,000 # Dec 08 Dec 13 12.60
6,729 - 6,729 1.79 11.30 - * Oct 03 Apr 04 1.79
- 1,348 9.02 - 1,348 * Feb 07 Aug 07 9.02
244,229 501,348 6,729 738,848 9.30
Tiarnan O Mahoney 237,500 - - 237,500 # Sept 05 Sept 10 2.36

- 250,000 12.60 - 250,000 Dec 06 Dec 13 12.60
- 250,000 12.60 - 250,000 # Dec 08 Dec 13 12.60
11,688 - - 11,688 * Oct 05 Apr 06 1.79
249,188 500,000 - 749,188 9.19
John Rowan 237,500 - - 237,500 # Sept 05 Sept 10 2.36

- 250,000 12.60 - 250,000 Dec 06 Dec 13 12.60
- 250,000 12.60 - 250,000 # Dec 08 Dec 13 12.60
8,029 - - 8,029 * Sept 06 Mar 07 3.06
245,529 500,000 - 745,529 9.24
# Second tier options

* SAYE scheme options
(1) Only changes since co-option are included
The closing market price of the Company’s ordinary shares at 30 September 2004 was €14.75 (2003: €9.27) and the range
during the year to 30 September 2004 was from €9.27 to €15.15.
82
46 Comparative figures
The comparative figures have been reclassified where necessary on a basis consistent with the current year.
47 International Financial Reporting Standards
All listed companies in the European Union (‘EU’) will be required to prepare their financial statements using International
Financial Reporting Standards (‘IFRS’) endorsed by the EU for accounting periods commencing on or after 1 January 2005.
The objective is to improve financial reporting and enhance transparency in order to assist the free flow of capital throughout
the EU and to improve the efficiency of its capital markets.
The first set of annual financial results that will be reported by the Group under the new requirements will be in respect of
the year ended 30 September 2006. In certain respects these new standards are significantly different from existing accounting
standards that are generally accepted in Ireland. Work has already commenced to prepare for the transition to IFRS.A project
team has been assembled and separate work streams established for each aspect of IFRS identified as requiring significant
resources to implement.
The major differences identified between the accounting policies adopted by 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.This could lead to lower
provisions if the economic climate is benign at the time IFRS is implemented. Going forward the charge to the profit and loss
account for bad debts under IFRS is expected to be more cyclical 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 profit and loss account
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 hedging more difficult to achieve.There are still
uncertainties as to how certain aspects of the accounting for derivatives and hedges will be dealt with in the final version of the
accounting standard applicable to the Group.
The hedging strategies used by the Group are being reviewed with a view to designing and implementing IFRS compliant hedging
strategies where practical. However, the primary objective is to continue to provide economic hedges against the Group’s
market risk exposures.
83

CONTINUED
47 International Financial Reporting Standards continued
Effective interest rates and lending arrangement fees

IFRS requires lending arrangement fees to be deferred and recognised as an adjustment to the effective interest rate on the
relevant loan.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
Debt securities held for investment purposes are likely to be technically classified 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.
Securitised assets
IFRS does not permit the linked presentation treatment of the Group’s securitised assets. Instead the relevant assets and
liabilities may be required to 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 amortised to the profit and loss account over its estimated useful
economic life. Under IFRS it will no longer be amortised but it will have to be tested annually for impairment and written down
if necessary.
Pensions
Under the current version of IFRS, defined benefit pension scheme liabilities are discounted to their present value using the
market rate on high quality corporate bonds.Actuarial gains and losses are amortised to the profit and loss account on a
straight line basis over the expected average remaining working lives of the schemes’ members if they amount cumulatively to
more than 10% of the present value of the schemes’ liabilities or more than 10% of the fair value of the schemes’ assets.
84
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.
Share options
Under IFRS the fair value of share options granted to employees will have to be expensed to the profit and loss account over
the vesting period of the options.This new requirement will apply to share options granted after 7 November 2002.
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. It should not be considered to be a comprehensive analysis of all differences that may
apply when the Group first implements IFRS.
48 Approval of financial statements
The Group financial statements were approved by the Board of Directors on 23 November 2004.
85
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 62.5 34.6 78.2
Other interest receivable and similar income 1,740.4 963.2 2,177.3
Interest payable and similar charges (1,153.3) (638.3) (1,442.8)
Net interest income 649.6 359.5 812.7
Other income
Fees and commissions receivable 228.2 126.3 285.4
Fees and commissions payable (20.2) (11.2) (25.3)
Dealing profits 15.9 8.8 19.9
Other operating income 23.9 13.3 30.0
Total operating income 897.4 496.7 1,122.7
Operating expenses
Administrative expenses 230.1 127.4 287.8
Depreciation and goodwill amortisation 18.1 10.0 22.7
Provisions for bad and doubtful debts 23.7 13.1 29.6
271.9 150.5 340.1
Group profit on ordinary activities before taxation 625.5 346.2 782.6
Taxation on profit on ordinary activities (133.6) (74.0) (167.2)

Group profit on ordinary activities after taxation 491.9 272.2 615.4
Minority interests (21.1) (11.7) (26.4)

Group profit attributable to ordinary shareholders 470.8 260.5 589.0
Dividends (93.3) (51.6) (116.8)

Group profit retained for year 377.5 208.9 472.2
Basic earnings per share 142.12c 78.66p Chf 1.78
Diluted earnings per share 139.44c 77.18p Chf 1.74
Dividends per ordinary share 27.99c 15.49p Chf 0.35
Exchange rates used at 30 September 2004

One Euro = USD 1.2409 / GBP 0.6868 / CHF 1.5524
86
Consolidated balance sheet

A S AT 3 0 S E P T E M B E R 2 0 0 4
USDm GBPm CHFm

Assets
Loans and advances to banks 7,707 4,265 9,641
Loans and advances to customers 29,439 16,294 36,829
Securitised assets 827 457 1,034
Less: non-returnable proceeds (788) (436) (985)
39 21 49
Debt securities 3,145 1,741 3,934
Equity shares 32 18 41
Intangible fixed assets - goodwill 86 48 108
Tangible fixed assets 74 41 92
Other assets 717 397 897
Prepayments and accrued income 545 301 682
41,784 23,126 52,273
Life assurance assets attributable to policyholders 828 459 1,036
Total assets 42,612 23,585 53,309
Liabilities
Deposits by banks 3,234 1,790 4,045
Customer accounts 24,255 13,424 30,343
Debt securities in issue 8,617 4,769 10,781
Proposed dividends 62 34 78
Other liabilities 317 176 397
Accruals and deferred income 486 269 609
Provisions for liabilities and charges 7 4 8
36,978 20,466 46,261
Capital resources
Subordinated liabilities 1,406 778 1,759
Perpetual capital securities 814 451 1,019
Equity and non-equity minority interests 1,047 579 1,309
3,267 1,808 4,087
Called up share capital 133 74 167
Share premium account 196 108 245
Other reserves 1 1 1
Profit and loss account 1,209 669 1,512
Total shareholders’ funds (all equity interests) 1,539 852 1,925
Total capital resources 4,806 2,660 6,012
41,784 23,126 52,273
Life assurance liabilities attributable to policyholders 828 459 1,036
Total liabilities and capital resources 42,612 23,585 53,309
Exchange rates used at 30 September 2004

One Euro = USD 1.2409 / GBP 0.6868 / CHF 1.5524
87
Shareholder information
Substantial shareholdings
As at 23 November 2004 the following interests in the ordinary share capital had been notified to the Company.
Number % of issued ordinary

of shares share capital
Bank of Ireland Nominees Limited * 12,269,682 3.6
*This shareholder has informed the Company that its 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 2004

Shareholdings Shares
Number % Number %
1 - 5,000 12,348 83.3 13,701,015 4.1

5,001 - 10,000 1,077 7.3 7,598,644 2.3
10,001 - 25,000 789 5.3 12,060,627 3.6
25,001 - 50,000 243 1.6 8,573,097 2.6
50,001 - 100,000 137 0.9 9,627,172 2.9
100,001 - 500,000 149 1.0 32,627,041 9.7
Over 500,000 82 0.6 250,352,041 74.8
14,825 100.0 334,539,637 100.0
Financial calendar
Publication of results Half year to 31 March 2004 5 May 2004

Dividend (ordinary shares) Interim dividend paid 16 July 2004
Publication of results Year to 30 September 2004 24 November 2004
Share transfer books closed 3 December 2004
Accounts posted to shareholders 20 December 2004
Annual General Meeting 28 January 2005
Dividend (ordinary shares) Proposed final dividend payment 14 February 2005
88
Anglo Irish Bank locations
Dublin Limerick Manchester

Head Office Anglo Irish Bank House 1 Marsden Street
Stephen Court 98 Henry Street Manchester M2 1HW
18/21 St. Stephen’s Green Limerick Tel +44 161 214 3020
Dublin 2 Tel +353 61 461 800 Fax +44 161 214 3030
Tel +353 1 616 2000 Fax +353 61 461 899
Fax +353 1 616 2411 Isle of Man
www.angloirishbank.com Waterford Jubilee Buildings
Bank House Victoria Street
Registrar correspondence 96 The Quay Douglas
Computershare Investor Waterford Isle of Man IM1 2SH
Services (Ireland) Limited Tel +353 51 849 300 Tel +44 1624 698 000
Heron House Fax +353 51 849 398 Fax +44 1624 698 001
Corrig Road
Sandyford Industrial Estate Banbury Geneva
Dublin 18 Town Centre House 7 Rue des Alpes
Tel +353 1 216 3100 Southam Road P.O. Box 1380
Freephone +353 1 800 225 125 Banbury 1211 Geneva I
(Shareholder enquiries) Oxon OX16 2EN Tel +41 22 716 3636
www.computershare.com Tel +44 1295 755 500 Fax +41 22 716 3619
Fax +44 1295 755 510
International Vienna
Financial Services Belfast Rathausstrasse 20
Custom House Plaza 14/18 Great Victoria Street P.O. Box 306
IFSC Belfast BT2 7BA A-1011 Vienna
Dublin 1 Tel +44 2890 333 100 Tel +43 1 406 6161
Tel +353 1 670 2388 Fax +44 2890 269 090 Fax +43 1 405 8142
Fax +353 1 670 2384
Birmingham Boston
Private Banking Embassy House (Representative Office)
61 Fitzwilliam Square 60 Church Street 265 Franklin Street
Dublin 2 Birmingham B3 2DJ Boston MA 02110
Tel +353 1 631 0000 Tel +44 121 232 0800 Tel +1 617 720 2577
Fax +353 1 631 0098 Fax +44 121 232 0808 Fax +1 617 720 6099
Cork Glasgow New York

Anglo Irish Bank House 180 St.Vincent Street (Representative Office)
11 Anglesea Street Glasgow G2 5SG 330 Madison Avenue
Cork Tel +44 141 204 7270 New York NY 10017
Tel +353 21 453 7300 Fax +44 141 204 7299 Tel +1 646 495 5229
Fax +353 21 453 7399 Fax +1 646 495 5231
London
Galway 10 Old Jewry
Anglo Irish Bank House London EC2R 8DN
Forster Street Tel +44 207 710 7000
Galway Fax +44 207 710 7050
Tel +353 91 536 900
Fax +353 91 536 932
Designed and produced by Designbank Ltd.,Tel: 6604177

Annu
Annual Report & Accounts 2004
www.angloirishbank.com
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EXPERIENCE THE DIFFERENCE

Annual Report & Accounts 2004

Anglo Irish Bank Business Lending Treasury Wealth Management

Maintaining our focus

The Group’s performance in 2004 and for

01 Financial highlights 24 Consolidated profit and loss account

Anglo Irish Bank Annual Report & Accounts

Another successful year

34,340 29,096 24,390

19,412 16,853 14,297

15,771 13,844 11,522

7,939 7,057 5,613

Total assets (€m) Total funding (€m) Advances to customers* (€m)

Profit before taxation 504.1 346.5

*Including securitised assets

Anglo Irish Bank Annual Report & Accounts

Business Lending Treasury

Corporate treasury sales consist of foreign exchange and interest rate

Ireland Isle of Man UK Switzerland Austria

Our objective is to develop long-term relationships with clients

Anglo Irish Bank Annual Report & Accounts

2004 was an excellent year with your Bank extending its

Anglo Irish Bank Annual Report & Accounts

Chairman’s statement continued

Maintaining our Focus

Sean FitzPatrick with Peter Murray

Anglo Irish Bank Annual Report & Accounts

Chief Executive’s review

The Bank delivered record net new lending of €6.3Bn,

Anglo Irish Bank Annual Report & Accounts

Chief Executive’s review continued

Sean FitzPatrick with David Drumm

Anglo Irish Bank Annual Report & Accounts

Sean FitzPatrick (56) Peter Murray (56) Lar Bradshaw (44)

John Rowan (46) Anton Stanzel (65) Ned Sullivan (56)

Tom Browne (42) David Drumm (38)

William McAteer (54) Gary McGann (54) Tiarnan O Mahoney (45)

Patrick Wright (63) Patricia Jamal (61)

Anglo Irish Bank Annual Report & Accounts

Strategic Management Board

left to right Sean FitzPatrick, Pat Whelan,

left to right Bernard Daly, Tom Browne,

left to right Peter Butler,Tiarnan O Mahoney,

Executive Management Board

left to right Jim Springham, Pat Whelan,

left to right Matt Moran, Mike Campbell,

left to right John O’Connell, Des Whyte,

left to right David Drumm, Helen Cahill,

left to right Des O’Houlihan, Brian Linehan,

Anglo Irish Bank Annual Report & Accounts

Corporate social responsibility

In line with our purchasing policy we have service level

Our people are the key to the delivery of customer service

We have a number of employee volunteer programmes across The Environment

Report of the Directors

Anglo Irish Bank Annual Report & Accounts

Statement of Directors’ responsibilities