www.angloirishbank.com

26 August 2011

Half year results presentation

Objectives today

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•Recap on Anglo’s focus and progress since nationalisation

•Describe how Anglo has been rationalised and restructured over the last two years

•Share what is going to happen next

Anglo’s focus since nationalisation has been to maximise recovery for the Irish taxpayer and to support the Authorities

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•Maximise recovery for the Irish tax payer

•Reduce costs and minimise any further risks

•Work with the Irish and International Authorities in developing a strategy for the Bank

•Wind-down the asset portfolio and right-size the organisation

•Manage legacy issues including fully supporting external investigations

• New Board appointments made

• Assessed business capabilities and options for the future

• Hired new senior team

• Enhanced risk mgmt controls

• Launched loan review assessment

• Launched 1st LME

• Initiated legacy issues management

• Completed cost review and launched Voluntary Redundancy Programme (VRP)

• Managed crisis

• Supported Authorities dialogues with the EC

• Finalised and launched VRP

• Built out Group Recovery Management Unit (GRMU) and NAMA teams

• Restructured UK based lending teams and re-orientated towards recoveries, collections and work-outs

• Announced Arnotts restructuring

• Began transfer to NAMA

• Launched sale process for Scottish Loan portfolios

• Expanded loan portfolio analysis

• Reduced treasury asset portfolios

• Continued to support Authorities dialogues

• Continued focus on building out recoveries, collections and work out capabilities in Ireland, UK and USA

• Shifted perspective & reoriented organisation towards full recovery vehicle

• Launched 2nd LME

• Launched full asset by asset review of the US portfolio to provide a framework for making strategic choices – designed to enable a cost effective exit

• Significant progress in reducing loan book

• EC plan approved

• Transferred IoM, deposits and NAMA bonds to AIB

• Prepared for INBS acquisition

• Announced Quinn restructuring

• Initiated Wealth Mgmt disposal process

• Launched US loan book sale process

• Closed European branches

• Significant progress in reducing loan book

Anglo has made significant progress in the last 2 years

Phase 1 (2009)

“Stop the bleeding”

Phase 2(1H 2010)

“De-risk & beginrecovery work”

Phase 3(2H2010)

“Restructure & continue loan run-down”

Phase 4(1H 2011)

“Initiate large scale divestments”

Where are we now – Half Year Results

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• Operating profit for the period of €332m before disposals and provisions for impairment

• Loss before taxation for the period of €101m

• Total provisions for impairment of €778m

• Loss of €214m on the transfer in February 2011 of the majority of the Bank’s Irish and UK deposits, certain NAMA senior bonds and shares in its Isle of Man sub to Allied Irish Bank (AIB)

• A net reduction of €601m in the overall reported loss on disposal of assets to NAMA

• Total operating expenses of €157m

• Non staff costs have increased to €60m as a result of significantly higher professional fees related to ongoing work on loan book asset quality, litigation costs and other external reviews

• Tier 1 Capital ratio of 12.1% and a Total Capital ratio of 13.7%

• Total funding from central banks and monetary Authorities of €40.8bn, representing 86% of total funding

• Total assets are €54.1bn, a decline in the period of €16.7bn, or 24%, on a constant currency basis (excluding the Government promissory note, the total assets are down to €30.3bn)

• Gross customer lending totals €32.8bn. Impaired loans amount to €16.9bn, with cumulative impairment provisions of €9.9bn representing 30% of total loan balances

What to expect next…

• Change name to Irish Bank Resolution Corporation Limited

• Finalise US loan book sale

• Wealth Management resolution

• Continue large scale transformation asset sales and explore further sales or disposals of other business units

• Finalise integration of INBS and implement a restructuring to right-size the organisation as a wind-down entity

• Retain key staff to ensure work-out of assets maximises value for the State

• Continue to resolve outstanding Anglo and INBS legacy issues

• Full resolution of the Bank by 2020

Irish Bank Resolution Corporation Limited

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