1 / 15

Allied Irish Banks, p.l.c.

Allied Irish Banks, p.l.c. “Irish Banks – what are you buying ? ”. Eugene Sheehy Group Chief Executive. Morgan Stanley European Banks & Financials Conference London, Tuesday, 27 th March 2007. Forward looking statements.

gay
Download Presentation

Allied Irish Banks, p.l.c.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Allied Irish Banks, p.l.c. “Irish Banks – what are you buying ? ” Eugene Sheehy Group Chief Executive Morgan Stanley European Banks & Financials Conference London, Tuesday, 27th March 2007

  2. Forward looking statements A number of statements we will be making in our presentation and in the accompanying slides will not be based on historical fact, but will be “forward-looking” statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward looking statements. Factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to, global, national and regional economic conditions, levels of market interest rates, credit or other risks of lending and investment activities, competitive and regulatory factors and technology change.Any‘forward-looking statements made by or on behalf of the Group speak only as of the date they are made. The results for the year ended 31 December 2006 have been restated to represent Ark Life as a discontinued operation. The following commentary is on a continuing operations basis. The growth percentages (excl. EPS) are shown on an underlying basis, adjusted for the impact of exchange rate movements on the translation of foreign locations’ profit and excluding interest rate hedge volatility under IFRS. visit www.aibgroup.com/investorrelations

  3. AIB – what are you buying ? Clear no. 1 Irish banking franchise operating in a high growth economy with rich potential + Premium banking franchises focused on high growth markets / sectors in UK and Poland + Fast, consistently growing international and domestic corporate businesses operating in carefully selected high potential markets / niches + Active partnership with outstanding US regional bank

  4. Strongly supportive economic environment GDP % 2006 (e) 2007 (f) Ireland 6.2 5.5 UK 2.7 2.8 USA 3.4 2.5 Poland 5.8 5.4 Eurozone 2.7 2.6

  5. AIB – a snapshot “The 4 Pillars” “Store of Value” Capital Ireland UK M&T Poland Markets + + + + Single enterprise support framework

  6. 2006 performance highlights Basic earnings per share 246.8c - basic adjusted * 182.8c  25% ** Positive income / cost gap 4% Cost / income ratio  1.7% Impaired loans 0.9% Dividend  10% Return on equity 29% Tier 1 capital ratio 8.2% *** • * Basic earnings per share less profit on disposal/development of properties, businesses and interest rate hedge volatility • ** Relative to 2005 base figure of 145.9c • *** 7.9% if final dividend is excluded

  7. Positive trends in growth & returns EPS Growth (basic adjusted) Total Shareholder Return

  8. AIB Bank Republic of Ireland AIB Bank UK AIB Poland Cost / income ratio – continuing gains across the enterprise AIB Capital Markets Group

  9. Asset quality – key indicators remain strong 20042005 2006 Impaired loans (ILs) % 1.3 1.0 0.9 Criticised loans / total loans % 5.8 5.2 4.9 Gross new ILs % 0.7 0.4 0.4 Total provisions / ILs % 73 78 76 Bad debt charge bps 20 15 12

  10. Other investor themes – margins, funding & capital • Net interest margin • Pace of attrition continues to reduce • Funding • Well diversified sources, customer deposits 49% of total • Capital • Robust ratios, tier 1 8.2% at Dec 2006 • Recourse to shareholders not on agenda

  11. Distinctive and evolving profit profile Pre-tax profit by geography December 2003 December 2006* * Continuing operations less profit on disposal / development of properties & businesses and interest rate hedge volatility

  12. Well spread growth • AIB Bank  23% * • Momentum underpinned by increasing customers and market shares; best in class products, services and channels • Capital Markets  29%* • Resilient, recurring, low volatility earnings; premium corporate customer business delivering 10 year PBT CAGR 20% • AIB Bank UK  18%* • Strong focus on chosen sectors, efficiency and delivery channels; franchise quality reflected by broad volume growth • Poland  52%* • Fast growing retail / commercial banking volumes complemented by broad based fee income; adding branches, business centres, channels to harvest rich opportunity • M&T  4% • EPS  10%, 13th consecutive year of double digit growth; focus on efficiency and asset quality in lower income growth environment * operating profit

  13. Relentless execution of our clear agenda • Significant progress being made on our 3 key priorities Existing Markets - maximising organic growth opportunities Selected international markets / niches – transferring skills profitably Single enterprise support framework – achieving efficiency and productivity gains

  14. +353-1-660 0311 +353-1-641 2075 Contacts Our Group Investor Relations Department will be happy to facilitate your requests for any further information Alan Kelly alan.j.kelly@aib.ie +353-1-6412162 Rose O’Donovan rose.m.o’donovan@aib.ie +353-1-6414191 Pat Clarke patricia.m.clarke@aib.ie +353-1-6412381 Alma Pearsonalma.e.pearson@aib.ie+353-1-6413469 Visit our website www.aibgroup.com/investorrelations

More Related