EXPERIENCE THE DIFFERENCE

Interim Report 2005

six months ended 31 March 2005

Anglo Irish Bank

Business Lending

Treasury

Wealth Management

Directors
Sean FitzPatrick (Chairman) David Drumm (Chief Executive) Lar Bradshaw Tom Browne Fintan Drury Michael Jacob Patricia Jamal William McAteer Gary McGann John Rowan Ned Sullivan Patrick Wright
Secretary: Bernard Daly

Contents
01 Financial highlights 02 Chairmans statement 06 Consolidated profit and loss account 07 Consolidated balance sheet 08 Consolidated cash flow statement 09 Statement of total recognised gains and losses 09 Reconciliation of movements in shareholders funds 09 Reconciliation of movements in retained profits 10 Notes to the interim report 11 Accounts in USD, GBP and CHF 13 Anglo Irish Bank locations

Anglo Irish Bank Interim Report 2005

Financial highlights

Excellent performance in the six months ended 31 March 2005

Reported pre-tax profits of 308.4m, an increase of 35% Record EPS of 66.7c, up 30% Cost/income ratio stands at 27% Return on equity of 33% Lending balances up 18% in the six month period Total assets of 40Bn Tier 1 Capital Ratio is 8.2%

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Chairmans statement

Sean FitzPatrick Chairman

I am pleased to announce an excellent performance by Anglo Irish Bank for the six months ended 31 March 2005, continuing the Groups record of strong profit growth. Profits for the period were 308.4m, resulting in a 30% increase in earnings per share. Each of our divisions has performed strongly during this time. Once again these results demonstrate the inherent strength of the Banks strategy which continues to deliver excellent returns to shareholders.

The performance highlights for the period include:

The momentum in our business, combined with the ongoing significant investment in our people, augurs well for the Group.

Profits
Reported pre-tax profits of 308.4m, an increase of 35% Record EPS of 66.7 cent, an increase of 30% Cost/income ratio stands at 27%

Dividends
The Board has declared an interim dividend of 4.51 cent per share, an increase of 20% on the interim dividend paid in 2004 when allowance is made for the two-for-one share split on 22 April 2005. The dividend will be paid on 18 July 2005 to shareholders on the Banks register as at the close of business on 13 May 2005. 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.

Shareholder value
Return on equity of 33% 20% increase in interim dividend

Operational performance
Record growth in lending of 4.3Bn, an increase of 18% in the six month period Continuing excellent asset quality with non-performing loans representing 0.55% of closing customer loan balances Total funding increased by 19% to 34.5Bn Tier 1 Capital Ratio is 8.2% Number of employees grew by 17% year on year to 1,315 Lending work in progress is 4.9Bn

Business Lending
Business lending achieved net loan growth of 4.3Bn on a constant currency basis, the strongest performance in any six month period in the Banks history. This follows a net increase of 6.3Bn in the full year to 30 September 2004. Total loan balances now stand at 28.7Bn. This growth has been achieved across all markets with our Irish, UK and US operations delivering net increases of 19%, 15% and 26% respectively. This is a clear reflection of our growing presence and franchise in our target sectors and chosen markets. Lending margins have remained stable and most importantly, asset quality remains excellent. Non-performing loans equate to 0.55% of closing loan balances.

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Anglo Irish Bank Interim Report 2005

Once again these results demonstrate the inherent strength of the Banks strategy which continues to deliver excellent returns to shareholders.

Treasury
Our Treasury division has delivered significant value to the Group in this period. Total funding increased by 5.5Bn on a constant currency basis to 34.5Bn, up 19%. Customer deposits grew by nearly 3Bn net to 22.5Bn. In an increasingly competitive environment, this excellent result demonstrates the success of the Banks product offering and customer service focus.

People
Operating in Ireland, the UK and the USA, our Corporate Treasury Sales business produced very strong growth, with revenues up from 19m to 30m. We have invested significantly in building a high calibre team that understands the risks faced by our clients and accordingly, can offer appropriate and innovative solutions to manage their foreign exchange and interest rate exposures. On behalf of my colleagues and myself, I wish again to express our deepest gratitude to Peter Murray who retired as the Banks Chairman and from the Board in January 2005. Peter brought a wealth of experience to our Board since his appointment in 1993. The Bank has benefited immensely from Peters involvement over the past 12 years and from his leadership during his tenure as Chairman. We invested significantly in our people in 2004 and continued this into 2005. The Group currently employs in excess of 1,300 people representing 17% year on year growth. The recruitment of talented people, together with our broader investment in training and development, ensures that we can continue to grow our business and enhance the service we provide to customers. Notwithstanding this significant ongoing investment, the inherent strength and effectiveness of the Banks model results in a highly efficient cost/income ratio of 27%.

Wealth Management
Wealth Management delivered excellent results in the first half, with revenue growth of 16% to 44m. All areas of the division made strong progress and delivered higher profits. This growing business provides an excellent fit within the Group enabling us to better service the overall needs of our client base.

International Financial Reporting Standards (IFRS)

In line with all European Union listed institutions, Anglo Irish Bank is required to adopt new reporting standards for accounting periods commencing on or after 1 January 2005. The Groups first full reporting period under these new standards will be the year to 30 September 2006. Our results for the six months to 31 March 2005 are prepared under Irish generally accepted accounting practices (Irish GAAP) as will the results for the year to 30 September 2005.

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If prepared under IFRS, we estimate that EPS for the six months to 31 March 2005 would have been circa 4% lower than under Irish GAAP. The impact on our Tier 1 regulatory capital is expected to be marginally positive. The application of IFRS does not alter the Groups economic substance, nor the cash flows generated by our business.The impact is mainly due to the effect of first time adoption and timing differences in the recognition of income and expense.

Business Focus
Our fundamental business strategy and focus remain unchanged. Maintaining this proven strategy will, we believe, enable the Bank to consistently deliver significant growth in shareholder value over time. The Bank will continue to focus on its core businesses in its existing markets. We have built strong franchises in our chosen markets and we will continue to take advantage of the growth opportunities that they will provide over the coming years. We will remain vigilant on all risk issues and asset quality. The Boards strategic objectives are based on organic growth. We will evaluate acquisition opportunities as they arise, but will only proceed with those that satisfy our long-term strategic objectives and meet the stringent criteria we impose.

Outlook
Your Board is confident of the Banks prospects for the remainder of the year. Lending work in progress at 31 March 2005 was at record levels at 4.9Bn. In addition, the Groups Treasury and Wealth Management divisions continue to expand and increase their contribution to the Groups performance. The outlook for the Irish and UK economies, which are core to us, remains positive and the strength of the Banks presence in each market positions us well for future growth. I look forward to a strong performance in the full year to September 2005 and beyond.

Sean FitzPatrick Chairman 3 May 2005

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Anglo Irish Bank Interim Report 2005

The momentum in our business, combined with the ongoing significant investment in our people, augurs well for the Group.

05

Consolidated profit and loss account

FOR THE SIX MONTHS ENDED 31 MARCH 2005

(unaudited)

6 months ended 31 March 2005 m Interest receivable and similar income Interest receivable and similar income arising from Debt securities and other fixed income securities Other interest receivable and similar income Interest payable and similar charges Net interest income Other income Fees and commissions receivable Fees and commissions payable Dealing profits Other operating income Total operating income Operating expenses Administrative expenses Depreciation and goodwill amortisation Provisions for bad and doubtful debts - specific

6 months ended 31 March 2004 m

year ended 30 September 2004 m

42.1 904.0 (621.9) 324.2

22.2 610.6 (390.2) 242.6

50.4 1,402.5 (929.4) 523.5

110.6 (8.7) 7.7 8.4 442.2

86.8 (7.8) 7.0 5.1 333.7

183.9 (16.3) 12.8 19.3 723.2

112.4 6.8 14.6 133.8 308.4 (61.9) 246.5 (23.7) 222.8 (30.4) 192.4 66.70c 65.32c 4.51c

88.8 6.7 9.6 105.1 228.6 (50.6) 178.0 (8.2) 169.8 (25.0) 144.8 51.42c 50.42c 3.76c*

185.4 14.6 19.1 219.1 504.1 (107.7) 396.4 (17.0) 379.4 (75.2) 304.2 114.53c 112.37c 11.28c*

Group profit on ordinary activities before taxation Taxation on profit on ordinary activities Group profit on ordinary activities after taxation Minority interests Group profit attributable to ordinary shareholders Dividends Group profit retained for period Basic earnings per share Diluted earnings per share Dividends per ordinary share

* Adjusted for two-for-one share split on 22 April 2005. See notes to the interim report on page 10.

06

Anglo Irish Bank Interim Report 2005

Consolidated balance sheet

A S AT 3 1 M A R C H 2 0 0 5

(unaudited)

31 March 2005 m Assets Loans and advances to banks Loans and advances to customers Securitised assets Less: non-returnable proceeds Debt securities Equity shares Intangible fixed assets - goodwill Tangible fixed assets Other assets Prepayments and accrued income Life assurance assets attributable to policyholders Total assets Liabilities Deposits by banks Customer accounts Debt securities in issue Other liabilities Accruals and deferred income Provisions for liabilities and charges 5,900.9 28,250.8 422.4 (406.9) 15.5 3,962.6 32.8 67.6 64.5 443.5 357.1 39,095.3 837.0 39,932.3

30 September 2004 m 6,210.6 23,723.8 666.0 (634.8) 31.2 2,534.4 26.1 69.6 59.4 577.7 439.4 33,672.2 667.6 34,339.8

31 March 2004 m 6,710.8 20,511.0 789.9 (757.2) 32.7 1,635.3 6.8 72.0 32.0 491.4 336.3 29,828.3 548.5 30,376.8

4,114.6 22,501.8 7,896.3 319.4 343.7 5.3 35,181.1

2,605.9 19,546.0 6,944.5 305.7 392.0 5.4 29,799.5

2,915.0 17,376.9 6,453.7 266.2 386.3 4.8 27,402.9

Capital resources Subordinated liabilities Perpetual capital securities Equity and non-equity minority interests Called up share capital Share premium account Other reserves Profit and loss account Total shareholders funds (all equity interests) Total capital resources Life assurance liabilities attributable to policyholders Total liabilities and capital resources Memorandum items Contingent liabilities Guarantees Commitments Commitments to lend

1,116.6 654.7 683.8 2,455.1 108.1 166.8 0.9 1,183.3 1,459.1 3,914.2 39,095.3 837.0 39,932.3

1,133.3 656.2 843.4 2,632.9 107.1 157.6 0.9 974.2 1,239.8 3,872.7 33,672.2 667.6 34,339.8

421.1 676.7 255.4 1,353.2 106.7 156.9 0.9 807.7 1,072.2 2,425.4 29,828.3 548.5 30,376.8

1,398.9 4,935.7

910.4 4,055.0

801.6 3,416.0

07

Consolidated cash flow statement

FOR THE SIX MONTHS ENDED 31 MARCH 2005

(unaudited)

6 months ended 31 March 2005 m Reconciliation of operating profit to net operating cash flows Operating profit (Decrease)/increase in accruals and deferred income Decrease/(increase) in prepayments and accrued income Financing costs of subordinated liabilities Financing costs of perpetual capital securities Interest earned on debt securities and other fixed income securities Amortisation of debt securities and other fixed income securities Provisions for bad and doubtful debts Loans and advances written off net of recoveries Depreciation and goodwill amortisation Net cash flow from trading activities Net increase in deposits Net increase in loans and advances to customers Net decrease/(increase) in loans and advances to banks Net decrease/(increase) in other assets Net increase/(decrease) in other liabilities Exchange and other movements Net cash flow from operating activities Returns on investment and servicing of finance Tax paid Capital expenditure and financial investment Acquisitions and disposals - deferred consideration paid Equity dividends paid Financing (Decrease)/increase in cash 308.4 (58.2) 85.7 22.3 26.3 (38.5) (3.6) 14.6 (4.4) 6.8 359.4 5,416.3 (4,521.5) 251.5 139.3 20.1 (8.6) 1,656.5 (26.9) (48.0) (1,441.2) (5.8) (31.0) (161.8) (58.2)

6 months ended 31 March 2004 m 228.6 108.0 (78.8) 13.7 27.2 (21.6) (0.6) 9.6 (3.7) 6.7 289.1 4,320.0 (3,250.2) (777.4) (72.1) (23.8) 22.0 507.6 (17.2) (44.7) (275.3) (32.3) (3.5) 134.6

year ended 30 September 2004 m 504.1 124.8 (178.6) 32.2 52.8 (48.3) (2.1) 19.1 (11.7) 14.6 506.9 6,670.8 (6,463.0) (1,573.0) (160.1) (8.2) (1.6) (1,028.2) (57.2) (104.1) (1,225.5) (49.9) 1,303.7 (1,161.2)

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Anglo Irish Bank Interim Report 2005

Statement of total recognised gains and losses

FOR THE SIX MONTHS ENDED 31 MARCH 2005

(unaudited)

6 months ended 31 March 2005 m Group profit attributable to ordinary shareholders Prior period adjustment - own shares Total recognised gains 222.8 222.8

6 months ended 31 March 2004 m 169.8 (6.2) 163.6

year ended 30 September 2004 m 379.4 (6.2) 373.2

Reconciliation of movements in shareholders funds

FOR THE SIX MONTHS ENDED 31 MARCH 2005

(unaudited)

m Group profit attributable to ordinary shareholders Dividends on equity shares Ordinary shares issued in lieu of cash dividends Other ordinary share capital issued Net movement in own shares Net addition to shareholders funds Opening shareholders funds Closing shareholders funds 222.8 (30.4) 192.4 19.2 10.2 (2.5) 219.3 1,239.8 1,459.1

m 169.8 (25.0) 144.8 13.6 3.1 (0.5) 161.0 911.2 1,072.2

m 379.4 (75.2) 304.2 21.0 4.2 (0.8) 328.6 911.2 1,239.8

Reconciliation of movements in retained profits

FOR THE SIX MONTHS ENDED 31 MARCH 2005

(unaudited)

m At beginning of the period Group profit retained for period Ordinary shares issued in lieu of cash dividends Net movement in own shares At end of the period 974.2 192.4 19.2 (2.5) 1,183.3

m 649.8 144.8 13.6 (0.5) 807.7

m 649.8 304.2 21.0 (0.8) 974.2

09

Notes to the interim report

FOR THE SIX MONTHS ENDED 31 MARCH 2005

Basis of preparation The interim financial statements for the six months ended 31 March 2005 have been prepared in accordance with the accounting policies set out in the annual report for the year ended 30 September 2004. Taxation 6 months ended 31 March 2005 m 27.5 2.6 36.8 (5.0) 61.9 6 months ended 31 March 2004 m 21.0 2.6 26.5 0.5 50.6 year ended 30 September 2004 m 37.1 5.2 65.7 (0.3) 107.7

Irish Corporation Tax Irish Bank Levy Foreign tax Deferred tax

Financial statements for the year ended 30 September 2004 The full financial statements for the year ended 30 September 2004 received an unqualified auditors opinion and have been filed with the Registrar of Companies in Ireland. Share split On 4 April 2005 Anglo Irish Bank Corporation plc (the Company) announced that, having received approval from its shareholders at an Extraordinary General Meeting held on 28 January 2005, the Board of Directors proposed to sub-divide each existing ordinary share of 0.32 in the share capital of the Company into two ordinary shares of 0.16 each, thereby doubling the number of shares in issue. This sub-division was effective from the close of business on 22 April 2005. Adjusting for the share split, basic earnings per share and diluted earnings per share for the six months ended 31 March 2005 will be 33.35 cent and 32.66 cent respectively reflecting the doubling of the number of shares in issue. The prior period comparatives will be similarly restated to one half of the amounts previously reported.

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Anglo Irish Bank Interim Report 2005

Consolidated profit and loss account

FOR THE SIX MONTHS ENDED 31 MARCH 2005

(unaudited)

USDm Interest receivable and similar income Interest receivable and similar income arising from Debt securities and other fixed income securities Other interest receivable and similar income Interest payable and similar charges Net interest income Other income Fees and commissions receivable Fees and commissions payable Dealing profits Other operating income Total operating income Operating expenses Administrative expenses Depreciation and goodwill amortisation Provisions for bad and doubtful debts - specific

GBPm

CHFm

54.6 1,171.9 (806.2) 420.3

29.0 622.4 (428.2) 223.2

65.2 1,399.9 (963.0) 502.1

143.3 (11.3) 10.0 10.9 573.2

76.1 (6.0) 5.3 5.8 304.4

171.3 (13.5) 11.9 13.0 684.8

145.7 8.8 18.9 173.4 399.8 (80.3) 319.5 (30.7) 288.8 (39.4) 249.4 86.47c 84.68c 5.85c

77.4 4.7 10.0 92.1 212.3 (42.6) 169.7 (16.3) 153.4 (20.9) 132.5 45.92p 44.97p 3.11p

174.1 10.5 22.6 207.2 477.6 (95.9) 381.7 (36.7) 345.0 (47.0) 298.0 Chf 1.03 Chf 1.01 Chf 0.07

Group profit on ordinary activities before taxation Taxation on profit on ordinary activities Group profit on ordinary activities after taxation Minority interests Group profit attributable to ordinary shareholders Dividends Group profit retained for period Basic earnings per share Diluted earnings per share Dividends per ordinary share Exchange rates used at 31 March 2005 One Euro = USD 1.2964 / GBP 0.6885 / CHF 1.5486

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Consolidated balance sheet

A S AT 3 1 M A R C H 2 0 0 5

(unaudited)

USDm Assets Loans and advances to banks Loans and advances to customers Securitised assets Less: non-returnable proceeds Debt securities Equity shares Intangible fixed assets - goodwill Tangible fixed assets Other assets Prepayments and accrued income Life assurance assets attributable to policyholders Total assets Liabilities Deposits by banks Customer accounts Debt securities in issue Other liabilities Accruals and deferred income Provisions for liabilities and charges

GBPm

CHFm

7,650 36,624 548 (528) 20 5,137 42 88 84 575 463 50,683 1,085 51,768

4,063 19,451 291 (280) 11 2,728 23 46 44 305 246 26,917 576 27,493

9,138 43,749 654 (630) 24 6,136 51 105 100 687 553 60,543 1,296 61,839

5,334 29,171 10,237 414 446 7 45,609

2,833 15,492 5,436 220 237 4 24,222

6,372 34,846 12,228 495 532 8 54,481

Capital resources Subordinated liabilities Perpetual capital securities Equity and non-equity minority interests Called up share capital Share premium account Other reserves Profit and loss account Total shareholders funds (all equity interests) Total capital resources Life assurance liabilities attributable to policyholders Total liabilities and capital resources Exchange rates used at 31 March 2005 One Euro = USD 1.2964 / GBP 0.6885 / CHF 1.5486

1,447 849 886 3,182 140 217 1 1,534 1,892 5,074 50,683 1,085 51,768

769 451 470 1,690 74 115 1 815 1,005 2,695 26,917 576 27,493

1,729 1,014 1,059 3,802 168 258 1 1,833 2,260 6,062 60,543 1,296 61,839

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Anglo Irish Bank locations

Dublin Head Office Stephen Court 18/21 St. Stephens Green Dublin 2 Tel +353 1 616 2000 Fax +353 1 616 2411 www.angloirishbank.com Registrar correspondence Computershare Investor Services (Ireland) Limited Heron House Corrig Road Sandyford Industrial Estate Dublin 18 Tel +353 1 216 3100 Freephone +353 1 800 225 125 (Shareholder enquiries) www.computershare.com International Financial Services Custom House Plaza IFSC Dublin 1 Tel +353 1 670 2388 Fax +353 1 670 2384 Private Banking 61 Fitzwilliam Square Dublin 2 Tel +353 1 631 0000 Fax +353 1 631 0098 Cork Anglo Irish Bank House 11 Anglesea Street Cork Tel +353 21 453 7300 Fax +353 21 453 7399 Galway Anglo Irish Bank House Forster Street Galway Tel +353 91 536 900 Fax +353 91 536 932

Limerick Anglo Irish Bank House 98 Henry Street Limerick Tel +353 61 461 800 Fax +353 61 461 899 Waterford Bank House 96 The Quay Waterford Tel +353 51 849 300 Fax +353 51 849 398 Banbury Town Centre House Southam Road Banbury Oxon OX16 2EN Tel +44 1295 755 500 Fax +44 1295 755 510 Belfast 14/18 Great Victoria Street Belfast BT2 7BA Tel +44 2890 333 100 Fax +44 2890 269 090 Birmingham Embassy House 60 Church Street Birmingham B3 2DJ Tel +44 121 232 0800 Fax +44 121 232 0808 Glasgow 180 St.Vincent Street Glasgow G2 5SG Tel +44 141 204 7270 Fax +44 141 204 7299 London 10 Old Jewry London EC2R 8DN Tel +44 207 710 7000 Fax +44 207 710 7050

Manchester 1 Marsden Street Manchester M2 1HW Tel +44 161 214 3020 Fax +44 161 214 3030 Isle of Man Jubilee Buildings Victoria Street Douglas Isle of Man IM1 2SH Tel +44 1624 698 000 Fax +44 1624 698 001 Geneva 7 Rue des Alpes P.O. Box 1380 1211 Geneva I Tel +41 22 716 3636 Fax +41 22 716 3619 Vienna Rathausstrasse 20 P.O. Box 306 A-1011 Vienna Tel +43 1 406 6161 Fax +43 1 405 8142 Boston (Representative Office) 265 Franklin Street Boston MA 02110 Tel +1 617 720 2577 Fax +1 617 720 6099 New York (Representative Office) 222 East 41st Street New York NY 10017 Tel +1 646 495 5229 Fax +1 646 495 5231

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