ANGLO IRISH BANK CORPORATION PLC Interim results for the six months ended 31 March 2008 HIGHLIGHTS

Anglo Irish Bank today (Wednesday 7 May 2008) releases its Interim Report for the six month period to 31 March 2008. Key highlights include: Profitability and shareholder value Reported profit before taxation of 667 million, up 16% Underlying profit before taxation of 647 million, up 17% Underlying earnings per share of 69.7 cent, an increase of 15% Strong return on equity of 26% Interim dividend of 7.78 cent, an increase of 20%

Operational performance Controlled lending growth of 6.1 billion, up 10% on a constant currency basis to 69 billion Excellent asset quality with impaired loans representing 0.52% of total loan balances and an annualised impairment charge of 0.10% Strong growth in funding of 9.9 billion on a constant currency basis with customer deposits up 5.6 billion, or 11% Over 90% of new customer lending funded by growth in customer funding Active cost management with cost to income ratio improving from 22% to 19% Strong capital position with Tier 1 and Total Capital ratios of 8.7% and 11.9% respectively

Commenting on the results, David Drumm, Group Chief Executive, said: The Bank has delivered another strong performance in the six months ending 31 March 2008, with underlying earnings per share increasing 15% to 69.7 cent. An unwavering commitment to asset quality, stable net interest margins, excellent liquidity and a robust funding franchise position the Bank well for the remainder of 2008 and beyond. The relevance of our strict underwriting criteria and relationship focused business model has been underlined by the current challenging environment for all banks. Organic potential in each of our core markets combined with the strength of our franchise creates significant opportunity for our business in the medium to long term. -endsFor further information, please contact: David Drumm, Group Chief Executive Willie McAteer, Finance Director & Chief Risk Officer Matt Moran, Chief Financial Officer Anglo Irish Bank Tel: +353 1 616 2000 Billy Murphy Drury Communications Tel: +353 1 260 5000

Full details of our interim results are available on our website www.angloirishbank.com

Chairmans statement
Anglo Irish Bank has performed strongly in the six months to 31 March 2008, reporting profit before tax of 667 million and underlying earnings per share growth1 of 15%. Profitability in our core banking business has grown at a significantly higher rate but we maintain a prudent stance in relation to the valuation of assets impacted by the current dislocation in global credit markets. We have a resilient funding platform with almost two thirds of total funding provided by customer sources and with continued strong access to wholesale markets. Over 90% of loan growth for the six months was funded through increased customer deposits. The strength of the Banks balance sheet is demonstrated by robust capitalisation, a significant liquidity buffer and minimal term debt maturities during 2008. Lending asset quality remains excellent. There are no emerging systemic trends causing material concern though we remain highly vigilant. Highlights for the period include: Continued strong profitability Profit before tax of 647 million (excluding 20 million profit on the disposal of our Swiss private bank), a rise1 of 17% Prudent approach to valuation of assets impacted by market dislocation 15% increase in earnings per share1 to 69.7 cent Active cost management with cost to income ratio improving by three percentage points from 22% to 19% Annualised specific lending impairment charge of 0.10% Strong return on equity of 26% Stable net interest margins Continuing strong dividend trend, increasing interim dividend by 20% to 7.78 cent Significant balance sheet strength Lending growth of 6.1 billion, up 10% on a constant currency basis in the six months Excellent asset quality with impaired loans representing 0.52% of total loan balances Strong growth in funding of 9.9 billion on a constant currency basis with customer deposits up 5.6 billion, an increase of 11% in the six months Excellent liquidity position with treasury assets of 28 billion Increase in core equity to 4.6 billion2 with robust Core, Tier 1 and Total Capital ratios of 5.6%, 8.7% and 11.9% respectively

Balance sheet growth (constant currency)

billion Assets Total customer lending Interbank treasury assets Other treasury assets Other assets Total assets Equity & liabilities Customer deposits Debt securities Interbank deposits Capital & sub. debt Other liabilities Total equity & liabilities
*

31 March 2008

30 September 2007*

Change

Change %

69.0 18.5 9.5 4.4 101.4

62.9 12.1 12.5 3.7 91.2

6.1 6.4 (3.0) 0.7 10.2

10% 53% (24%) 19% 11%

54.5 22.1 11.6 9.5 3.7 101.4

48.9 22.4 7.4 9.1 3.4 91.2

5.6 (0.3) 4.2 0.4 0.3 10.2

11% (1%) 57% 4% 9% 11%

Balances restated using currency exchange rates as at 31 March 2008

Business Lending controlled high quality growth

Total customer lending (including lending associated with our assurance company) stood at 69 billion at 31 March 2008, reflecting net loan growth of 6.1 billion3 in the six months, an increase of 10%. This compares to 9.3 billion and 8.7 billion of net loan growth in the six months to March and September 2007 respectively. We continue to apply a highly selective and cautious approach to new lending opportunities. Lending asset quality Lending asset quality is excellent. The specific impairment charge at 0.10% of average customer loans is in line with the previous year. Impaired loans at 358 million represent 0.52% of the closing loan book, similar to 2006 and 2007 levels of 0.52% and 0.50% respectively. Total balance sheet lending provisions amount to 273 million, covering close to 80% of impaired loans before taking the Banks collateral security into account. The Group operates a strict underwriting model. We lend to experienced business people and professional investors, providing senior term debt on a secured basis. The Bank does not engage in speculative or unsecured development lending. The cornerstone of our consistent record on asset quality is strong underlying client cash flows, normally based on long-term contractual rental incomes derived from diverse sectors of the service economy. These sectors continue to perform solidly.

Loans are individually presented and approved at central credit committee in Dublin, chaired independently by Group Risk Management. This team also undertakes a complete on-site review of all loans at least twice a year, stress testing each and every client on a loan-by-loan basis to assess the impact of increased interest rates and lower cash flows. The most recent review of the Banks loan book, completed in April 2008, confirmed that overall client equity and liquidity streams continue to be strong and well diversified. The Banks low loss outcome in the event of a default is further underpinned by personal guarantees and by the fact that close to 100% of the loan book is secured by a first legal charge on tangible assets, typically on a cross-collateralised basis. Consistent and proactive management of our asset base, from initial underwriting and throughout the life of each loan, ensures that we are close to our clients. As a result, potential issues are recognised and dealt with at an early stage, thereby mitigating risk. We remain vigilant to ensure the quality of our assets. Lending Ireland At the end of March 2008 loans to Irish customers stood at 40.6 billion, up 3.7 billion3 in the first six months. Customer activity has centred primarily on Irish and mainland European markets. Price reductions and a significant decline in the supply of new homes have helped provide some stability to the Irish residential market. The development component of our Irish residential activities continues to perform well under difficult market conditions. Typically, our clients developments are substantially pre-sold and loan facilities are cross-collateralised with other income producing assets. Most of our clients operating in this area are long-established, experienced developers with significant net worth who have diversified their business interests over the past number of years, both in Ireland and internationally. Reflecting current market conditions, there are a limited number of smaller relationships which require more active monitoring. The commercial property sector in Ireland is performing solidly with stable rents and low vacancy rates. As expected, new investment activity has moderated considerably from the record levels of 2007. Growth in the Irish economy, whilst positive, has slowed. However, many of the fundamentals remain sound with consensus forecasts indicating a gradual pick-up in 2009. This follows many years of significant wealth generation for our clients. We are well positioned to create further value with them over time. Lending UK The Banks UK lending business increased loan balances by 5%3 to 20.1 billion. This performance reflects general business conditions in the UK market where activity levels have reduced significantly as buyers encounter a backdrop of more restricted funding opportunities and sellers have been reluctant to trade assets at lower levels.

This is our 23rd year operating in the UK, building a strong relationship banking franchise over this period. The loan book is performing well with client repayment capacity remaining strong, supported by improved income and rental levels. There are emerging signs of potential opportunities in the commercial property market following the recent pricing correction and the downward trend in long-term interest rates. Looking further ahead, we see considerable opportunity to develop and expand our business, especially given our relatively modest market share and our proven ability to develop meaningful client relationships. Lending North America Our North American lending business delivered a solid performance in the first six months with net loan growth of 1.4 billion3. The Bank is established and represented in three prime markets Boston, New York and Chicago. Sentiment and confidence in the US economy has deteriorated significantly in recent quarters. Clearly, we are not immune to the effects of the economic downturn. However, our geographic focus and proven underwriting model position the Bank strongly. The entire book is fully performing and we have no exposure to the subprime sector. As with the UK, the opportunity in this market in the medium to long term is significant given our small market share. Over the past decade we have maintained a highly selective approach to this business, as evidenced by a client base of less than 300. We will continue with this prudent policy.

Treasury delivering in challenging market conditions

Our Treasury division has performed strongly in the first half of 2008, providing a robust, diversified funding and capital platform, maintaining excellent liquidity and managing the Banks interest rate and foreign currency risks whilst servicing the needs of our treasury clients. This performance is reflected in: a significant liquidity buffer with liquid assets of 28 billion customer deposits comprising close to two-thirds of total funding customer deposits, term funding and capital representing 116% of customer loans minimal term debt maturities to calendar year end 2008 of 3 billion

Customer deposits Our customer deposit franchise has again delivered in a highly competitive market with balances increasing by 5.6 billion3 or 11%, taking total customer funding to 54.5 billion. Customer deposits fund 80% of cumulative lending and over 90% of lending growth in the period, thereby protecting Bank liquidity. Deposit growth was well spread throughout all target markets. The Banks customer deposit business dates back over three decades in Ireland, two decades in the UK and now spans 16 different geographic markets across Europe and North America. The continuing success of the Banks customer funding activities, both retail and non-retail, is premised on consistently competitive pricing and a strong customer service ethos.

In line with the rest of the market, the cost of customer funding has increased reflecting sustained competition. Rather than seeking to generate profit, the goal of our customer deposit business has always been to enhance and diversify the Banks funding base. Consequently, the impact on our net interest margin is comparatively low. Retail customer balances now stand at 20.7 billion, with in excess of 50,000 new customers added in the period. More than half of these new customers have invested in term products with durations of one year or longer. Customer retention remains excellent at over 95%. Our non-retail customer deposit business, which most recently has expanded into the United States, has grown strongly with balances outstanding of 33.8 billion, an increase of 13%3. This strong, relationship focused business provides ongoing granular funding by targeting a diverse base of long term holders of cash, such as small and medium sized corporates, charities, investment managers, local authorities and credit unions. The average non-retail customer balance is 4 million. As well as continuing strength in our traditional core markets of Ireland, the UK, the Isle of Man and Austria, we have also experienced strong growth in the wider European market. Market funding The Bank continues to attract significant levels of market funding with new issuance comfortably exceeding redemptions. Whilst the public longer term capital markets have been restricted for all participants, we have raised 2 billion of term funding in the period through private placings and interbank activity. The Bank has also benefited from strong activity in commercial paper and certificates of deposits with durations out to one year whilst maintaining pricing discipline at sub-libor levels. Gross issuance in the period amounted to over 12 billion, resulting in current balances increasing by more than 25% on year end. Term funding at close to 16 billion is consistent with the level outstanding at year end. Looking forward, we are well positioned with just 3 billion of term funding, or 3% of the Group balance sheet, maturing during the remainder of calendar 2008. Liquidity The Bank is highly liquid with a customer loan to deposit ratio of 127% and over 28 billion of liquid assets and short term bank placings. Access to a wide range of funding sources has remained strong throughout the current turbulence in credit markets. We have continued to be a significant net lender to the repo and inter-bank market. The Group operates within the regulatory liquidity rules of the Irish Financial Regulator, considered to be one of the most stringent regimes in Europe. The Bank always maintains a significant buffer over these requirements.

The Bank is further enhancing its liquidity through the external rating of pools of customer lending assets. This process, primarily in the form of repo-eligible covered bonds, provides access to close to 10 billion of additional secured market funding. Our recently completed $10 billion US 144a capital and term debt programme will provide another previously untapped funding source as markets become less constrained. Assets impacted by the current capital markets dislocation In order to protect future earnings we have taken a prudent approach to the valuation of assets impacted by the credit market dislocation. The Bank has only limited residual exposure to these asset classes. Following cumulative write-downs and disposals, the Banks exposure to structured investment vehicle assets is 3 million. We have no direct exposure to US or other subprime sectors. Following cumulative write-downs through the income statement and reserves of 111 million and 76 million respectively, the carrying value of assets indirectly linked to US subprime is 63 million. The Bank has minimal trading activities. This is reflected in our low trading Value at Risk which, at a 99% confidence level, averages 0.3 million, stemming solely from the management of customer related positions.

Wealth Management
Our Wealth Management division is a niche provider of tailored financial products and solutions to a high net worth clientele. Operating profit for the six months grew by 6% to 36 million. In addition, a gain of 20 million was recognised on the recent sale of our private bank in Switzerland. The Swiss business, which did not contribute towards lending or funding, accounted for less than 1% of Group profit in 2007.

Cost management
Cost management has always been a significant focus for the Bank. This, together with the inherent flexibility in our cost base, is a key operating and strategic advantage, evidenced by our cost to income ratio improving from 22% in 2007 to 19%. Notwithstanding this, we are continuing core investment across the Group.

Capital strength
Retentions will continue to deliver significant equity capital generation to support the Banks growth. Core equity has increased to 4.6 billion2, bringing the Banks core ratio to 5.6%. In addition, Tier 1 and Total Capital ratios are robust at 8.7% and 11.9% respectively.

The Capital Requirements Directive/Basel II became effective on 1 January 2008. Our capital requirements are currently calculated using the Standardised method pending a move to the Internal Ratings Based approach. The annuity and low volatility nature of the Groups income stream and its efficient cost structure result in consistent capital generation. We expect our core equity ratio to further strengthen in the second half of the year. In addition, the Bank does not need to raise Tier 1 or Tier 2 debt capital before late 2009.

Credit ratings
External independent rating agencies, Standard & Poors, Moodys, Fitch and Dominion Bond Rating Service have each recently reviewed and reaffirmed all of our ratings with a stable outlook.

Dividend growth
The Board maintains its progressive dividend policy, declaring a 20% increase in the Banks interim dividend to 7.78 cent per ordinary share. The dividend will be paid on 15 July 2008 to shareholders on the Banks register as at close of business on 16 May 2008. Withholding tax may apply on the dividend depending on the tax status of each shareholder. Shareholders will again be offered the opportunity of receiving dividends in the form of cash or shares.

People
I take this opportunity to thank our people for their outstanding contribution during these challenging times for the banking sector. Their collective commitment reaffirms my belief in our unique culture of ownership and delivery and gives me great confidence for the Groups performance in the years ahead.

Outlook
We maintain full year guidance of 15% earnings per share growth. However, there continues to be risk to profitability across the banking sector associated with further financial market disruption and the potential impact of a protracted deterioration in the wider economic climate. Prudent management of asset quality and strict liquidity discipline are our primary areas of focus in the current environment. We will continue to invest and create additional capacity in our diversified funding franchise. We anticipate that lending growth will be in the region of 10 billion for the full year, supported by current lending work-in-progress of 6.8 billion. As always, this will be funded through customer deposits and longer term debt.

The current challenging environment for the banking sector underlines the relevance of our relationship focused business model, strict underwriting criteria and strong ownership culture. These position the Bank to maximise the potential in each of our core markets and increase market share, particularly in the UK and US, in the medium to long term. Accordingly, we see significant opportunity to sustain our delivery of above market returns for our shareholders.

Sean FitzPatrick Chairman 6 May 2008

1 2

Excludes profit on disposal of Swiss private bank in 2008 and Isle of Man trust business in 2007 Excludes preference share capital and non income statement reserve movements 3 On a constant currency basis

Statement of Directors' responsibilities

The Directors are responsible for preparing the Interim Report in accordance with International Accounting Standard 34 (IAS 34), the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Irish Financial Services Regulatory Authority. The Directors confirm that the condensed set of financial statements have been prepared in accordance with IAS 34 and that they give a true and fair view of the assets, liabilities, financial position and profit of the Group and that, as required by the Transparency (Directive 2004/109/EC) Regulations 2007, the Interim Report includes a fair review of: important events that have occurred during the six months ended 31 March 2008; the impact of those events on the condensed financial statements; a description of the principal risks and uncertainties for the remaining six months of the financial year; and details of any related party transactions that have materially affected the Groups financial position or performance in the six months ended 31 March 2008.

Directors: David Drumm (Group Chief Executive), William McAteer (Executive Director), Pat Whelan (Executive Director). Secretary: Natasha Mercer.

Consolidated income statement

For the six months ended 31 March 2008
Six months ended 31 March 2008 Note m

(unaudited)

Six months ended 31 March 2007 m

Year ended 30 September 2007 m

Interest and similar income Interest expense and similar charges Net interest income Fee and commission income Fee and commission expense Dealing profits Fair value movements Other operating (expense)/income Other (expense)/income Total operating income Administrative expenses Depreciation Amortisation of intangible assets - software Total operating expenses Operating profit before provisions for impairment Provisions for impairment: Loans and advances to customers Other 3 Operating profit Share of results of joint ventures Profit on disposal of businesses Profit before taxation Taxation Profit for the period Attributable to: Equity holders of the parent Minority interest Profit for the period 5

3,333 (2,375) 958 85 (5) 11 (112) (1) (22) 936 (164) (5) (8) (177)

2,453 (1,730) 723 77 (7) 13 (3) 5 85 808 (192) (5) (6) (203)

5,371 (3,805) 1,566 177 (16) 19 (6) 21 195 1,761 (368) (11) (14) (393)

759 (33) (79) (112) 647 20 667 (125) 542

605 (56) (56) 549 3 22 574 (110) 464

1,368 (82) (67) (149) 1,219 2 22 1,243 (235) 1,008

548 (6) 542

462 2 464

998 10 1,008

Basic earnings per 0.16 ordinary share Diluted earnings per 0.16 ordinary share

72.4c

63.6c

134.7c

72.0c

62.9c

133.2c

Consolidated balance sheet

As at 31 March 2008
Note

(unaudited)

31 March 2008 m

30 September 2007 m

31 March 2007 m

Assets Cash and balances with central banks Financial assets at fair value through profit or loss - held on own account - held in respect of liabilities to customers under investment contracts Derivative financial instruments Loans and advances to banks Assets classified as held for sale Available-for-sale financial assets Loans and advances to customers Interests in joint ventures Intangible assets - software Intangible assets - goodwill Investment property - held on own account - held in respect of liabilities to customers under investment contracts Property, plant and equipment Retirement benefit assets Deferred taxation Other assets Prepayments and accrued income Total assets Liabilities Deposits from banks Customer accounts Derivative financial instruments Debt securities in issue Liabilities to customers under investment contracts Current taxation Other liabilities Accruals and deferred income Retirement benefit liabilities Deferred taxation Subordinated liabilities and other capital instruments Total liabilities Share capital Share premium Other reserves Retained profits Shareholders' funds Minority interest Total equity Total equity and liabilities Contingent liabilities Guarantees Commitments Commitments to lend

1,093 264 528 2,323 17,416 278 9,231 67,972 80 14 21 1,766 32 7 68 274 28 101,395

848 430 644 1,355 12,051 288 12,530 65,949 88 17 46 25 2,090 37 29 47 143 35 96,652

953 379 366 964 12,880 9,935 57,865 116 21 47 36 2,528 37 23 37 107 38 86,332

11,631 54,536 1,868 22,045 1,364 137 150 160 5 47 5,070 97,013 123 1,155 (217) 3,314 4,375 7 4,382 101,395

7,601 52,686 1,175 23,588 1,779 63 175 190 7 49 5,274 92,587 122 1,139 (92) 2,883 4,052 13 4,065 96,652

8,494 45,361 1,054 21,530 1,802 125 29 181 7 48 4,067 82,698 122 1,136 (17) 2,386 3,627 7 3,634 86,332

899 6,840

1,524 9,775

1,528 9,235

Consolidated statement of recognised income and expense

(unaudited)

For the six months ended 31 March 2008

Six months ended 31 March 2008 m Six months ended 31 March 2007 m Year ended 30 September 2007 m

Profit for the period Net actuarial (losses)/gains in retirement benefit schemes, after tax Net change in cash flow hedging reserve, after tax Net change in available-for-sale reserve, after tax Foreign exchange translation Net expense recognised directly in equity Total recognised income and expense for the period Attributable to: Equity holders of the parent Minority interest Total

542

464

1,008

(19) 82 (200) (8) (145) 397

6 (17) (12) (23) 441

12 5 (107) (8) (98) 910

403 (6) 397

439 2 441

900 10 910

Consolidated condensed cash flow statement

(unaudited)

For the six months ended 31 March 2008

Six months ended 31 March 2008 m Six months ended 31 March 2007 m Year ended 30 September 2007 m

Net cash flows from operating activities before taxation Tax paid Net cash flows from operating activities Cash flows from investing activities Net decrease/(increase) in available-for-sale financial assets Interest received on available-for-sale financial assets net of associated hedges Net decrease/(increase) in assets classified as held for sale Proceeds on disposal of businesses Purchases of property, plant and equipment Proceeds on disposals of property, plant and equipment Additions to intangible assets - software Investments in joint venture interests Proceeds on disposals of joint venture interests Distributions received from joint venture interests Purchases of investment property held on own account Proceeds on disposals of investment property held on own account Net cash flows from investing activities Cash flows from financing activities Proceeds of equity share issues Proceeds from issues of subordinated liabilities and other capital instruments Redemptions of subordinated liabilities and other capital instruments Coupons paid on subordinated liabilities and other capital instruments Equity dividends paid Purchases of own shares Net cash flows from financing activities Net increase in cash and cash equivalents Opening cash and cash equivalents Effect of exchange rate changes on cash and cash equivalents Closing cash and cash equivalents

4,318 (56) 4,262

5,310 (29) 5,281

6,682 (217) 6,465

2,658 358 10 114 (2) (7) (1) 1 3,131

(4,797) 89 44 (5) (3) (47) 2 (4,717)

(7,623) 332 (288) 44 (12) 1 (7) (42) 13 10 (1) 11 (7,562)

17 (30) (152) (87) (16) (268) 7,125 10,832 (668) 17,289

542 (99) (79) (45) (4) 315 879 10,800 (100) 11,579

552 1,259 (104) (205) (86) (17) 1,399 302 10,800 (270) 10,832

Notes to the interim report

For the six months ended 31 March 2008

1.

Basis of preparation
This Interim Report for the six months ended 31 March 2008 has been prepared in accordance with the requirements of the European Union ('EU') Transparency Directive and IAS 34 'Interim Financial Reporting', as adopted by the EU. The accounting policies applied in preparing this Interim Report are consistent with those set out in the Annual Report and Accounts for the year ended 30 September 2007. From 1 October 2007 the Group has applied IFRIC Interpretation 10 'Interim Financial Reporting and Impairment'. It clarifies that any impairment losses on goodwill and equity instruments recognised in an interim period may not be reversed in subsequent interim periods. This does not have a material impact on the Group.

The Group will adopt the amendment to IAS 1 'Presentation of Financial Statements' in respect of capital disclosures and IFRS 7 'Financial Instruments: Disclosures' in its Annual Report and Accounts for the year ended 30 September 2008.

Both the interim figures for the six months ended 31 March 2008 and the comparative amounts for the six months ended 31 March 2007 are unaudited. The summary financial statements for the year ended 30 September 2007, as presented in this Interim Report, represent an abbreviated version of the Group's full accounts for that year, on which the independent auditors issued an unqualified audit report without reference to any matters of emphasis and which have been filed in the Companies Registration Office in Ireland.

2. Fair value movements

Six months ended 31 March 2008 m

Six months ended 31 March 2007 m

Year ended 30 September 2007 m

Net movement in financial assets designated at fair value held on own account

(112)

(3)

(6)

The net movement in financial assets designated at fair value held on own account in the six months ended 31 March 2008 reflects the change in fair value of certain financial assets containing embedded derivatives. These assets were designated at fair value through profit or loss at inception in accordance with IFRS and form part of a portfolio of assets which are held for long-term investment purposes.

Notes to the interim report

For the six months ended 31 March 2008

(continued)

3. Provisions for impairment

Six months ended 31 March 2008 m

Six months ended 31 March 2007 m

Year ended 30 September 2007 m

Loans and advances to customers Specific Collective

33 33

31 25 56

51 31 82

Available-for-sale financial assets - specific Structured investment vehicles Other debt securities

40 39 79 112

56

67 67 149

In the six months ended 31 March 2008 the Group charged a specific impairment provision of 40m on Structured investment vehicles (SIVs). After provisions, disposals and restructurings the carrying value of SIVs at 31 March 2008 is 3m (30 September 2007: 67m).

4. Profit on disposal of businesses

Six months ended 31 March 2008 m

Six months ended 31 March 2007 m

Year ended 30 September 2007 m

Profit on disposal of Anglo Irish Bank (Suisse) S.A. Profit on disposal of Isle of Man trust business

20 20

22 22

22 22

5. Taxation

Six months ended 31 March 2008 m

Six months ended 31 March 2007 m

Year ended 30 September 2007 m

Current taxation Deferred taxation

130 (5) 125

103 7 110

229 6 235

Notes to the interim report

For the six months ended 31 March 2008

(continued)

6. Earnings per 0.16 ordinary share

Six months ended 31 March 2008

Six months ended 31 March 2007

Year ended 30 September 2007

Profit attributable to ordinary shareholders Less: profit after tax on disposal of businesses Adjusted profit

548m (20m) 528m

462m (22m) 440m

998m (22m) 976m

Weighted average number of shares in issue during the period Dilutive effect of options outstanding Diluted weighted average number of shares

757m 4m 761m

726m 8m 734m

741m 8m 749m

Basic Basic earnings per 0.16 ordinary share Adjusted basic earnings per 0.16 ordinary share

72.4c 69.7c

63.6c 60.6c

134.7c 131.7c

Diluted Diluted earnings per 0.16 ordinary share Adjusted diluted earnings per 0.16 ordinary share 72.0c 69.4c 62.9c 59.9c 133.2c 130.3c

The calculation of basic earnings per ordinary share is based on the profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue excluding own shares held to satisfy share options granted or to be granted under the Anglo Irish Bank Employee Share Ownership Plan, shares held in respect of the Deferred Share Scheme and shares purchased by Anglo Irish Assurance Company Limited for the benefit of policyholders. Adjusted basic and adjusted diluted earnings per share have been presented to exclude the impact of the profit arising on the disposal of Anglo Irish Bank (Suisse) S.A. on the results for the period ended 31 March 2008 and the impact of the profit arising on the disposal of the Isle of Man trust business on the results for the periods ended 31 March 2007 and 30 September 2007.

Notes to the interim report

For the six months ended 31 March 2008

(continued)

7. Other reserves

31 March 2008 m

30 September 2007 m

31 March 2007 m

Share-based payments reserve Available-for-sale reserve Cash flow hedging reserve Exchange translation reserve Non-distributable capital reserve

33 (300) 63 (14) 1 (217)

32 (100) (19) (6) 1 (92)

26 (5) (41) 2 1 (17)

The available-for-sale reserve represents the unrealised change in the fair value of available-for-sale financial assets as adjusted for any impairment charge recognised in the income statement.

8. Total equity

Six months ended 31 March 2008 m

Year ended 30 September 2007 m

Six months ended 31 March 2007 m

Total equity at beginning of period Profit for the period Equity dividends Share placing Options exercised and scrip dividends Net movement in own shares Share-based payments Net expense recognised directly in equity Other movements Total equity at end of period

4,065 542 (99) 29 (16) 8 (145) (2) 4,382

2,692 1,008 (127) 537 56 (17) 16 (98) (2) 4,065

2,692 464 (78) 537 39 (4) 6 (23) 1 3,634

9. Related party transactions

There were no related party transactions that materially affected the Group's financial position or performance in the six months ended 31 March 2008.

Notes to the interim report

For the six months ended 31 March 2008

(continued)

10.

Segmental reporting
Business segments
Business Lending m Treasury m

Six months ended 31 March 2008

InterWealth Management m Group items m segment eliminations m Group m

Revenue from external customers Inter-segment revenue Total revenue Operating profit Share of results of joint ventures Profit on disposal of Anglo Irish Bank (Suisse) S.A. Profit before taxation External assets Inter-segment assets Total assets

2,581 2,581 756 756 65,481 1,196 66,677

596 1,805 2,401 (132) (132) 30,240 57,621 87,861

139 139 36 20 56 5,510 5,510

(13) (13) 164 9,710 9,874

(1,805) (1,805) (68,527) (68,527)

3,316 3,316 647 20 667 101,395 101,395

Business segments
Business Lending m Treasury m

Six months ended 31 March 2007

InterWealth Management m Group items m segment eliminations m Group m

Revenue from external customers Inter-segment revenue Total revenue Operating profit Share of results of joint ventures Profit on disposal of Isle of Man trust business Profit before taxation External assets Inter-segment assets Total assets

1,837 1,837 532 532 55,810 923 56,733

577 1,241 1,818 34 34 25,047 48,895 73,942

131 131 34 3 22 59 5,304 5,304

(51) (51) 171 7,921 8,092

(1,241) (1,241) (57,739) (57,739)

2,545 2,545 549 3 22 574 86,332 86,332

Notes to the interim report

For the six months ended 31 March 2008

(continued)

10. Segmental reporting continued

Business segments
Business Lending m Treasury m

Year ended 30 September 2007

InterWealth Management m Group items m segment eliminations m Group m

Revenue from external customers Inter-segment revenue Total revenue Operating profit Share of results of joint ventures Profit on disposal of Isle of Man trust business Profit before taxation External assets Inter-segment assets Total assets

4,138 4,138 1,207 1,207 63,146 1,229 64,375

1,166 2,833 3,999 (4) (4) 27,152 55,025 82,177

278 278 71 2 22 95 6,210 6,210

(55) (55) 144 9,569 9,713

(2,833) (2,833) (65,823) (65,823)

5,582 5,582 1,219 2 22 1,243 96,652 96,652

Revenue includes interest and similar income, fee and commission income, dealing profits, fair value movements and other operating (expense)/income. Inter-segment transactions are conducted on an arm's length basis. Group items include the return earned on the Group's equity capital, the margin cost of subordinated debt and other capital instruments and central overheads. On 1 October 2007 certain loans and advances and the related income were transferred from Wealth Management to Business Lending. Prior period comparatives have been adjusted to reflect these changes.

11. Dividends
On 6 May 2008, subsequent to the interim balance sheet date, an interim dividend of 7.78 cent per ordinary share was declared by the Board of Directors for payment on 15 July 2008. The interim dividend amounts to 60 million and has not been recorded as a liability on the balance sheet. Shareholders will be offered the option of receiving the dividend in the form of shares or cash. A final dividend of 13.01 cent per ordinary share was declared in respect of the year ended 30 September 2007. This was paid on 14 February 2008, 87 million in cash and 12 million by way of scrip dividend.

12. Approval
The interim financial statements were approved by the Board of Directors on 6 May 2008.

Independent review report to the Directors of Anglo Irish Bank Corporation plc
Introduction We have been engaged by Anglo Irish Bank Corporation plc (the Bank) to review the condensed set of financial statements in the Interim Report for the Bank for the six months ended 31 March 2008 which comprises the Consolidated income statement, the Consolidated balance sheet, the Consolidated statement of recognised income and expense, the Consolidated condensed cash flow statement, and the related notes. We have read the other information contained in the Interim Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to the Banks Directors, as a body, in accordance with guidance contained in International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Bank and the Banks Directors as a body, for our work, for this report, or for the conclusions we have formed. Directors responsibilities This Interim Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing this Interim Report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Irish Financial Services Regulatory Authority. As disclosed in note 1, the annual financial statements of the Bank are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this Interim Report has been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting, as adopted by the European Union. Our responsibility Our responsibility is to express to the Banks Directors a conclusion on the condensed set of financial statements in the Interim Report based on our review. Scope of review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the United Kingdom and Ireland. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Interim Report for the six months ended 31 March 2008 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union, the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Irish Financial Services Regulatory Authority.

Ernst & Young Dublin 6 May 2008