Dublin, Ireland (PRWEB) March 8, 2008
Anglo Irish Bank has performed strongly in the period to date and they expect to report earnings per share growth of 15% in the six months to 31 March 2008. Underlying profitability has grown at a significantly higher rate but we continue to take a prudent stance in relation to the valuation of treasury assets impacted by the current dislocation in global credit markets. This conservative approach serves to protect the Group's future earnings stream.
Expected key highlights for the six month period include:
- Growth in earnings per share of 15% over the same period in 2007
- Loan growth of €6.0 to €6.5 billion1, an increase of approximately 10% in the six months
- Strong asset quality with impaired loans at less than 0.55% of closing book and an annualised lending impairment charge of approximately 0.13% to 0.14%
- Stable net interest margins notwithstanding the increased cost of funding
- Strong performance in customer deposits with lending substantially funded through growth in customer funding
- Excellent liquidity position with treasury assets maintained at approximately €25 billion and just over €3 billion of term debt (3% of the Bank's balance sheet) maturing through to calendar year end 2008
- Significant equity capital generation in the period
- Active management of cost base with continued improvement in their cost to income ratio
Full year outlook
They maintain full year guidance of 15% earnings per share growth. There are however risks associated with further financial market disruption and the potential impact of a protracted deterioration in the wider economic environment.
The Bank is well positioned, notwithstanding their expectation that economic conditions will remain challenging throughout 2008. They expect net growth in lending to be in the region of €10 to €12 billion for the full year as the Bank and its clients remain highly selective on the most profitable business opportunities.
This level of lending will be largely funded through increased customer deposits thereby protecting the Bank's excellent liquidity position. They are investing further in their funding franchise and continue to expand across all our geographic markets. This will generate significant additional funding capacity through 2008 and beyond. Their uniquely efficient business model continues to generate significant capital growth.
David Drumm, Group Chief Executive, commented:
"The Bank remains strongly positioned with an unwavering commitment to asset quality, a robust funding franchise and excellent liquidity. We expect to report earnings per share growth of 15% in the six months to 31 March 2008 and, notwithstanding market uncertainties, believe that the Bank will deliver a similar outturn for the full year. We believe that the current challenging environment for all banks underlines the relevance of our strong ownership culture and relationship focused business model - these will create significant opportunity for our business over the longer term."
1 On a constant currency basis
Release of interim results
Interim results for the six months ended 31 March 2008 will be released on Wednesday 7 May 2008.
David Drumm, Group Chief Executive
Willie McAteer, Group Finance Director
Matt Moran, Chief Financial Officer
Anglo Irish Bank
Tel: +353 1 616 2003
Billy Murphy, Drury Communications. Tel: +353 1 260 5000
Forward looking statement
This document contains certain forward looking statements with respect to the financial condition, results of operations and businesses of Anglo Irish Bank. These statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors which could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements and forecasts. The statements have been made with reference to forecast price changes, economic conditions, the existing regulatory environment and the current interpretations of IFRS applicable to past, current and future periods. Nothing in this announcement should be construed as a profit forecast.