Slide 1: How we did in 2000
How we did in 2000
Slide 2: Tom Mulcahy, Group Chief Executive
Tom Mulcahy Group Chief Executive
Slide 3: Group overview
Group overview Cash EPS(1) 104c up 15% Profit before tax(2) €1,251m, up 10.5% Return on equity(2) 21.6% Dividend up 15% (1) before goodwill amortisation / exceptional item (2) before exceptional item
Slide 4: Group overview
Group overview Customer driven earnings at highest level Operating profit(2) up 14% Other income / total income now 40% Margins stabilising in Ireland Allfirst increasing deposit market share (2) before exceptional item
Slide 5: Where AIB made its profit
Where AIB made its profit RoI USA UK Poland 8% 23% 44% 25%
Slide 6: AIB Bank
AIB Bank Profit up 19% Ireland Power of the AIB brand Demographics and product fit driving demand Intense focus - operating efficiency - sales penetration
Slide 7: AIB Bank
AIB Bank Britain / Northern Ireland Branch deposit growth in Britain +23% Other income up 19% in NI Cost / income ratios improved Well regarded business brand in Britain
Slide 8: Capital Markets
Capital Markets Underlying profit up > 20% Leading equity fundraiser for technology sector Significant growth in other income up >25%* * underlying
Slide 9: Capital Markets
Capital Markets Customer driven revenues predominate Growth in custodial business, now €114bn Developing capability in fund management for corporate debt / bonds
Slide 10: USA Division
USA Division Profit up 10% Strong growth in other income (up 29%) Good cost control Asset quality remains sound
Slide 11: USA Division
USA Division Committed to the USA market Optimising Allfirst franchise “Not for Profit” business remains exciting
Slide 12: Poland Division
Poland Division Profit up 40% Buoyant non-interest income Outlets +44 / ATMs +73 BZ NPL workout in progress
Slide 13: Poland Division
Poland Division BZWBK - June 2001 - 5th largest bank Investment continues: - change management - integration process - branch expansion Estimated savings - 18% by 2003
Slide 14: eBusiness
eBusiness Integrated multi-channel distribution is working Online customers - retail 220,000 - business 18,000 Containing costs and increasing share of wallet eEnablement for internal efficiency
Slide 15: Sustained performance
Sustained performance Profit before taxation €m 1400 1251 1132 1200 1049 1000 736 800 473 535 600 433 372 400 200 0 93 94 95 96 97 98 99 2000
Slide 16: Sustained performance
Sustained performance 1994 - 2000 ROE 22.2% EPS Growth 17.3% Dividend Growth 17.7%
Slide 17: AIB today
AIB today Sensible portfolio diversification Strong retail / commercial customer ethos Established corporate / management / employee values Robust asset quality “well positioned for the future”
Slide 18: Gary Kennedy, Group Financial Director
Gary Kennedy Group Financial Director
Slide 19: Performance by division
Performance by division 1999 €m 2000 Change % 587 AIB Bank 696 19 307 USA 337 10 151 Capital Markets 156 3 63 Poland 88 40 24 Group (26) 1,132 Group profit before tax 1,251* 10.5 * excl. exceptional item
Slide 20: Profit and loss account
Profit and loss account 1999 €m 2000 Change %* 2,822 Total operating income 3,326 18 1,618 Total operating expenses 1,949 20 Group operating profit 1,204 before provisions 1,377 14 92 Total provisions 134 46 1,112 Group operating profit 1,243 12 1,132 Group profit before tax 1,251 10.5 * excl. excep
Slide 21: Operating income
Operating income 1999 €m 2000 Change %* 1,770 Net interest income 2,022 14 1,052 Other income 1,304 24 2,822 Total operating income 3,326 18 37.3% Other income ratio 39.2% * excl. exceptional item
Slide 22: Loan growth
Loan growth Group 13 Rep of Ireland 19* Northern Ireland 16 Britain 20 USA 3 Poland 9 0 5 10 15 20 25 * 21% incl. securitisation
Slide 23: Deposit growth
Deposit growth Group 8 Rep of Ireland 14 Northern Ireland 9 Britain 23* USA 3 Poland 16 0 5 10 15 20 25 * branch customer accounts
Slide 24: Net interest margin
Net interest margin H1 2000 H2 2000 % 1999 2000 3.10 2.94 Group 3.27 3.02 2.73 2.76 Domestic 2.97 2.75 3.40 3.08 Foreign 3.54 3.23
Slide 25: Operating expenses
Operating expenses Underlying * 1999 €m 2000 Change % 970 Staff costs 1,144 6 521 Other costs 634 9 127 Depreciation & amortisation 171 9 1,618 Operating expenses 1,949 7 57.3% Cost / income ratio 58.6% * excl. Bank Zachodni / impact of currency movements
Slide 26: Provisions for bad debts
Provisions for bad debts 1999 Average 2000 Average €m Loans % €m Loans % 45 0.26 AIB Bank 56 0.26 31 0.29 USA 34 0.27 18 0.32 Capital Markets 17 0.23 6 0.38 Poland 26 0.90 100 0.28 133 0.30 -15 LDC provisions - 85 0.24 Total 133 0.30
Slide 27: Asset quality
Asset quality % 2000 1999 NPLs / loans 1.9 1.9 Bad debts charge / average loans * 0.30 0.28 Provisions / NPLs 100 102 • NPLs / loans ratio at 1% (excl. Bank Zachodni) • Provisions / NPLs at 135% (excl. Bank Zachodni) * excl LDC releases
Slide 28: Balance sheet / capital ratios
Balance sheet / capital ratios €m Constant Currency 1999 Assets: 2000 Change % 39,171 Loans to customers 45,880 13 42,335 Customer accounts 48,437 8 67,070 Total assets 79,688 15 % Capital Ratios: % 6.4 Tier 1 6.3 11.3 Total 10.8
Slide 29: Return on risk weighted assets
Return on risk weighted assets Return Average RWA (bn) 3.0 70 60 50 2.0 40 30 1.0 20 10 1.63 1.61 1.74 1.96 1.78 1.65 0.0 0 1995 1996 1997 1998 1999 2000
Slide 30: Well positioned for the future
Well positioned for the future Richness of earnings streams - customer driven - fee driven Balance between efficiency / investing for the future - RAROC Maximise portfolio earnings potential - USA and Poland
Slide 31: Additional information
Additional information
Slide 32: AIB Bank profit statement
AIB Bank profit statement 1999 €m 2000 Change % 932 Net interest income 1,056 13 422 Other income 508 20 1,354 Total income 1,564 16 724 Operating costs 816 13 630 Operating surplus 748 19 45 Provisions 56 25 585 Operating profit 692 18 2 Profit on disposal 4 587 Profit before tax 696 19
Slide 33: AIB Bank
AIB Bank ARK Life +48% - APEs +25% Cost / income ratio 99 00 52 Rep of Ireland 52 54 N.Ireland 51 57 Britain 52 53 AIB Bank 52 Home mortgages +26%, LTV <57% on 2000 new business
Slide 34: Capital Markets profit statement
Capital Markets profit statement 1999 €m 2000 Change % 141 Net interest income 127 (10) 272 Other income * 307 13 413 Total income 434 5 239 Operating costs 260 9 174 Operating surplus 174 - 23 Provisions 18 (20) 151 Operating profit 156 3 * incl. associates
Slide 35: Capital Markets
Capital Markets Corporate banking - loan growth +25% - presence established in New York Investment banking Assets under management €17bn Treasury & International - Lower profit from proprietary trading - Strong growth in customer treasury services
Slide 36: USA Division profit statement
USA Division profit statement 1999 €m 2000 Change % 506 Net interest income 537 6 297 Other income * 381 28 803 Total income 918 15 463 Operating costs 543 17 340 Operating surplus 375 11 33 Provisions 38 18 307 Operating profit 337 10 * incl. associates
Slide 37: USA Division
USA Division Allfirst Net income $184.4m - up 7% (US GAAP) - down 2% (Irish GAAP) Loan growth +2.5% (excl. residential mortgages / foreign) - commercial +8%; retail -3% Electronic banking income +16% / corporate deposit fees +12% Assets under management €23bn AIB USA Loans +20%, other inco
Slide 38: Poland Division profit statement
Poland Division profit statement 1999 €m 2000 Change % 139 Net interest income 252 81 87 Other income 153 75 226 Total income 405 79 154 Operating costs 295 91 72 Operating surplus 110 52 9 Provisions 23 146 63 Operating profit 87 38 - Property disposal 1 63 Profit before tax 88 40
Slide 39: Poland Division
Poland Division WBK +31% (excl. equity gains in „99) WBK BZ Loan growth +16% +1% Deposit growth +21% +10% Combined network ATMs Outlets BZ 283 208 WBK 204 197 487 405
Slide 40: Non-performing loans by division
Non-performing loans by division As at December 31, 1999 As at December 31, 2000 NPLs/ Total NPLs/ Total Actual Provisions/ Actual Provisions/ NPLs Advances NPLs NPLs Advances NPLs €m % % €m % % 234 1.2 112 AIB Bank 232 1.0 125 53 USA - €m 87 53 0.4 319 - US$m 81 0.7 205 30 0.5 248 Capital Markets 2
Slide 41: Risk weighted assets
Risk weighted assets 1999 €m 2000 Change % 17,919 AIB Bank 21,133 18 16,898 USA 20,318 20 11,375 Capital Markets 14,837 30 2,838 Poland 3,655 29 245 Group 279 14 49,275 60,222 22
Slide 42: How we did in 2000
How we did in 2000