CDB UK Ltd 2008

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C o m p a n y N o . 1 7 7 6 3 0 4

ANNUAL REPORT AND FINANCIAL STATEMENTS

CDB (U.K.) LIMITED

YEAR ENDED 30 SEPTEMBER 2008

*L2ZTABZZLD5 30/07/2009

COMPANIES HOUSE

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CDB (U.K.) LIMITED

Contents

Corporate information

Report of the Directors

Statement of directors' responsibilities

Auditors' report

Income statement

Balance sheet

Statement of changes in equity

Cash flow statement

Notes to the financial statements

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CDB (U.K.) LIMITED

Directors

D QuilliganF G ParkerT Walsh (Appointed 19 March 2008)J Brydie (Appointed 19 March 2008)D Murray (Resigned 22 May 2008)

Secretary

F G Parker

Auditors

Ernst & Young LLP1 More London PlaceLondon, SE1 2AF

Bankers

Anglo Irish Bank Corporation Limited10 Old JewryLondonEC2R 8DN

Registered office

10 Old JewryLondonEC2R 8DN

Registered number

1776304

Country of incorporation

United Kingdom

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CDB (U.K.) LIMITED

REPORT OF THE DIRECTORS

The d irectors present their report and the audited financial statements for CDB (U.K.) Limited ('the Company') for theyear ended 30 September 2008.

1. REVIEW OF THE DEVELOPMENT OF THE BUSINESSThe Company acts as an investment holding company responsible for all subsidiary entities in the United Kingdom

and therefore acting as an intermediate holding comp any for most of Anglo Irish Bank C orporation Limited interests inthe U.K. During the year the Com pany invested in Japanese Yen Preference shares of a subsidiary company, therebyfacilitating the completion of a Japanese Yen financing arrangement by the CDB (U.K.) Limited group. This JapaneseYen arrangement enabled the Company and its subsidiaries, to avail of low cost financing on an aftertax basis at Yeninterest rates, due to the significant difference between Sterling interest rates and Yen interest rates during the year.

2. PRINCIPAL RISKS AND UNCERTAINTIESThe principal risks and uncertainties facing the Company are low as the Company acts as a holding company andis non-trading. The main risks is the performance of its subsidiary en tities and the risk that the investment may beco meimpaired if an entity which the Company has invested in performs poorly thus eroding the value o f the investment.In addition, the C ompan y is exposed to foreign exchang e market risk on its foreign currency denominated monetaryasset. Further detail on the management o f this risk, and the m itgation of this risk is set out in Note 19 of the aud ited

Financial Statements.

3. RESULTS FOR TH E YEAR AND STATE OF AFFAIRS AS AT 30 SEPTEMBER 2008The results for the year and the balance sheet at 30 Septem ber 2008 are set out, respectively, out on pages 8 and 9. Theprofit after taxation for the year amounted to 6 0,451,672 (2007: 20,636). The increase in profits is due to foreignexchange movements on the Japanese Yen Preference shares. Total equity amounted to 312,485,279as at 30 September 2008 (2007: 244,033,612).

4. DIVIDENDThe directors do not propose the payment of a dividend in respect of the year ended 30 September 2008 (2007: Nil).

5. KEY PERFORMANCE INDICATORS

Given the limited scope and nature of the business, an d that the Company is a wholly-owned subsidiary of Anglo IrishBank Co rporation Lim ited ("A IBC "), the Directors are of the opinion that key performance indicators or other forms ofperformance measu rement are not necessary in providing an understanding of the developm ent, performance or p ositionof the Com pany. The parent undertaking of the Company maintains an oversight of the Compan y's performance underAlBC's business and governance management structures. Further details can be obtained in the Annual Report andAccounts of AIBC atwww.anqloirishbank.com/investors.

6. IMPORTANT EVENTS SINCE THE YEAR END AND FUTURE DEVELOPMENTSNationalisation of parent companyOn 15 January 2009 , the Irish Government anno unced its intention to take Anglo Irish Bank Corporation pic ("AIBC "),the parent undertaking of the Company, into State ownership. AlBC's shares were subsequently suspendedfrom trading on the Irish and London Stock Exchan ges on 16 January 2009. The Anglo Irish Bank Corporation Act 2 009which provided for the transfer of shares of AIBC to the Irish Minister for Finance, was signed into Irish law on 21 January2009. On the sam e date AIBC was re-registered as a private compa ny and its name was chang ed from Anglo Irish BankCorporation pic to Anglo Irish Bank Corporation Limited. On 29 Jun e 2009, the Irish Governm ent, following receipt ofEuropean Union approval, has provided 3 billion of capital to AIBC. Further capital of up to1 billion is available subjectto further discussion s betwe en AIBC and the Department of Finance on the terms of a debt repurchase programmewith AIBC.

Share capitalOn 10 October 2008 the sterling authorised share c apital of the Com pany was increased to 750,000,000 by the creationof 500,000,000 ordinary shares of 1 each.

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http://www.anqloirishbank.com/investorshttp://www.anqloirishbank.com/investors

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CDB (U.K.) LIMITED

REPORT OF THE DIRECTORS 2008 (Continued)

6. IMPORTANT EVENTS SINCE THE YEAR END AND FUTURE DEVELOPMENTS (continued)

Share capital (continued)On 18 November 2008 the sterling authorised share capital increased to 3,750.000,000 divided into 3,700,000,000ordinary shares of 1 each and 50,000,000 redeemable preference shares of 1 each. On 18 November 2008,1,000,000,000 ordinary shares of 1 each were issued at par and subscribed by Anglo Irish Bank Corporation Limited,the parent u ndertaking of the Compa ny, in order to enable the Compan y to invest in its subsidiaries as considere dappropriate and necessary.

Japanese Yen financing an-angementDetails are given in Note 6 of the audited financial statements, of a financing arrangement, entered into in M ay 2008 .The arrangem ent w as structured such that the UK group would benefit from the differential betwe en Sterling a ndYen interest rates. The potential foreign exchange risk perspective was m itigated by an offset on the UK group'staxation line. The arrangem ent had a positive impact on the UK g roup's profit for the year end ed 30 September 2008.The arrangement matured in December 2008 and January 2009. As part of this maturity, a Japanese Yen loanof 201 b illion was advan ced from Anglo Irish Asset Finance pic to the Company. The strengthening of Yen ag ainstSterling post year end h as had a net positive impact on foreign exchan ge revaluation on this Japanese Yen loan

and the Japanese Ye n preference shares held by the Company of 455m.

Impainvent of investment in subsidiariesThe key e conom ics indicators in the UK and m ainland Europe, which are the principal operating markets of theCompany's subsidiaries or is the location of the underlying assets supporting these entities, have continued to showa marked deterioration since 30 September 2008. These economies are expected to contract further in 2009. Whilstthe monetary and fiscal actions taken by the government and authorities are helpful, it will take some time before anyimprovements as a result of monetary actions are reflected. As a result, the Company anticipates that there may bea risk that further impairment charges on investments in subsidiaries may be incurred in 2009 and subsequent years.

Investment in Anglo Irish Asset Finance picOn 18 November 2008 the Company invested a further 1,000,000,000 into Anglo Irish Asset Finance pic,divided into 1,000,000,000 ordinary shares of 1 each.

7. DIRECTORS AND SECRETARYDeclan Quilligan and Gordon Parker continued to serve as directors throughout the year. Thomas Walsh and JamesBrydie were ap pointed directors o n 19 March 2008 . All directors will continue in office in accordance with the articlesof association. David Murray resigned as director on 22 May 2008. Gordon Parker served as secretary throughout theyear. The directors and secretary had no interests in the shares of the Company during the year.

8. PARENT COMPANYThe Com pany is a wholly owned subsidiary of Anglo Irish Bank Corporation Limited, a company incorporated inthe Republic of Ireland.

9. DISCLOSURE OF INFORMATION TO THE AUDITORSSo far as each p erson w ho was a director at the date of approving this report is aware, there is no relevant au ditinformation, being information needed by the auditor in connection w ith preparing its report, of which the aud itor isunaware. Having m ade e nquiries of fellow directors, each director has taken all steps that he ought to take as adirector in order to make himself aware of any relevant audit information and to establish that the auditor is aware ofthat information.

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CDB (U.K.) LIMITED

REPORT OF THE DIRECTORS 2008 (Continued)

10. GOING CONCERNAnglo Irish Bank Corporation L imited, the parent undertaking of the Com pany, has agreed to provide financial supportto the Com pany a s wou ld be required to allow the Company to m eet its future o bligations as they fall due for theforeseeable future and until at least 31 July 2010.

11. INDEPENDENT AUDITORSA resolution for the reappo intment of Ernst & Young LLP as auditors of the Company is to be proposed to allmembers by ordinary resolution during the next period for appointing auditors.

ON BEHALF OF THE BOARD:REGISTERED OFFICE:

10 Old JewryLondonEC2R 8DN F.G Parker - Director

Date: 28 July 2009

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CDB (U.K.) LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OFTHE REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS

The directors are respon sible for preparing the annual report and the financial statements in accordance withapplicable United Kingdom law and International Financial Reporting Standards (IFRS) as adopted by the EuropeanUnion.

Comp any Law requires the directors to prepare financial statements for each financial year which give a true and fairview of the state of affairs of the Company and of the profit and loss of the Company for that year. In preparing th osefinancial stateme nts, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- present information, including accou nting policies, in a manner that provides relevant, reliable, comparable andunderstandable information;

- provide additional disclosures wh en com pliance with the specific requirements of IFRS is insufficient to enable usersto und erstand the impact of particular transactions, other events and conditions on the entity's financial p osition and

financial performance; and

- state that the company has complied with IFRS, as adopted by the European Union, subject to any material departuresdisclosed and explained in the financial statements.

The directors are required to prepare the financial statements on the go ing concern basis, unless it is not appropriate.The directors have received confirmation from the parent undertaking of the Com pany, Ang lo Irish Bank Co rporationLimited, of its continued financial support to allow the comp any to m eet its future obligations as they fall due forthe foreseeable future a nd until at least 31 July 2010. Consequently the Financial Statem ents continue to beprepared on the going concern basis.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracyat any time the financial position of the Company and which enable them to ensure that the financial statementscomply with the Comp anies Act 1985. They have general responsibility for taking such steps as are reasonablyopen to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The d irectors confirm that, to the best of their knowledge, they have com plied with these requirements in preparingthe financial statements, including preparation of these financial statements in accordance with IFRS as adopted bythe E uropean Union. Under app licable laws a nd regulations, the directors also have responsibility for preparing aDirectors' Report, as set out on pages 2 to 4 that complies with that law and those regulations.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OFCDB (U.K.) LIMITED

We have audited the Financial Statements of CDB (U.K.) Limited for the year ended 30 September 2008which comprise the Income Statement, the Balance Sheet, the Statement of Changes in Equity, the Cash FlowStatement and the related notes 1 to 24. These Financial Statements have been prepared under the accounting policiesset out therein.

This report is made solely to the Company's members, as a body, in accordance with Section 235 of the CompaniesAct, 1985. Our audit work has been undertaken so that we might state to the Company's members those matters we arerequired to state to them in an auditors' report and for no other purpose. To the fullest e xtent permitted by law, we do notaccept or assume responsibility to anyone other than the Company and the Company's members as a body, for ouraudit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and independent auditors

The Directors' responsibilities for preparing the Financial Statements in accordance with applicable United Kingdomlaw and International Financial Reporting Standards (IFRS) as adopted by the European U nion as set out in theStatement of Directors' Responsibilities.

Our respon sibility is to audit the Financial Statements in accordance with relevant legal and regulatory req uirements andInternational Stan dards on Auditing (UK and Ireland).

We report to you our opinion as to whether the Financial Statements give a true and fair view an d are properly preparedin accordance with the Com panies Act 1985. We also report to you whether the information given in the Director'sReport is consistent with the Financial Statements.

In addition we report to yo u if, in our opinion, the Company has not kept proper accounting records,if we have notreceived all the information and explanations w e require for our au dit, or if information specified by lawregarding directors' remu neration and other transactions with the Company is not disclosed.

We read the Directors' R eport and consider the implications for our report if we b ecome aware of any apparentmisstatements.

Basis of audit opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by theAuditing P ractices Bo ard. An audit includes exam ination, on a test basis, of evidence relevant to the amounts anddisclosures in the Financial Statemen ts. It also includes an assessment of the significant estimates and judge men tsmade by the directors in the preparation of the financial statements, and of whether the accounting policies areappropriate to the Company's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered

necessary in order to provide us with sufficient evidence to give reasonable assurance that the FinancialStatements are free from m aterial m isstatement, wh ether caused by fraud or other irregularity or error. In formingour opinion we a lso evalua ted the overall adequacy of the presentation of information in the Financial Statements.

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OFCDB (U.K.) LIMITED (Continued)

Opinion

In our opinion:

- the Financial Statements give a true and fair view, in accordance with IFRS as adopted by the European Union, ofthe state of affairs of the com pany as at 30 September 2008 and of its profit for the year then ended;

- the Financial Statements have been properly prepared in accordance with the Companies Acts 1985; and

- the information given in the Directors' Report is consistent with the Financial Statements.

Ernst & Young LLPRegistered Auditor1 More London Place

London, SE1 2AF

Date:

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CDB (U.K.) LIMITEDIncome statementFor the year ended 30 September 2008

Notes

2008

2007

Interest and similar incomeInterest and similar expense

3

4

5,131,954

(25,452,911) -

Net interest income (20,320,957) -

Investment income

Foreign exchange gains on monetary asset

Bank charges

5

6 76,401,929

(35)

73

Other operating incom e 76,401,894 73

Operating profit before impairment losses 56,080,937 73

Impairment losses 7 (3,000,000)-

Profit before taxation 53,080,937 73

Taxation Credit 10 7,370,735 20.563

Profit for the year 60,451,672 20,636

The notes on pages 12 - 31 form part of these Financial Statements.

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CDB (U.K.) LIMITEDBalance sheetAs at 30 September 2008

Notes

2008

2007

Non - current assets

Investment in subsidiaries - at cost

Investment in subsidiaries - monetary asset

Quoted investments

11

12

13

247,788,253

1,060,844,285

1,308,632,538

245,060,844

97 7

245,061,821

Current assets

Other assets

Prepayments and accrued income

Total assets

14 9,950,337

281

9,950,618

1,318,583,156

65,378

28 1

65,659

245,127,480

Current liabilities

Other liabilities

Non - current liabilitiesLoans and borrowings

Total liabilities

Shareholders' equity

Share capital

Retained profits / (losses)


Total shareholders' equity and liabilities

The notes on pages 1 2 -3 1 form part of these Financial Statements.

ON BEHALF OF THE BOARD:

15

16

18

F.G Parker - Director

1,227,350

1,227,350

1,004,870,527

1,006,097,877

312,485,279

1,318,583,156

1,093,868

1,093,868

244,033,612

245,127,480

Date: 28 July 2009

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CDB (U.K.) LIMITEDStatemen t of changes in equityFor the year ended 30 September 2008

Share

Capital

Retained

Profits

Total

Balance at 1 October 2006 123,085,000 (1,772,024) 121,312,976

Profit for the year 20,636 20,636

Share capital issued 122,700,000 122,700,000

Balance at 1 Octobe r 2007 245,785,000 (1,751,388) 244,033,61 2

Profit for the year 60,451,672 60,451,672

Share capital issued 7,999,995 7,999,995

Balance at 30 Sep temb er 2008 253,784,995 58,700,284 312,485,27 9


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CDB (U.K.) LIMITEDCash flow statementFor the year ended 30 S eptember 2008

2008 2007

Notes

Cash flows from operating activitiesProfit before taxationNon-cash items

53,080,937

17 4,363,726

57,444,663

73

(73)

Changes in operating assets and liabilities:Net increase in other assetsNet increase in other liabilitiesNet increase in loans and borrowingsNet cash flows from operating a ctivities before taxation

(1,299,324)1,227,350

1,003,776,6591,061,149,348

22

Tax - group relief from parent undertaking 6,007,009 -

Net cash flows from operating activities 1,067,156,357 2

Cash flows from investing activitiesInvestment in subsidiary undertakings - at costInvestment in subsidiary undertakings - monetary assetRedemption of government bondNet cash flows (utilised in) investing activities

(5,727,409)(1,060,844,285)

977

(1,066,570,717)

(122,700,002)

(122,700,002)

Cash flows from financing activitiesProceeds of equity share issue

Net cash flows from financing activities

7,999,995

7,999,995

122,700,000

122,700,000

Net increase / (decrease) in cash and cash equivalents 8,585,635Opening cash and cash equivalentsClosing cash and cash equivalents 17 8,585,635


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CDB (U.K.) LIMITED


1 Accounting policies

The significant accounting policies adopted by the Company are set out below.

1.1 Authorisation of financial statements and compliance with IFRSThe F inancial Statements of the Company for the year ended 30 Septembe r 2008 were a uthorised for issue by the board

of directors and the balance sh eet was signed on the board's behalf by Gordon Parker on 28 July 2009. The C ompanyis a private limited Company registered in England and Wa les.

The Financial Statements have been presented in accordance with International Accounting Standards and InternationalFinancial Reporting Standards (collectively 'IFRS'), as adopted by the European Union and applied in accordance w ith theCompanies Act 1985 and applicable at 30 September 2008.

1.2 Basis of preparationThe Financial Statements have be en prepared on the going concern basis, under the historical cost convention, as modifiedby the revaluation of certain assets and liabilities to the extent required or permitted under accounting standards as set outin the relevant accounting p olicies.

The preparation of Financial Statements in conformity with IFRS requires management to make estimates and assumptionsthat affect the reported amounts of certain assets, liabilities, revenues a nd expenses, and disclosures of con tingentassets and liabilities. Since ma nagemen t's judgem ent involves making estimates concerning the likelihood of futureevents, the actual results could differ from those estimates. Some estimation techniques involve significant am ounts ofmanagem ent judgement, often in areas which are inherently uncertain. Further detail is provided in Note 1.13 of theof the A ccounting Policies.

The Financial Statements are prepared on a going concern basis, as Anglo Irish Bank Corporation Limited, theparent undertaking of the Company, has agreed to provide financial support to the Company as would be required toallow the Company to meet its future obligations for the foreseeable future and until at least 31 July 2010.

Certain items in these Financial Statements have been reclassified to allow for the appropriate presentation in accordan ce

with IFRS.

1.3 Adoption of new accounting standardsFrom 1 October 2007 the Com pany ado pted the following standards:

- IFRS 7 - Financial Instruments: Disclosures;- Amendm ent to IAS 1 - Capital Disclosures;- IFRS 7 Amendm ent - Reclassification of Financial Instruments

Recent amendm ents to IAS 39 Financial Instruments: Reco gnition and Measurement and IFRS 7 Financial Instruments:Disclosures permit the reclassification of certain financial instruments from held for trading and available-for-salefinancial assets. The Company has not made any such reclassifications.

1.4 Investment income recognitionInvestment income com prises income and realised gains from qu oted investment holdings. Incom e is accounted for on areceivable basis. Interest is accrued up to the balance sheet date. R ealised gains or losses represent thedifference between proceeds of disposal and original cost less any prior provision for permanent diminution invalue.

1.5 Interest income and expense recognitionInterest income and expense are recognised in the income statement for all interest-bearing financial instrumentsusing the effective interest rate m ethod.

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CDB (U.K.) LIMITEDIncome statementFor the year ended 30 September 2008

Notes

2008

2007

Interest and similar incomeInterest and similar expense

3

45,131,954

(25,452,911) -

Net interest income (20,320,957) -

Investment income

Foreign exchange gains on monetary asset

Bank charges

5

6 76,401,929

(35)

73

Other operating income 76,401,894 73

Operating profit before impairment losses 56,080,937 73

Impairment losses 7 (3,000,000) -


Taxation Credit 10 7,370,735 20,563

Profit for the year 60,451,672 20,636

The notes on pages 1 2 -3 1 form part of these Financial Statements,

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n

f;

CDB (U.K.) LIMITEDBalance sheetAs at 30 September 2008

Notes

Non - current assets

Investment in subsidiaries - at cost 11

Investment in subsidiaries - monetary asset 12

Quo ted investments 13

Current assets

Other assets 14

Prepayments and accrued income

Total assets

Current liabilities

Othe r liabilities 15

Non - current liabilities

Loans and borrowings 16

Tota l liabilities


Share capital 18Retained profits I (losses)


Total shareholders' equity and liabilitiesThe notes on pages 1 2 -3 1 form part of these Financial Statements.

ON BEHALF OF THE BOARD:

F.G Parker - Director

Date: 28 July 2009

2008

2007

247,788,253

1,060,844,285

245,060,844

97 71,308,632,538 245,061,821

9,950,337

281

65,378

281

9,950,618 65,659

1,318,583,156 245,127,480

1,227,350

1,227,350 -

1,004,870,527 1,093,868

1,006,097,877 1,093,868

253,784,995

58,700,284

245,785,000

(1,751,388)

312,485,2791,318,583,156

244,033.612245,127,480

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t

CDB (U.K.) LIMITEDStatem ent of changes In equityFor the ye ar ended 30 September 2008

Balance at 1 October 2006

Profit for the year

Share capital issued

Balance at 1 October 2007

Profit for the year

Share capital issued

Balance at 30 September 2008


10

Share

Capital

123,085,000

122,700,000

7,999,995

Retained

Profits

20,636

Total

(1,772,024) 121,312,976

20,636

122,700,000

245,785,000 (1,751,388) 244,033,61 2

60,451,672 60,451,672

7,999,995

253,784,995 58,700,284 312,485 ,279

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CDB (U.K.) LIMITEDCash flow statementFor the year ended 30 Septem ber 2008

2008

Notes

2007

Cash flows from operating activities

Profit before taxation~ Non-cash items

53,080,93717 4,363,726

57,444,663

73(73)

Changes in operating assets and liabilities:Net increase in other assetsNet increase in other liabilitiesNet increase in loans and borrowings

Net cash flows from operating activities before taxation

(1,299,324)1,227,350

1,003,776,6591,061,149,348

22

rT a x - group relief from parent undertaking 6,007,009 -

Net cash flows from operating activities 1,067,156,357 2

Cash flows from investing activitiesInvestment in subsidiary undertakings - at costInvestment in subsidiary undertakings - monetary assetRedemption of government bondNet cash flows (utilised in) investing activities

(5,727,409)(1,060,844,285)

97 7(1,066,570.717)

(122,700,002)

(122,700.002)

Cash flows from finan cing activities

Proceeds of equity share issueNet cash flows from financing activities

7,999,995

7,999,995

122,700,000

122,700,000

Net increase / (decreas e) in cash and cash equivalents 8,585,635Opening cash and cash equivalentsClosing cash and cash equivalents 17 8,585,635


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CDB (U.K.) LIMITED


1 Accounting policies

The significant accounting policies adopted by the Company are set out below.

1.1 Authorisation of financial statem ents an d compliance with IFRSThe Financial Statements of the C ompany for the year ended 30 Septem ber 2008 we re authorised for issue by the board

of directors and the balance sheet was signed on the board's behalf by Gordon Parker on 28 July 2009. The Companyis a private limited Company registered in England and Wales.

The Financial Statements have been presented in accordance with International Accounting Standards and InternationalFinancial Reporting Standards (collectively 'IFRS'), as adopted by the European Union and applied in accordance with theCompanies Act 1985 and applicable at 30 September 2008.

1.2 Basis of preparationThe Financial Statements have been prepared on the going concern basis, under the historical cost convention, as modifiedby the revaluation of certain ass ets and liabilities to the extent required or permitted u nder accou nting standards as set outin the relevant acco unting p olicies.

The preparation of Financial Statements in conformity with IFRS requires management to make estimates and assumptionsthat affect the reported amounts of certain assets, iiabilities, revenues and expenses, and disclosures of contingentassets and liabilities. Since management's judgement involves making estimates concerning the likelihood of futureevents, the actual results could differ from those estimates. Som e estimation techn iques involve significant amounts ofmanagement judgement, often in areas which are inherently uncertain. Further detail is provided in Note 1.13 of theof the Accounting Policies.

The Financial Statements are prepared on a going concern basis, as Anglo Irish Bank Corporation Limited, theparent undertaking of the Company, has agreed to provide financial support to the Company as would be required toallow the Company to meet its future obligations for the foreseeable future and until at least31 July 2010.

Certain items in these Financial Statements have been reclassified to allow for the appropriate presentation in accordancewith IFRS.

1.3 Adoption of new accounting standardsFrom 1 October 2007 the Company ad opted the following standards:

- IFRS 7 - Financial Instruments; Disclosures;- Amendment to IAS 1 - Capital Disclosures;- IFRS 7 Ame ndme nt - Reclassification of Financial Instruments

Recent amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:Disclosures permit the reclassification of certain financial instruments from h eld for trading and available-for-salefinancial assets. The Company has not made any such reclassifications.

1.4 Investment income recognitionInvestment income comprises income a nd realised gains from quoted investme nt holdings. Income is accounted for on areceivable basis. Interest is accrued up to the balance sheet date. Realised gains or losses represent thedifference between proceeds of disposa l and original cost less any prior provision for permanent diminution invalue.

1.5 Interest income and expense recognitionInterest income and expense are recognised in the income statement for all interest-bearing financial instrumentsusing the effective interest rate m ethod.

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CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1.5 Interest income and expense recognition (continued)

The effective interest rate method is a m ethod of calculating the am ortised cost of a financial asset or liability and ofallocating the interest incom e or interest expense over the relevant period. The effective interest rate is the rate that

exactly discounts the expected future cash payments or receipts through the e xpected life of the financial instrumentor, when appropriate, a shorter period, to the net carrying amount of the financial asset or financial liability.

The calculation includes all fees, transaction costs and other premiums a nd discounts that are an integral part of theeffective interest rate on the transaction.

Once an impairment loss has been recognised on an individual asset, interest income is recognised using the rate ofinterest at which the estimated future cash flows were discounted in measuring impairment.

1.6 Cash and cash equivalentsFor the purposes of the cash flow statement, cash comprises cash on hand and demand deposits including any loansto the parent undertaking which acts as the Company's banker. Cash equivalents comprise highly liquid investments

that are con vertible into cash w ith an insignificant risk of chang es in va lue with original maturities of less than threemonths.

1.7 InvestmentsAt costInvestments in subsidiaries are held to maturity and are reflected in the Balance S heet at cost less provision forpermanent impairment.

Quoted

Quoted investments are stated at their market value.

Monetary asset

Investments which feature a right to receive a fixed or determinable number of units of currency are treated as a monetaryasset. Where these are in a foreign currency they are translated at the spot rate of exchange on acquisitionand then re-translated at each b alance sheet date as further set out in Note 1.11 of the Accounting Policies.1.8 Financial liabilitiesFinancial liabilities are initially recognised at fair value, being their issue proceeds (fair value of consideration received)net of transaction costs incurred. Financial liabilities are subseque ntly m easured at either amortised cost or fair va luethrough profit or loss. A ll liabilities, other than those designated at fair value through profit or loss, are subsequ entlycarried at am ortised cost. Any difference between proceeds net of transaction costs an d the redemption valueis recognised in the income statement using the effective interest rate m ethod.

The classification of an instrument as a financial liability or an equity instrument is dependent on the substance of thecontractual arrangem ent. Instruments which carry a contractual obligation to deliver cash or another financial asset toanother entity are classified as financial liabilities. Interest on these instruments are recogn ised in the income statementas an expense . Other gains and losses arising from chang es in fair value are included directly in the income statem entwithin trading losses/profits.

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1.9 Provisions and contingent liabilities

Provisions are recogn ised for present legal or constructive obligations arising as conseque nces of past events where itis probable that a transfer of economic benefit w ill be necessary to settle the obligation, and it can be reliably estimated.

Wh en the effect is material, provisions are determined by discounting future cash flows at a pre-tax rate that reflectscurrent market assessm ents of the time value of money and, where ap propriate, the risks specific to the liability.

Paym ents are deducted from the present value of the provision and interest at a relevant discount rate is chargedannually to interest expense. Changes in the present value of the liability as a result of m ovements in interest ratesare included in other financial income. Th e present value of provisions are included in other liabilities.

Other contingenciesContingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events givingrise to present obligation where the transfer of economic benefits is uncertain and cannot be reliably measured. Contingentliabilities are not recognised but are disclosed in the notes to the financial s tatements unless they are remote.

1.10 Impairment of financial assetsProvision is m ade for impairment of financial assets to reflect the losses inherent in those asse ts at the balance sheetdate.

The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or aportfolio of financial assets is impaired. A financial asset or portfolio o f financial a ssets is impaired and impairmentlosses are incurred if, and only if, there is objective evidence of impairment as a result of one or more loss even ts thatoccurred after the initial recognition of the asset and that the estimated present va lue of future cash flows is less thanthe current carrying value of the financial asset, or portfolio of financial assets, and can be reliably measured.

Objective evidence that a financial asset, or a portfolio of financial assets, is impaired includes observable data thatcomes to the attention of the Company about the following loss events:

i. significant financial difficulty of the investee ;ii. decrease in net asset values of the investee;iii. it beco me s probable that the investe e will enter bankruptcy or other financ ial reorganisation;iv. observab le data indicating that there is a measurable decrease in the estimated future cash flows

from a portfolio of financial as sets since the initial recognition of those assets, although the decreasecannot yet be identified w ith the individual financial assets in the portfolio, including:- adverse changes in the paym ent status of investees in the portfolio, or- n ational or local economic c onditions that correlate with defaults on the a ssets in the portfolio.

1.11 Foreign currency translationFunctional an d presentational currency

The financial statemen ts are presented in Sterling, which is the Company's functional and presentational currency.

Transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of thetransaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functionalcurrency rate of exchange ruling at the balance sheet date. All differences are recog nised in the incomestatement. Foreign exchange ga ins and losses resulting from the settlement of such transactions and from the

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1.11 Fo reign currency translation (continued)

retranslation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are

recognised in the income statement. Non-monetary items that are measured in terms of historical cost in a foreigncurrency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measuredat fair value in the foreign currency are translated using the exchange rates at the date when the fair va lue was determined

1.12 Taxation (current and deferred)Current tax is the expected tax payable (shown as a liability) or the expected tax receivable (shown as an asset) onthe taxable income for the year adjusted for changes to previous years and is calculated based on the applicable taxlaw in the United Kingdo m. Deferred tax is provided using the balance sheet liability method on temporary differencesarising betwe en the tax bases of assets and liabilities for taxation purposes and their carrying amou nts in thefinancial statements. Current and deferred taxes are determined using tax rates based on legislation enacted orsubstantively enacted at the balance sheet date and expected to apply when the related tax asset is realised or therelated tax liability is settled,

Deferred tax is determined using tax rates based on legislation enacted or substantially enacted at the ba lance sh eetdate and expecte d to apply when the deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recog nised only to the extent that it is more likely than not that there is suitable taxab le profitsfrom w hich the future reversal of the underlying timing differences can be dedu cted.

Deferred and current tax assets and liabilities are only offset where there is both the legal right and intention to settle on anet basis, or to realise the asset and settle the liability simultaneously.

1.13 Significant accounting estimates and judgem ents

The rep orted results of the Compan y are sensitive to the accounting p olicies, assumptions an d estimates that underliethe preparation of its financial statements.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affectthe amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues andexpense s during the year. How ever, the nature of estimation means that actual outcomes may differ from those estimates .

The particular accounting policies adopted by the Company that are subject to estimates and judgements which wouldhave a significant risk o f causing a material adjustment to the carrying am ounts of assets and liabilities withinthe next financial year, are as follows:

Impairment of investmentsIn the case of investments the Company has considered the decline in net asset values of subsidiaries to ascertain whetherany impairment has occurred. Impairment is recognised when there is objective evidence that a specific investment isimpaired. Evidence of impairment is assessed by reference to the und erlying net assets of the subsidiary, an d all otheravailable information. Th e determination of whether or not objective evidence of impairment is present requires the exerciseof management judgement.

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1.13 Significant accounting estimates and judgem ents (continued)

TaxationThe taxation charge acc ounts for amoun ts due to fiscal authorities in the United K ingdom, and includes estimatesbased on a judgeme nt of future profits an d the application of law and practice in certain cases in order to determinethe quantification of any liabilities arising. In arriving at such estimates, man agemen t asse sses the relative meritsand risks of tax treatments assumed, taking into account statutory, judicial and regulatory guidance and, whereappropriate, external advice. Where the final tax outcome is different from the amou nts that are currently recorded,such differences w ill impact upon the current a nd deferred tax amounts in the period in which such determination is made.

1.14 ConsolidationConsolidated financial statements have not been prepared as the Company is a wholly owned subsidiary of a companyincorporated in the European Union under section 228 of the Companies Act 1985.

1.15 Prospective accounting changesThe Company has not applied the following new standards, amendments to standards and interpretations (IFRICs) thathave been adopted by the International Accounting Standards Board which would be applicable to the Company with aneffective date after the date of these financial statem ents :

IFRS 8 - Operating Segments;Ame ndmen t to IAS 1 - Presentation of Financial S tatements;Amendment to IAS 23 - Borrowing Costs;Amendment to IAS 32 - Financial Instruments: Presentation;Amendment to IAS 39 - Financial Instruments: Recognition and Measurement - Eligible Hedged Items;

These will be adopted in future years and are not expected to have a material impact on the Company's results orFinancial Statements.

Additional standards to be adopted in the future are not listed here as they are not expecte d to be relevant to the resultsin the future.

1.16 Segmental reportingBusiness segments are distinguishable components of the Company that provide products or services that are subjectto risks and rewards that are different to those of other business segme nts. Geograph ical segments provide products an dservices within a particular economic en vironment that are subject to risks and rewards that are different to those ofcomponents operating in other economic environments.

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2 Segmental reportingThe Company only has one geographical segment which for reporting purposes is the United Kingdom.

3 Interest and similar income

Interest on preference shares

2008 2007

5,131,954

Details of the dividend receivable on the preference shares, which is treated as interest income for IFRS, is set out inNote 12 of these Financial Statements.

4 Interest and similar expense

Interest on intercompany loan to parent undertaking

2008

2007

25,452,911

Details of the terms of the loan from the parent undertaking is set out in Note 16 of these Financial Statements.

5 Investm ent income 2008 2007

Investment income 73

6 Foreign exchange gains

Foreign exchange revaluation on foreign currency assets

2008

2007

76,401,929

Revaluation on foreign currency assets represents the impact of a Japanese Yen financing arrangement, entered into in

May 2008 to ena ble the Company and certain subsidiaries to avail of tow cost financing on an aftertax basis at Ye ninterest rates. The gains arise from th e revaluation of the investment in the preference shares issued by Anglo IrishTreasury Financing Limited. The gains to the Company on foreign excha nge on this financing transaction are offset byother foreign e xchang e losses in the period in various UK group co mpanies of the parent undertaking, Anglo Irish BankCorporation Limited.

7 Impairment losses

Impairment of investment in subsidiaries

2008

2007

3,000,000

The impairment loss in the current year is the amount by which the carrying am ount of the investment in Anglo IrishProperty Investors Limited, a subsidiary of CDB (U.K.) Limited, exceeds its recoverable am ount. Asa result, the cost ofof the investment was written down to Nil as detailed in Note 11 of these Financial Statements.

8 Directors' emoluments

No director received any emolum ents from the Compa ny (2007: none).

9 Profit before taxation

The audit fee is borne by the parent undertaking of the Com pany, Anglo Irish Bank C orporation Limited.

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Taxation 2008 2007

Current tax

Current year credit (7,370,735) (20,563)

Effective tax rate (14%) (28,168%)

The reconciliation of current tax on profit on ordinary activities at the standard corporation tax rate to the Comp any'sactual current tax credit is analysed as follows:


Profit on ordinary activities before taxation at 29% (200 7: 30%) 15,393,472 22

Effects of:Foreign exchange gains on Japanese Yen monetary asset (22,156,559) -Preference dividend income (1,488,268) -Transfer pricing adjustment - Sch28AA 10,620 (20,585)Impairment losses 870,000 -Total tax (7,370,735) (20,563)

Investment in subsidiaries - at cost 2008 2007

Subsidiaries at cost:Anglo Irish Credit pic 5,946,710 5,946,710

Amblepath Properties Limited 10 10Anglo Irish Asset Limited 74 74Argyle Investment Finance Limited 1,000,000 2Clickinput Limited 1 1Finance 2000 pic 61,947 61,947Anglo Irish Carry Partner Limited 1 1Sutherland Finance and Leasing 82,597 82,597Anglo Irish Finance Limited 100 3,500,000Anglo Irish Asset Finance pic 220,000,000 220,000,000Anglo Irish Commercial Properties (No.1) Limited 3,000,000 3,000,000Anglo Irish Commercial Properties Limited 1,125,000 1,125,000

Anglo Irish Capital GP Limited 11,335,000 11,335,000Anglo Irish Property Lending Limited 5,236,712 9,500

Ang lo Irish Private Capital Limited 1 1

Anglo Irish Property Investors Limited 3,000,000 1

Anglo Irish Treasury Financing Limited 100 -

250,788,253 245,060,844

Impairment of investment in Anglo Irish Property Investors Limited (3,000,000) -

247,788,253 245,060,844

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11 Investm ent in subsidiaries - at cost (continued)

The Company indirectly owns the entire issued share capital of Anglo Irish Leasing Limited, IFT Nominees Limited andBerfors Nom inees Limited through Anglo Irish Credit pic.

All companies and partnerships are registered in England and Wales.

All of the above investments are in Sterling except for the investment in Anglo Irish Ca pital GP Limited whichcomprises ordinary shares of 12,500,000 and 2,750,000 (2007:12,500,000 and 2,750,000).

Details of subsidiaries, a il of which are consolidated, and are registered in England and W ales are:

Principal subsidiaries HoldingPrincipalactivity

Country ofincorporation

Anglo Irish Credit pic 100% Dormant Un ted Kingdom

Amblepath Properties Limited 100% Investment property Un ted Kingdom

Anglo Irish Asset Limited 74 % Hire purchase/leasing Un ted KingdomArgyle Investment Finance Limited 100% Property Managem ent Un ted Kingdom

Clickinput Limited 100% Investment Holding Company Un ted KingdomFinance 2000 pic 100% Investment Holding Company Un ted KingdomAnglo Irish Carry Partner Limited 100% Investment Holding Company Un ted KingdomSutherland Finance and Leasing 100% Dormant Un ted Kingdom

Anglo Irish Finance Limited 100% Finance Un ted K ingdom

Anglo Irish Asset Finance pic 100% Comm ercial lending & Instalment Credit Un ted Kingdom

Anglo Irish Commercial Properties (No.1) Ltd 100% Investment Holding Company Un ted K ingdomAnglo Irish Comm ercial Properties Limited 100% Investment Holding Company Un ted KingdomAnglo Irish Capital GP Limited 100% Investment Holding Company Un ted KingdomAnglo Irish Property Lending Limited 100% Comm ercial Finance Un ted KingdomAnglo Irish Private Ca pital Limited 100% Dormant Un ted KingdomAnglo Irish Property Investors Limited 100% Investment Holding Company Un ted KingdomAnglo Irish Treasury Financing Limited 100% Finance Un ted Kingdom

12 Investment in subsidiaries - monetary asset 2008

2007

Investment in Anglo Irish Treasury Financing Limited 1,060,844,285

This investmen t in Anglo Irish Treasury Financing Limited is in the form of preference shares. These preference shares arevariable rate cum ulative preference shares of 10,000 each. The preferential dividend is calculated at the annual rate of70% of the sum of the three month Yen LIBOR rate plus 0.875% . The following issuances were made in the period toCDB (U.K.) Limited:

Date equivalent

5,065,483 shares of 10,000 each 7 May 2008 266,049,79210,023,242 shares of 10,000 each 12 May 2008 526,441,69 35,011,621 shares of 10,000 each 13 May 2008 263,220,846

Preference shares 1,055,712,331

Interest receivable on preference shares 5,131,954

Total 1,060,844,285

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13 Quoted Investments

The quoted investments matured during the year to 30 September 2008. They had a market value of 977 at30 September 2007 and were listed on the London Stock Exchange.

14 O ther assets

Amounts owed by group undertakingsAmounts owed by parent undertakingOther receivables

2008

2007

1,363,725 65,3788,585,635 -

97 7 -9,950,337 65,378

Am ounts ow ed by group unde rtakings and the parent undertaking are provided on an interest free basis with nofixed terms of repayment.

15 Other liabilities

Sundry liabilitiesDeferred consideration

2008

1361.227,214

1,227,350

2007

This deferred consideration arises from the original acquisition of An glo Irish Property Lending Limited. Ofthis liability 56 5,224 was paid since S eptember 2008. A further 679,634 provision has not been recognisedas a liability as the likelihood of the future liability occurring is not considered probable.

16 Loans and borrowings

Amounts Falling Due Within One Year:Amounts owed to parent undertaking

2008

2007

986,655

Amounts Falling Due After One Year:Amounts owed to group undertakingAmounts owed to parent undertaking

107,2131,004,763,3141,004,870,527

107,213

1,093,868

Am ounts owed to parent und ertaking after one year, are provided by Anglo Irish Bank Corporation Limited -London Branch (AIBC). The facilities are provided by AIBC to enable the Company to fund its investment in

Anglo Irish Treasury Financing Lim ited and bears interest at Yen libor plus a margin.

The amount owing to group unde rtaking longer than a year is provided by CD B Investments Limited, and isinterest free, with no fixed terms of repayment.

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17 Cash flow statement

Non-cash items

Net (increase) in prepayments and accrued incomeGroup relief to group undertakings

Impairment losses

2008

1.363,7263,000,0004,363,726

2007

(73)

(73)

Cash and cash equivalents 2008

2007

Amounts owed by parent undertakingAs at 30 September

8,585,6358,585,635

18 Share capital

Authorised200,000,000 Ordinary shares of 1 each12,500,000 Ordinary shares of 1 each50,000 ,000 1 Redeemable Pa rticipating Preference shares

Allotted, called an d fully paid199,749,995 Ordinary shares of 1 each12,500,000 Ordinary shares of 1 each45,450,000 1 Redeemable Participating Preference shares

2008

2007

200,000,0008,585.000

50,000,000

258,585,000

199,749.9958,585,000

45,450,000

253,784,995

200,000,0008.585,000

50,000,000

258,585,000"

191,750,0008,585,000

45,450.000

245,785,000

On 26 September 2008, 7,999,995 ordinary shares of 1 each were issued at par and subscribed by AngloIrish Bank Corporation Limited.

Events after the 8a/ance Sheet dateOn 10 October 2008 the sterling authorised share capital of the Company was increased to 750,000,000 by thecreation of 500,000,000 ordinary shares of 1 each.

On 18 Novemb er 200 8 the sterling authorised share capital was increased to 3,750,000,000 divided into3,700,000,000 ordinary shares of 1 each and 50,000,000 redeemable preference shares of 1 each. On the18 November 2008, 1,000,000,000 ordinary shares of 1 each were issued at par and subscribed by AngloIrish Bank Corporation Limited, the parent company.

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19 Risk managem ent and control

The Compa ny is subject to a variety of risk and uncertainties in the normal course of its business a ctivities. Theprincipal risk a nd uncertainties facing the Company relate to credit risk on its m onetary asset and investments insubsidiaries, liquidity risk for paym ent obligations on its loans and borrowings and market risk arising from the

structure of the balance shee t. The other risks facing the Company are compliance and operational risks.

In order to effectively minimise the impact of these risks, the directors place reliance on the group processes o fthe various com mittees and control functions of the parent, Anglo Irish Bank Corporation Limited ("AIBC"). tnparticular, the AIBC Risk and Compliance Committee oversees risk management and compliance covering credit,market, liquidity and op erational risk. The directors of AIBC and the Compa ny delegate their monitoring an d controlresponsibilities to the AIBC Group Credit Com mittee for credit matters and to the AIBC Group Asset and LiabilityCom mittee ("AIBC ALC O") for m arket risk and liquidity risk m atters. The members of these committees includesenior man agement and non-exe cutive directors from throughout the AIBC Group and are supported by adedicated AIBC Group Risk management function ("AIBC Group Risk Management").

AIBC Group Risk Management, finance and internal audit are central core functions of the AIBC Group, independent

of line m anageme nt, whose roles include m onitoring the Company's a ctivities to ensure compliance with financialand operating controls. The general sche me of risk ma nagement, financial control and operational control isdesigned to safeguard the Co mpany's assets while allowing sufficient operational freedom for the business unitsto earn a satisfactory return for shareholders.

Credit riskCredit Risk is the risk that the Com pany w ill suffer financial loss from a counterparty failure to pay interest, repaycapital or meet a comm itment. The C ompany's primary financial asset is an investment in the preference shares ofAnglo Irish Treasury Financing Limited, for which it receives dividend income. Other financial assets are non - quotedinvestments in subsidiaries. The Company is therefore only exposed to the credit risk of other group com panies ofAnglo Irish Bank Corporation Limited.

Risk concentration:As the Company's primary investment is in Anglo Irish Treasury Finan cing Limited, a fellow group subsidiary ofCDB (UK) Limited, the Company does not have an exposure to any other underlying industry or geographic sectorsother than the financial services and real estate investment sectors.

Maximum exposure to credit risk: 2008On Balance Sheet Investment in subsidiaries - at cost 247,788,253Investment in subsidiaries - monetary asset 1,060,844,285Other assets 9,950,337Total 1,318,582,875

Market riskMarket risk is the potential adverse change in income or the value of the net worth arising from m ovements ininterest rates, foreign exchang e rates or other m arket prices. Market risk arises from the structure of the balance sheet.Market risk primarily arises from exposure to changes in interest rates and foreign exchange rates.

The Company's primary financial asset is denominated in Japanese Yen. The following table summarises the foreignexchange exposure of the Company. The Company incurs foreign exchange risk on the Japanese Yen financingarrangement w hich is set off against gains across various UK group com panies which are integral to the overalloperation of this transaction which is beneficial to the results of the UK g roup.

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19 Risk management and control (continued)

Currency balance sheet

AssetsInvestment in subsidiaries - costInvestment in subsidiaries - monetary assetsOther assetsPrepayments and accrued incomeTotal assets

GBP

247,788,253

9,950,33728 1

257,738,871

JPY

1,060,844,285

1,060,844,285

Total

247,788,2531,060,844,285

9,950,33728 1

1,318,583,156

LiabilitiesLoans and borrowingsOther liabilitiesTotal liabilities

Shareholder's equityShare capitalRetained profitsShareholders' fundsTotal shareholders' equity and liabilities

1,004,870,5271,227,350

1,006,097,877

312,485,2791,318,583,156

This table is not provided for 2007 as all assets and liabilities were denoted in GBP.

1,004,870,5271,227,350

1,006,097,877

312,485,2791,318,583,156

The Com pany's financial assets and liabilities have interest rates that reset at the same time and under the same basis,thus eliminating interest rate risk in the Com pany. C onsequently there is no interest rate sensitivity analysis performed.An interest rate re-pricing table is provided in Note 20 of these Financial Statements.

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19 Risk managem ent and control (continued)

Capital management

The objectives of the Comp any's capital management policy are to efficiently manage the capital base tooptimise the return of the Company.

The responsibility for capital adequa cy rests with the directors. The directors m anage the capital structure an dmake adjustments to it in light of changes in economic conditions or change s in the risk profile of assets.

The capital ratio at 30 September was as follows:

2008 2007

Total equity 312,485,279 244,033,612Capital 312,485,279 244,033,612

Total Debt 1,004,870,527 1,093,868

Debt: Equity ratio 3.22 0.00

Total capital has grown during the year due to retention of profits. The capital ratio has increased as a result of theincrease in debt, which increased d uring the year due to facilities provided by Anglo Irish Bank C orporation Limitedto enable the Com pany to fund the a cquisition of preference shares in Anglo Irish Treasury Financing Limited.

In order to strengthen the capital po sition of the Company, on 18 November 2008, the issued share capital of theCompany was increased by 1,000,000,000. Further details are provided in Note 18 of these Financial Statements.

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Notes to the financial s tatements continued

20 Interest rate repricing

Over threemonths but

Not more not morethan three than six

months months

AssetsInvestment in subsidiaries - cost

Investment in subsidiaries - monetaryassets 1,060,844,285Other assetsPrepayments and accrued income - -Total assets 1,060,844,285 -

LiabilitiesLoans and borrowings (1,004,763,314)Other liabilities -Total liabilities (1,004,763,314)


Share capitalRetained p rofitsTotal shareholders' equity

Interest rate repricing gap 56,080,971

Cumulative interest rate repricingga p 56,080,971 56,080,971

30 September 2008

Over sixmonths but

not morethan one

year

Over oneyear but

not morethan five

years

Overfive

years

No ninterestbearing

Total

247,788,253 247,788,253

9,950,33728 1

257,738,871

1,060,844,2859,950,337

2811,318,583,156

(107,213) (1,004,870,527)(1,227,350) (1,227.350)(1,334.563) (1,006,097,877)

(253,784,995)(58,700,284)

(312,485,279)

(253,784,995)(58,700,284)

(312,485,279)

( 5 6 , 0 8 0 , 9 7 1 )

56,080,971 56,080,971 56,080.971

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20 Interest rate repricing (continued)

AssetsInvestment in subsidiaries - cost

Investment in subsidiaries - monetaryassetsQuoted investmentsOther assetsPrepayments and accrued incomeTotal assets

Not morethan three

months

977


not morethan sixmonths

977

LiabilitiesLoans and borrowingsOther liabilitiesTotal liabilities

Shareholders' equityShare capitalRetained profitsTotal shareholders' equity

Interest rate repricing gap 977

Cumu lative interest rate repricing gap g77 977

30 September 200

Over sixmonths but

not morethan one

year

Over oneyear but

not morethan five

years

Overfive

years

Noninterestbearing

Total

245,060,844 245,060,844

97 765,378 65,378

281_ 281245,126,503 245,127,480

(1,093,868) (1,093,868)

(1,093,868) (1,093,868)

(245,785,000)1,751,388

(244,033,612)

(245,785,000)1.751,388

(244.033,612)

(977)

977 977 977

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21 Maturity profile 30 Septembe r 2008

Demand

Not morethan three

months


not morethan one

year

Over oneyear but

not morethan five

years

Overfive

years

Total

Financial Assets

Investment in subsidiaries - costInvestment in subsidiaries - monetaryassetsOther assetsTotal assets

Financial Liabilities

Loans and borrowings

Other liabilitiesTotal liabilities

565,224 661,990

247,788,253 247,788,253

1,060,844,285 1,060,844,2859,950,337 9,950,337

1,318,582,875 1,318,582,875

1,004,870,527 1,004,870,5271,227,214

565,224 661,990 1,004,870,527 1,006,097,741

The above table breaks down the Company's financial assets and liabilities by remaining contractual maturity. The maturity profile for those assets and liabilities defined as 'financial'has been determined in accordance with groupings that are considered most appropriate for those particular assets and liabilities.Undated loans and borrowings and investments in subsidiaries have been included in amounts maturing over 5 years.

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21 Maturity profile (continued) 30 September 200

Demand

Not morethan three

months


not morethan one

year

Over oneyear but

not morethan five

years

Overfive

years

Total

Financial Assets

Investment in subsidiaries - costInvestment in subsidiaries - monetaryassetsQuoted investmentsOther assetsTotal assets

Financial Liabilities

Loans and borrowings

Other liabilities

Total liabilities

977

977

986,655

986,655

245,060,844

65,378245,126,222

107,213

107,213

245,060,844

97765,378

245,127,199

1,093,868

1,093,868

The above table breaks down the Company's financial assets and liabilities by remaining contractual maturity. The maturity profile for those assets and liabilities defined as 'financial'has been determined in accordance with groupings that are considered most appropriate for those particular assets and liabilities.Undated loans and borrowings and investments in subsidiaries have been included in amounts maturing over 5 years.

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22 Parent CompanyThe C ompany is incorporated in E ngland and Wales an d is a wholly owned subsidiary of Anglo Irish Bank C orporationLimited, a company incorporated in the Republic of Ireland. The company's financial statements have been consolidatedonly in the group financial statements of the parent company and a copy of these financial statements are availablefrom Anglo Irish Bank Corporation Limited, Stephen Court, 18/21, St. Stephen's Green , Dublin 2, Ireland.

23 Related party transactionsThe parent undertaking of the Company, Anglo Irish Bank Corporation Limited ("AIBC"), has provided loans to theCompany. The balance on these loans is 1,004,763,314 (2007: 986,655).The Company incurred interest on the loanprovided by AIBC of 25,452 ,911 (2007: nil), Details of the terms of this loan are given in Note 16 of these FinancialStatements. CDB Investments Limited has also provided loans to the Company of 107,213 (2007:107,213). TheCompany provided loans to other group entities and the parent company. The balance on these loans is9,949,360 (2007: 65,378).

24 Events after the Balance Sheet date

Nationalisation of parent company

On 15 January 2009, the Irish Government announced its intention to take Anglo Irish Bank Corporation pic ("AIBC"),the parent undertaking of the Company, into State ownership. AlBC's shares were subsequently suspended fromtrading on the Irish and London Stock Exchanges on 16 January 2009. The Anglo Irish Bank Corporation Act 2009which provided for the transfer of shares of AIBC to the Irish Minister for Finance, was signed into Irish law on21 January 2009. On the same date AIBC was re-registered as a private company and its name was changed fromAnglo Irish Bank C orporation pic to Anglo Irish Bank Corporation Limited. On 29 June 2009, the Irish Governm ent,following receipt of European Union approval, has provided 3 billion of capital to AIBC. Further capital of up to 1 billionis available subject to further discussions between AIBC and the Department of Finance on the terms of a debtrepurchase programme w ith AIBC.

Share capitalOn 10 October 2008 the sterling authorised share capital of the Company increased to 750,000,000 by the creation of500,000,000 ordinary shares of 1 each,

On 18 November 2008 the sterling authorised share capital increased to 3,750,000,000 divided into 3,700,000,000ordinary shares of 1 each and 50,000,000 redeem able preference shares of 1 each. On 18 November 2008,1,000,000,000 ordinary shares of 1 each were issued at par and subscribed by Anglo Irish Bank Corporation Limited,the parent undertaking of the Company.

Impairment of investment in subsidiariesThe key economics indicators in the UK an d mainland Europe, which are the principal operating markets of theCompa ny's subsidiaries or is the location of the underlying assets supporting these entities, have continued to show amarked deterioration since 30 September 2008. These economies are expected to contract further in 2009. Whilst

the m onetary and fiscal actions taken by the government and authorities are helpful, it will take some time before anyimprovements as a result of monetary a ctions are reflected. As a result, the Compa ny a nticipates that there may bea risk that further impairment charges on investments in subsidiaries may be incurred in 2009 and subsequent years.

Investment in Anglo Irish Asset Finance picOn 18 Novem ber 2008 the Company invested a further 1,000,000,000 into Anglo Irish Asset Finance pic, divided into1,000,000,000 ordinary shares of 1 each.

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CDB (U.K.) LIMITED


24 Events after the Balance Sheet date (continued)

Japanese Yen financing arrangement

Details are given in Note 6 of these Financial Statements, of a financing arrangement, entered into in May 2008.The a rrangement w as structured such that the UK group w ould benefit from the differential between S terling and Y en

interest rates. The potential downside from a foreign exchange risk was m itigated by an offset on the UK group'staxation line. The arrangement had a positive impact on the UK group's profit for the year en ded S eptember 2008The arrangement matured in December 20 08 and January 2009 . As part of this maturity, a Japanese Yen loan of20 1 billion was advanced from A nglo Irish Asset Finance pic to the Company. The strengthening of Yen againstSterling post year en d has had a net positive impact on foreign exchange revaluation on this Japanese Yen loan andthe Japanese Y en preference shares held by the Company of 455m.

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CDB UK Ltd 2008

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