Run on deposits before guarantee: There was a run on Anglo deposits in the days coming up to the Government guarantee of Irish banks, with €5.4 billion withdrawn in a week, according to the PwC report. On September 27th last Anglo was forecasting "net negative cash" of €12 billion by October 17th.
Loans for the purchase of shares
The total amount loaned to the 10 members of the “golden circle” was €451 million, of which €83 million was repaid. Anglo is writing off €300 million of this as it was secured against shares in the bank.
15 customers had 500m-plus loans
Anglo had 15 customers with loans of more than €500 million. PwC said “the size of these exposures increases the risk profile of the bank”.
Loans to customers totalled €72.1bn
Anglo’s loans to customers amounted to €72.1 billion at the end of September. Retail, office and hotel investment accounted for 41 per cent of this.
Directors got loans of €255m
Anglo lent its directors €255 million during 2008. Seán FitzPatrick and an unnamed former director seem to account for the bulk of these loans. Repayments during the year amounted to €115 million. The balance of directors’ loans at year end was €179 million.
Bad loans amount to €957m
Anglo recognises €957 million of impaired loans – 1.31 per cent of its loan book at year-end. Impairments charged were €224 million in 2008.
Anglo is also making a provision of €500 million for potential further losses.
Credit crunch write-off
Anglo’s treasury division had to write off €155 million as a result of the credit crunch. It booked a charge of €84 million on assets “indirectly linked to US subprime mortgages”. A charge of €44 million relates to SIVs. A €27 million charge was on exposure to Icelandic banks. €16 million in writedowns came from investments in “synthetic asset-backed securities”, bringing the total writedown on this asset class to €128 million. €4 million was lost in the collapse of Lehman Brothers and Washington Mutual.
Directors’ remuneration
Directors’ remuneration for the year ended September 30th, 2008 totalled €9.5 million. No bonuses were awarded and there have been no increases in salaries since January 2008.
Former chief executive David Drumm was paid €2.1 million (2007: €4.6 million). Seán FitzPatrick received €539,000 (2007: €440,000). Former head of Irish operations Tom Browne, who retired in November 2007, received €3.75 million.
Funding position
Anglo “experienced substantial outflows and volatility in funding” in the weeks running up to its year-end and the introduction Government guarantee.
Auditors’ remuneration
Ernst Young were paid a total of €2.2 million. This comprised €1.3 million for the audit of accounts and €900,000 for other services.
Related transactions
Close family members of Seán FitzPatrick got rental income from Anglo of €31,500 (2007: €35,500) on a UK property.
Anglo staff working in the UK on a temporary basis stayed at this property.
Corporate governance
The bank claims to have fully complied with this code “throughout the financial year”.
