CDB UK LTD 2008
CDB UK LTD 2008
CDB UK LTD 2008
1776304
*L2ZTABZZ
LD5 30/07/2009
COMPANIES HOUSE
CDB (U.K.) LIMITED
Contents
Corporate information
Auditors' report
Income statement
Balance sheet
Directors
D Quilligan
F G Parker
T Walsh (Appointed 19 March 2008)
J Brydie (Appointed 19 March 2008)
D Murray (Resigned 22 May 2008)
Secretary
F G Parker
Auditors
Bankers
Registered office
10 Old Jewry
London
EC2R 8DN
Registered number
1776304
Country of incorporation
United Kingdom
CDB (U.K.) LIMITED
The directors present their report and the audited financial statements for CDB (U.K.) Limited ('the Company') for the
year ended 30 September 2008.
4. DIVIDEND
The directors do not propose the payment of a dividend in respect of the year ended 30 September 2008 (2007: £ Nil).
Share capital
On 10 October 2008 the sterling authorised share capital of the Company was increased to £750,000,000 by the creation
of 500,000,000 ordinary shares of £1 each.
2
CDB (U.K.) LIMITED
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 3,700,000,000
ordinary 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 undertaking of the Company, in order to enable the Company to invest in its subsidiaries as considered
appropriate and necessary.
8. PARENT COMPANY
The Company is a wholly owned subsidiary of Anglo Irish Bank Corporation Limited, a company incorporated in
the Republic of Ireland.
3
CDB (U.K.) LIMITED
10 Old Jewry
London
EC2R 8DN F.G Parker - Director
Date: 28 July 2009
4
CDB (U.K.) LIMITED
The directors are responsible for preparing the annual report and the financial statements in accordance with
applicable United Kingdom law and International Financial Reporting Standards (IFRS) as adopted by the European
Union.
Company Law requires the directors to prepare financial statements for each financial year which give a true and fair
view of the state of affairs of the Company and of the profit and loss of the Company for that year. In preparing those
financial statements, the directors are required to:
- present information, including accounting policies, in a manner that provides relevant, reliable, comparable and
understandable information;
- provide additional disclosures when compliance with the specific requirements of IFRS is insufficient to enable users
to understand the impact of particular transactions, other events and conditions on the entity's financial position and
financial performance; and
- state that the company has complied with IFRS, as adopted by the European Union, subject to any material departures
disclosed and explained in the financial statements.
The directors are required to prepare the financial statements on the going concern basis, unless it is not appropriate.
The directors have received confirmation from the parent undertaking of the Company, Anglo Irish Bank Corporation
Limited, of its continued financial support to allow the company to meet its future obligations as they fall due for
the foreseeable future and until at least 31 July 2010. Consequently the Financial Statements continue to be
prepared on the going concern basis.
The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy
at any time the financial position of the Company and which enable them to ensure that the financial statements
comply with the Companies Act 1985. They have general responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
The directors confirm that, to the best of their knowledge, they have complied with these requirements in preparing
the financial statements, including preparation of these financial statements in accordance with IFRS as adopted by
the European Union. Under applicable laws and regulations, the directors also have responsibility for preparing a
Directors' Report, as set out on pages 2 to 4 that complies with that law and those regulations.
5
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
CDB (U.K.) LIMITED
We have audited the Financial Statements of CDB (U.K.) Limited for the year ended 30 September 2008
which comprise the Income Statement, the Balance Sheet, the Statement of Changes in Equity, the Cash Flow
Statement and the related notes 1 to 24. These Financial Statements have been prepared under the accounting policies
set out therein.
This report is made solely to the Company's members, as a body, in accordance with Section 235 of the Companies
Act, 1985. Our audit work has been undertaken so that we might state to the Company's members those matters we are
required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our
audit work, for this report, or for the opinions we have formed.
The Directors' responsibilities for preparing the Financial Statements in accordance with applicable United Kingdom
law and International Financial Reporting Standards (IFRS) as adopted by the European Union as set out in the
Statement of Directors' Responsibilities.
Our responsibility is to audit the Financial Statements in accordance with relevant legal and regulatory requirements and
International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the Financial Statements give a true and fair view and are properly prepared
in accordance with the Companies Act 1985. We also report to you whether the information given in the Director's
Report is consistent with the Financial Statements.
In addition we report to you if, in our opinion, the Company has not kept proper accounting records, if we have not
received all the information and explanations we require for our audit, or if information specified by law
regarding directors' remuneration and other transactions with the Company is not disclosed.
We read the Directors' Report and consider the implications for our report if we become aware of any apparent
misstatements.
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the
Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and
disclosures in the Financial Statements. It also includes an assessment of the significant estimates and judgements
made by the directors in the preparation of the financial statements, and of whether the accounting policies are
appropriate 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 Financial
Statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming
our opinion we also evaluated the overall adequacy of the presentation of information in the Financial Statements.
6
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
CDB (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, of
the state of affairs of the company 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.
Date:
7
CDB (U.K.) LIMITED
Income statement
For the year ended 30 September 2008
2008 2007
Notes £ £
Investment income 5 73
Foreign exchange gains on monetary asset 6 76,401,929
Bank charges (35)
8
CDB (U.K.) LIMITED
Balance sheet
As at 30 September 2008 2008 2007
Notes £ £
Current assets
Other assets 14 9,950,337 65,378
Prepayments and accrued income 281 281
9,950,618 65,659
Current liabilities
Other liabilities 15 1,227,350
1,227,350
Non - current liabilities
Loans and borrowings 16 1,004,870,527 1,093,868
Shareholders' equity
Share capital 18
Retained profits / (losses)
Shareholders' equity 312,485,279 244,033,612
Total shareholders' equity and liabilities 1,318,583,156 245,127,480
9
CDB (U.K.) LIMITED
Statement of changes in equity
For the year ended 30 September 2008
Share Retained
Capital Profits Total
£ £ £
10
i
CDB (U.K.) LIMITED
Cash flow statement
For the year ended 30 September 2008
2008 2007
Notes £ £
11
CDB (U.K.) LIMITED
1 Accounting policies
The significant accounting policies adopted by the Company are set out below.
The Financial Statements have been presented in accordance with International Accounting Standards and International
Financial Reporting Standards (collectively 'IFRS'), as adopted by the European Union and applied in accordance with the
Companies Act 1985 and applicable at 30 September 2008.
The preparation of Financial Statements in conformity with IFRS requires management to make estimates and assumptions
that affect the reported amounts of certain assets, liabilities, revenues and expenses, and disclosures of contingent
assets and liabilities. Since management's judgement involves making estimates concerning the likelihood of future
events, the actual results could differ from those estimates. Some estimation techniques involve significant amounts of
management judgement, often in areas which are inherently uncertain. Further detail is provided in Note 1.13 of the
of the Accounting Policies.
The Financial Statements are prepared on a going concern basis, as Anglo Irish Bank Corporation Limited, the
parent undertaking of the Company, has agreed to provide financial support to the Company as would be required to
allow 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 accordance
with IFRS.
Recent amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures permit the reclassification of certain financial instruments from held for trading and available-for-sale
financial assets. The Company has not made any such reclassifications.
12
CDB (U.K.) LIMITED
Income statement
For the year ended 30 September 2008
2008 2007
£ £
Notes
Investment income 5 73
Foreign exchange gains on monetary asset 6 76,401,929
Bank charges (35)
Notes £ £
Current assets
Other assets 14 9,950,337 65,378
Prepayments and accrued income 281 281
f; 9,950,618 65,659
Current liabilities
1,227,350
Other liabilities 15 1,227,350 -
Total liabilities
253,784,995 245,785,000
Shareholders' equity 58,700,284 (1,751,388)
Share capital 18 312,485,279 244,033.612
Retained profits I (losses) 1,318,583,156 245,127,480
Shareholders' equity
Total shareholders' equity and liabilities
The notes on pages 1 2 - 3 1 form part of these Financial Statements.
ON BEHALF OF THE BOARD:
Share Retained
iv Capital Profits Total
£ £ £
v,
i •} '
u.'
-
t
CDB (U.K.) LIMITED
Cash flow statement
For the year ended 30 September 2008
2008 2007
Notes £ £
r
Tax - group relief from parent undertaking 6,007,009 -
1 Accounting policies
The significant accounting policies adopted by the Company are set out below.
The Financial Statements have been presented in accordance with International Accounting Standards and International
Financial Reporting Standards (collectively 'IFRS'), as adopted by the European Union and applied in accordance with the
Companies Act 1985 and applicable at 30 September 2008.
The preparation of Financial Statements in conformity with IFRS requires management to make estimates and assumptions
that affect the reported amounts of certain assets, iiabilities, revenues and expenses, and disclosures of contingent
assets and liabilities. Since management's judgement involves making estimates concerning the likelihood of future
events, the actual results could differ from those estimates. Some estimation techniques involve significant amounts of
management judgement, often in areas which are inherently uncertain. Further detail is provided in Note 1.13 of the
of the Accounting Policies.
The Financial Statements are prepared on a going concern basis, as Anglo Irish Bank Corporation Limited, the
parent undertaking of the Company, has agreed to provide financial support to the Company as would be required to
allow 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 accordance
with IFRS.
Recent amendments to IAS 39 Financial Instruments: Recognition and Measurement and IFRS 7 Financial Instruments:
Disclosures permit the reclassification of certain financial instruments from held for trading and available-for-sale
financial assets. The Company has not made any such reclassifications.
12
CDB (U.K.) LIMITED
The calculation includes all fees, transaction costs and other premiums and discounts that are an integral part of the
effective interest rate on the transaction.
Once an impairment loss has been recognised on an individual asset, interest income is recognised using the rate of
interest at which the estimated future cash flows were discounted in measuring impairment.
1.7 Investments
At cost
Investments in subsidiaries are held to maturity and are reflected in the Balance Sheet at cost less provision for
permanent impairment.
Quoted
Monetary asset
Investments which feature a right to receive a fixed or determinable number of units of currency are treated as a monetary
asset. Where these are in a foreign currency they are translated at the spot rate of exchange on acquisition
and then re-translated at each balance sheet date as further set out in Note 1.11 of the Accounting Policies.
1.8 Financial liabilities
Financial liabilities are initially recognised at fair value, being their issue proceeds (fair value of consideration received)
net of transaction costs incurred. Financial liabilities are subsequently measured at either amortised cost or fair value
through profit or loss. All liabilities, other than those designated at fair value through profit or loss, are subsequently
carried at amortised cost. Any difference between proceeds net of transaction costs and the redemption value
is recognised in the income statement using the effective interest rate method.
The classification of an instrument as a financial liability or an equity instrument is dependent on the substance of the
contractual arrangement. Instruments which carry a contractual obligation to deliver cash or another financial asset to
another entity are classified as financial liabilities. Interest on these instruments are recognised in the income statement
as an expense. Other gains and losses arising from changes in fair value are included directly in the income statement
within trading losses/profits.
13
CDB (U.K.) LIMITED
When the effect is material, provisions are determined by discounting future cash flows at a pre-tax rate that reflects
current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Payments are deducted from the present value of the provision and interest at a relevant discount rate is charged
annually to interest expense. Changes in the present value of the liability as a result of movements in interest rates
are included in other financial income. The present value of provisions are included in other liabilities.
Other contingencies
Contingent liabilities are possible obligations whose existence will be confirmed only by uncertain future events giving
rise to present obligation where the transfer of economic benefits is uncertain and cannot be reliably measured. Contingent
liabilities are not recognised but are disclosed in the notes to the financial statements unless they are remote.
The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a
portfolio of financial assets is impaired. A financial asset or portfolio of financial assets is impaired and impairment
losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more loss events that
occurred after the initial recognition of the asset and that the estimated present value of future cash flows is less than
the 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 that
comes to the attention of the Company about the following loss events:
The financial statements are presented in Sterling, which is the Company's functional and presentational currency.
14
CDB (U.K.) LIMITED
Deferred tax is determined using tax rates based on legislation enacted or substantially enacted at the balance sheet
date and expected to apply when the deferred tax asset is realised or the deferred tax liability is settled.
Deferred tax assets are recognised only to the extent that it is more likely than not that there is suitable taxable profits
from which the future reversal of the underlying timing differences can be deducted.
Deferred and current tax assets and liabilities are only offset where there is both the legal right and intention to settle on a
net basis, or to realise the asset and settle the liability simultaneously.
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect
the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and
expenses during the year. However, 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 would
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year, are as follows:
Impairment of investments
In the case of investments the Company has considered the decline in net asset values of subsidiaries to ascertain whether
any impairment has occurred. Impairment is recognised when there is objective evidence that a specific investment is
impaired. Evidence of impairment is assessed by reference to the underlying net assets of the subsidiary, and all other
available information. The determination of whether or not objective evidence of impairment is present requires the exercise
of management judgement.
15
CDB (U.K.) LIMITED
1.14 Consolidation
Consolidated financial statements have not been prepared as the Company is a wholly owned subsidiary of a company
incorporated in the European Union under section 228 of the Companies Act 1985.
These will be adopted in future years and are not expected to have a material impact on the Company's results or
Financial Statements.
Additional standards to be adopted in the future are not listed here as they are not expected to be relevant to the results
in the future.
2 Segmental reporting
The Company only has one geographical segment which for reporting purposes is the United Kingdom.
Details of the dividend receivable on the preference shares, which is treated as interest income for IFRS, is set out in
Note 12 of these Financial Statements.
Details of the terms of the loan from the parent undertaking is set out in Note 16 of these Financial Statements.
Investment income 73
Revaluation on foreign currency assets represents the impact of a Japanese Yen financing arrangement, entered into in
May 2008 to enable the Company and certain subsidiaries to avail of tow cost financing on an aftertax basis at Yen
interest rates. The gains arise from the revaluation of the investment in the preference shares issued by Anglo Irish
Treasury Financing Limited. The gains to the Company on foreign exchange on this financing transaction are offset by
other foreign exchange losses in the period in various UK group companies of the parent undertaking, Anglo Irish Bank
Corporation Limited.
The impairment loss in the current year is the amount by which the carrying amount of the investment in Anglo Irish
Property Investors Limited, a subsidiary of CDB (U.K.) Limited, exceeds its recoverable amount. Asa result, the cost of
of the investment was written down to £Nil as detailed in Note 11 of these Financial Statements.
8 Directors' emoluments
The audit fee is borne by the parent undertaking of the Company, Anglo Irish Bank Corporation Limited.
17
CDB (U.K.) LIMITED
The reconciliation of current tax on profit on ordinary activities at the standard corporation tax rate to the Company's
actual current tax credit is analysed as follows:
250,788,253 245,060,844
247,788,253 245,060,844
CDB (U.K.) LIMITED
All of the above investments are in Sterling except for the investment in Anglo Irish Capital GP Limited which
comprises ordinary shares of €12,500,000 and £2,750,000 (2007:€12,500,000 and £2,750,000).
Details of subsidiaries, ail of which are consolidated, and are registered in England and Wales are:
Principal Country of
Principal subsidiaries Holding activity incorporation
This investment in Anglo Irish Treasury Financing Limited is in the form of preference shares. These preference shares are
variable rate cumulative preference shares of ¥10,000 each. The preferential dividend is calculated at the annual rate of
70% of the sum of the three month Yen LIBOR rate plus 0.875%. The following issuances were made in the period to
CDB (U.K.) Limited:
Date £ equivalent
5,065,483 shares of ¥10,000 each 7 May 2008 266,049,792
10,023,242 shares of ¥10,000 each 12 May 2008 526,441,693
5,011,621 shares of ¥10,000 each 13 May 2008 263,220,846
Preference shares 1,055,712,331
19
CDB (U.K.) LIMITED
13 Quoted Investments
The quoted investments matured during the year to 30 September 2008. They had a market value of £977 at
30 September 2007 and were listed on the London Stock Exchange.
9,950,337 65,378
Amounts owed by group undertakings and the parent undertaking are provided on an interest free basis with no
fixed terms of repayment.
This deferred consideration arises from the original acquisition of Anglo Irish Property Lending Limited. Of
this liability £565,224 was paid since September 2008. A further £679,634 provision has not been recognised
as a liability as the likelihood of the future liability occurring is not considered probable.
Amounts owed to parent undertaking 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 Limited and bears interest at Yen libor plus a margin.
The amount owing to group undertaking longer than a year is provided by CDB Investments Limited, and is
interest free, with no fixed terms of repayment.
20
CDB (U.K.) LIMITED
258,585,000 258,585,000"
Allotted, called and fully paid
199,749,995 Ordinary shares of £1 each 199,749.995 191,750,000
12,500,000 Ordinary shares of €1 each 8,585,000 8,585,000
45,450,000 £1 Redeemable Participating Preference shares 45,450,000 45,450.000
253,784,995 245,785,000
On 26 September 2008, 7,999,995 ordinary shares of £1 each were issued at par and subscribed by Anglo
Irish Bank Corporation Limited.
On 18 November 2008 the sterling authorised share capital was increased to £3,750,000,000 divided into
3,700,000,000 ordinary shares of £1 each and 50,000,000 redeemable preference shares of £1 each. On the
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 company.
21
CDB (U.K.) LIMITED
The Company is subject to a variety of risk and uncertainties in the normal course of its business activities. The
principal risk and uncertainties facing the Company relate to credit risk on its monetary asset and investments in
subsidiaries, liquidity risk for payment obligations on its loans and borrowings and market risk arising from the
structure of the balance sheet. 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 of
the various committees and control functions of the parent, Anglo Irish Bank Corporation Limited ("AIBC"). tn
particular, the AIBC Risk and Compliance Committee oversees risk management and compliance covering credit,
market, liquidity and operational risk. The directors of AIBC and the Company delegate their monitoring and control
responsibilities to the AIBC Group Credit Committee for credit matters and to the AIBC Group Asset and Liability
Committee ("AIBC ALCO") for market risk and liquidity risk matters. The members of these committees include
senior management and non-executive directors from throughout the AIBC Group and are supported by a
dedicated 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 management, whose roles include monitoring the Company's activities to ensure compliance with financial
and operating controls. The general scheme of risk management, financial control and operational control is
designed to safeguard the Company's assets while allowing sufficient operational freedom for the business units
to earn a satisfactory return for shareholders.
Credit risk
Credit Risk is the risk that the Company will suffer financial loss from a counterparty failure to pay interest, repay
capital or meet a commitment. The Company's primary financial asset is an investment in the preference shares of
Anglo Irish Treasury Financing Limited, for which it receives dividend income. Other financial assets are non - quoted
investments in subsidiaries. The Company is therefore only exposed to the credit risk of other group companies of
Anglo Irish Bank Corporation Limited.
Risk concentration:
As the Company's primary investment is in Anglo Irish Treasury Financing Limited, a fellow group subsidiary of
CDB (UK) Limited, the Company does not have an exposure to any other underlying industry or geographic sectors
other than the financial services and real estate investment sectors.
Market risk
Market risk is the potential adverse change in income or the value of the net worth arising from movements in
interest rates, foreign exchange rates or other market 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 foreign
exchange exposure of the Company. The Company incurs foreign exchange risk on the Japanese Yen financing
arrangement which is set off against gains across various UK group companies which are integral to the overall
operation of this transaction which is beneficial to the results of the UK group.
22
CDB (U.K.) LIMITED
Liabilities
Loans and borrowings 1,004,870,527 1,004,870,527
Other liabilities 1,227,350 1,227,350
Total liabilities 1,006,097,877 1,006,097,877
Shareholder's equity
Share capital
Retained profits
Shareholders' funds 312,485,279 312,485,279
Total shareholders' equity and liabilities 1,318,583,156 1,318,583,156
This table is not provided for 2007 as all assets and liabilities were denoted in GBP.
The Company'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 Company. Consequently there is no interest rate sensitivity analysis performed.
An interest rate re-pricing table is provided in Note 20 of these Financial Statements.
23
CDB (U.K.) LIMITED
Liquidity risk
Liquidity risk is the risk that the Company does not have sufficient financial resources available at all times to meet
its contractual and contingent cashflow obligations or can only secure these resources at excessive cost.
Liquidity risk is measured using the cash flow mismatch approach where cash inflow and outflow are analysed to
produce a net cash flow position over set time periods.
The following tables present the cash flows payable by the Company under financial liabilities by remaining contractual
maturities at the balance sheet date.
Undated loans and borrowings have been included in amounts maturing over 5 years.
Operational risk
Operational risk represents the risk that failed or inadequate processes, people or systems, or exposure to external
events could result in unexpected losses. The risk is associated with human error, systems failure, and inadequate
controls and procedures. Due to the limited nature of the Company's activities it is difficult for the Company to
suffer an operational error.
Compliance risk
The Board of Directors are responsible for ensuring that the Company is compliant with all relevant laws and good
practice guidelines. Non compliance can give rise to reputational loss, legal or regulatory sanctions or material
financial loss.
The Risk and Compliance Committee of the main board of Anglo Irish Bank Corporation Limited, the parent
undertaking, has oversight of all compliance issues for the Anglo Irish Bank Corporation Limited group, including
this Company.
Compliance is charged with defining and identifying regulatory and compliance risks and developing a compliance
programme for the Company that includes the implementation and review of specific policies and procedures,
compliance monitoring and education of staff on regulatory and compliance matters.
24
CDB (U.K.) LIMITED
Capital management
The objectives of the Company's capital management policy are to efficiently manage the capital base to
optimise the return of the Company.
The responsibility for capital adequacy rests with the directors. The directors manage the capital structure and
make adjustments to it in light of changes in economic conditions or changes in the risk profile of assets.
2008 2007
£ £
Total capital has grown during the year due to retention of profits. The capital ratio has increased as a result of the
increase in debt, which increased during the year due to facilities provided by Anglo Irish Bank Corporation Limited
to enable the Company to fund the acquisition of preference shares in Anglo Irish Treasury Financing Limited.
In order to strengthen the capital position of the Company, on 18 November 2008, the issued share capital of the
Company was increased by £1,000,000,000. Further details are provided in Note 18 of these Financial Statements.
25
CDB (U.K.) LIMITED
Liabilities
Loans and borrowings (1,004,763,314) (107,213) (1,004,870,527)
Other liabilities - (1,227,350) (1,227.350)
Total liabilities (1,004,763,314) (1,334.563) (1,006,097,877)
Shareholders' equity
Share capital (253,784,995) (253,784,995)
Retained profits (58,700,284) (58,700,284)
Total shareholders' equity (312,485,279) (312,485,279)
26
CDB (U.K.) LIMITED
Liabilities
Loans and borrowings (1,093,868) (1,093,868)
Other liabilities
Total liabilities (1,093,868) (1,093,868)
Shareholders' equity
Share capital (245,785,000) (245,785,000)
Retained profits 1,751,388 1.751,388
Total shareholders' equity (244,033,612) (244.033,612)
Cumulative interest rate repricing gap g77 977 977 977 977
27
CDB (U.K.) LIMITED
Financial Liabilities
Loans and borrowings 1,004,870,527 1,004,870,527
Other liabilities 565,224 661,990 1,227,214
Total liabilities 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.
28
CDB (U.K.) LIMITED
Financial Liabilities
Loans and borrowings 986,655 107,213 1,093,868
Other liabilities
Total liabilities 986,655 107,213 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.
29
CDB (U.K.) LIMITED
22 Parent Company
The Company is incorporated in England and Wales and is a wholly owned subsidiary of Anglo Irish Bank Corporation
Limited, a company incorporated in the Republic of Ireland. The company's financial statements have been consolidated
only in the group financial statements of the parent company and a copy of these financial statements are available
from Anglo Irish Bank Corporation Limited, Stephen Court, 18/21, St. Stephen's Green, Dublin 2, Ireland.
Share capital
On 10 October 2008 the sterling authorised share capital of the Company increased to £750,000,000 by the creation of
500,000,000 ordinary shares of £1 each,
On 18 November 2008 the sterling authorised share capital increased to £3,750,000,000 divided into 3,700,000,000
ordinary 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 undertaking of the Company.
30
CDB (U.K.) LIMITED
31