1. Basis of preparation
The financial information presented in this Interim Report for the six months ended 31 March 2007 has been prepared in accordance with the current Listing Rules of the Irish Stock Exchange. The accounting policies and presentation used in preparing this Interim Report are the same as those set out in the Annual Report and Accounts for the year ended 30 September 2006.
Both the interim figures for the six months ended 31 March 2007 and the comparative amounts for the six months ended 31 March 2006 are unaudited. The summary financial statements for the year ended 30 September 2006 as presented in this Interim Report represent an abbreviated version of the Group's full accounts for that year, on which the independent auditor issued an unqualified audit report and which have been filed in the Companies Registration Office in Ireland.
2. Provisions for impairment on loans and advances
| Six months ended 31 March 2007 |
Six months ended 31 March 2006 |
Year ended 30 September 2006 |
|||
|---|---|---|---|---|---|
| €m | €m | €m | |||
| Specific | 31 | 20 | 36 | ||
| Collective | 25 | 15 | 30 | ||
| 56 | 35 | 66 |
3. Taxation
| Six months ended 31 March 2007 |
Six months ended 31 March 2006 |
Year ended 30 September 2006 |
|||
|---|---|---|---|---|---|
| €m | €m | €m | |||
| Irish Corporation Tax | 52 | 33 | 73 | ||
| Irish Bank Levy | - | 1 | 1 | ||
| Foreign tax | 51 | 50 | 83 | ||
| Deferred tax | 7 | 1 | 35 | ||
| 110 | 85 | 192 |
4. Earnings per share
| Six months ended 31 March 2007 |
Six months ended 31 March 2006 |
Year ended 30 September 2006 |
|||
|---|---|---|---|---|---|
| €m | €m | €m | |||
| Basic | |||||
| Profit attributable to ordinary shareholders | €462m | €289m | €657m | ||
| Weighted average number of shares in issue during the period | 726m | 689m | 701m | ||
| Basic earnings per share | 63.6c | 41.9c | 93.7c | ||
| Diluted | |||||
| Profit attributable to ordinary shareholders | €462m | €289m | €657m | ||
| Weighted average number of shares in issue during the period | 726m | 689m | 701m | ||
| Dilutive effect of outstanding options | 8m | 10m | 11m | ||
| Diluted weighted average number of shares | 734m | 699m | 712m | ||
| Diluted earnings per share | 62.9c | 41.3c | 92.3c | ||
| Adjusted basic | |||||
| Profit attributable to ordinary shareholders | €462m | €289m | €657m | ||
| Less: profit after tax on disposal of Isle of Man trust business | (€22m) | - | - | ||
| Adjusted profit | €440m | €289m | €657m | ||
| Weighted average number of shares in issue during the period | 726m | 689m | 701m | ||
| Adjusted basic earnings per share | 60.6c | 41.9c | 93.7c | ||
| Adjusted diluted | |||||
| Profit attributable to ordinary shareholders | €462m | €289m | €657m | ||
| Less: profit after tax on disposal of Isle of Man trust business | (€22m) | - | - | ||
| Adjusted profit | €440m | €289m | €657m | ||
| Weighted average number of shares in issue during the period | 726m | 689m | 701m | ||
| Dilutive effect of outstanding options | 8m | 10m | 11m | ||
| Diluted weighted average number of shares | 734m | 699m | 712m | ||
| Adjusted diluted earnings per share | 59.9c | 41.3c | 92.3c |
Adjusted basic and adjusted diluted earnings per share have been presented to exclude the impact of the profit arising on the disposal of the Isle of Man trust business on the underlying results for the period.
5. Other reserves
| 31 March 2007 | 30 September 2006 | 31 March 2006 | |||
|---|---|---|---|---|---|
| €m | €m | €m | |||
| Share-based payments reserve | 21 | 18 | 15 | ||
| Available-for-sale reserve | (5) | 7 | 9 | ||
| Cash flow hedging reserve | (41) | (24) | (16) | ||
| Exchange translation reserve | 2 | 2 | (1) | ||
| Non-distributable capital reserve | 1 | 1 | 1 | ||
| (22) | 4 | 8 |
6. Dividends
On 9 May 2007, subsequent to the interim balance sheet date, an interim dividend of 6.48 cent per ordinary share was declared by the Board of Directors for payment on 17 July 2007. The interim dividend amounts to €49 million and has not been recorded as a liability on the balance sheet. Shareholders will be offered the option of receiving the dividend in the form of shares or cash.
A final dividend of 10.84 cent per ordinary share was declared in respect of the year ended 30 September 2006. This was paid on 15 February 2007, €45 million in cash and €33 million by way of scrip dividend.
7. Approval
The interim financial statements were approved by the Board of Directors on 9 May 2007.
