Company No 1776304

ANNUAL REPORT AND FINANCIAL STATEMENTS

CDB (U.K.) LIMITED

PERIOD ENDED 31 DECEMBER 2009

*A3KCAJur~
A14 05/05/2010 141
COMPANIES HOUSE
CDB (U K.) LIMITED

Contents
Pages

Corporate information 1

Directors' Report 2-5

Statement of directors' responsibilities 6

Auditors' report 7-8

Statement of Comprehensive income 9

Statement of Financial position 10

Statement of Changes in equity 11

Statement of Cash flows 12

Notes to the financial statements 13 - 32

CDB ( U . ) LIMITED

Directors

DQuilligan (resigned 15 March 2010)

F G Parser
T Walsh
J Brydie

Secretary

F G Parker

Auditors

Deloitte LLP
London

Bankers

Anglo Insh Bank Corporation Limited

10 Old Jewry
London
EC2R 8DN

Registered office

10 Old Jewry
London
EC2R 8DN

Registered number

1776304

Country of incorporation

United Kingdom
 CDB (U.K.) LIMITED

DIRECTORS' REPORT

The directors present their report and the audited financial statements for CDB (U K ) Limited (the Company') for
the penod ended 31 December 2009

1 REVIEW OF THE DEVELOPMENT OF THE BUSINESS

The Company acts as an investment holding company responsible for all subsidiary entities in the United Kingdom
and therefore acting as an intermediate holding company for most of Anglo Irish Bank Corporation Limited {'AIBC')
interests in the U K In the prior penod the Company invested in Japanese Yen Preference shares of a subsidiary
company, thereby facilitating the completion of a Japanese Yen financing arrangement by the CDB (U K ) Limited group
This Japanese Yen arrangement enabled the Company and its subsidianes, together with the AIBC Group, to avail of low
cost financing on an after tax basis at Yen interest rates, due to the significant difference between Sterling interest rates
and Yen interest rates dunng the year This arrangement was ended dunng the current penod

2. PARENT COMPANY
The Company is a wholly owned subsidiary of Anglo Irish Bank Corporation Limited (AIBC'), a company incorporated in
the Republic of Ireland

' 3 PRINCIPAL RISKS AND UNCERTAINTIES

| The pnncipal nsks and uncertainties facing the Company are low as the Company acts as a holding company and
is non-trading The main nsk is the performance of its subsidiary entities and the nsk that the investment may become
| impaired if an entity which the Company has invested in performs poorly thus eroding the value of the investment
; In addition, in the pnor period, the Company was exposed to foreign exchange market nsk on its foreign currency
denominated monetary asset Further detail on the management of this nsk, the mitigation of this risk , and the manner in
which it is managed and controlled by the Company and the AIBC Group is set out in Note 18 of the audited financial
statement

4 CHANGE OF YEAR END

In order to align with the financial reporting period of AIBC, the ultimate parent undertaking, the Company has changed its
reporting penod end from 30 September to 31 December Accordingly the financial statements include 15 months of
operations and cash flows to 31 December 2009, and are therefore not directly comparable to the amounts disclosed
for the pnor period

| 5 RESULTS FOR THE PERIOD AND STATE OF AFFAIRS AS AT 31 DECEMBER 2009

i The results for the year and the Statement of Financial postition at 31 December 2009 are set out, respectively, on
I pages 9 and 10

The profit after taxation for the penod amounted to £350,533,241 (2008 £60,451,672) The increase in profits is due to
foreign exchange movements on the Japanese Yen Preference shares Total equity amounted to £1,663,018,520
as at 31 December 2009 (30 September 2008 £312,485,279)

On 10 October 2008 the sterling authonsed share capital of the Company was increased to £750,000,000 by the
creation of 500,000,000 ordinary shares of £1 each

On 18 November 2008 the sterling authonsed 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 subscnbed by Anglo
' Insh Bank Corporation Limited, the parent company
CDB ( U . ) LIMITED

DIRECTORS' REPORT (Continued)

6 NATIONALISATION OF ULTIMATE PARENT COMPANY

On 15 January 2009, the Insh Government announced its intention to take Anglo Insh Bank Corporation pic ("the
Bank"), the ultimate parent undertaking of the Company, into State ownership The Bank's shares were subsequently
suspended from trading on the Insh and London Stock Exchanges on 16 January 2009 The Anglo Insh Bank
Corporation Act 2009 which provided for the transfer of shares of the Bank to the Insh Minister for Finance ("Minister"), was
signed into Insh law on 21 January 2009 On the same date the Bank was re-registered as a pnvate company and its name
was changed from Anglo Insh Bank Corporation pic to Anglo Insh Bank Corporation Limited ("AIBC")
The Irish Government, following receipt of European Union approval, provided €3 billion of capital to AIBC on
the 29 June 2009, €827 7m on the 4 August 2009, and a provided a further €172 3m of capital on the 25
September 2009 to AIBC On the 30 March 2010 the Irish Government provided a further €8 3bn to AIBC in the form of a
promissory note, fulfilling a commitment given to the Board of AIBC by the Minister on the 22 December 2009 to provide
additional capital support to AIBC, effective 31 December 2009

7 DIVIDEND
The directors do not propose the payment of a dividend in respect of the period ended 31 December 2009
(year ended 30 September 2008 £Nil)

8 GOING CONCERN
The performance of the Company's subsidiary entities has been severely impacted by the current financial and
economic cnsis resulting in impairment of the Company's investment in certain of the subsidianes in the current penod
The directors consider that the outlook remains difficult for the Company and its subsidianes due to the current
economic climate and the impact on our clients businesses which are pnmanly involved in the property industry in the UK

Consequently, this has a significant impact on the Company's future performance including the need for continued support
by AIBC due to the uncertainty over future trading results of the Company's subsidianes Details of the nsk management
and the policies, governance and analysis of risks in the Company are detailed in Note 18 to the financial statements
in particular, details of the nsk management oversight by the AIBC Group of the Company, demonstrating how the
Company and AIBC are reducing nsk in the organisation

The assessment by the directors is underpinned by the fact that the ultimate parent company, Anglo Insh Bank
Corporation Limited, continues to support the Company This includes the provision of a Letter of Support from AIBC
which confirms assistance in meeting the Company's liabilities as and when they fall due at least until 31 July 2011

The Company does not maintain any liquid assets itself and places all surplus funds with and draws any required funds
from AIBC Consequently the Company relies totally on AIBC for the ongoing daily support of liquidity and funds to
enable the Company to function which has operated effectively throughout the penod and continues to do so to the date
of the Director's Report

The directors of the Company have also considered the financial statements of AIBC for the 15 month penod to 31
December 2009 which have been prepared on a going concern basis and the assessment which the directors of AIBC
reached in the preparation of its financial statements

The assessment by the director's of AIBC is underpinned by the Irish Minister for Finance's (Minister) consistent
statements that the Insh Government will ensure the continued viability of all systemic financial institutions,
including AIBC, in a manner which is consistent with EU state aid rules In making this assessment the directors of AIBC
considered the potential impact of the following nsk factors and uncertainties which could affect the future
performance and financial position of AIBC the Insh National Asset Management Agency (NAMA) process on the group,
liquidity nsks, credit quality, regulatory capital, EU state atd considerations and political factors
impacting both the AIBC Group and the industry The timing of the NAMA asset transfers and the valuation haircuts
applied are an important consideration Liquidity nsk considerations take into account the AIBC Group's ability to
continue to access wholesale and money market lines, the ability to continue to access essential central bank and other
CDB (U.K.) LIMITED

DIRECTORS'REPORT (Continued)

8 GOING CONCERN (continued)

special funding facilities, potential re-finance nsks and the impact of forecast customer funding balances Credit
quality will largely follow trends in the main economic environments in which the AIBC Group operates, which are
uncertain In addition decisions by regulatory authorities, the EU or the body politic could adversely impact on AlBC's
ability to continue as a going concern

Notwithstanding the existence of such uncertainties, the directors of AIBC in making the determination have taken into
account the following mitigating factors the capital injection of €4bn in 2009 into AIBC by the Minister, the
Minister's letter of 22 December 2009 which restated his previous commitments in relation to ensunng that the Bank has
sufficient capital to continue to meet its regulatory capital requirements, the subsequent receipt of a promissory note
to the value of €8 3bn in fulfilment of the Minister's commitment, the forecast receipt of senior NAMA bonds in 2010
which will be liquidity enhancing, the improving outlook for both the UK and US commercial property markets, and the
introduction of measures by the Insh Government to improve liquidity including the Insh Government guarantee
introduced in September 2008 and the Credit Institutions Eligible Liabilities Guarantee Scheme ('the ELG Scheme')
introduced in December 2009 As a result the directors of AIBC are satisfied that it is appropnate that the AIBC
Group's financial statements continue to be prepared on a going concern basis

On the basis of the above assessment by the directors of AIBC and the preparation of its group financial statements for
the 15 months ended 31 December 2009, which were published on 31 March 2010, the directors of the Company have a
reasonable expectation that the Company has adequate resources, or will be able to obtain adequate resources from AIBC
in terms of additional funding and/ or equity, to continue in operational existence for the foreseeable future Thus, the
directors continue to adopt the going concern basis of accounting in prepanng the annual financial statements

9 KEY PERFORMANCE INDICATORS

Given the limited scope and nature of the business, and that the Company is a wholly-owned subsidiary of Anglo Irish
Bank Corporation Limited ("AIBC"), the Directors are of the opinion that key performance indicators or other forms of
performance measurement are not necessary in providing an understanding of the development, performance or position
of the Company The parent undertaking of the Company maintains an oversight of the Company's performance under
AlBC's business and governance management structures Further details can be obtained in the Annual Report and
Accounts of AIBC at www anqlomshbank com/investors

10 FUTURE DEVELOPMENTS
The directors will continue to closely monitor the performance of the Company which is totally dependent on the
performance of its underlying subsidiaries

11 DIRECTORS AND SECRETARY

Declan Quilligan resigned as a director on the 15 March 2010 Gordon Parker, James Brydie and Thomas Walsh
continued to serve as directors throughout the penod All directors will continue in office in accordance with the
articles of association Gordon Parker served as secretary throughout the penod The directors and secretary had
no interests in the shares of the Company dunng the penod

12 DISCLOSURE OF INFORMATION TO THE AUDITORS

Each of the persons who is a director at the date of approval of the report confirms that

• so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
• the director has taken all the steps that he ought to have taken as a director in order to make himself aware of any
relevant audit information and to establish that the Company's auditors are aware of that information

The confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006

4
CDB (U LIMITED

DIRECTORS' REPORT (Continued)

13 DIRECTORS INDEMNITIES
The ultimate parent company has made qualifying third party indemnity provisions for the benefit of the Company's
directors which were made dunng the penod and remain in force at the date of this report

14 PAYMENT OF CREDITORS
As the Company is a holding company it does not have trade creditors In the event that the Company did have such
creditors in the future, it is the Company's policy to settle term of payment with supplies where agreeing the terms of
each transaction, ensure that suppliers are made aware of the terms of payment and abide by the terms of payments

15 INDEPENDENT AUDITORS
Ernst & Young LLP, resigned as auditors on 5 October 2009 Deloitte LLP were appointed as auditors on
13 October 2009

Deloitte LLP have indicated their willingness to be reappointed for another term and appropriate arrangements
are being made for them to be deemed reappointed as auditors in the absence of an Annual General Meeting

REGISTERED OFFICE APPROVED BY THE BOARD AND SIGNED

ON ITS BEHALF BY

10 Old Jewry
London
EC2R 8DN
Date 29 Apnl 2010

5
CDB (U.K.) LIMITED

STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

The directors are responsible for prepanng the annual report and the Financial Statements in accordance with
applicable United Kingdom law and International Financial Reporting Standards as adopted by the European
Union (IFRS)

Company Law requires the directors to prepare financial statements for each financial penod 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 penod In prepanng those
financial statements, International Accounting Standards requires that directors

- select suitable accounting policies and then apply them consistently,

- 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, subject to any matenal 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 appropnate
Further details are given in section 8 of the Directors' Report

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 2006 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 prepanng the
financial statements, including preparation of these financial statements in accordance with IFRS Under applicable laws
and regulations, the directors also have responsibility for prepanng a Directors' Report, as set out on pages 2 to 5
that complies with that law and those regulations

BY ORDER OF THE BOARD

T Walsh F G Parker
Director Director

Date 29 Apnl 2010

6
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
CDB (U.K.) LIMITED

We have audited the Financial Statements of CDB (U K ) Limited {'the Company') for the penod ended 31 December
2009 which compnse the Statement of Comprehensive income, the Statement of Financial position, the Statement of
Changes in equity, the Statement of cash flows and the related notes 1 to 24 The financial reporting framework
that has been applied in their preparation is applicable law and International Financial Reporting Standards
(IFRSs) as adopted by the European Union

This report is made solely to the company's members, as a body, in accordance with sections 495 and 496 of the
Companies Act 2006 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

Respective responsibilities of directors and independent auditor

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view

Our responsibility is to audit the financial statements in accordance with applicable law and International Standards on
Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical
Standards for Auditors

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from matenal misstatement, whether caused by fraud or
error This includes an assessment of whether the accounting policies are appropnate to the company's circumstances
and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates
made by the directors, and the overall presentation of the financial statements

Opinion on financial statements

In our opinion the financial statements

- give a true and fair view of the state of the Company's affairs as at 31 December 2009 and of its profit
for the penod then ended
- have been properly prepared in accordance with IFRSs as adopted by the European Union, and
- have been prepared in accordance with the requirements of the Companies Act 2006

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Directors' Report for the financial penod for which the financial
statements are prepared is consistent with the financial statements

7
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
CDB (U.K.) LIMITED (Continued)

Matters on which we are required to report by exception

We have nothing to report in respect of the foflowing matters where the Companies Act 2006 requires us to report to you
if, in our opinion

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us, or
- the financial statements are not in agreement with the accounting records and returns, or
- certain disclosures of directors' remuneration specified by law are not made, or
- we have not received all the information and explanations we require for our audit

Caroline Britton (Senior Statutory Auditor)

for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditors
London, United Kingdom

Date 30 Apnl 2010

8
CDB (U.K ) LIMITED
Statement of Comprehensive income
For the period ended 31 December 2009 15 Months 12 Months
31 Dec 2009 30 Sep 2008
Notes £ £

Interest and similar income 3 18,463,037 5,131,954

.Interest and similar expense 4 (20,190,166) (25,452,911)

Net interest expense (1,727,129) (20,320,957)

'Foreign exchange gains 5 455,925,179 76,401,929

Bank charges
(260) (35)

Other operating income

i 455,924,919 76,401,894

Operating profit before impairment losses 454,197,790 56,080,937

Impairment losses 6 (108,986,712) (3,000,000)

345,211,078 53,080,937
Profit before taxation

Taxation credit g 5,322,163 7,370,735

Profit for the period 350,533,241 60,451,672

Other comprehensive income for the penod

Total comprehensive income for the period

350,533,241 60,451,672
attributable to the equity holders of the Company

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

9
CDB (U.K.) LIMITED
Statement of Financial position 31 December 30 September
As at 31 December 2009 2009 2008
Notes £ £

Non - current assets

Investment in subsidianes 10 1,138,801,541 247,788,253
Investment in preference shares of subsidianes 11 1,357,592,623 1,060,844,285
2,496,394,164 1,308,632,538

Current assets
Other assets 12 527,335,742 9,950,337
Prepayments and accrued income 281
527,335,742 9,950,618

Total assets 3,023,729,906 1,318,583,156

Current liabilities
Other liabilities 13 256,165 1,227,350
256,165 1,227,350
Non - current liabilities
Loans and borrowings 14 1,360,455,221 1,004,870,527

Total liabilities 1,360,711,386 1,006,097,877

Shareholders' equity
Share capital 16 1,253,784,995 253,784,995
Retained profits / (losses) 409,233,525 58,700,284
Shareholders' equity 1,663,018,520 312,485,279
Total shareholders' equity and liabilities 3,023,729,906 1,318,583,156

The notes on pages 13-32 form part of these Financial Statements

The financial statements were approved by the board of directors and authonsed for issue on 29 Apnl 2010

DN BEHALF OF THE BOARD

VA

- G Parker - Director

3ate 29 Apnl 2010

ompany number 1776304

10
CDB (U K.) LIMITED
Statement of Changes in equity
For the period ended 31 December 2009

Share Retained
Note Capital Profits Total
£ £ £

Balance at 1 October 2007 245,785,000 (1,751,388) 244,033,612

I Profit for the year 60,451,672 60,451.672

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

Balance at 30 September 2008 253,784,995 58,700,284 312,485,279

Profit for the penod 350,533,241 350,533,241

Share capital issued 16 1,000,000,000 1,000,000,000

Balance at 31 December 2009 1,253,784,995 409,233,525 1,663,018,520

The notes on pages 13-32 form part of these Financial Statements

i 11
CDB (U K.) LIMITED
Statement of Cash flows
For the period ended 31 December 2009
15 Months 12 Months
31 Dec 2009 30 Sep 2008
Notes £ £

Cash flows from operating activities

Profit before taxation 345,211,078 53,080,937
Non-cash items 17 (182,439,182) 4,363,726
162,771,896 57,444,663

Changes in operating assets and liabilities.

Net decrease in other assets (11,837,916) (1,299,324)
Net (decrease)/ increase in other liabilities (971,185) 1,227,350
Net increase in loans and borrowings 355,584,694 1,003,776,659
Net cash flows from operating activities before taxation 505,547,489 1,061,149,348

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

Net cash flows from operating activities 505,547,489 1,067,156,357

Cash flows from investing activities

Investment in subsidiary undertakings - at cost (1,000,000,000) (5,727,409)
Investment in subsidiary undertakings - monetary cost - (1,060,844,285)
Redemption of government bond - 977
Net cash flows (utilised in) investing activities (1,000,000,000) (1,066,570,717)

Cash flows from financing activities

Proceeds of equity share issue 1,000,000,000 7,999,995
Net cash flows from financing activities 1,000,000,000 7,999,995

Net increase in cash and cash equivalents 505,547,489 8,585,635

Opening cash and cash equivalents 8,585,635 -
Closing cash and cash equivalents 17 514,133,124 8,585,635

The notes on pages 13 - 32 form part of these Financial Statements

12
CDB (U.K.) LIMITED

Notes to the financial statements

Accounting policies

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

1 1 Compliance with IFRS

The Company is a pnvate limited company registered in England and Wales

The Financial Statements have been presented in accordance with International Financial Reporting Standards, as adopted
by the European Union ('IFRS')and applied in accordance with the Companies Act 2006 as applicable at 31 December 2009

1 2 Basis of preparation
The Financial Statements have been prepared under the histoncal cost convention, as modified by the revaluation of certain
assets and liabilities to the extent required or permitted under accounting standards as set out in the relevant accounting
policies They are presented in sterling

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 14 of the
Accounting Policies in these Financial Statements

The Company's business activities, together with the factors likely to affect its future development, performance and
position are set out in the Directors' Reports pages 2 - 5- In addition, note 18 to the Financial Statements includes
the Company's objectives, policies and processes for managing its capital, its financial nsk management objective,
details of its financial instruments and hedging activities, and its exposure to credit nsk and liquidity nsk

As descnbed in the Directors' Report on pages 2 - 5, the current economic environment remains difficult thereby
impacting the carrying value of investments in subsidiaries

Further details of the Pnncipal nsks and uncertainties affecting the Company are set out in note 18 of the Financial
Statements Section 8 of the Directors' Report sets out a detailed assessment of the Company and its ability to operate
as a going concern

Based on this assessment, the Financial Statements are prepared on a going concern basis

In order to align with the financial reporting period of the parent undertaking, the Company has changed its reporting
period end from 30 September to 31 December Accordingly the Financial Statements include 15 months of operations
and cash flows to 31 December 2009, and are therefore not directly comparable to the amounts disclosed for the pnor
penod

1 3 Adoption of new accounting standards

From 1 October 2008 the Company adopted the following standards

- Amendment to IAS 1 - Presentation of financial statements

The Company has early adopted the amendment to IAS 1 which has resulted in certain changes to names and presentation
of the Financial Statements

13
CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1 4 Interest income and expense recognition

Interest income and expense are recognised in the Statement of Comprehensive income for all mterest-beanng financial
instruments using the effective interest rate method

The effective interest rate method is a method of calculating the amortised cost of a financial asset or liability and
of allocating the interest income or interest expense over the relevant penod The effective interest rate is the rate
that exactly discounts the expected future cash payments or receipts through the expected life of the financial
instrument or, when appropnate, a shorter penod, to the net carrying amount of the financial asset or financial liability
I
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 on the unimpaired
portion of that asset using the rate of interest at which its estimated future cash flows were discounted in measunng
jmpairment

1 5 Cash and cash equivalents

For the purposes of the Statement of Cash flows, cash comprises cash on hand and demand deposits including any loans
\o the parent undertaking which acts as the Company's banker Cash equivalents compnse highly liquid investments
that are convertible into cash with an insignificant nsk of changes in value and with original maturities of less than three
nonths

1 6 Investment in subsidiaries

At cost
Investments in subsidianes are held to matunty and are reflected in the Statement of Financial position at cost less
provision for permanent impairment

jl 7 Investment in preference shares in subsidiaries

Monetary asset
nvestments which feature a nght to receive a fixed or determinable number of units of currency are treated as a monetary
isset Where these are tn a foreign currency they are translated at the spot rate of exchange on acquisition and then
e-translated at each Statement of Financial position date as further set out in Note 1 12 of these Accounting Policies

I 8 Financial liabilities
r
inancial liabilities are initially recognised at fair value, being their issue proceeds (fair value of consideration received)
iet of transaction costs incurred Financial liabilities are subsequently measured at either amortised cost or fair value
hrough profit or loss All liabilities, other than those designated at fair value through profit or loss, are subsequently earned
at amortised cost Any difference between proceeds net of transaction costs and the redemption value is recognised tn
he Statement of Comprehensive income 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
l-ontractual 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 Statement of
pomprehensive income as an expense Other gains and losses ansing from changes in fair value are included directly
in the Statement of Comprehensive income within trading losses/profits

14
CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

1 9 Provisions and contingent liabilities

Provisions are recognised for present legal or constructive obligations ansing as consequences of past events where it
is probable that a transfer of economic benefit will be necessary to settle the obligation, and it can be reliably estimated

When the effect is matenal, provisions are determined by discounting expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and, where appropnate, the nsks specific to the liability

Payments are deducted from the present value of the provision and interest at the 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
nse 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

110 Deferred consideration

Deferred consideration represents amounts due to the vendor of Anglo Irish Property Lending Limited which are considered
probable for payment The investment in subsidiary is increased by the anticipated amount of any probable deferred
consideration and the resultant amount due to the vendor is shown in other liabilities, to the extent not already paid No
provision is made in respect of any element of deferred consideration which is considered unlikely to be payable

|1 11 Impairment of financial assets

Provision is made for impairment of financial assets to reflect the losses inherent in those assets at the Statement
of Financial position date

The Company assesses at each Statement of Financial position 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 ('a loss event') and that this event (or
events) has had an impact such 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

i significant financial difficulty of the investee,

ii decrease in net asset values of the investee,
in it becomes probable that the investee will enter bankruptcy or other financial reorganisation,
v observable data indicating that there is a measurable decrease in the estimated future cash flows
from a portfolio of financial assets since the initial recognition of those assets, although the decrease
| cannot yet be identified with the individual financial assets in the portfolio, including
i - adverse changes in the payment status of investees in the portfolio, or
- national or local economic conditions that correlate with defaults on the assets in the portfolio

1 12 Foreign currency translation

Functional and presentational currency
The Financial Statements are presented in Steding, which is the Company's functional and presentational currency

15
CDB (U.K.) LIMITED

i Notes to the financial statements continued

Accounting policies continued

1 12 Foreign currency translation continued

Transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate ruling at the date of the
transaction Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional
currency rate of exchange ruling at the Statement of Financial position date All differences are recognised in the
Statement of Comprehensive income Foreign exchange gains and losses resulting from the settlement of such
transactions and from the retranslation at penod end exchange rates of monetary assets and liabilities denominated
in foreign currencies are recognised in the Statement of Comprehensive income

Non-monetary items that are measured tn terms of histoncal cost in a foreign currency are translated using the
lexchange rates as at the dates of the initial transactions Non-monetary items measured at fair value in the foreign
currency are translated using the exchange rates at the date when the fair value was determined

113 Taxation (current and deferred)

Current tax is the expected tax payable (shown as a liability) or the expected tax receivable (shown as an asset) on
the taxable income for the penod adjusted for changes to previous years and is calculated based on the applicable tax
law in the United Kingdom Deferred tax is provided using the balance liability method on temporary differences ansing
between the tax bases of assets and liabilities for taxation purposes and their carrying amounts in the Financial
Statements Current and deferred taxes are determined using tax rates based on legislation enacted or substantively
enacted at the Statement of Financial position and expected to apply when the related tax asset is realised or the
related tax liability is settled

Deferred tax is determined using tax rates based on legislation enacted or substantially enacted at the Statement of
Financial position date and expected to apply when the deferred tax asset is realised or the deferred tax liability is settled

Deferred tax assets are recognised where it is possible that future taxable profits will be available against which
temporary differences will be utilised

Current and deferred taxes are recognised in the Statement of Comprehensive income in the penod in which the profits or
losses anse except to the extent that they relate to items recognised in equity, in which case taxes are also
•ecogmsed in equity

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

1 14 Significant accounting estimates and judgements

The reported results of the Company are sensitive to the accounting policies, assumptions and estimates that underlie
he preparation of its Financial Statements

|FRS require the directors in prepanng the Company's Financial Statements, to select suitable accounting policies, apply
[hem consistently and make judgements and estimates that are reasonable and prudent

The judgement and estimates involved in the Company's accounting policies that are considered by the directors to be the
nost important to the portrayal of the Company's financial condition and that have a significant nsk of causing a
natenal adjustment to the carrying amount of the assets and liabilities within the next financial year are discussed
|)elow The use of standards, assumptions or models that differ from those adopted by the Company could affect it
eported results

16
CDB (U.K.) LIMITED

Notes to the financial statements continued

Accounting policies continued

I

1 14 Significant accounting estimates and judgements (continued)

Impairment of investments in subsidiaries

In the case of investments in subsidianes the Company has considered the decline in net asset values of subsidianes 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 significant management judgement
Taxation
The taxation charge accounts for amounts due to fiscal authonties in the United Kingdom, and includes estimates
based on a judgement of future profits and the application of law and practice in certain cases in order to determine
the quantification of any liabilities ansing In amving at such estimates, management assesses the relative ments
and nsks of tax treatments assumed, taking into account statutory, judicial and regulatory guidance and, where
.appropriate, external advice Where the final tax outcome is different from the amounts that are currently recorded,
|such differences will impact upon the current and deferred tax amounts in the penod in which such determination is made

115 Consolidation
Consolidated financial statements have not been prepared as the Company is exempt from the obligation to prepare and
deliver group accounts under section 400 of the Companies Act 2006 The Company complies with all the conditions set out
|in section 400 of the Companies Act as a wholly owned subsidiary of a company incorporated in another EEA state

1 16 Prospective accounting changes

The Company has not applied the following new standards, amendments to standards and interpretations (IFRICs) that
have been adopted by the International Accounting Standards Board which would be applicable to the Company with an
effective date after the date of these financial statements

IFRS 8 - Operating Segments,

Amendments to IAS 7 - Statement of Cash Flows,
Amendments to IAS 23 - Borrowing Costs,
Amendments to IAS 24 - Related Party Disclosures,
Amendments to IAS 32 - Financial Instruments Presentation,
Amendments to IAS 36 - Impairment of Assets,
Amendments 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 matenal impact on the Company's results or
Financial Statements

The directors are still considenng the impact of the following new standard
\FRS 9 - Financial instruments

Ldditional standards or amended to standards to be adopted in the future are not listed here as they are not expected
io be relevant to the results of the Company in the future

1 17 Segmental reporting
Business segments are distinguishable components of the Company that provide products or services that are subject
o nsks and rewards that are different to those of other business segments Geographical segments provide products and
Services within a particular economic environment that are subject to nsks and rewards that are different to those of
[components operating in other economic environments

2 Segmental Reporting
The Company only has one business segment which is the investment in subsidianes and one geographical segment
vhich for reporting purposes is the United Kingdom
17
 CDB (U.K.) LIMITED

Notes to the financial statements continued

15 months 12 months
3 interest and similar income 31 Dec 2009 30 Sep 2008
£ £

Interest on preference shares 17,376,086 5,131,954

Interest on intercompany loan to parent undertaking 1,028,656
Foreign currency gain 58,295
18,463,037 5,131,954

Details of the dividend receivable on the preference shares, which is treated as interest income for IFRS, is set out in
Note 11 of these Financial Statements Details of the interest terms on the intercompany loan to the parent
undertaking is set out in note 12 of these Financial Statements
15 months 12 months
4 Interest and similar expense 31 Dec 2009 30 Sep 2008
£ £

Interest on intercompany loan from parent undertaking 25,452,911

Interest on intercompany loan from group undertaking 20,189,763
Interest on other liabilities 403
20,190,166 25,452,911

Details of the terms of the loan from the parent undertaking and the loan form group undertaking are set out in note 14 of
these Financial Statements
15 months 12 months
5 Foreign exchange gains 31 Dec 2009 30 Sep 2008
£ £

Foreign exchange revaluation on foreign currency assets 455,925,179 76,401,929

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 subsidianes to avail of low cost financing on an after tax basis at
Yen interest rates This arrangement was ended dunng December 2008 and January 2009 The gains in the current
period arise from the revaluation of the investment in the preference shares issued by Anglo Irish Treasury Financing
Limited, offset by revaluation of a Japanese Yen loan received from Anglo Insh Asset Finance pic in the current penod
As part of a wider transaction in the AIBC Group, the gains to the Company on foreign exchange on this financing
transaction are offset by other foreign exchange losses in the penod in vanous UK group companies of the parent
undertaking, Anglo Insh Bank Corporation Limited
15 months 12 months
6 Impairment losses 31 Dec 2009 30 Sep 2008
£ £

Impairment of investment in subsidianes 108,986,712 3,000,000

The impairment loss in the current penod is the amount by which the carrying amount of Anglo Insh Asset Finance pic
(£100,000,000), Anglo Insh Property Lending Limited (£5,236,712), Anglo Insh Commercial Properties (No 1) Limited
(£3,000,000) and Argyle Investment Finance Limited (£750,000) exceeded the recoverable amount The impairment loss in
the pnor penod is the amount by which the carrying amount of the investment in Anglo Insh Property Investors Limited, a
subsidiary of CDB (U K ) Limited, exceeded its recoverable amount

As a result, the cost of the investments for each entity were wntten down as detailed in Note 10 of these Financial
Statements

18
 CDB (U.K.) LIMITED

Notes to the financial statements continued

7 Directors' emoluments

No director received any emoluments from the Company (2008 none)

8 Profit before taxation

The audit fee for the statutory accounts is borne by the parent undertaking of the Company, Anglo Insh Bank Corporation
Limited The fee relating to this Company was £20,000
15 months 12 months
Taxation 31 Dec 2009 30 Sep 2008
£ £

Corporation tax

Current penod / year credit (5,322,163) (7,370,735)

Taxation credit (5,322,163) (7,370,735)

Effective tax rate (2%) (14%)

The reconciliation of tax on profit on ordinary activities at the standard corporation tax rate to the Company's actual total
tax charge / (credit) is analysed as follows

Profit before taxation 345,211,078 53,080,937

Profit on ordinary activities before taxation at 28% (2008 29%) 96,659,102 15,393,472
Effects of
Foreign exchange gains on Japanese Yen monetary assets / liabilities (127,271,317) (22,156,559)
Preference dividend income (5,253,038) (1,488,268)
Transfer pncing adjustment 26,811 10,620
Impairment losses 30,516,279 870,000
Total tax charge / (credit) (5,322,163) (7,370,735)

19
CDB (U.K.) LIMITED

Notes to the financial statements continued

Investment in subsidiaries
31 Dec 2009 30 Sep 2008
£ £
Subsidiaries at cost
Anglo Insh Credit pic 7,333,604 7,333,604
Amblepath Properties Limited 10 10
Anglo Insh Asset Limited 74 74
Argyle Investment Finance Limited 1,000,000 1,000,000
Clickinput Limited 1 1
Finance 2000 pic 61,947 61,947
Anglo Insh Carry Partner Limited 1 1
Sutherland Finance and Leasing 82,597 82,597
Anglo Insh Finance Limited 100 100
Anglo Insh Asset Finance pic 1,220,000,000 220,000,000
Anglo Insh Commercial Properties (No 1) Limited 3,000,000 3,000,000
Anglo Insh Commercial Properties Limited 1,125,000 1,125,000
Anglo Insh Capital GP Limited 11,335,000 11,335,000
Anglo Irish Property Lending Limited 5,236,712 5,236,712
Anglo Insh Pnvate Capital Limited 1 1
Anglo Irish Property Investors Limited 3,000,000 3,000,000
Anglo Insh Treasury Financing Limited 100 100
1,252,175,147 252,175,147
Cumulative impairment of investments
Anglo Insh Credit pic (1,386,894) (1,386,894)
Anglo Insh Property Investors Limited (3,000,000) (3,000,000)
Anglo Insh Assets Finance pic (100,000,000)
Anglo Insh Property Lending Limited (5,236,712)
Anglo Insh Commercial Properties (No 1) Limited (3,000,000)
Argyle Investment Finance Limited (750,000)
(113,373,606) (4,386,894)

Total 1,138,801,541*" 247,788,253

The Company indirectly owns the entire issued share capital of Anglo Insh Leasing Limited, I FT Nominees Limited and
Berfors Nominees Limited through Anglo Insh Credit pic

The Company indirectly owns 75% of the equity and loan capital contnbuted to the Anglo Aggmore Limited Partnership
The capital contnbution earns a return of 10% per annum on their capital and thereafter the Company is indirectly entitled
to 50% of the remaining profit of this partnership and its subsidiaries This investment is held through Anglo Irish
Commercial Properties Limited

The Company, through Anglo Insh Capital GP Limited, is the general partner of Anglo Insh Capital UK Limited
Partnership, Anglo Irish Capital UK (2) Limited Partnership and Anglo Insh Capital UK (3) Limited Partnership

All companies and partnerships are registered in England and Wales

All of the above investments are in Sterling except for the investment in Anglo Insh Capital GP Limited which
comprises ordinary shares of €12,500,000 and £2,750,000 (2007 €12,500,000 and £2,750,000)

20
 CDB (U.K.) LIMITED

Notes to the financial statements continued

10 Investment in subsidiaries continued

Details of the pnncipal subsidianes, all of which are consolidated in the AIBC Group, and are registered
in England and Wales are

Principal Country of
Principal subsidiaries Holding activity incorporation

Anglo Insh Credit pic 100% Dormant United Kingdom

Amblepath Properties Limited 100% Investment property United Kingdom
Anglo Irish Asset Limited 74% Hire purchase/leasing United Kingdom
Argyle Investment Finance Limited 100% Property Management United Kingdom
Clickinput Limited 100% Investment Holding Company United Kingdom
Finance 2000 pic 100% Investment Holding Company United Kingdom
Anglo Insh Carry Partner Limited 100% Investment Holding Company United Kingdom
Sutherland Finance and Leasing 100% Dormant United Kingdom
Anglo Insh Finance Limited 100% Finance United Kingdom
Anglo Insh Asset Finance pic 100% Commercial lending & Instalment C United Kingdom
Anglo Insh Commercial Properties (No 1) Ltd 100% Investment Holding Company United Kingdom
Anglo Insh Commercial Properties Limited 100% Investment Holding Company United Kingdom
Anglo Insh Capital GP Limited 100% Investment Holding Company United Kingdom
Anglo Insh Property Lending Limited 100% Commercial Finance United Kingdom
Anglo Irish Private Capital Limited 100% Dormant United Kingdom
Anglo Insh Property Investors Limited 100% Investment Holding Company United Kingdom
Anglo Insh Treasury Financing Limited 100% Finance United Kingdom

11 Investment in preference shares of subsidiaries 31 Dec 2009 30 Sep 2008

£ £

Investment in Anglo Insh Treasury Financing Limited 1,357,592,623 1,060,844,285

This investment in Anglo Insh Treasury Financing Limited is in the form of preference shares These preference
shares are variable rate cumulative preference shares of ¥10,000 each The preference dividend is calculated
at the annual rate of 70% of the sum of the three month Yen LIBOR rate plus 0 875%

12 Other assets 31 Dec 2009 30 Sep 2008

£ £

Amounts owed by group undertakings 13,202,618 1,363,725

Amounts owed by parent undertaking 514,133,124 8,585,635
Other receivables - 977
527,335,742 9,950,337

Amounts owed by group undertakings are provided on an interest free basis with no fixed terms of repayment

Amounts owed by parent undertaking in the current penod, are provided to Anglo Irish Bank Corporation Limited
(AIBC) The facilities are provided to AIBC as part of the ending of the Yen financing arrangement (see Note 5)
and bear interest at GBP libor plus a margin

21
 CDB (U.K.) LIMITED

Notes to the financial statements continued

13 Other liabilities 31 Dec 2009 30 Sep 2008

Sundry liabilities 189 136

Deferred consideration 255,976 1,227,214
256,165 1,227,350

This deferred consideration anses from the onginal acquisition of Anglo Insh Property Lending Limited
A £679,634 provision has not been recognised as a liability as the likelihood of the future liability occurnng
is not considered probable due to losses ansmg in Anglo Insh Property Lending Limited

14 Loans and borrowings 31 Dec 2009 30 Sep 2008

£ £
Amounts Falling Due After One Year
Amounts owed to group undertaking 1,360,455,221 107,213
Amounts owed to parent undertaking - 1,004,763,314
1,360,455,221 1,004,870,527

Amounts owed to group undertaking in the current penod, are pnmarily provided by Anglo Irish Asset Finance pic
The ¥201 billion loan is provided by AIAF as part of the ending of the Yen financing arrangement (see Note 5) and
bears interest at JPY libor plus a margin

Amounts owed to parent undertaking after one year in the prior penod, were provided by Anglo Irish Bank
Corporation Limited The facilities were provided by AIBC to enable the Company to fund its investment in
Anglo Insh Treasury Financing Limited and bear interest at GBP libor plus a margin These were repaid dunng
the current period

The amount owing to group undertaking longer than a year in prior penod is provided by CDB Investments
Limited, and is interest free, with no fixed terms of repayment

15 DEFERRED TAXATION

There is a potential deferred tax liability of £148,663,857 which could arise on a disposal of Anglo Insh Treasury
Financing Limited This has not been recognised as it is not expected that this will anse in the foreseeable future
I

22
 CDB (U.K.) LIMITED

Notes to the financial statements continued

16 Share capital 31 Dec 2009 30 Sep 2008

£ £
Authonsed
3,700,000,000 Ordinary shares of £1 each 3,700,000,000 200,000,000
12,500,000 Ordinary shares of €1 each 8,585,000 8,585,000
50,000,000 £1 Redeemable Preference shares 50,000,000 50,000,000
3,758,585,000 258,585,000

Allotted, called and fully paid

1,199,749,995 Ordinary shares of £1 each 1,199,749,995 199,749,995
12,500,000 Ordinary shares of €1 each 8,585,000 8,585,000
45,450,000 £1 Redeemable Preference shares 45,450,000 45,450,000
1,253,784,995 253,784,995

On 10 October 2008 the sterling authonsed share capital of the Company was increased to £750,000,000 by the
creation of 500,000,000 ordinary shares of £1 each

On 18 November 2008 the sterling authonsed 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 subscnbed by Anglo Insh
Bank Corporation Limited, the parent company, thereby increasing sterling ordinary share capital by
£1,000,000,000 to £1,199,749,995

17 Cash flow statement 31 Dec 2009 30 Sep 2008

£ £
Non-cash items
Net decrease in prepayments and accrued income 281
Group relief to group undertakings 5,322,163 1,363,726
Impairment losses 108,986,712 3,000,000
Exchange movements (296,748,338) -

(182,439,182) 4,363,726

Cash and cash equivalents 31 Dec 2009 30 Sep 2008

£ £

Amounts owed by parent undertaking 514,133,124 8,585,635

514,133,124 8,585,635

18 Risk management and control

The Company is subject to a vanety of nsks and uncertainties in the normal course of its business activities The
pnncipal nsks and uncertainties facing the Company relate to credit nsk on its monetary asset and investments in
subsidianes, liquidity nsk for payment obligations on its loans and borrowings and market nsk ansing from the
structure of the Statement of Financial position The other nsks facing the Company are compliance and
operational nsks

23
 CDB (U.K.) LIMITED

Notes to the financial statements continued

18 Risk management and control continued

A key objective for the Anglo Insh Bank Corporation Limited ('AIBC') group, including the Company, over the next 5
years is to reduce the nsk profile of the business This note descnbes the nsk management and control framework in
place in the AIBC Group and sets out the key nsks which could impact the Company and AIBC Group's future results
and financial position A more detailed analysis of the AIBC Group Risk Management Framework, nsk appetite, nsk
strategy and overall structure is provided m note 51 of the Annual report and Accounts 2009 of AIBC which are
available as detailed in note 20 of these Financial Statements

In order to effectively minimise the impact of these nsks, the directors place significant reliance on the Group
processes and nsk management framework of the vanous committees and control functions of the parent, AIBC
In particular, the AIBC Risk and Compliance Committee oversees nsk management and compliance covenng credit,
market, liquidity and operational nsk The directors of AIBC and the Company delegate their monitonng and control
responsibilities to the AIBC Group Credit Committee for credit matters and to the AIBC Group Asset an Liability
Committee ("AIBC ALCO") for market nsk and liquidity nsk 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, AIBC Group Finance and AIBC Group Internal Audit are central core functions of the
AIBC Group, independent of line management, whose roles include monitonng the Company's activities to ensure
compliance which financial and operating controls The general scheme of nsk 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 pnmary financial asset is an investment in the preference shares of
Anglo Insh Treasury Financing Limited, for which it receives dividend income Other financial assets are non - quoted
investments in subsidiaries and loans to parent undertaking and other group companies The Company is therefore
only exposed to the credit nsk of other group companies of AIBC or to AIBC to itself

Risk concentration
As the Company's pnmary investment is in Anglo Insh Treasury Financing Limited, a fellow group subsidiary of
CDB (U K ) Limited, the Company does nol have an exposure to any other underlying industry or geographic sectors
other than the financial services and real estate investment sectors

The following table presents the Company's maximum exposure to credit nsk before collateral and other credit
enhancements
2009
Exposure in the Statement of Financial position £
Investment in subsidianes - at cost net of impairment 1,138,801,541
Investment in preference shares of subsidianes 1,357,592,623
1
Other assets - loans to group and parent undertaking 527,335,742
Total 3,023,729,906 ii
- •
ii
Market risk
Market nsk is the potential adverse change in income or the value of the net worth ansing from movements in
interest rates, foreign exchange rates or other market pnces Market nsk anses from the structure of the Statement
of Financial position Market risk primanly arises from exposure to changes in interest rates and foreign exchange
rates
 CDB (U.K.) LIMITED

Notes to the financial statements continued

18 Risk management and control continued

The Company's pnmary financial asset is denominated in Japanese Yen This is matched by a Japanese Yen loan
received from Anglo Irish Asset Finance pic in the current penod As such the Company does not have any significant
summanses the foreign exchange exposure of the Company

Currency Statement of Financial position

EUR GBP JPY Total
31 December 2009 £ £ £ £
Assets
Investment in subsidianes 8,585,000 1,130,216,541 1,138,801,541
Investment in preference shares of subsidianes 1,357,592,623 1,357,592,623
Other assets 520,819,014 6,516,728 527,335,742
Prepayments and accrued income
Total assets 8,585,000 1,651,035,555 1,364,109,351 3,023,729,906

Liabilities
Loans and borrowings 107,213 1,360,348,008 1,360,455,221
Other liabilities 256,165 256,165
Total liabilities - 363,378 1,360,348,008 1,360,711,386

Shareholder's equity
Share capital 8,585,000 1,245,199,995 - 1,253,784,995
Retained profits 409,233,525 409,233,525
Shareholders' funds 8,585,000 1,654,433,520 - 1,663,018,520
Total shareholders' equity and liabilities 8,585,000 1,654,796,898 1,360,348,008 3,023,729,906

EUR GBP JPY Total

30 September 2008 £ £ £ £
Assets
Investment in subsidianes 8,585,000 239,203,253 247,788,253
Investment in preference shares of subsidianes 1,060,844,285 1,060,844,285
Other assets 9,950,337 9,950,337
Prepayments and accrued income 281 281
Total assets 8,585,000 249,153,871 1,060,844,285 1,318,583,156

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 8,585,000 245,199,995 - 253,784,995
Retained profits 58,700,284 58,700,284
Shareholders' funds 8,585,000 303,900,279 312,485,279
Total shareholders' equity and liabilities 8,585,000 1,309,998,156 1,318,583,156

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 nsk in the Company Consequently there is no interest rate sensitivity analysis performed
An interest rate re-pncing table is provided in Note 20 of these Financial Statements
25
 CDB (U.K.) LIMITED

Notes to the financial statements continued

18 Risk management and control continued

Liquidity nsk
Liquidity nsk is the nsk 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

It is the Company's policy to ensure that resources are available at all times to meet the Company's or its subsidianes
obligations arising from the drawdown of customer facilities and asset expansion This is achieved through a commitment
from AIBC to continue to provide financial resources for the foreseeable future and at least until the 31 July 2011

All surplus cash is transferred and placed with AIBC on a daily basis by the Company and any cash requirement are drawn
from AIBC daily Consequently, the Company does not carry any independent liquidity for its own purpose and is totally
dependent on AIBC for ongoing support

Liquidity nsk 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 penods

The following tables present the cash flows payable by the Company under financial liabilities by remaining contractual
matunties at the Statement of Financial position date
31 December 2009
Over three Over one
months but year but
Not more not more not more Over
than three than one than five five
months year years years Total
£ £ £ £ £
Financial liabilities
Loans and borrowings 20,189,763 - 80,759,052 1,360,455,221 1,461,404,036
Other liabilities - 256,165 - 256,165
Total financial liabilities 20,189,763 256,165 80,759,052 1,360,455,221 1,461,660,201

Undated loans and borrowings have been included in amounts matunng over 5 years
30 September 2008
Over three Over one
months but year but
Not more not more not more Over
than three than one than five five
months year years years Total
£ £ £ £ £
Financial liabilities
Loans and borrowings 25,452,911 - 101,811,644 1,004,870,527 1,132,135,082
Other liabilities - 565,224 661,990 - 1,227,214
Total financial liabilities 25,452,911 565,224 102,473,634 1,004,870,527 1,133,362,296

Operational risk
Operational nsk represents the nsk that failed or inadequate controls and processes, unauthonsed activities, people or
systems failure, or exposure to external events could result in unexpected losses The nsk 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

The management of operational nsk is monitored by the AIBC Group Risk Management and by the directors

26
 CDB (U.K) LIMITED

Notes to the financial statements continued

18 Risk management and control continued

Compliance nsk
The directors are responsible for ensunng that the Company is compliant with all relevant laws and good
practice guidelines Non compliance can give nse to reputational loss, legal or regulatory sanctions or matenal
financial loss

The AIBC Group Risk and Compliance has oversight of all compliance issues for the AIBC Group, including this Company

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 nsk profile of assets

The capital ratio at penod end were as follows

31 Dec 2009 30 Sep 2008

£ £

Total equity 1,663,018,520 312,485,279

Total Debt 1,360,455,221 1,004,870,527

Debt Equity ratio 0 82 3 22

Total capital has grown during the year due to an increase in issued share capital of £1,000,000,000 Further
detail is provided in Note 15 of these Financial Statements Retention of profits has also increased capital in the
penod

19 Fair value of financial assets and financial liabilities

The following table represents the carrying amount and the fair value of the Company's financial assets and financial
liabilities at the year-end

31 Dec 2009 30 Sep 2008

Carrying
Carryir Carrying
Fair Value Fair Value
Amour
Amount Amount
Financial assets

Investment in preference shares of

1,357,592,623 1,357,592,623 1,060,844,285 1,060,844,285
subsidianes
Other assets 527,335,742 527,335,742 9,950,337 9,950,337

1.884.928.365 1.884.928.365 1.070.794.622 1.070,794,622

Financial liabilities
Loans and borrowings 1,360,455,221 1,360,455,221 1,004,870,527 1,004,870,527
Other liabilities 256,165 256,165 1.227,350 1,227,350
1.360.711.386 1.360.711.386 1.006.097.877 1.006.097.877

The directors believe that the fair value of financial assets and liabilities approximate to their current value The
Financial assets' fair value has been determined utilising a permanent impairment review methodology whereas the
Financial liabilities have an indeterminate repayment date and the fair value is thus considered to be current value
27
 CDB (U.K.) LIMITED

Notes to the financial statements continued

20 Interest rate repricing 31 December 2009

Over three Over six Over one

months but months but year but
Not more not more not more not more Over Non
than three than six than one than five five interest
months months year years years bearing Total
£ £ £ £ £ £ £
Assets
Investment in subsidiaries 1,138,801,541 1,138,801,541
Investment in preference shares of
subsidiaries 1,357,592,623 1,357,592,623
Other assets 514,133,124 13,202,618 527,335,742
Prepayments and accrued income
Total assets 1,871,725,747 1,152,004,159 3,023,729,906

Liabilities
Loans and borrowings (1,360,348,008) (107,213) (1,360,455,221)
Other liabilities (256,165) (256,165)
Total liabilities (1,360,348,008) (363,378) (1,360,711,386)

Shareholders' equity
Share capital (1,253,784,995) (1,253,784,995)
Retained profits (409,233,525) (409,233,525)
Total shareholders' equity - - (1,663,018,520) (1,663,018,520)

Interest rate repricing gap 511,377,739 (511,377,739)

Cumulative interest rate repricing

gap 511,377,739 511,377,739 511,377,739 511,377,739 511,377,739

28
 CDB (U.K.) LIMITED

Notes to the financial statements continued

20 Interest rate repricing continued 30 September 2008

Over three Over six Over one

months but months but year but
Not more not more not more not more Over Non
than three than six than one than five five interest
months months year years years bearing Total
£ £ £ £ £ £ £
Assets
Investment in subsidianes 247,788,253 247,788,253
Investment in preference shares of
1,060,844,285 1,060,844,285
subsidianes
Other assets 9,950,337 9,950,337
Prepayments and accrued income 281 281
Total assets 1,060,844,285 257,738,871 1,318,583,156

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)

Interest rate repricing gap 56,080,971 (56,080,971)

Cumulative interest rate repricing gap 56,080,971 56,080,971 56,080,971 56,080,971 56,080,971

29
 CDB (U.K.) LIMITED

Notes to the financial statements continued

21 Maturity profile 31 December 2009

Over three Over one

months but year but
Not more not more not more Over
than three than one than five five
Demand months year years years Total
£ £ £ £ £ £
Financial Assets

Investment in preference shares of

- -
subsidianes 1,357,592,623 1,357,592,623
Other assets 527,335,742 527,335,742
Total assets - - - - 1,884,928,365 1,884,928,365

Financial Liabilities
Loans and borrowings -
1,360,455,221 1,360,455,221
Other liabilities - - 256,165 256,165
Total liabilities 256,165 - 1,360,455,221 1,360,711,386

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

30
 CDB (U LIMITED

Notes to the financial statements continued

21 Maturity profile (continued) 30 September 2008

Over three Over one

months but year but
Not more not more not more Over
than three than one than five five
Demand months year years years Total
£ £ £ £ £ £
Financial Assets

Investment in preference shares of

subsidianes 1,060,844,285 1,060,844,285
Other assets 9,950,337 9,950,337
Total assets 1,070,794,622 1,070,794,622

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 matunty The matunty profile for those assets and liabilities defined as financial'
has been determined in accordance with groupings that are considered most appropnate for those particular assets and liabilities
Undated loans and borrowings and investments in subsidianes have been included in amounts maturing over 5 years

31
 CDB (U.K.) LIMITED

Notes to the financial statements continued

22 Parent Company
The Company is incorporated in England and Wales and is a wholly owned subsidiary of Anglo Insh 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 Insh Bank Corporation Limited, Stephen Court, 18/21, St Stephen's Green, Dublin 2, Ireland or at
www anglomshbank com/investors

23 Related party transactions

The Company has provided loans to its parent, Anglo Insh Bank Corporation Limited {"AIBC), as at the penod end
The balance on these loans is £514,133,124 (2008 £8,585,635) The Company received interest on the loan
provided by AIBC of £1,028,656 (2008 £nil) Details of the terms of this loan are given in Note 12 of
these Financial Statements

The Company provided loans to other group entities The balance on these loans is £13,202,618 (2008 £1,363,725)
No Interest was charged on these loans

CDB Investments Limited has also provided loans to the Company of £107,213 (2008 £107,213) but does not charge
interest on these loans Anglo Insh Asset Finance has provided loans to the Company of £1,360,348,008 (2008 £Nil) AIAF
charged interest to the Company of £20,189,763 in the penod (2008 £Nil)

AIBC provided loans in the pnor year to the Company of £1,004,763,314 and charged interest to the Company in the prior
penod of £25,542,911

24 Event after the financial reporting date

On 7 April 2009 the Irish Government announced its intention to establish a National Asset Management Agency ('NAMA'),
and on 22 November 2009, the NAMA Act provided for its establishment Under the Act, NAMA will acquire certain assets
from Insh banks including their subsidianes, hold, manage and realise these assets, and facilitate the restructunng
of credit institutions of systemic importance to the Insh economy On 9 February 2010 AIBC applied to be designated as
a participating institution in NAMA This application was accepted by the Insh Minister for Finance ("Minister") on 12
February 2010 AIBC is now legally bound to participate in NAMA and is subject to NAMA's statutory powers This
requirement also applied to AlBC's subsidianes including the Company

NAMA has no direct impact on the Company However two of the Company's subsidiaries, Anglo Irish Asset Finance pic
and Anglo Irish Property Lending Limited will be selling loans to NAMA This may have an impact on the carrying value of
the Company's investments in these subsidianes depending on the level of "haircut" applied by NAMA in the acquisition of
these assets

32