group as at 31 March 2003

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1 Interim group as at 31 March 2003 report ++ INTERIM GROUP REPORT OF DEPFA BANK PLC AS AT 31 MARCH ACCORDING TO US-GAAP ++

2 Shareholders Market capitalisation: bn Number of shares: 35,301, % Bayerische Beamten-Lebensversicherung ag 8.50% Schweizerische Lebensvers.- und Rentenanstalt 6.36% Versorgungsanstalt des Bundes u. d. Länder 59.2% 40.8% 5.78% Bankhaus Lampe KG 5.00% Deutscher Ring Beteiligungs-Holding 2.73% Schmidt-Bank 2.61% Entenial S.A. Free float DEPFA Holding Verwaltungsgesellschaft mbh 1.30% Condor Lebensversicherungs-AG DEPFA BANK Net income and ROE after tax 5 m % / DEPFA BANK The figures for are from the Segmental reporting by operating unit note in the DEPFA Group annual reports.

3 Group figures according to US-GAAP m m Change 5 m % Earnings Total net interest income Net interest income incl. interest from derivatives Net commission income 20 1 Income from sale of assets Trading result 26 4 of which from securities 16 6 of which derivatives valuation 10 6 of which interest 4 Total earnings Personnel expenditure Other administrative expenditure Depreciation on intangible assets Administrative expenditure Other income and expenditure 2 1 Provision for loan losses Income before income taxes Income taxes Income after income taxes Minority interest income Group net income Key ratios (continuing operations) Cost/income ratio 18.8% 18.2% Earnings per share (3) RoE after tax 28.7% 23.6% Portfolio Public sector finance 115, ,503 4, Equity 1,178 1, Total assets 150, ,847 4, Ratings Fitch Moody s S&P DEPFA BANK plc F1+, AA, B P 1, Aa3, B A 1+, AA DEPFA Deutsche Pfandbriefbank AG F1+, AA, B P 1, Aa3, B A 1+, AA DEPFA ACS BANK F1+, AA P 1, Aa3, C A 1+, AA (all figures relate solely to continuing operations and do not include results from discontinued operations ) Group Figures 1

5 Contents Group figures Contents Letter to Shareholders Group balance sheet as at 31 March Group profit and loss account for the period 1 January to 31 March Group statement of changes in shareholders equity Notes to the Group balance sheet and profit and loss account (1) Loans and advances to banks (2) Loans and advances to customers (3) Provision for loan losses (4) Debt securities and other fixed income securities (5) Liabilities to banks (6) Liabilities to customers (7) Debt securities in issue (8) Net interest income (9) Net commission income (10) Trading result (11) General administrative expenses Reporting on financial instruments Other details Board of Directors Addresses Contents 3

6 Letter to Shareholders Ladies and Gentlemen, dear shareholders, We are pleased to submit an interim report that covers an extremely successful first quarter of 2003 not only did we match our own projections during the first three months, but we clearly exceeded our goals. DEPFA s strong earnings performance during 2002 has thus carried on into the current year and underscores the company s outstanding level of profitability. Having achieved Group net income of million (an increase of 72%), equivalent to a return on equity of 22%, during its first year as an independent Public Finance specialist, DEPFA BANK is reaffirming its forecast of at least million for the current year. Thanks to the very strong performance during the first quarter, a result of million for the year as a whole is within reach this would represent a further increase of 27%. These figures are vivid proof of the extremely profitable foundation of our business model. Group net income for the first three months was 3 83 million, up 43% year-on-year. Return on equity after taxes was 29%. At million, total revenues for the first quarter of 2003 were 31% higher year-on-year. Net interest income, including interest components from derivatives, rose by 18%, to 3 80 million, while net commission income also made a distinct improvement, to 3 20 million. (In the first quarter of 2002 there had been a deficit of 3 1 million). The trading result of 3 21 million includes 3 16 million from the securities business. DEPFA BANK plc (110 staff) DEPFA Investment Bank Ltd. (25 staff) 100% 98.2% DEPFA Deutsche Pfandbriefbank AG (110 staff) DEPFA USA Inc. (9 staff) 100% 100% DEPFA ACS BANK (5 staff) Branches & Rep. Offices (56 staff) 4 Letter to Shareholders

7 Compared to the first quarter of 2002 administrative expenditure was up 35%, to 3 27 million. Provisions set aside for performance-related remuneration contributed to this increase. Our cost/income ratio was 19% for the quarter. We do, however, expect a notably higher figure for the year as a whole. Taking into account 3 2 million in other expenditure, profit before taxes totalled million (up 26%). New business generated during the first quarter amounted to billion, bringing our overall lending volume to billion (up 4%). Our success during this first quarter was based above all on an improvement in funding costs as well as the successful expansion of the product range in investment banking. In another important development, DEPFA BANK plc has now established a US agency to further build up its US business. Its remit will be to provide liquidity standby facilities and credit enhancement for public sector bonds: overall, the agency is expected to generate several billion dollars in new business over the next 12 to 18 months. Over recent months, the rating agencies have clearly recognised our strong business performance. A uniform AA rating assigned by all three agencies, FITCH, Moody s Investors Service and Standard and Poor s, means that DEPFA is now among Europe s top-rated banks. Moreover, DEPFA s funding strategy was reinforced by its extremely successful 3 5 billion debut issue of triple-a rated Irish Asset Covered Securities. In summary, the new DEPFA successfully achieved all its objectives set for recent months. On the basis of these positive results, we will propose a dividend of per share to the Annual General Meeting. The DEPFA share price finally began to reflect our strong, above-average profitability by making a recovery to just under 3 50 by the end of April. The release of the consolidated financial statements at the end of March was followed by roadshows across Europe and in the US. The positive trend was sustained with the publication of first-quarter results: the DEPFA share price appreciated by almost 15% within two days, and was trading at around 3 57 in mid-may. The German Stock Exchange included DEPFA in its new look mid-cap MDAX index on 24 March, where the company ranks among the top ten companies by market capitalisation. Thanks to DEPFA s business model and its strong focus on public-sector clients, the bank has avoided the general difficulties facing the banking industry and instead established itself as one of the sector s most profitable institutions. We are confident that this strong performance will be maintained throughout Letter to Shareholders 5

8 Group balance sheet as at 31 March 2003 of DEPFA BANK plc Assets (5 m) Cash and balances with central banks Loans and advances to banks 15,452 13,281 Loans and advances to customers 62,222 59,764 Debt securities and other fixed income securities 65,270 64,566 Equities and other non fixed income securities Equity participations 7 7 Intangible assets 5 5 Property and equipment Other assets 2,979 3,120 Accrued interest and prepaid expenses 3,794 4,421 Total assets 150, ,847 6 Group balance sheet

9 Shareholders equity and liabilities (5 m) Liabilities to banks 45,802 36,774 Liabilities to customers 1,702 3,554 Debt securities in issue 87,515 89,625 Other liabilities 8,757 8,605 Accrued interest and deferred income 3,835 4,752 Provisions Hybrid capital Minority interests Total liabilities 148, ,711 Equity Subscribed capital Capital reserve Retained earnings Other comprehensive income Total equity 1,178 1,136 Total shareholders equity and liabilities 150, ,847 Contingent liabilities and irrevocable loan commitments Contingent liabilities on guarantees and indemnity agreements Irrevocable loan commitments 3,472 4,430 Group balance sheet 7

10 Group profit and loss account for the period 1 January to 31 March 2003 of DEPFA BANK plc 5 m (1) Interest receivable and similar income from lending and money market business fixed income securities Interest payable and similar expenses 1,581 1,483 Net interest income Commission income 29 2 Commission expenditure 9 3 Income from sale of assets Trading result 26 4 Operating income General administrative expenses Depreciation and amortisation of intangible assets and property and equipment 1 2 Other income and expenditure 2 1 Operating results before provision for loan losses Provision for loan losses Income before taxes Income and deferred taxes Income after taxes Minority interest 3 6 Group Net Income from continuing operations Results from discontinued operations 18 Group Net Income Weighted average number of ordinary shares 34,873,481 35,301,972 Earnings per share from continuing operations (5) Earnings per share for discontinued operations (5) 0.51 Total earnings per share (5) Diluted earnings per share (5) (1) The comparative profit and loss account figures for the period to 31 March 2002 are based on the DEPFA Group interim report as at 31 March 2002 reclassified for discontinued operations. 8 Group profit and loss account

11 Group statement of changes in shareholders equity of DEPFA BANK plc 5 m Subscribed capital Capitalreserve Retained earnings Other comprehensive Income Unrealised Unrealised Accumugains/losses result from lated effect from market cash flow of currency valuation of hedges translation securities Total Balance at 1 January ,136 Group net income Other comprehensive income Comprehensive income Dividends Share compensation cost 1 1 Purchase of own shares Balance at 31 March ,178 Group statement of changes in shareholders equity 9

13 Notes to the Group balance sheet and profit and loss account The comparative balance sheet figures and notes to the balance sheet are from the DEPFA Group accounts as at 31 December The comparative profit and loss account figures and notes to the profit and loss account for the period to 31 March 2002 are based on the DEPFA Group interim report as at 31 March 2002 reclassified for discontinued operations. (1) Loans and advances to banks 5 m Public sector loans 5,734 6,164 Property loans Other loans and advances 9,687 7,093 Net deferred items of which premiums of which discounts Total 15,452 13,281 of which repayable on demand (2) Loans and advances to customers 5 m Public sector loans 55,328 53,008 Property loans 5,463 5,787 Other loans and advances 1,402 1,019 Net deferred items of which premiums of which discounts Less provision for loan losses Total 62,222 59,764 Notes to the Group balance sheet and profit and loss account 11

14 (3) Provision for loan losses The movement in the provisions and charges for loan losses for on-balance sheet lending business is as follows: 5 m Total Balance at 1 January Additions Provision for loan losses charged to the profit and loss account Reductions Transfers as part of spin-off 561 Charge-offs 95 Recoveries 3 Balance at 31 March (4) Debt securities and other fixed income securities 5 m Held to maturity Available for sale 64,667 63,925 Trading Total 65,270 64,566 (5) Liabilities to banks 5 m Deposits 14,704 8,929 Other liabilities 31,100 27,848 Net deferred items 2 3 Total 45,802 36,774 of which due on demand 2,432 1, Notes to the Group balance sheet and profit and loss account

15 (6) Liabilities to customers 5 m Deposits 981 2,180 Other liabilities 721 1,373 Net deferred items 1 Total 1,702 3,554 of which due on demand 1 4 (7) Debt securities in issue 5 m Debt securities issued Public sector covered bonds (Öffentliche Pfandbriefe) 52,447 58,222 Mortgage bonds (Hypothekenpfandbriefe) 2,028 2,238 Other debt securities 12,683 9,103 Money market securities 20,666 20,351 Net deferred items Total 87,515 89,625 Notes to the Group balance sheet and profit and loss account 13

16 (8) Net interest income 5 m Interest income from public sector finance Interest income from other lending business and money market transactions including property finance Interest income from fixed income securities Interest expenditure for Pfandbriefe (asset covered bonds) Other debt securities Borrowings Hybrid capital Other banking transactions Total (9) Net commission income 5 m Commission income from banking transactions 29 2 Commission expenditure from banking transactions 7 3 Other commission expenditure 2 0 Total Notes to the Group balance sheet and profit and loss account

17 (10) Trading result 5 m Securities trading results 16 6 Valuation of derivatives / FAS Net interest on trading derivatives 4 Total 26 4 (11) General administrative expenses 5 m Personnel expenditure Wages and salaries Social security costs 2 1 (of which for pensions) 1 Other administrative expenditure 12 7 Total Notes to the Group balance sheet and profit and loss account 15

18 Reporting on financial instruments The following table presents nominal amounts for derivatives as at 31 March 2003: 5 m Nominal amount Residual maturity < = 1 year 1 5 years > 5 years Total Interest rate and currency swaps 36,071 47,056 68, ,678 Interest rate futures and forward rate agreements 2,105 2,105 Interest rate options purchased Interest rate options written 1, ,943 Other interest rate contracts 1,121 2,484 3,445 7,050 Foreign exchange forward contracts 8,166 8,166 Credit derivatives 286 1,174 3,032 4,492 Total 49,640 51,809 75, , Reporting on financial instruments

19 Other details New commitments 5 m Public sector finance 11,882 3,046 Other loans Total 12,406 3,047 Primary sale of debentures including loans taken up 5 m Public sector covered bonds (Öffentliche Pfandbriefe) 4,020 4,180 Other debentures 1, Loans taken up Total 5,751 4,487 Employees Total of which part time employees Other details 17

20 Regulatory capital and equity ratios Own funds (5 m) Central Bank of Ireland Central Bank of Ireland Core capital (Tier I) 1,295 1,053 Supplementary (Tier II) Total own funds 2,158 1,920 Equity ratios Central Bank of Ireland Central Bank of Ireland Core capital ratio 11.2% 8.8% Total capital ratio 18.6% 15.8% The regulatory capital and equity ratios shown for 31 March 2003 and for 31 December 2002 were produced in accordance with the regulations of the Central Bank of Ireland. 18 Other details

21 Board of Directors Executive Members Non-Executive Members Gerhard Bruckermann Chairman and CEO Dr. Richard Brantner, Deputy Chairman Member of Bank Management Board (ret d) Thomas M. Kolbeck Vice Chairman and Deputy CEO Dermot Cahillane Prof. Dr. Alexander Hemmelrath, German Chartered Accountant, tax consultant Founding partner of the law firm Haarmann, Hemmelrath & Partner Fulvio Dobrich Maurice O'Connell Governor of Central Bank of Ireland (ret d) Dr. Reinhard Grzesik Jürgen Karcher Jacques Poos, Member of the European Parliament, Minister of Foreign Affairs (ret d), Luxembourg Hans W. Reich, Chairman of the Board of Managing Directors of Kreditanstalt für Wiederaufbau Prof. Dr. Frances Ruane, Professor at Trinity College, Dublin, Ireland Prof. Dr. Dr. h.c. mult. Hans Tietmeyer, President of Deutsche Bundesbank (ret d) Board of Directors 19

22 Addresses DEPFA BANK plc 3, Harbourmaster Place Dublin 1, Ireland Phone , Fax DEPFA Investment Bank Ltd. International Banking Unit 178 Athalassa Avenue, 2 nd floor 1665 Nicosia, Cyprus Phone , Fax Nordic Representative Office Frederiksgade Copenhagen K, Denmark Phone , Fax London Branch 11/13 Knightsbridge, 3rd floor London SW1X 7LY, United Kingdom Phone , Fax Madrid Representative Office Bárbara de Braganza 2.2 B Madrid, Spain Phone , Fax Paris Branch Succursale de Paris 8, rue Halévy Paris, France Phone , Fax Representative Office Hong Kong 1005 Asia Pacific Finance Tower 3 Garden Road Central, Hong Kong Phone , Fax DEPFA ACS BANK 3, Harbourmaster Place Dublin 1, Ireland Phone , Fax DEPFA UK Limited 11/13 Knightsbridge, 4 th floor London SW1X 7LY, United Kingdom Phone , Fax DEPFA USA Inc. 570 Lexington Ave., 39 th floor New York, N.Y , USA Phone , Fax DEPFA Deutsche Pfandbriefbank AG An der Welle Frankfurt, Germany Phone , Fax Rome Branch Via di Torres Argentinia n.21 (Palazzo Origo) Rome, Italy Phone , Fax Tokyo Branch Atago Green Hills MORI Tower, 41F 2-5-1, Atago, Minato-ku Tokyo , Japan Phone , Fax DEPFA Capital Japan K. K. Atago Green Hills MORI Tower, 41F 5-1, Atago Green 2 chome, Minato-ku Tokyo , Japan Phone , Fax DEPFA Finance N.V. Herengracht BW Amsterdam, Netherlands Phone , Fax Addresses

24 ++ INTERIM GROUP REPORT OF DEPFA BANK PLC AS AT 31 MARCH ACCORDING TO US-GAAP ++ DEPFA BANK plc 3, Harbourmaster Place Dublin 1, Ireland Phone Fax info@depfa.com KCM Kiefer Cross Media AG

Interim Group Report as at 30 June 2002

Interim Group Report as at 30 June 2002 of DEPFA BANK plc according to US GAAP Shareholders Market capitalisation: 3 2 bn Number of shares: 35,301,972 8.50% Bayerische Beamten-Lebensversicherung ag 8.50%