Michael Ryan June 1007

Global Interdependence Center Conference, Dublin June 12, 2007 Michael G. Ryan Merrill Lynch International Bank Limited

GIC Conference

Overview

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Merrill Lynch International Bank Limited o

Business

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History

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What’s the attraction?

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Challenges

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The road ahead. . .

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GIC Conference:

Merrill Lynch International Bank Limited

Merrill Lynch International Bank Limited  Headquartered in Dublin o operates through international branches and subsidiaries  The Bank employs 2,350, 750 in Dublin  Total assets $150 bn  $7 bn in capital  Broad base of global markets and private client businesses  Global Markets Debt Derivatives

Foreign Exchange

Corporate Lending

Debt & Equity sales

Loan Trading  Non U.S. Global Private Client Private Client Advisory

Retail Lending & Deposit Taking

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GIC Conference: History History

 Established in 1995 in Dublin, with 35 employees  Expanded to approx 200 people by 2002  Commenced execution on a new phase of expansion in 2003

Head Count

800 600 400 200 0 Q1 Q2 Q3 Q4 Q1 Q2 2003 2003 2003 2003 2004 2004

Q3 Q4 Q1 Q2 Q3 2004 2004 2005 2005 2005

Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2006 2006 2006 2007

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GIC Conference: What’s the Attraction What the attraction?  EU market access  Capacity and opportunity to innovate ◦ Efficient and effective legal, tax, and regulatory environment  Operating leverage; a competitive edge ◦ Balancing cost, productivity, and opportunity ◦ A long-term view . . .  Availability of talent; human capital  Flexibility; ability to react and adapt ◦ Reduce or remove structural barriers

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GIC Conference: Challenges Challenges

 Globalization ◦ . . . challenges from the east, west and within. . .  Managing success  Costs ◦ Changes the business case; justify the premium ◦ Targeted offerings from lower cost economies  Addressing the skills needs ◦Multidimensional challenge

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GIC Conference: The road ahead . . .

The road ahead . . .  Transitional  Initially:  Export driven  Connectivity with local business  As we move forward . . .  Firms are still export driven, but also more engaged with each other and the local market  Focus on high-end activities  Manage the challenges of success ◦ Define the brand

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