Meet the ManagementMeet the Management

AIB Investor DayLondon, 8th November 2006

Donal Forde

Managing Director - AIB Bank Republic of Ireland

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A number of statements we will be making in our presentation and in the accompanying slides will not be based on historical fact, but will be “forward-looking” statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward looking statements. Factors that could cause actual results to differ materially from those in the forward looking statements include, but are not limited to, global, national and regional economic conditions, levels of market interest rates, credit or other risks of lending and investment activities, competitive and regulatory factors and technology change. Any ‘forward-looking statements made by or on behalf of the Group speak only as of the date they are made.

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Forward Looking Statements

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2006

Positive environment

+Our prime competitive position

On course for strong full year profit performance

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2007 – 2010

Our medium term view

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Positive economic environment to continue

Favourable demographics - inward migration driving strong population growth

Housing market supported by strong demand

Strong public finances - potential for increased government spending

Savings ratio remains high - latent investment and consumption potential

Interest rate levels still relatively accommodating

Inflation to fall below 3% by end 2007, 2-3% range thereafter

GDP growth of 5 - 6% in 2007, gentle moderation thereafter

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Business Market - Threat from established Players

AIB standing as primary Business Bank Relationship-based market Confident of sustaining our leadership position - recent momentum

reinforces that confidence

Retail Market - Threat from New Players (Den Danske / HBOS / Fortis)

AIB underweight in many Retail product lines Less “incumbent” mindset - more attacking posture Focus on Personal Deposits, Consumer Lending, Life & Pensions,

General Insurance & Mortgages

Competitive threats are manageable

Market repositioning in 2006 as early execution of this strategy

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Branch channel More radical centralisation of support / administration / account maintenance / telephony /

credit management Heavy promotion of self-service / assisted-service banking Targeting 25% increase in relationship management / sales capacity Focused on business / premium-personal customers

Internet & telephone channels Accelerated internet recruitment

Centralised telephony Channel-exclusive product and price propositions & stronger sales focus

Extending our distribution network Hibernian relationship / AA alliance Mortgage intermediaries

Significant technology investments New banking platform New data centres New core banking system

Upgrading distribution and operations capability

Driving sales momentum, cost efficiency and service differentiation

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Focus on wealth management

High growth potential

Close gap in market share v natural share of client relationships

Actions / initiatives JV product suite targeted at base / centre of customer

pyramid Revitalised AIB wealth proposition targeted at emerging

wealth / top of customer pyramid Integrated distribution team / substantial investment in

technology, training and performance oversight Q3 performance very encouraging

Targeting €100m increase in profit by 2010

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2007 – 2010: what you can expect from us

Irish market loan and deposit growth to be significantly ahead of European peers AIB targeting above market growth in both loans & deposits Significant market share gains in investment sales, pensions & general insurance Product margins

Improving in deposits Stabilising in business and consumer lending Mortgages reducing to c. 80 bps

Costs Current core cost growth is 6 – 7% Investment to sustain growth will add to this level New pay structure increases variability Over-riding discipline is positive jaws target of 3%

Asset quality Confidence underpinned by economy, demographics and underwriting stance

Superior growth / productivity in outperforming market

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In summary

2006

On course for strong performance

2007 - 2010 “Ireland Inc.” to outperform European peers AIB - sustaining its no.1 position in business market

- attacking underweight retail lines

Investing in improved distribution, upgraded operations and wealth management

Confident that we will continue to outperform

Continuing double digit profit growth