Meet the ManagementMeet the Management

AIB Investor DayLondon, 8th November 2006

John O’Donnell

Group Financial Director

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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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Some topical themes

Capital allocation and management

Funding

Net interest margin

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Capital allocation

Allocation to support organic growth our priority Best value creator

Plentiful supply for business exceeding benchmark return

Business divisions as mini plcs, individual EPS assessment

Primary focus on return on regulatory capital; supported and

complemented by return on economic capital Detailed appraisal of return on incremental capital

Basel II - conservative view of quantum and timing of benefits

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Capital outlook

Recourse to shareholders

not on agenda

Management

Actions

15% Internal

Capital

Generation Rate

Further Options

Assumptions

ROE 20%40% Div payout (8%)

12%25% Leverage 3%

15%

Asset sales & leasebacks

Securitisation, other assets

2 year visibility

on capital

(Target tier 1 7%)

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Source of funds

0

20

40

60

80

100

2005 H1 2006

CapitalSenior Debt

ACSCDs & CPsDeposits by banks

Customer a/cs

52%

24%

10%

10%

49%

25%

10%

7%

%

4% 6%3%

7

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2007 2008 2009 2010 2011 2012 2015 2020 2025 Perp.

ACS Snr-Priv.Place. Snr-Benchmk Tier (ii) Tier (i)

Euro 82%

STG 14%

US$ 4%

Step-up issues – adjustedto earliest step-up date

Moody’s S&P Fitch

Aaa AAA AAA

Aa3 A+ AA-

Aa3 A+ AA-

A1 A(Lwr)/A-(Uppr) A+

A2 A- A+

€ (m)

Asset Covered Securities 3,500

Senior Debt - Private Placements 2,800

Senior Debt - Benchmark Issues 6,750

Tier (ii) 3,500

Tier (i) 2,700

Total 19,250

Debt Distribution October 2006€ (m)

Debt funding – well distributed and diversified

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Net interest margin – loans growing faster than deposits

28

14

27

16

28

20

0

5

10

15

20

25

30

2004 2005 Jun-06

Loans

Deposits

%

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Net interest margin - re-investment of customer account funds

Objective to reduce income volatility

Average maturity c. 3.5 years

October re-investment tranche positive; breaking

long negative sequence

Lesser negative in 2007, turning positive in 2008

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Net interest marginMix and competition

Branch loans 32 14 11 6

Home loans 29 31 34 33

Market / other loans 39 55 55 61

Total loans 100 100 100 100

1998 2002 2003 June 2006% of loan book % of loan book % of loan book % of loan book

Business mix (Republic of Ireland)

Margin on branch loans up to 4% higher than other loan categories No material ongoing front book / back book issue

Relative growth in other products also has mix effect e.g. corporate loans, term deposits

Competition expected to remain strong Product margins resilient

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Financial snapshot

All businesses performing strongly and generating good

returns

Income momentum underpinned by buoyant and well spread

pipelines

Investing to sustain growth and maintaining significant

positive income / cost growth gap

Asset quality remains very solid

Growth built on robust capital and funding foundations

Well set to continue high quality growth