Meet the Management

Meet the ManagementMeet the Management

AIB Investor DayLondon, 8th November 2006

Meet the Management

Meet the Management

Eugene SheehyC.E.O.

John O’DonnellGroup Financial Director

Gerry ByrneAIB Poland

Robbie HenneberryAIB Bank UK

Donal Forde AIB Bank RoI

Colm Doherty AIB Capital Markets

Steve Meadows Operations & Technology

Rene JonesCFO, M&T

08.00 – 08.30 Refreshments

08.30 – 08.40 Introduction Eugene Sheehy

08.40 – 09.10 AIB Bank Republic of Ireland Donal Forde

09.10 – 09.40 AIB Bank United Kingdom Robbie Henneberry

09.40 – 10.10 AIB Poland Gerry Byrne

10.10 – 10.40 Refreshments

10.40 – 11.10 AIB Capital Markets Colm Doherty

11.10 – 11.40 AIB Operations & Technology Steve Meadows

11.40 – 12.10 M&T Bank Rene Jones

12.10 – 12.25 Group Finance John O’Donnell

12.25 – 12.55 Open Q & A

12.55 – 13.00 Wrap up and close Eugene Sheehy

13.00 Refreshments

Meet the Management



Donal Forde

Managing Director - AIB Bank Republic of Ireland

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.

visit www.aibgroup.com/investorrelations

Forward Looking Statements

2006

Positive environment

+Our prime competitive position

On course for strong full year profit performance

2007 – 2010

Our medium term view

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

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

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

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

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

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



Robbie Henneberry

Managing Director – AIB Group (UK) p.l.c.

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.


Forward looking statements

UK Division - a snapshot

UK regulated & incorporated since 1996

Trades as:

In GB - business banking

In NI - retail & business banking

15% of group profits

3,000 staff, 550,000 customers

£13bn loans, £8bn deposits

Business origination through 4 units: GB, FTB, mid-corporate, wealth management

Allied Irish Bank (GB)

First Trust Bank (FTB)

020

4060

80100

120140

160180

200220

240

2000 2001 2002 2003 IAS 2004 2005

0

2,000

4,000

6,000

8,000

10,000

12,000

2000 2001 2002 2003 2004 2005

Loans Deposits

46%

47%

48%

49%

50%

51%

52%

53%

2000 2001 2002 2003 2004 IAS 2004 2005

0.91

1.46

1.37 0.95

0.79

1.02

0.93

0

1

2

3

Dec-00 Dec-01 Dec-02 Dec-2003 Dec-2004 Dec-2005 Jun-2006

%

PBT CAGR 12.1% Loans CAGR 21.0% Deposits CAGR 14.4%

Impaired Loans

% of Average Loans

Cost / Income ratio

Strong track record

AIB (GB) – Great Britain

0

20

40

60

80

100

120

140

2000 2001 2002 2003 IAS 2004 2005

PBT

£’m PBT CAGR 15.5%

32 full service branches & 12 business development offices Full relationship management service to businesses in selected

sectors & connected personal customers Targeting relatively resilient sectors, avoiding adverse selection Continued migration from small to higher value mid market business

banking Distinctive customer proposition built on quality of people, customer

relationship & speed of decision making

First Trust Bank – Northern Ireland

0

20

40

60

80

100

120

2000 2001 2002 2003 IAS 2004 2005

PBT

£’m CAGR 8.9%

56 full service branches providing retail banking services to personal and business customers

Good performance in a lower growth environment (NI GDP 2.2%) notably in business banking and home mortgages

Reinvigorating revenue streams with refreshed proposition – new mortgages, personal loan & deposits launched - new personal current account in progress

Continued focus on efficiency and cost management

Mid-Corporate Banking

Regional Teams Established in London, Birmingham, Manchester, Leeds, Glasgow &

Belfast - loans £2.5bn Focused on healthcare, leisure industry, horse racing, hotels and

environmental services ‘Bank of choice’ in chosen high potential segments

Public Sector & Charities Established reputation and market share in education, social

housing, publicly funded healthcare, PFI & structured finance

Property Finance Unit New business initiative - phased build-up since January 2006 Develop existing relationships to build a high return portfolio of

leveraged property transactions for established operators

Wealth management

Private Banking Established presence in London & Belfast, capability now in

Birmingham, Manchester & Edinburgh Full relationship management service to HNW segment connected to

business customers Developing proposition with wider range of investment, protection &

pension products/services

Regulated Sales 45 IFAs throughout the branch network in GB and NI Sales momentum building with increased referrals from the network Developing lower cost delivery channel for mass market in Northern

Ireland with retention of IFAs for HNW segment Efficiency improvements through a combination of outsourcing &

improved use of IT

Investing in the franchise

Over the last 12 months:

People Corporate Banking increased by 30% Wealth Management increased by 25% 171 staff promotions

Property 6 major refurbishments/relocations

IT New banking platform installed in branch network Improved online and payments functionality

Regulation Enhanced risk & control framework

Key priorities

Recruitment, integration & retention of best people Quality rather than quantity bias

Diversification of income streams and delivery channels Mid-corporate & wealth management Direct channel Treasury & cash management

Enhanced focus on deepening relationships Investing in scope not scale Increasing share of chosen mid market sectors

Branch reconfiguration Removal of non-core activities to ‘centres of excellence’ Simplification and standardisation of operations Leverage of synergies across the AIB enterprise

UK Division: what to expect 2006-2010

Recognised by our customers as their bank of choice Providing a full service value for money proposition

Delivered by top quality people through customer chosen channel

Targeting continuation of 3% income / cost gap, further driving down cost / income ratio

Strong asset quality; current environment particularly benign

Double digit profit growth



Gerry Byrne

Managing Director - AIB Poland Division

Why is AIB in Poland ?

Large Market – 39m people with considerable employment potential

GDP per capita is 46% versus EU15

One of the fastest growing economies, GDP now growing at c. 5%

Total banking assets / GDP at 68% (EU15 203%)

Only 60% of the population have bank accounts

Branch coverage at 50% of EU average

Excellent cultural fit

Banking environment (1995 – 2005)

Key Headings 1995 - 2000 2001 – 2005

GDP 5.6% 3.0%

Unemployment 13% 19%

Inflation 15% 3%

Fixed Investment 14% -2%

Interest Rates 21% 8%

Banking Sector First Mover advantage Increasing Competition

AIB Strategic Action BZ Acquisition Business Re-alignment

Our 5 year performance

810121416182022242628303234

2001 2002 2003 2004 2005 H1, 2006

Loans Deposits/Investment Funds

People employed from 10.2k to 7.8k Cost / income ratio from 80% to 52% Impaired loans from 20% to 6%

Bank Zachodni WBK S.A. - 2001 to H1, 2006

PLN bn

PBT CAGR + 50% Loans CAGR 9% / Deposits + Funds CAGR 14.5%

122

388

260

570

690

0

100

200

300

400

500

600

700

800

2001 2002 2003 2004 2005

PLN m

571

H1, 2006

H1, 2006

Evolution of income & costs – carefully chosen growth

200

400

600

800

1,000

1,200

1,400

2002 2006

PLN'

m

Deposit Interest Income Loan Interest Income Non Interest Income Costs

Loan Interest Income

exceeds

Deposit Interest Income

Reshaping our business – continuous improvement

WARSAW

POZNAN

WROCLAW

KRAKOW

GDANSK

Branches

372 branches, 605 ATMs

30 new branches planned for 2007

Expansion in key markets SZCZECIN

LODZ

KATOWICE

Corporate Business Centres

Large commercial & corporate focus

Warsaw, Poznan, Wroclaw, Krakow, Gdansk

65% total loans under CBC mgt.

3 New Locations in 2007 – Katowice / Szczecin / Lodz

External Channels

Direct banking

Intermediaries

Mobile sales

Profit & Loss

Total Operating Income + 26%

Operating Expenses + 9%

Provisions - 2%

Profit before Tax + 62%

2006 profits: expected to be materially greater than 2005

Our reshaped business – reaping the rewards

Balance Sheet / Products

Corporate / SME + 10%

PLN Mortgages + 23%

Personal Loans + 93%

Leasing + 16%

Mutual Funds + 230%

Deposit Volumes + 7%

E Banking/Payments + 13%

H1 2006 v H1 2005

Our reshaped business – developing our market position

Number 1 for asset quality with c. 6% impaired loans

Number 1 for investment performance / number 2 in investment funds

Number 1 in stockbroking

Business loan growth 2x market level

Top 3 ROE performance

Number 2 for % gap between income and cost growth

Peer benchmarking in 2006

Positive economic growth indicators

% Growth 2005 2006 (F) 2007 (F)

Inflation (YoY) 2.1% 1.2% 2.5%

GDP (YoY) 3.3% 5.2% 5.0%

Unemployment (Y/e) 17.6% 15.4% 14.2%

Interest Rates (Avrg.) 5.4% 4.0% 4.25%

Exports (YoY) 14.7% 19.5% 15.0%

Fixed Investment (YoY) 6.2% 12.6% 10.0%

Targeting outperformance in a high growth market 2006 - 2010

High quality well spread sources of income

Strong momentum in business / retail loans, deposits /

investment funds, leasing, brokerage & credit cards

Further efficiency gains enabled by highly scaleable

platform

Risk firmly managed by top class people, scoring

and decision engines

5 years to 2010 - what you can expect from us

Maintenance of material income / cost gap

Further % reduction in level of impaired loans

ROIC to continue increasing from the current 25%

Primed to continue significant, well balanced growth



Colm Doherty

Managing Director - AIB Capital Markets

Capital Markets comprises 3 business divisions

Normalised Pre Tax Profit

Corporate Banking 63%

Global Treasury 27%

Investment Banking 10%

Strong, Recurring, Skills based

Customer oriented 87/13

Good Earnings Mix

Domestic dominance … but decreasing importance

International expansion around proven sector specialisms

Best in class enablement / risk architecture

Rigorous cost focus - C/I ratio 43%

Solid Returns - ROE 20%

Profit Before Tax

155.6m

200.5m237.8m

258m

317m

403m

301m

2000 2001 2002 2003 2004 2005 1H2006*

CAGR 21%

Profit Before Tax

*excludes 25m gain on sale of business

Interest Income : 52%

Fee Income: 35%

Trading Income: 13%

Corporate Banking - strong recurring earnings

PBT 2000-2005 : CAGR 27%

Consistent 20% + growth in profit pre provision

Good spread on earnings / volume mix

155bps average portfolio margin

Weighted average credit grade of portfolio is constant

RWA: €25 billion

ROE: 21%

Leading domestic Corporate Bank 40% Corporate Clearing Accounts

International expansion based on sector specialisms

Premium for sector knowledge and ability to manage complexity

Rigid ROE discipline

Earnings

Average Earning Assets

Ireland 24% 5.0bnUK 25% 4.5bnUS 22% 4.0bnInternational 29% 5.0bn

Leveraged Debt Asset Based Lending Debt Fund Management

Property Infrastructure Finance Energy

Corporate Banking - best in class credit risk management

Selective Credit Underwriting Centralised credit platform / sector specific best practice models

Diversified Portfolio Advanced portfolio modelling / limit setting framework

Credit grading Robust methodology, empirically validated, rating agency endorsed.

Credit structuring Emphasis on repayment sensitivity, covenants, collateral

Pricing Strong ROE discipline - value not volume. €3bn asset shed from portfolio in 2006

Dynamic provisioning All active impaired loans paying current interest

Improving impaired loans trend

Exceptional experience on default v’s model EL

Corporate Banking - growth drivers

Clear Strategy

Regional ‘Relationship Bank’ in Ireland

Specialist lender in chosen niches elsewhere

Structuring complexity yields a better price

Developing debt fund management capability

Geographic expansion - the model travels well

Australasia

Canada

The credit cycle - benign or tough presents opportunity

Corporate Banking …….. Diverse…….Highly Profitable ………Sustainable

Global Treasury- strong recurring earnings

PBT 2000-2005: CAGR 24%

Customer income 56% revenues* 40% share domestic market Strong Polish franchise

Trading income 44% revenues short term trading credit related trading strategic trading

Consistent profits at all points in interest rate cycle

Average daily VAR €13 million

Best in class enablement / risk architecture

RWA €10 billion (€7 billion excluding liquidity assets)

ROE 27%*pre internal distribution

Global Treasury- growth drivers

Treasury Services

Buoyant local economies (Ireland / Poland) underpin demand

Scope for increased product penetration

Leverage UK small company relationships more effectively

Cost efficiencies from technology platform

Trading

Capacity to put more risk to work

Treasury …Customer Driven……Low Risk Trading …Consistent Earnings

Investment Banking

Substantially Irish based business Stockbroking; asset management; M&A; structured finance services

Low % of profits, higher volatility: 2000-2005 CAGR 0% (very strong base year)

No. 1 in M&A; structured finance services

No. 2 in stockbroking

No. 3 in asset management

Divested 50% interest in AIB/BNY JV

Sold retail funds to Aviva as part of Ark Life transaction

Growth drivers

Increasing demand for Private Client Wealth Management Services

Demand for M&A services robust

Continued economic buoyancy / positive equity market returns. Will support demand

for investment products / services

Conclusion

Resilient high performing business positioned for

sustainable growth

Increasing flexibility to diversify income streams

Strong focus on productivity, significant income / cost gap

Sophisticated and resilient risk management framework

Uninterrupted profit growth record will continue



Steve Meadows

Group Director, Operations & Technology

O&T formed to change AIB’s operating model

3,786

20,240

2006

84%

O&TAIB Group excl O&T €372m

€1,873m

Costs

16%

84%

16%

People

How our people are deployed

Back office operations 2,124

Technology 1,266

Enterprise support 396

Pre-Oct ’05 O&T functions dispersed and fragmented across operating divisions

O&T scope today

Operations & Technology (O&T)

A key enabler of our enterprise agenda

Building an environment, framework and model

to sustain a positive gap between income and

cost growth

Delivering Operational Excellence

Transforming the Business Operating

Model

Enabling the enlarged Enterprise

O&T strategy – 3 components

2005 2009

RiskManagedCost

Service Quality

Operational Excellence

End game objectives

• Rapid speed to market

• Volume growth cost indifference

• Support business volume growth

• Business acquisition capability

Datacentre Relocation

One Network (VoIP)

XP Desktops

Infrastructure upgrades

Practical first steps

O&T investment programme - a €400m commitment

Operating model consolidation

Wholesale Core Banking

Retail Core Banking

Credit decision and support

Transforming to support future growth

Basel II SOXSEPA

EU Savings directiveAnti Money LaunderingConsumer Credit Act

Complaints Management

Regulatory agenda

Driving quality, risk and cost benefits

Key Initiatives

• Right first time

• Total Quality Management (TQM)

• Automation tools

• Elimination of redundant activities

• ABC unit cost management

Objectives

• Service delivery cycle times down by 40%

• Error rates / rework down 35%+

• Reduced unit production costs

• Controls framework embedded in production operations


Investing to transform our business

Key Initiatives

• Core banking systems renewal

• Legacy systems retirement

• Utilisation of best-in-class offshore developed systems

Objectives

• Retirement of 20+ legacy systems

• Core systems TCO reduction

• Further unit processing cost reduction


Model

Developing a standard operating model

Objectives

• Rapid speed to market

• Volume growth cost indifference

• Support business volume growth

• Business acquisition capability

Key Initiatives

• Standard ‘1-Way’ operating model

• Fully aligned business operating model deployment

• Production centre consolidation

• Common IT infrastructure deployment




Model


O&T summary

2005 2009

RiskManagedCost

Service Quality

Operational Excellence

Underpinning our productivity drive

Ensuring we can maintain a gap ≥ 3% between income

and cost growth



René Jones

Chief Financial Officer - M&T Bank Corporation

M&T - A name known in Buffalo since 1856

• One of the 20 Largest U.S. Banks• $13.5 Billion Market Cap• $56.4 Billion in assets• +670 branches in 6 States and the District of Columbia

• Serving customers in 2 million households and +150,000 businesses• +13,500 employees• +1,500 ATM’s

Best of times Many US Bank stocks near all-time highs

“Own banks when short term interest rates peak” Benign credit environment

Worst of times

NIM pressure – subdued revenue growth

Revenue growth for top 50 US banks 2Q05 – 2Q06 – 6%

EPS growth below long term average

EPS growth for top 50 US banks 2Q05 – 2Q06 – 5%

Slowdown in housing market

Environment for US banks

Seeing same slower revenue growth as the industry

Significant variability among geographic regions

Closely managing expenses in response

Maintain positive operating leverage

Allocate resources toward fastest growing

businesses/geographies

Maintaining standards for credit quality and returns

Excellent credit results

M&T reaction to current environment

M&T Bank Corporation - Earnings Per Share Summary

(1) Excludes merger-related costs and amortization expense associated with intangible assets. *Intangible Amortization net of tax: Sept. 2005 YTD =$27MM, Sept. 2006 YTD = $27MM Merger-related costs net of tax: Sept. 2006 YTD = $3MM

($ in millions)

2005 2006 2006 vs. 2005

Sept. YTD Sept. YTD % Growth

Net Operating Income 1 604$ 656$ 9%

Net Operating EPS 1 5.18$ 5.75$ 11%

GAAP Net Income 577$ 626$ 8%

GAAP EPS 4.95$ 5.49$ 11%

Revenue growth of 4.7% year-over-year

Average loans & leases grew 4.7%

NIM declined to 3.69% from 3.79%

Operating expenses up 2.7%*

Net charge-offs of $43 million, down $11 million from 2005

* Excluding $18MM donation to the M&T Charitable Foundation.

M&T Bank Corporation – nine month highlights

M&T Corporation vs. Top 50

Note: Efficiency ratio excludes amortization expense associated with intangible assets, merger-related expenses, and G/L on investment securities.

*MTB’s efficiency ratio excludes the $25 million pretax contribution to The M&T Charitable Foundation.

** MTB’s efficiency ratio excludes the $18 million pretax contribution to The M&T Charitable Foundation and $13 million gain on an FHLB borrowing.

Net Interest Margin

3.70

4.23

3.69

3.77

3.56

3.97

3.64

3.50

3.75

4.00

4.25

4.50

2001 2002 2003 2004 2005 1H06 Sept '06YTD

MTB Top 50 Median

Allowance to Loans

1.54

1.69

1.55

1.43

1.08

1.00

1.25

1.50

1.75

2.00

2001 2002 2003 2004 2005 1H06 Sept '06YTD

MTB Top 50 Median

Net Charge-Offs to Average Loans

0.14

0.31

0.13

0.40

0.14

0.00

0.10

0.20

0.30

0.40

0.50

2001 2002 2003 2004 2005 1H06 Sept ' 06YTD

MTB Top 50 Median

Efficiency Ratio

51.5351.53 51.43

59.31

56.45

48.00

51.00

54.00

57.00

60.00

63.00

2001 2002 2003 2004* 2005 1H06 Sept '06YTD **

MTB Top 50 Median

($ in millions)

(1) Includes Upstate NY and Western NY regions. (2) Includes NYC, Philadelphia, and Tarrytown regions. (3) Includes Baltimore, Washington DC, and Chesapeake regions. (4) Includes Pennsylvania, less Philadelphia. Note: Operating Income excludes amortization of intangibles, merger-related expenses and non-recurring items.

Sept. '06 % Growth 3 Yr CAGRYTD Prior Year 06 vs. '03

Upstate NY (1) 319.8$ 21.7% 12.8%

Metro (2) 157.5 -0.6% 7.5%

Mid-Atlantic (3) 177.3 28.7% 33.2%

Pennsylvania (4) 163.1 25.7% 29.9%

Multi-Region 171.5 -26.4% -9.3%

Total 989.0$ 7.3% 10.7%

M&T Bank Corporation – pretax operating income by region

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005

Diluted Net Operating Earnings Dividends

+22% CAGR

+18% CAGR

$7.03

Note: Data prior to 1998 does not include provisions of SFAS No. 123 andNo.148 stock option expensing.

M&T per share data 1983-2005

Recent performance

Stock Price

Performance since

Y/E 2004 Y/E 2005

MTB 11.2% 10.0%

BKX (1) 8.8% 9.1%

S&P 500 10.2% 7.0%

NASDAQ 3.8% 2.4%

Note: Reflects stock price performance through Sept 30. 2006(1) BKX indicates the KBW Bank Index.

49.5%

20.5% 6.0%

24.0%

Management’s interest

aligned with Shareholders’

Interests

Over 50% Ownership

between AIB, M&T insiders

and Warren Buffett

AIB

BerkshireHathaway-Warren Buffett

OtherShareholders

M&T Management, Directors and Employees

* As of 2/28/06. Includes options & deferred bonus shares

What makes M&T unique?*

24.6% Annual rate of return since 1980 13th best return of the entire universe of over a thousand U.S. based stocks that have traded publicly since 1980

$2,790 invested in M&T in 1980 would be worth $1 million today

Note: CAGR calculated assuming reinvestment of dividends through September 30, 2006.

Source: IDC & Factset

Rank Company Name Industry Annual Return (%)1 Eaton Vance Corp. Financials 30.32 Circuit City Stores Inc. Consumer Discretionary 27.53 Stryker Corp. Health Care 26.64 Gap Inc. Consumer Discretionary 26.55 State Street Corp. Financials 26.56 Forest Laboratories Inc. Health Care 26.37 Countrywide Financial Corp. Financials 26.28 Progressive Corp. Financials 25.99 Mylan Laboratories Inc. Health Care 25.710 Wal-Mart Stores Inc. Consumer Staples 25.411 Leucadia National Corp. Financials 25.012 Robert Half International Inc. Industrials 24.713 M&T Bank Corp. Financials 24.6

M&T Bank Corporation… a solid investment

Appendix

Reconciliation of GAAP and Non-GAAP Results of Operation

Net Income Sept. '06 Sept. '05and Earnings Per Share YTD YTD 2005 2004 2003 2002 2001 2000 1999$'s in millions

Net income $625.9 $577.2 $782.2 $722.5 $573.9 $456.8 $353.1 $268.2 $252.4Intangible amortization,

net of tax 27.0 26.9 34.7 46.1 47.8 32.5 99.4 56.1 42.4 Merger-related expenses,

net of tax 3.0 - - - 39.2 - 4.8 16.4 3.0

Net operating income $655.9 $604.1 $816.9 $768.6 $660.9 $489.2 $457.3 $340.7 $297.8Earnings Per Share

Diluted earnings per share $5.49 $4.95 $6.73 6.00 4.95 4.78 3.58 $3.24 $3.13Intangible amortization,

net of tax 0.23 0.23 0.30 0.38 0.41 0.34 1.00 0.67 0.52 Merger-related expenses,

net of tax 0.03 - - 0.34 - 0.05 0.20 0.04 Diluted net operating

earnings per share $5.75 $5.18 $7.03 $6.38 $5.70 $5.12 $4.63 $4.11 $3.69

Efficiency Ratio

$'s in millions

Non-interest expenses $1,167.9 $1,116.0 $1,485.1 $1,516.0 $1,448.2 $961.6 $980.6 $718.6 $596.7less: intangible amortization 44.3 44.1 56.8 75.4 78.2 51.5 121.7 69.6 49.7 less:charitable contribution 18.0 - - 25.0 - - - - - less: merger-related expenses 5.0 - - - 60.4 - 8.0 26.0 4.7 Adjusted net operating expenses $1,100.6 $1,071.9 $1,428.3 $1,415.6 $1,309.6 $910.1 $850.9 $623.0 $542.3

Adjusted T.E. revenues* $2,153.4 $2,086.4 $2,789.5 $2,692.0 $2,443.7 $1,774.2 $1,651.4 $1,192.5 $1,047.9

Net operating efficiency ratio 51.1% 51.4% 51.2% 52.6% 53.6% 51.3% 51.5% 52.3% 51.8%

Note: Effective January 1, 2003, M&T began recognizing expense for stock-based compensation in accordance with SFAS No. 123, as amended, and chose the retroactive restatement method described in SFAS No. 148. As a result, financial information for all prior periods presented has been restated to reflect the provisions of these pronouncements.* Excludes securities transactions

Reconciliation of Assets & Equity to Tangible Assets & Equity

Sept. '06 Sept. '05Assets YTD YTD 2005 2004 2003 2002 2001 2000 1999$'s in millionsAverage assets 55,591$ 53,899$ 54,135$ 51,517$ 45,349$ 31,935$ 30,842$ 23,670$ 21,065$ Goodwill (2,908) (2,904) (2,904) (2,904) (2,456) (1,098) (1,126) (641) (521) Core deposit and other intangible assets (167) (142) (135) (201) (233) (143) (196) (125) (73) Deferred taxes 39 55 52 - - 46 56 30 22

Average tangible assets 52,555$ 50,908$ 51,148$ 48,412$ 42,660$ 30,740$ 29,576$ 22,934$ 20,493$

Equity$'s in millionsAverage equity 5,973$ 5,772$ 5,798$ 5,701$ 4,941$ 3,026$ 2,975$ 2,045$ 1,744$ Goodwill (2,908) (2,904) (2,904) (2,904) (2,456) (1,098) (1,126) (641) (521) Core deposit and other intangible assets (167) (142) (135) (201) (233) (143) (196) (125) (73) Deferred taxes 39 55 52 76 68 46 56 30 22

Average tangible equity 2,937$ 2,781$ 2,811$ 2,672$ 2,320$ 1,831$ 1,709$ 1,309$ 1,172$

Note: Effective January 1, 2003, M&T began recognizing expense for stock-based compensation in accordance with SFAS No. 123,

as amended, and chose the retroactive restatement method described in SFAS No. 148. As a result, financial information for all

prior periods presented has been restated to reflect the provisions of these pronouncements.



John O’Donnell

Group Financial Director



Forward Looking Statements

Some topical themes

Capital allocation and management

Funding

Net interest margin

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

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%)

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%

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

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

%

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

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

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

Contacts

+353-1-660 0311

+353-1-641 2075

Alan Kelly [email protected] +353-1-6412162

Maurice Tracey [email protected] +353-1-6414191

Pat Clarke [email protected] +353-1-6412381

Alma Pearson [email protected] +353-1-6413469

Our Group Investor Relations Department will be happy to

facilitate your requests for any further information

Visit our website www.aibgroup.com/investorrelations

Meet the Management

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