Meet the Management AIB Investor Day London, 8 th November 2006 Steve Meadows Group Director, Operations & Technology

2 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 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 Forward looking statements

3 O&T formed to change AIB’s operating model 3,786 20, % O&T AIB Group excl O&T €372m €1,873m Costs 16% 84% 16% People How our people are deployed Back office operations2,124 Technology1,266 Enterprise support396 Pre-Oct ’05 O&T functions dispersed and fragmented across operating divisions O&T scope today

4 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

5 Delivering Operational Excellence Transforming the Business Operating Model Enabling the enlarged Enterprise O&T strategy – 3 components Risk Managed Cost Service Quality Operational Excellence End game objectives Rapid speed to market Volume growth cost indifference Support business volume growth Business acquisition capability

6 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 SOX SEPA EU Savings directive Anti Money Laundering Consumer Credit Act Complaints Management Regulatory agenda

7 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 Delivering Operational Excellence

8 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 Transforming the Business Operating Model

9 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 Enabling the enlarged Enterprise

10 Delivering Operational Excellence Transforming the Business Operating Model Enabling the enlarged Enterprise O&T summary Risk Managed Cost Service Quality Operational Excellence Underpinning our productivity drive Ensuring we can maintain a gap ≥ 3% between income and cost growth