Meet the Management AIB Investor Day London, 8 th November 2006 John O’Donnell Group Financial Director

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 Some topical themes Capital allocation and management Funding Net interest margin

4 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

5 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% Leverage3% 15% Asset sales & leasebacks Securitisation, other assets  2 year visibility on capital (Target tier 1 7%)

6 Source of funds 52% 24% 10%10% 10% 49% 25% 10%10% 7% % 4% 6% 3%

7 Euro 82% STG 14% US$ 4% Step-up issues – adjusted to earliest step-up date Debt Distribution October 2006 € (m) Debt funding – well distributed and diversified

8 Net interest margin – loans growing faster than deposits %

9 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

10 Net interest margin Mix and competition Branch loans Home loans Market / other loans Total loans June 2006 % 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

11 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