AIB Capital Markets

Colm Doherty,

Managing Director

London, 17th May 2007

2

Contributes 23% of Group Profits– c. 70% of Divisional profits generated outside Ireland

10 year PBT CAGR 20% Strong recurring customer based income Cost income ratio 46% ; ROE 20%

AIB Capital Markets - Divisional Profile

Note: figures for the year to 31/12/2006

* includes €41m distributed to other divisions

Corporate Banking 332

Global Treasury 160

Customer 112

Proprietary 48

Investment Banking 62

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*

€

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Corporate Banking

60% of divisional profits; 70% generated outside Ireland ROE 18% Portfolio of €25bn RWA No. 1 Corporate Bank in Ireland - 40% corporate clearing accounts. International expansion built around people experience / sector specialism

Overlay with debt fund management capability in leverage / high yield - 6 CDO’s €2bn assets

New York Leverage Debt Paris Leverage Debt Sydney Project FinanceLA Property Frankfurt Property Leverage DebtHeuston ABL Warsaw Project Finance ABLToronto Oil & Gas London ABL

Project Finance UK Regions InstitutionalInstitutional

North America Europe Asia Pacific

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Corporate Banking

Success built around:-– people with deep experience / expertise of premium rated credit sectors– strong risk management framework– conservative credit philosophy– disciplined return (EVA / ROE) focus

Evidenced by:- Long history of low loan losses Weighted average portfolio grade constant 2002 - 2007 Average portfolio margin 154 bps Conservative average hold

Leveraged Debt 9Property 20ABL 11Project Finance 11Institutional 19

€m

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Corporate Banking

Outlook

Good economic outlook in key geographies

Excess liquidity in some key sectors (leverage)

– weakening credit structures

– compression of margins Over 2/3 of leverage proposals being turned down

– Focus on underwriting / larger hold in selected credits

– Diversified portfolio allows focus on other sectors for growth Credit cycle will turn

Tough credit cycle presents opportunity

Key focus on maintaining portfolio quality

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Global Treasury

22% of divisional profits 70% of revenues from customer services

– 40% share domestic market– strong Polish franchise– niche but growing UK and US businesses

30% of revenues from trading– average daily var c. €13m– short term interest rate / FX trading– credit trading– strategic interest rate trading

ROE 27% Highly controlled risk environment / centralised processing platform Provides group funding and liquidity service

7

Global Treasury

Outlook

Strong local economies (Ireland / Poland) underpin demand for customer services

Scope for increased product sales

Capacity to put more risk to work

8

Investment Banking

17% of divisional profits

Irish based fee business

– Asset Management

– Stockbroking

– M&A

Business performing well - benefit from Irish wealth creation

Strong investment returns in AIB managed portfolios

High demand for bespoke wealth management

Strong flow of M&A

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Conclusion

Resilient high performing business

– 10 year CAGR 20%; ROE 20%

Well positioned for growth

– Geographic diversity

– Product specialism

– Customer Focus

– Flexibility to diversify income streams

Robust risk framework

Uninterrupted profit growth record set to continue