Allied Irish Banks, p.l.c.

1. Allied Irish Banks, p.l.c. Introduction to AIB Mortgage Bank (AIB MB) Covered Bond Programme Aaa / AAA / AAA Inaugural Transaction March 2006

2. Allied Irish Banks, 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. • All comparisons in this presentation are relative to 2004 pro forma IFRS figures visit www.aibgroup.com/investorrelations

3. Contents • Introduction to Allied Irish Banks Group • The Irish Economy & Housing Market • Irish Covered Bond Legislation • AIB Mortgage Bank – Structure & Mortgage Pool • AIB Group Funding Strategy, Role of AIB Mortgage Bank • Proposed Transaction

4. Introduction to Allied Irish Banks Group

5. Allied Irish Banks, p.l.c. • Ireland’s largest publicly quoted company • Strong franchises with leading market shares in core banking products. • By market capitalisation  €16.5 bn (Feb , 2006) 16.3% of Irish Stock Market Index 11th/47 DJ E Stoxx Bank Index 24th/54 FTSE Eurotop Bank Index • 2005 - Total Assets € 133bn, PBT € 1.7bn • Senior debt ratings Moody’s ‘Aa3’ (stable outlook) S&P ‘A+’ (stable outlook) Fitch IBCA ‘AA-’ (stable outlook)

6. Allied Irish Banks, p.l.c. 2005 Highlights • Very positive momentum, all Divisions performing strongly • Asset Quality maintained, Provisions decline to 15bpts from 20bpts • Cost Income Ratio 55.2% (2004=57.7%) • Continued commitment for investment in systems and people

7. Allied Irish Banks, p.l.c. Ireland UK PBT 50% 5yr Av.GDP 5.1% PBT 28% 5yr Av.GDP 2.3% USA Poland Investment in 22.5% of M&T Bank Contribution to PBT 12% 5yr Av.GDP 2.6% PBT 10% 5yr Av.GDP 3.0%

8. AIB plc - AIB Bank (RoI) Division Y/e 2005 • €779m Pre Tax Profits  by 15%, Cost/Income  @ 51.3% (52.7%) • €39bn Risk Weighted Assets • Provision Charge % of Av Loans 0.11% (0.14%) • A Market Leader in key segments with increased shares in deposit and lending sectors • Over 270 outlets • Major portfolios which experienced strong growth: • Business banking • Residential mortgages • Personal banking • Private banking

9. AIB plc – AIB (GB & NI) Division Y/e 2005 • €322m Pre Tax Profits  by 18%, Cost/Income  @ 48.7% (51.5%) • €18.4bn Risk Weighted Assets • Provision Charge % of Av Loans 0.13% (0.11%) Great Britain • Focused on key selected segments, professional, not for profit, owner/managed businesses • Increasing activity by organic growth Loan growth  by 31%, Deposits  by 21%, Northern Ireland • Full service clearing bank, strong retail & commercial franchise • Loan growth  by 25%, Deposits  by 12%

10. AIB plc – Capital Markets Division Y/e 2005 • €403m Pre Tax Profits  by 27%, Cost/Income  @ 47.5% (54.4%) • €38bn Risk Weighted Assets • Provision Charge % of Av Loans 0.22% (0.27%) • Core businesses • Corporate Banking • Global Treasury • Investment Banking

11. AIB plc – Poland Division Y/e 2005 • €132m Pre Tax Profits  by 13%, Cost/Income  @ 65.7 % (67.4%) • €4.6bn Risk Weighted Assets ; Total Assets € 7.8bn • Provision Charge % of Av Loans 0.40% (0.91%) • Core Business • Improving economic recovery is supporting profit growth • BZ-WBK is benefiting from significant re-structuring • Full service clearing bank with strong retail deposit franchise • 400+ outlets, mainly located in Western Poland • Increasing activity by organic growth • Loan growth  by 4%, Deposits growth  by 8% • Non-performing loans below market average

12. The Irish Economy & Housing Market

13. Republic of Ireland Economic Trends

14. The Irish Labour Market Has Been Transformed The Irish Labour Market Has been Transformed (‘000s) (%) Total Employment ’00S (LHS) Unemployment Rate % (RHS)

15. Robust Public Finances • Government budget • Surpluses average 1.5% of GDP since 1997 • Budget close to balance in coming years • Large current budget surpluses • Significant capital expenditure/borrowing • Gen Gov Debt/GDP ratio • <30% at end 2005(e) and declining • Down from 90% of GDP in past decade • Much less than half of eurozone average: 72% • Relatively Low Tax Economy • Well below eurozone average • Low PRSI/income tax, no local taxes

16. Population Growth Population Age Profile Estimates (m) Source: DOE and ESRI

17. Mortgage Debt at 16% of Housing Assets in ‘05 Growth in Mortgage Debt and Housing Assets (€ m)

18. Many Factors Underpin Strong Housing Demand • Continued strong inward migration • Favourable demographic trends • Untapped demand: Rising headship rates • Demand for second homes • Strong growth of economy and employment • Comfortable repayment affordability: longer term mortgages, lower cost units, low interest rates • Government incentivised savings scheme (SSIAs) will mature in 2006/7 • Home ownership is seen as an attractive tax efficient savings scheme, there is no taxation on personal residential property

19. Summary: A Sound Economy • Public finances to remain close to balance • Very low national debt. Declining debt/GDP ratio • Low tax economy attracting FDI and workers • Virtual full employment despite high immigration • Favourable demographics supporting growth • Further boost to growth from SSIAs in 2006-07 • Inflation back down at eurozone average

20. Irish Covered Bond Legislation • Asset Covered Securities Act 2001

21. Summary of ACS Act 2001 (1) • In Ireland, Asset Covered Securities can only be issued by a specialist bank – “Designated Credit Institution” (DCI) • To obtain a license to operate a DCI from the Irish Financial Services Regulator – the applicant must • Be owned by a regulated bank • Be separately capitalised • Have non-executive board membership • Agree to publish information • Provide a detailed account of the business • Agree a Prudent Discount Factor for calculating LTVs • Appoint a Covered Asset Monitor

22. Summary of ACS Act 2001 (2) • Eligibility for assets classes to be held by a DCI • The Act restricts the asset classes, and • Requires the Regulator to issue a Regulatory Notice (RN) for each asset class • RNs have only been issued for • Public Sector credits, • Residential mortgages • The Act also allows Commercial Mortgages to be included but the RN has yet to be approved by the Regulator

23. Summary of ACS Act 2001 (3) • The combined effect of The Act and the RN ensures the quality of the residential mortgage collateral cannot be compromised by changes in property market prices; the restrictions extend to controlling both the aggregate collateral holding and the actual collateral Pool • Each LTV is subjected to movement of the IL&P/ESRI Property Index; any increase is to be discounted by the Prudent Discount Factor, and any declines to be in full. The result is used to compute the Prudent Market Value of the Pool • At any point in time, the aggregate of all the mortgage assets of the DCI must not exceed a Prudent LTV of 80% • Any mortgage held in the Pool cannot be awarded a value that exceeds 75% of the Prudent LTV • The ACS Bondholders are protected at all times, since • The Prudent Market Value of the Pool must be > the ACS principal outstanding • The interest receivable from the Pool must be > the interest payable on the ACS for any 12 month period • The weighted average maturity of the pool must be > the ACS maturity

24. Summary of ACS Act 2001 (4) • The Pool will be over-collateralised • Balance Sheet Interest rate sensitivity is subject to limits • In the Event of Default • The regulator will appoint the NTMA (a government agency) or other suitable manager to manage the pool • The Covered Asset Pool is exempt from bankruptcy proceedings and bond holders interests are prioritised ahead of non-pool creditors • Financial Statements are required to disclose the Pool’s performance • 2006 – Proposed amendments • Overcollaterisation to be legislated at a minimum of > 3% • A number of technical adjustments

25. AIB Mortgage Bank • Overview • Origination – Branch Distribution • Origination – Portfolio Data • Origination – Credit Policy • Origination – Review by LTV • Indicative Collateral Pool

26. Overview of AIB Mortgage Bank • Registered as a Designated Mortgage Credit Institution • License granted by Regulator – Feb 2006 • Non-guaranteed, Public Unlimited Company - wholly owned by AIB plc • Shareholders investment exceeds €650m • 9 Directors, including 4 non-executive directors • Major activities outsourced to AIB (ROI) Division, subject to terms of the Service Level Agreement • €13.6bn residential mortgage loans transferred to AIB MB from AIB (ROI) • Prudent Discount Factor - 15 % • Pool Overcollateralisation set @ > 5%

27. Origination – Branch Network Distribution • Irish mortgage market drawn balances are estimated at €100bn+, AIB has a market share of 16%+ • AIB has a presence in all major towns and cities, by a network of 188 branches and 87 sub-offices • 35% - 40% of the Banked Public – have a primary account relationship with AIB • 90%+ of our branched sourced mortgages come from existing bank account holders • AIB MB currently does not book mortgages introduced through intermediaries

28. Origination - Portfolio Data

29. Origination - Credit Policy • Max LTV = 92% • Max Loan amount determined by DSR ( Debt Service Ratio ) = the Proportion of Net Income that is prudent to allow for purposes of Mortgage Repayments • DSR is stress tested to allow for increases in interest rates of 2% • Lenders have no sanctioning Targets/Quotas • Loan to be repaid by scheduled retirement date • Exceptions are approved by Senior Mortgage Lenders subject to the customers ability to repay • Regular reporting to Regulator

30. Origination – Review by Loan To Value • Primary focus on debt service ratio (repayment capacity) New Business

31. Indicative Collateral Pool • Minimum Contractual Overcollateralisation 5% • Pool Size c.€5.0bn • Aggregate Prudent LTV* 40% • Un-indexed LTV 63% • Dublin/Non-Dublin 30/70 • No. of Properties c. 35,000 • BTL/Owner Occupier 23/77 • Prudent Market Discount 15% • Currently no commercial mortgages • No arrears > 3 months included in pool • Minimal interest rate risk * Aggregate Outstanding Mortgages as a % of aggregate PMV of property

32. AIB Group Funding Strategy & Role of AIB Mortgage Bank • AIB Group Funding Strategy Statement • AIB Group Funding Profile • AIB Group Debt Distribution as at 31 Dec 2005 • Role for AIB Mortgage Bank’s ACS issuance • Issuing Strategy

33. AIB Group Funding Strategy • ‘Maximise resource generation through the Group franchise and ensure access to competitively priced wholesale market funding sources in order to support the profitable growth of the Group’ • 2005 Annual results comment on • AIB Group’s market share of Irish deposit market is increasing • Available capacity in a range of wholesale markets and instruments

34. AIB Group – Funding Profile Significant opportunities available to increase issuance into global markets, e.g. CP – Euro, US$, EMTN benchmarks and structured notes

35. AIB Debt Distribution as at 31 Dec 2005 Debt Distribution € (m) Euro – 76% STG - 18% US$ - 5% Other – 1% Step-up issues – adjustedto earliest call date

36. Role of AIB Mortgage Bank’s ACS programme • The role of the programme is to provide the AIB Group with a competitive funding tool that will • Leverage from the quality of security held on Balance Sheet • Generate funding at a competitive price • Provide the Group with a product that can be marketedefficiently in all markets for all maturities • EMTN programme established to facilitate issuance of up to €15bn of Aaa / AAA / AAA rated securities • Provides the Group with an opportunity to cultivate an investor base which requires Aaa / AAA / AAA rated securities

37. Issuing Strategy • One issuing document – a Euro Medium Term Note Programme – to be updated annually • On-going commitment to investor relations, including • Regular marketing initiatives • Establishment of web-access • Reports on collateral pool performance • Responsible Primary Market Strategy, involving the employment of high profile Management Groups who will commit to secondary market making • At least one benchmark issue per annum • Participation in Euro Private Placements, and at a later date issuance in non-euro currencies

38. Proposed Transaction

39. Proposed Transaction : AIB MB – Asset Covered Securities Inaugural Issue • Issuer : AIB Mortgage Bank • Document : EMTN programme • Listing : Dublin • Rating : Aaa / AAA / AAA • Overcollaterisation : Minimum = 5% • LTV : Aggregate Prudent < 40%, Un-indexed < 63% • Maturity Extention : Up to 1yr, interest set at €uribor +50bpts • Amount : Euro benchmark • Coupon : Fixed Rate , Paid annually • Launch : Week of 27 March 2006 • Syndicate : Leads – AIB Group Treasury, Barclays Capital, Deutsche Bank, Morgan Stanley Co-Leads – Citigroup, DZ Bank, HVB, LBBW, UBS

40. Contacts AIB Mortgage BankT: + 353-1-641-4748 Chief Executive : David Kelly Treasury Director : Gerry O’Connor AIB Group Investor Relationswww.aibgroup.com/investorrelations Exec., GM Group Finance : Alan Kelly T: + 353-1-641-4191 Manager : Maurice Tracey AIB Global Treasurybond.issues@aib.ie Chief Dealer, Funding : Duncan Farquhar T: + 353-1-641-7811 Dealer : Jim McKeever