Steve Meadows Group Director, Operations & Technology

1. Steve Meadows Group Director, Operations & Technology

2. Forward looking statements 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

3. AIB Group excl O&T O&T O&T formed to change AIB’s operating model Pre-Oct ’05 O&T functions dispersed and fragmented across operating divisions O&T scope today People Costs 2006 16% 16% 3,786 €372m 20,240 €1,873m 84% 84% • How our people are deployed • Back office operations 2,124 • Technology 1,266 • Enterprise support 396

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. O&T strategy – 3 components DeliveringOperational Excellence Transformingthe Business Operating Model Enabling the enlarged Enterprise Service Quality Operational Excellence Managed Cost Risk 2005 2009 • End game objectives • Rapid speed to market • Volume growth cost indifference • Support business volume growth • Business acquisition capability

6. O&T investment programme - a €400m commitment Practical first steps Datacentre Relocation One Network (VoIP) XP Desktops Infrastructure upgrades Transforming to support future growth Operating model consolidation Wholesale Core Banking Retail Core Banking Credit decision and support Regulatory agenda Basel II SOX SEPA EU Savings directive Anti Money Laundering Consumer Credit Act Complaints Management

7. DeliveringOperational Excellence 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

8. Transformingthe Business Operating Model Investing to transform our business • Objectives • Retirement of 20+ legacy systems • Core systems TCO reduction • Further unit processing cost reduction • Key Initiatives • Core banking systems renewal • Legacy systems retirement • Utilisation of best-in-class offshore developed systems

9. Enabling the enlarged Enterprise Developing a standard operating model • Key Initiatives • Standard ‘1-Way’ operating model • Fully aligned business operating model deployment • Production centre consolidation • Common IT infrastructure deployment • Objectives • Rapid speed to market • Volume growth cost indifference • Support business volume growth • Business acquisition capability

10. O&T summary DeliveringOperational Excellence Transformingthe Business Operating Model Enabling the enlarged Enterprise Service Quality Operational Excellence Managed Cost Risk 2005 2009 • Underpinning our productivity drive • Ensuring we can maintain a gap ≥ 3% between income and cost growth