Allied Irish Banks, p.l.c., Annual General Meeting, 22 April, 2008

1. Allied Irish Banks, p.l.c.,Annual General Meeting,22 April, 2008 Mr. Dermot Gleeson, Chairman

2. Performance highlights Basic adjusted earnings per share up 13% Increased operating profit in all divisions 57% of profit generated outside Republic of Ireland Continued investment in quality and efficiency Selective acquisitions in Central Europe

3. +10% +10% +10% +10% +10% Progressive dividend policy • 2007 total dividend per share up 10% to 79c • Compound growth of 10% per annum over 5 years • Dividend per share up over 60% in 5 years

4. Financial Markets turmoil • Origins in U.S. sub-prime mortgages • emerged with weakening of U.S. economy and housing market • led to higher default rates on sub-prime and other mortages • Decline in value of assets led to large write-downs by manyfinancial institutions • resulted in severe tightening of liquidity in wholesale funding markets • critical source of funding for banks and their capacity to lend • Uncertainty damaged confidence in stock markets • sharp fall in share prices

5. AIB’s solid capital position AIB Regulatory min. AIB Regulatory min. No requirement for recourse to shareholders

6. AIB’s strong funding diversity Stable Customer deposits – 48% Capital – 9% At 31 December, 2007, the combined value of our customer accounts (c. 2m customers) and funding maturing after H1, 2008 equated to 94% of customer loans Wholesale funding – 43%

7. AIB’s robust asset quality Dec 2006 Dec 2007 0.9 Impaired loans % 0.8 4.9 Criticised loans / total loans % 5.3 0.44 Gross new impaired loans % 0.45 76 Total provisions / impaired loans % 71 12 Bad debt charge bps 9 • Resilient and diverse property & construction portfolios • Low level exposure to assets affected by global market dislocation • 2008 guidance – bad debt charge of c. 20 bps

8. Irish economy • Slower level of growth in 2008 • Adjustment in housing market to more sustainable levels a major contributor to slow down • seen by most economists as a necessary adjustment • most predicting return to higher and better balanced growth levels from 2009 • Adjustment has led to concerns over Irish banks exposure to mortgage / property & construction sectors

9. AIB’s solid / resilient residential mortgage portfolio • Primary emphasis on repayment capacity • all applications stress tested at higher interest rates • policy on loan to value remains conservative • Arrears in portfolio remain low • 0.36% of portfolio in 2007

10. Group ROI* Commercial Investment 41% 34% Residential Investment 9% 7% Commercial Development 18% 22% Residential Development 29% 34% Contractors 3% 3% Total 100% 100% Balances €m €46.4bn €27.8bn AIB’s property & construction portfolio is well diversified *AIB Bank ROI Division

11. Northern Ireland – 9% Great Britain – 27% Republic of Ireland – 55% U.S.A. – 3% Poland – 3% Other – 3% AIB’s property & construction assets well spread geographically 45% of exposure relates to assets located outside Republic of Ireland