AIB Bank – Supporting Business A presentation to

1. AIB Bank – Supporting BusinessA presentation to Louth Economic Forum 19th October 2010 Presented by Paul Hughes – Regional Director North East Nick Heeney – Head of Business Banking North East

2. Challenging Times Tough economic conditions continue, recovery likely to be slower Government Budget deficits Tax receipts remain severely affected Further public spending cuts SME Business sales and activity down Weak SME customer loan demand Cost of borrowing experiencing an upward trend Exports up

3. AIB Supporting Business • Largest business bank in Ireland with 180,000 SME and Business customers. - Strong market share - Very substantial SME Loan Book • SME Lending Plan – commitment to lend additional E3bn in new and increased facilities to the SME sector in each of 2010 and 2011 • Our key focus is on supporting our customers through the current economic cycle. ”We need to be as accommodating as possible for our customers, so that we strengthen our relationships, but in doing so we must also be mindful of the market realities we face right now.”Robbie Henneberry, Managing Director, AIB Bank

4. AIB is lending and we want to lend It is not in our interest, or that of our customers to support propositions that are not viable in the long term. AIB is committed to striking the right balance between our continuing support for business and making proper, prudent business decisions. We acknowledge that the nature of interaction between bank and customer when applying for credit might be different and more rigorous than before. However, this shouldn’t be interpreted as a reluctance by AIB to lend, but more a desire to provide the most appropriate support to customers.

5. SME’s Critical to the Economy Nationally - 270,000 SME’s- Employ 800,000- Includes Agri & Farming Enterprises - SME’s are more flexible, responsive to change (have potential to re-employ) SME’s are major focus of Bank recapitalisation commitments Critical to our business & future Commitment to Government to lend additional E3bn to SME sector in each of 2010 and 2011

6. Our Structure to supporting Business Business Centres - 15 Business Centres nationwide - 250 highly skilled Relationship Managers providing a comprehensive and tailored service for our larger business customers - SME lending desk manned Retail Branches- 260 Retail branches - SME Specialist in each branch working with supporting the Small to Medium size SME’s with day to day banking & providing full range of banking services

7. Our SME Lending Plan 2010/2011…..underway • Much in progress • Credit Training for staff • Engagement with Enterprise Ireland & Irish Bankers federation • New Emerging Sectors team • E120m fund for IPF / Prompt Pay • E60m Agri Asset Fund • E500m SME Recovery Fund • Additional E20m Seed Capital to the existing E53m fund • E150m EIB Fund • Invitation to BoSI customers • Sectoral Guides and expertise • Internal Credit Appeals process in place • External Credit Review office appointed by Government • SME Lending desk • Customer surveys

8. Our SME Lending Plan 2010/2011…..underway …… with more to do • Customer Seminars • Exporters initiatives • Further E100m Environmental Fund • SME Support guides / tools • Start Up Business propositions

9. And finally • SME Sector is critical to Recovery of this economy • As Business Leaders’ we have a critical role and responsibility to rebuild confidence • We have re-organised ourselves internally to deal with the challenging environment …. with more to be done • We are raising our profile / visibility in our local communities • We have our SME Plan in place – approved by Govenrment • We need to demonstrate to all concerned that AIB will not be found wanting • Successful implementation of this plan is imperative:- • We must do it for our customers • We must do it for ourselves • We must do it for our stakeholders

10. Thank You

11. Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age .Security may be required.  For Asset Finance products:   A Documentation Fee of €63.49 applies to Loan & Hire Purchase. For Leasing , this Documentation Fee also applies and is subject to V.A.T. at the applicable rate. This fee will be charged with the first repayment.  In the case of Hire Purchase, there is a Purchase Fee of €12.70 payable on completion. For Business Credit Cards : Government Stamp Duty of €30.00 is charged annually per credit card. Annual fees also apply depending on the choice of business card. Allied Irish Banks, p.l.c. is regulated by the Financial Regulator. Important Regulatory Information