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Meet the ManagementMeet the Management
AIB Investor DayLondon, 8th November 2006
Robbie Henneberry
Managing Director – AIB Group (UK) p.l.c.
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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
Forward looking statements
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UK Division - a snapshot
UK regulated & incorporated since 1996
Trades as:
In GB - business banking
In NI - retail & business banking
15% of group profits
3,000 staff, 550,000 customers
£13bn loans, £8bn deposits
Business origination through 4 units: GB, FTB, mid-corporate, wealth management
Allied Irish Bank (GB)
First Trust Bank (FTB)
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020
4060
80100
120140
160180
200220
240
2000 2001 2002 2003 IAS 2004 2005
0
2,000
4,000
6,000
8,000
10,000
12,000
2000 2001 2002 2003 2004 2005
Loans Deposits
46%
47%
48%
49%
50%
51%
52%
53%
2000 2001 2002 2003 2004 IAS 2004 2005
0.91
1.46
1.37 0.95
0.79
1.02
0.93
0
1
2
3
Dec-00 Dec-01 Dec-02 Dec-2003 Dec-2004 Dec-2005 Jun-2006
%
PBT CAGR 12.1% Loans CAGR 21.0% Deposits CAGR 14.4%
Impaired Loans
% of Average Loans
Cost / Income ratio
Strong track record
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AIB (GB) – Great Britain
0
20
40
60
80
100
120
140
2000 2001 2002 2003 IAS 2004 2005
PBT
£’m PBT CAGR 15.5%
32 full service branches & 12 business development offices Full relationship management service to businesses in selected
sectors & connected personal customers Targeting relatively resilient sectors, avoiding adverse selection Continued migration from small to higher value mid market business
banking Distinctive customer proposition built on quality of people, customer
relationship & speed of decision making
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First Trust Bank – Northern Ireland
0
20
40
60
80
100
120
2000 2001 2002 2003 IAS 2004 2005
PBT
£’m CAGR 8.9%
56 full service branches providing retail banking services to personal and business customers
Good performance in a lower growth environment (NI GDP 2.2%) notably in business banking and home mortgages
Reinvigorating revenue streams with refreshed proposition – new mortgages, personal loan & deposits launched - new personal current account in progress
Continued focus on efficiency and cost management
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Mid-Corporate Banking
Regional Teams Established in London, Birmingham, Manchester, Leeds, Glasgow &
Belfast - loans £2.5bn Focused on healthcare, leisure industry, horse racing, hotels and
environmental services ‘Bank of choice’ in chosen high potential segments
Public Sector & Charities Established reputation and market share in education, social
housing, publicly funded healthcare, PFI & structured finance
Property Finance Unit New business initiative - phased build-up since January 2006 Develop existing relationships to build a high return portfolio of
leveraged property transactions for established operators
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Wealth management
Private Banking Established presence in London & Belfast, capability now in
Birmingham, Manchester & Edinburgh Full relationship management service to HNW segment connected to
business customers Developing proposition with wider range of investment, protection &
pension products/services
Regulated Sales 45 IFAs throughout the branch network in GB and NI Sales momentum building with increased referrals from the network Developing lower cost delivery channel for mass market in Northern
Ireland with retention of IFAs for HNW segment Efficiency improvements through a combination of outsourcing &
improved use of IT
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Investing in the franchise
Over the last 12 months:
People Corporate Banking increased by 30% Wealth Management increased by 25% 171 staff promotions
Property 6 major refurbishments/relocations
IT New banking platform installed in branch network Improved online and payments functionality
Regulation Enhanced risk & control framework
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Key priorities
Recruitment, integration & retention of best people Quality rather than quantity bias
Diversification of income streams and delivery channels Mid-corporate & wealth management Direct channel Treasury & cash management
Enhanced focus on deepening relationships Investing in scope not scale Increasing share of chosen mid market sectors
Branch reconfiguration Removal of non-core activities to ‘centres of excellence’ Simplification and standardisation of operations Leverage of synergies across the AIB enterprise
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UK Division: what to expect 2006-2010
Recognised by our customers as their bank of choice Providing a full service value for money proposition
Delivered by top quality people through customer chosen channel
Targeting continuation of 3% income / cost gap, further driving down cost / income ratio
Strong asset quality; current environment particularly benign
Double digit profit growth
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