#1Bank of Ireland Group Fixed Income Investor Presentation August 2006#2Forward Looking Statement This presentation may contain projections and forward-looking statements. Any such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Bank of Ireland Group's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any such forward-looking statements will be based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. Further, any forward-looking statements will be based upon assumptions of future events which may not prove to be accurate. Any such forward-looking statements in these materials will speak only as at the date of this presentation and the Group assumes no obligation to update or provide any additional information in relation to such forward-looking statements. 2 Bank of Ireland Group#3Table of Contents Bank of Ireland Overview Financial Performance Funding & Capital Management Conclusion Appendix 3 Bank of Ireland Group#4Bank of Ireland Overview Bank of Ireland Group#5Bank of Ireland Profile Oldest Bank in Ireland -established in 1783 Diversified financial services group, with operations principally in Ireland & the UK Largest Irish Listed Bank by Total Assets: €162.3bn @ Mar 2006 History of sustained profit growth and high asset quality Joint Highest Rated Irish Listed Financial Institution¹ Moody's Aa3 (since 1998) S&P A+ (since 1998) Fitch AA- (since 1995) stable outlook positive outlook stable outlook Market Capitalisation of €14.5bn (August 2006) 1 Senior debt ratings shown 5 Bank of Ireland Group#6Clear Strategy and Track Record of Success Our Vision: "To be the number one bank in Ireland with dynamic businesses growing internationally" Our Strategy: Maximise returns from our leading position in Ireland Substantially grow our businesses in the UK Grow our portfolio of niche, skill-based businesses internationally Track Record of Success: 12 consecutive years of loan impairment ≤ 20bp (FYE March 2006: 11 bps) 13 consecutive years of ROE ≥ 20% (FYE March 2006: 24%) 15 consecutive years of profit growth (FYE March 2006: 16%) 6 Bank of Ireland Group#7Delivering Results on Commitments 1 2 "Develop a competitive, lower-cost operating model" Launched Strategic Transformation Programme Delivering savings ahead of target "Achieve real customer differentiation" Launched "Changing For You" Customer Programme More front-line staff, improving branches, innovative customer propositions, free banking, shortening queues 3 "Conclude review of our UK businesses and take action" 4 Sold Bristol & West branch network and Chase de Vere Clear focus on 3 growth segments "Deliver on the UK Post Office Venture" Successful export & implementation of sales effectiveness model Sales traction established in POFS - Customer numbers ahead of target 5 "Create more growth platforms in international businesses" Investing in people, new capabilities & new geographies in Wholesale Re-modelling Asset Management Services 7 Bank of Ireland Group#8Group Structure - Growing on a Diversified Platform Bank of Ireland Group Retail Financial Services Bank of Wholesale UK Asset Ireland Life Financial Services Financial Management Services 36%* 9% 26% 23 % 6% Our activities • Retail Banking • Business Banking . Corporate Banking . Wealth Management . Life & Pensions . Asset Management Treasury Our profits • 64% Ireland . 22% UK Our markets Ireland, the UK, North America, Our Shareholders Institutional • 12% UK • 14% Rest of World France, Germany, Australia, Japan 18% Ireland 20% Europe & Rest of World • 21% US Retail 29% *NOTE: % PBT from each division excluding central costs for full year to March 2006. 8 Bank of Ireland Group#9Group Structure - Growing on a Diversified Platform PBT by Division Group Divisional Profitability*** Mar 06 Mar 05 % €m €m Change Life Retail ROI 550 465 18 9% AMS 6% Bank of Ireland Life 134 81 65 Retail 36% Wholesale FS 386 325 19 UKFS UKFS* 349 332 5 23% Asset Mgmt Services 85 125 372 (32) Group Centre (111) (122) 9 Underlying PBT 1393 1206 16 10 Wholesale 26% Non-core items** 206 14 Profit Before Tax 1599 1220 31 *** Excludes Group Centre . • Excellent growth in Retail, Life and Wholesale: Strong volume growth, excellent cost control and asset quality ⚫UK Financial Services poised for significant profit uplift •Profit decline in Asset Management as guided - broadening scope of activities *POFS fully consolidated from 1st August 2004 9 ** 2006 figures mainly consist of a €176m profit on disposal of the B&W branch network Bank of Ireland Group#10Bank of Ireland Divisional Overview ◉ Retail Republic of Ireland and Bank of Ireland Life Leading position in Ireland Irish Market Shares in 2006 Presence in all market segments: Mortgages 1 19% - branch banking Credit Cards in issue 1 34% wealth management SME Current Accounts 2 36% - business banking through direct & indirect channels Life Assurance 3 25% Growing market share in an increasingly competitive market environment Source: 1. Central Bank of Ireland 2. MORI Syndicated Research 3. Irish Insurance Federation Wholesale Financial Services Leading Treasury, Stockbroking and Corporate Finance advisers in Ireland. Corporate Banking has leading market share with international Irish corporates and multinationals operating in Ireland Strong international income flow from niche, skills-based businesses adding to Group profit diversification Strong asset quality, modest proprietary trading and sound governance, controls & risk culture 10 Bank of Ireland Group#11Bank of Ireland Divisional Overview ☐ ☐ UK Financial Services Strategy is to focus on mortgages, business banking and on consumer banking, primarily through our joint ventures with the UK Post Office – Post Office Financial Services (PO FS) and First Rate Travel Services - A key player in the UK specialist mortgage market, with growing market share, while maintaining an excellent arrears profile PO FS gives exposure to Europe's largest retail network with 44 million customers per year Asset Management Services Provides fund management services to institutions and pension funds in Ireland and overseas, along with custodial services BIAM is the most successful Irish-owned fund management business Focus at BIAM is on performance improvement and cost control following net funds outflows of €11.3bn in the year to 31 March 2006 Purchase of Guggenheim Alternative Asset Management in January 2006 Assets Under Management * BIAM Iridian €45.1bn * As at 31 March 2006 US$10.7bn 11 Bank of Ireland Group#12Overview of the Irish Economy Ireland - The most successful growth story in Europe Fastest growing economy in the eurozone GDP per capita has grown from 69% of the EU average in 1985 to 125% in 2005 GDP growth forecasts* - - 6.0% 2006 (e) 6.0% 2007 - 5.0% 2008 Low inflation & low interest rates Numbers employed 2m - highest ever 'Full' employment....but employment still growing,.... immigration and increased participation Strong demographics Total numbers at work have grown by 80% since 1985 *Source: Bank of Ireland Global Markets Economics Research Unit Unemployment Rate % 16 14.6 14 11.5 12 10.1 10 8.1 7.6 8.1 8 6 4.4 4.4 4.4 4 2 0 1991 1996 اتـ 7.9 4.2 7.1 2002 Ireland 2004 2005 2006 DEU * Expected Source: CSO & Eurostat Projected Population Growth (2005-2015)* % 14 12.1 12 10 8 6 4 2 0 2.6 1.1 Ireland □ EU25 EU15 *Source: Eurostat 12 Bank of Ireland Group#13Overview of the UK Economy UK - Stable Economic Growth Good growth rates expected:* GDP Growth (yoy%) 2.7% GDP growth in 2006 4.0 ☐ 2.5% GDP growth in 2007 & 2008 3.0 Improving sentiment in UK housing market More positive economic outlook for 2006 Well positioned in chosen segments Quality of business remains outstanding 2.0 1.0 0.0 2000 2001 2002 2003 2004 2005 2006 (e) ⚫UK -Eurozone Source: Eurostat UK Monthly Mortgage Approvals (000's) *Source: Bank of Ireland Global Markets Economics Research Unit 13 140 132 126 122 117 116 117 114 120 102 102 104 94 96 100- 87 82 80- 60- 40 20 0 T 03q1 03q3 T 04q1 04q3 05q1 05q3 06q1 Source: Bank of England Bank of Ireland Group#14Financial Performance Bank of Ireland Group#15Performance Overview Bank of Ireland has continued to see strong asset and earnings growth from a geographically diversified platform Asset Growth Profit (before tax & exceptional items) € bn 180 € m n 162.3 160 146.3 1,600 1393 140 128 1,400 1,267 120 106.4 1,200 1,085 1,122 1,177 1206 920 100 87.3 89.3 78.8 1,000 80 800 60 600 40 400 20 200 0 0 Mar-01** Mar-02** Mar-03** Mar-04** Mar-05* Sep-05* Mar-06* 2000** 2001** 2002** 2003** 2004** 2005* 2006* March Year End * IFRS UK 22% ** Irish GAAP PBT March 2006* Rest of World 14% % 25 22 March Year End RoE 20 15.2 15.3 14.5 12.9 14.7 14 15.7 15 10 Republic of Ireland 64% 5 LO 9.5 9.5 9.5 9.5 9.0 9.0 8.3 0 15 Mar-00 Mar-01** Mar-02** Mar-03** Mar-04** Mar-05* Mar-06* March Year End Cost of Equity Equity Spread Bank of Ireland Group#16Performance Overview Substantial business growth in both Ireland and the UK Ireland Market Share Gains Business 2000 2006 Gain Mortgages 1 18% 19% +1 Life & Pensions 2 19% 25% +6 Deposits 1 22% 25% +3 Source: 1. Central Bank of Ireland 2. Irish Insurance Federation 6 Year Volume Growth +322% 2000 to 2006 +146% +102% UK Growth in Specialist Mortgage Book 2000 to 2006 £21.5bn £12.3bn 2% Specialist 45% 2000 55% Standard 6 Year Volume Growth 2000 to 2006 +75% Resources Business Loans Mortgages Mortgages 16 2006 +217% Business Banking Bank of Ireland Group#17Year End Financial Highlights Proforma March 2006 March 2005 Change Profit Before Tax €1599m €1220m T 31% Underlying Profit Before Tax €1393m €1206m 16% Earnings Per Share 136.4c 103.9c ↑ 31% Underlying Earnings Per Share 118.5c 102.3c 16% Impairment Losses 11bps 11bps Balance Sheet €162.3bn €128.0bn 27% Return on Equity 24% 23% 1 Cost Income Ratio 57.1% 59.9% 2.8 Note: Underlying excludes the impact of non-core items: gains on disposal of business activities; gross-up of policyholder tax in the Life business; charge for hedge ineffectiveness on transition to IFRS; restructuring programmes and impairment loss provision write back. 17 Bank of Ireland Group#18Year End Financial Highlights Key Metrics Mar 06 Mar 05 % Change Underlying PBT €1393m €1206m 16 Underlying EPS 118.5c 102.3c 16 Highlights Excellent profit growth Driven by: Cost Income Ratio 57.1% 59.9% (2.8) - Strong loan growth Dividend Per Share 52.5c 45.66 15 - Return on Equity 24% 23% 1 Continued low Impairment losses Risk Weighted Assets €97.5bn €75.9bn 28 Mar 06 €m Mar 05 €m % Change Net Interest Income 2307 1971 Group Income Statement excl non-core items 17 Strong key metric performances Positive cost/income growth trends Other Income* 1132 1207 (6) - Total Income⭑* 3439 3178 8 Positive jaws - Operating Expenses (1988) (1923) 3 Cost/Income ratio down 2.8% Impairment Losses (103) (79) 30 Associates/JVs post tax 45 30 50 Underlying PBT 1393 1206 16 18 * Net of increase in insurance contract liabilities and claims percentage points to 57.1% RWA growth moderating Bank of Ireland Group#19Asset Quality Diversification of Loan Book Agriculture 1% Financial 2% Commercial Mortgages 3% Other Lending Manufacturing Business & Other services 5% 6% 8% Personal Lending 8% Construction & Property Residential Mortgages 17% 50% 0% 10% 20% 30% 40% 50% 60% End March 2006 High quality loan book with 50% of loan assets secured against residential properties 19 Bank of Ireland Group#20Asset Quality Impairment Losses on Loans Asset Quality Mar 06 Mar 05* €m € 796m €m €m 800 € 693m € 710m 700 Specific 114 138 600 IBNYR** 10 500 400 € 360m € 343m NDSP***/General (38) € 319m 300 Recoveries (21) (21) 200 100 Total €m 103 79 0 March 06 Sept 05 March 05* Charge on Average Loans 11bps 11bps Impairment Provisions Impaired Loans * Excludes release from loan impairment provisions of €100m _ **IBNYR Incurred But Not Yet Reported * After release from loan impairment provisions of €100m ***Non Designated Specific Provision Continued excellent asset quality in benign credit environment Charge on average loans 11bps - below trend Well diversified and proactively managed loan book Strong underwriting and arrears management skills 20 Bank of Ireland Group#21Bank of Ireland Group Funding & Capital Management#22Balance Sheet Funding March 06 March 05 11.3% Senior Debt / ACS 7.2% 13.1% 46% CP/CDs 10.6% 35% 21.5% Deposits by Banks 17.5% * 41.0% Customer Accounts 50.3% 5.1% 8.0% €150.5bn Other 7.2% Capital/Sub Debt 7.2% Total* €119.3bn Excludes Life funds held on behalf of policyholders: Mar 06 €11.8bn Mar 05 €8.7bn 22 Continued Diversification Increased wholesale funding from 35% in March 2005 to 46% in March 2006 (Sept 2005 45%) Driven by: - Impact of sale of Bristol & West deposit book added c. 6 percentage points Strong lending volumes not matched by customer accounts Continued funding diversification: ACS programme including private placements - US$ extendible notes issue Canadian $ CP programme French € CD programme Outlook - Closer alignment of customer lending & deposit growth Bank of Ireland Group#23Bank of Ireland Funding Strategy Maximising 'core' customer deposits and the closer alignment of lending and deposit growth Develop and diversify wholesale funding channels, maintain the most appropriate mix of short term and long term funding and achieve the optimal funding cost Extensive debt investor programme to ensure we are satisfying our current investor requirements while growing and diversifying our investor base Funding Programmes / Facilities ⚫ €25Bn EMTN (Vanilla & Structured issuance) • €10Bn ACS Programme Extendible notes ⚫ €5Bn ECP Programme • London CD Facility • $15Bn USDCP Programme C$2.5Bn Canadian CP Programme • €5Bn French CD Programme 23 Bank of Ireland Group#24Strong Capital Base Capital Ratios Strong Capital Base and Rating Strong capital position - Tier 1 ratio of 7.5% Mar 06 % Mar 05 % Total Capital 11.4 10.9 - Tier 1 Capital 7.5 7.9 Asset Growth Total Capital ratio of 11.4% Adequate capital for planned growth - - 16/17% annual RWA growth supported by retained earnings Flexibility within the Balance Sheet RWA growth to moderate Strong credit rating1 Mar 06 Mar 05 €bn €bn % Change Retail FS RWAS 26.7 22.0 22 Wholesale FS RWAS 34.9 26.5 32 UKFS RWAS 34.2 26.0 31 - Moody's Other RWAS 1.7 1.4 18 - S&P Risk Weighted Assets 97.5 75.9 28 Fitch Total Assets 162.3 128.0 27 Aa3 (Stable) 1 Senior debt ratings shown A+ (Positive) AA- (Stable) Bank of Ireland Group 24 24#25Bank of Ireland Capital Management Objectives Strong balance sheet growth projected to continue, driven by domestic and UK asset growth Optimisation of capital and balance sheet structure consistent with regulatory and rating agency parameters Committed to providing regular updates to fixed income investors Objectives - 1 ― Investor Diversification Benchmark issuance Structural FX - alignment of capital and risk asset mix by currency Maturity Profile 25 25 Bank of Ireland Group#26Conclusion Bank of Ireland Group#27Bank of Ireland Objectives Going Forward Maximise returns from our leading position in Ireland 1 Drive volume growth without compromising asset quality Achieve further market share gains Substantially grow our businesses in the UK 1 Deliver on investment in Business Banking - Build on momentum in Mortgage Business - Deliver on POFS opportunity Grow our portfolio of niche, skill-based businesses internationally Wholesale Financial Services (WFS) - • Deliver on expansionary investment Continue to exploit niche international opportunities Asset Management Services (AMS) • Stabilise & position for growth ■ Continue to deliver on Strategic Transformation Programme 27 Bank of Ireland Group#28Key Messages Diversified financial services group principally in Ireland and the UK - Retail, wholesale, and asset management operations Delivered excellent profit performance – Strong volume growth with tight cost control • Delivery on commitments - clear strategy delivering results Optimism regarding the growth prospects of the Irish and UK economies Substantial business growth continues in both Ireland and the UK Excellent asset quality and robust capitalisation with strong credit ratings 28 Bank of Ireland Group#29Appendix Bank of Ireland Group Divisional Performance Review Asset Quality Overview Strategic Transformation Programme Overview Irish Economic Environment Overview Bank of Ireland Short and Medium Term Funding#30Retail Republic of Ireland Income Statement Mar 06 €m Mar 05 % €m Change Net Interest Income 1119 1020 10 Other Income* 356 314 13 Total Income - 1475 1334 11 Operating Expenses (871) (818) 6 Impairment Losses (54) (51) 6 Profit Before Tax 550 465 18 30 * Includes income from associates and joint ventures Mar 06 €5m, Mar 05 (€2m) % PBT 36% PBT +18% Excellent profit performance driven by: - Strong volume growth Higher fee income Aggressively managed costs Excellent asset quality - 15bps charge Significant efficiency improvement Positive cost income jaws Cost income ratio down from 61% to 59% Margin attrition due to: Low interest rate environment, wholesale funding, product mix & competition Competing from a position of strength Multi-channel distribution Sales effectiveness Customer proposition Bank of Ireland Group#31Bank of Ireland Life Income Statement (IFRS) Income* Mar 06 Mar 05 % €m €m Change ◉ 208 172 21 Operating Expenses (95) (93) 2 Operating Profit 113 79 Discount Rate Change 4 Investment Variance 17 2 اله Profit Before Tax** 134 81 65 43 43 * Net of increase in insurance contract liabilities and claims **Excludes policyholders' tax gross up (Mar 06 €69m and Mar 05 €26m) 31 % PBT PBT +65% 9% ☐ Excellent profit growth - - Strong APE sales growth +30% Tight cost control +2% IT enabled efficiency gains PBT benefited from non-recurring items Reduction in discount rate of 0.5% to 7.5% Positive investment variance Very positive outlook - Strong economy Favourable demographics Bank of Ireland Group#32Wholesale Financial Services Income Statement Mar 06 Mar 05 % €m €m Change Net Interest Income 454 325 40 Other Income 243 278 (13) Total Income 697 603 16 Operating Expenses (288) (240) 20 Impairment Losses (23) (38) (39) • Profit Before Tax 386 325 19 PBT - Business Analysis % PBT 26% PBT +19% Excellent profit growth Corporate Banking +34% • Investment in people & new geographies delivering strong lending growth +35% Change in loan mix leading to higher margins Excellent asset quality Loan loss charge, 12bps - below long-term trend Global Markets +8% Focus on customer related business Diversifying earnings by product & geography Investment driving cost growth Mar 06 Mar 05 €m % Change €m . Corporate Banking 213 159 34 Global Markets 134 124 8 Other 39 42 (7) WFS 386 325 19 32 32 Bank of Ireland Group#33UK Financial Services (Sterling) Income Statement Mar 06 Mar 05 % £m £m Change Net Interest Income 493 429 15 - Other Income 63 135 (53) Total Income 556 564 (1) Operating Expenses (329) (366) (10) - Impairment Losses (17) 7 Share of Associate post tax 28 22 27 Profit Before Tax* 238 227 5 * Excludes gain on disposal of Bristol & West branch network in Mar 06 £120m and UKFS re-structuring charge in Mar 05 £16m Operating Profit - Business Analysis Mortgage Business Business Banking Consumer Fin. Services -POFS -FRTS (Post Tax) Disposed business activity: BWFS & Chase de Vere Other - Centre** Profit Before Tax Mar 06 Mar 05 % £m £m Change 134 125 7 114 115 (1) 6 (6) (22) 28 22 (32) 300 31 8 (3) (13) 26 (3) (4) 238 227 5 LO 23% % PBT PBT +5% Division refocused Restructuring complete Focus on 3 growth segments Mortgage Business Double digit underlying profit growth Strong lending growth +22% Excellent asset quality with arrears below industry average Business Banking Double digit underlying profit growth Investment in business bankers Outstanding volume growth +46% Will reap benefits of investment phase Consumer Financial Services - FRTS continues to perform well POFS customer base to 475,000 33 33 **Includes amortisation of intangible assets associated with POFS (March 2006 £8m, March 2005 £8m). March 2005 also includes the benefit of £7m gain on disposal of a loan book and £2m for the period when POFS was accounted for as an associate. Bank of Ireland Group#34Asset Management Services Income Statement Mar 06 Mar 05 €m €m % Change Net Interest Income 7 4 50 Other Income 215 252 (14) - Total Income 222 256 (2) Operating Expenses (137) (131) 5 - Profit Before Tax 85 125 (32) Assets Under Management Mar 06 €bn Mar 05 €bn % Change 6% % PBT PBT (32%) Profit decline as guided BIAM: Continued net fund outflows - €11.3bn Slower pace Loss of higher margin business Iridian & BoISS continue to perform well Repositioning Division & broadening activities: Acquired 71.5% Guggenheim Advisors AMS profits do not reflect full year impact of BIAM mandate losses BIAM AUM €45.1bn €46.9bn (4) - Iridian AUM $10.7bn $10.3bn Guggenheim AUM $2.9bn 34 Bank of Ireland Group#35Asset Quality Impaired Loans (€m) Mar 06 Sept 05 Mar 05 Ireland 461 420 391 UK 230 197 225 International 105 76 94 Group 796 693 710 Impairment Provisions (IP) €m Ireland 215 207 209 UK 69 61 80 International 76 76 75 61 NDSP 69 Release from General Provision וי וי (100) Group 360 343 319 IP as % of Impaired Loans (%) IP as % of Average Loans (bps) 45 50 45 39 39 43 P&L Annualised Charge / Average Loans (bps) 11 11 11 35 55 Bank of Ireland Group#36Asset Quality Loan to Value - New Business Residential Mortgages: ROI Average Loan to Value Owner Occupied Investors Mar 06 (12 mths) Mar 05 (12 mths) 75% 73% 64% 64% Residential Mortgages: UKFS Average Loan to Value Mar 06 (12 mths) Mar 05 (12 mths) Standard 61% 58% Specialised: Self-Certified Buy To Let 77% 73% 71% 67% 36 Bank of Ireland Group#37Republic of Ireland Residential Mortgages New Business LTVs <75% 75-90% 90-92% 92-100% >100% Mar 06 (%) 48 32 11 9 0 Mar 05 (%) 53 33 10 4 0 Arrears Profile 1-6mths 6-12 mths 12+ mths Total Mar 06 (%) 0.4 0.2 0.2 0.8 Mar 05 (%) 0.7 0.2 0.2 1.1 37 32 Bank of Ireland Group#38UK Residential Mortgages New Business LTVs <75% 75-90% 90-95% 95-100% Mar 06 (%) 45 41 8 6 Mar 05 (%) 55 37 6 2 Arrears Profile 1-6mths 6-12 mths 12+ mths Total Mar 06 (%) 0.7 0.1 0.1 0.9 Mar 05 (%) 0.7 0.1 0.1 0.9 38 Bank of Ireland Group#39Strategic Transformation Programme Cumulative Annual Cost Savings 2007/08 2005/06 2006/07 Target: €30m €75m €35m Achieved: 2008/09 €105m €120m Cost savings ahead of target for 2005/06 Programme Progress Implementation Costs - Headcount reduction New streamlined operating model Consolidation of support functions Group Manufacturing function established Consolidation of processes Cost of programme in line with guidance Cost savings for 2006/07 will exceed target Target for programme €m 210 - STP P&L charge in year to 31 Mar 2006 32 - STP P&L charge in year to 31 Mar 2005 117 ■ Cumulative P&L charge of programme 149 39 39 Bank of Ireland Group#40Irish Economic Environment - Overview Population Ave. Annual Growth GDP Per Capita (vs. EU Average=100) % % 2.4 140.0 124.0 2.0 115.0 2.0 120.0 1.6 1.4 1.3 100.0 89.4 75.5 80.0 69.0 1.2 60.0 0.8 0.6 0.4 0.4 40.0 0.3 0.4 20.0 0.0 0.0 1991-96 1996-02 2002-04 2002-2006 1985 1990 1995 2000 2005 Ireland □ EU Unemployment Rate 7.8 40 Ireland was in a position of relative weakness compared to its European peers in the 1980's. It has seen significant growth in the last 20 years with GDP per Capita growing from 69% of the EU average in 1985 to 123% in 2004. With the strength of the fundamentals, the Irish economy can support this growth going forward. Bank of Ireland Global Markets are forecasting 5.5-6.0% GDP growth over the medium term, underpinned by 2.5% labour force growth and 3.5% productivity gains (average in last 5 years and the 1990's) Bank of Ireland Group % 16.0 14.6 14.0 11.5 12.0 10.1 10.0 8.1 8.1 7.6 8.0 6.0 4.4 4.4 4.3 4.0 2.0 0.0 1991 1996 ■Ireland 2002 2004 2005 DEU Source: CSO & Eurostat#41Irish Economic Environment - Overview Employment has surged... while mortgage interest rates continue to be low... Irish Employment Mortgage Interest Rates Million 2.4 12.0 1.9 1.9 9.6 10.0 2.0 1.7 7.6 1.6 8.0 7.2 6.8 7.2 7.1 1.3 1.2 1.2- 1.1 6.0 0.8 4.0 T T 5.8 5.3 4.9 4.7 3.7 3.5 3.7 0.4 0.0 1985 1990 1995 2.0 0.0 2000 2004 2005 T T 1995 1997 Source: Irish Central Statistics Office 1993 1999 2001 Source: BOI Global Markets Economic Research Unit T ך 2003 2005 Employment in the aggregate continues to grow strongly with 2 million employed by the end of Q1 2006. Over the 12 months the total number employed increased by 90,000. The unemployment rate in Q1 2006 was 4.4% (CSO-Quarterly National Household Survey), up from 4.2% a year earlier. Economies are in full employment when unemployment is under 6% - OECD. 'Average mortgage rates are now between 4.0% and 5.0% following one percentage point of rate increases by the ECB. 41 Bank of Ireland Group#42Bank of Ireland Short Term Funding Currency: Format: Maturity: €5Bn ECP Programme Multicurrency Zero/Coupon Bearing 0-364 days $15Bn USDCP Programme Currency: Format: USD Discount/interest bearing Maturity: 0-364 days Dealers: The Governor & Company of the Bank of Dealers: Bank of America Ireland Citigroup ABN Amro Goldman Sachs Barclays Capital Deutsche Bank ING Financial Markets JP Morgan Lehman Brothers The Royal Bank of Scotland UBS Investment Bank €5Bn French CD Programme JP Morgan Merrill Lynch C$2.5Bn CAD CP Programme Currency: Format: CAD Zero/Coupon Maturity: 0-365 days Dealers: Bank of Montreal CIBC Scotia Bank RBC Zero/Coupon Bearing Currency: EUR Format: Maturity: 0-364 days Dealers: Bank of America BNP Calyon Societe Generale London CD Facility Currency: EUR/USD/GBP Format: Zero/Coupon Bearing Maturity: 0-5yrs $ Extendibles ($1.75bn deal & $2bn deal) Standalone Docs: Currency: USD Dealers: Goldman Sachs ($1.75bn & $2bn deals) Morgan Stanley ($1.75bn deal) Merrill Lynch ($2bn deal) 42 42 Bank of Ireland Group#43Bank of Ireland Medium Term Funding €25Bn EMTN Programme Currency: Maturity: Structures: Min Denoms: Dealers: Multicurrency 2-30 yrs €1,000 Fixed and Floating rate notes Unsecured €10Bn ACS Programme Currency: Maturity: EUR* 2-30 yrs Min Denoms: Structures: €50,000 Vanilla* Vanilla & Interest rate linked structures Callable notes (shortest call 3mths) The Governor & Company of the Bank of Ireland ABN Amro Barclays Capital BNP Paribas Citigroup Credit Suisse First Boston Deutsche Bank Goldman Sachs International HSBC Davy JPMorgan Lehman Brothers Merrill Lynch International UBS Investment Bank Dealers: Fixed and Floating rate notes Secured The Governor & Company of the Bank of Ireland ABN Amro Barclays Capital Citigroup Global Markets Commerzbank Corporates & Markets Credit Suisse First Boston Davy Deutsche Bank Dresdner Kleinwort Wasserstein DZ Bank AG Goldman Sachs International HSBC HVB Corporates and Markets IXIS Corporate & Investment Banking Landesbank Baden-Wurttemberg Merrill Lynch International Morgan Stanley Nomura International SG Corporate and Investment Banking UBS Investment Bank West LB AG 43 * We will be working towards issuing multi currency and lightly structured notes by end 2006 Bank of Ireland Group#44Bank of Ireland Group Fixed Income Investor Presentation August 2006