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Investor Presentaiton

Asset quality continues to improve; impaired loans and provisions fall in 2016 All 3 PCAR Banks (€bn) Dec-14 Dec-15 Dec-16 Total Loans 197.1 186.5 168.9 Impaired 43.1 BOI 29.0 21.0 Irish Residential Mortgages UK Residential Mortgages (Impaired as % of Total) 21.9% 15.5% 12.4% Provisions 23.5 14.7 10.4 Irish SMEs UK SMES Impaired Loans % (Coverage %) 1 by Bank and Asset Dec-14 Dec-15 Dec-16 12.6(46) 9.3(52) 6.9(54) 2.0(23) 1.6(22) 1.4(23) 25.6(51) 21.9(52) 17.0(54) Book (€bn) 24.3 23.9 8.8 (Provisions as % of book) 12.0% 7.9% Corporate 6.2% CRE Investment 16.9(44) 11.1(51) 7.6(53) 5.6(54) 4.6(59) 43.5(63) 37.2(46) 28.5(53) 22.7(57) 1.9 9.3 9.3 (Provisions as % of Impaired) 54.5% 50.6% 49.5% - CRE Land/Development 89.5(74) 84.8(76) 69.6(73) 1.0 Consumer Loans 6.4(98) Loan Asset Mix (three banks Dec 16) 4.1(105) 2.7(94) 3.6 18.2(50) 11.6(56) 8.4(56) 82.4 AIB Irish Residential Mortgages 22.6(40) Corporate/S ME 22% Mortgage UK Residential Mortgages SMES/Corporate CRE Consumer Loans 16.6(38) 13.1(44) 11.6(59) 10.8(50) 10.8(46) 21.4(68) 11.5(63) 8.0(60) 56.9(62) 37.4(61) 29.0(53) 27.2(69) 19.9(70) 13.9(58) 33.4 1.8 17.5 9.4 3.1 Consumer 4% 29.2(51) 18.6(47) 14.0(44) 65.2 62% 12% CRE PTSB Irish Residential Mortgages UK Residential Mortgages Commercial Consumer Loans 25.5(46) 23.6(49) 23.4(49) 1.5(60) 3.9(39) 0.0(0) 74.0(60) 35.8(69) 29.6(113) 29.7(94) 27.0(93) 22.3(88) 24.5(51) 21.1(49) 23.1(51) 20.7 0 0.2 0.3 21.3 Source: Published bank accounts Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta National Treasury Management Agency 1 Total impairment provisions are used for coverage ratios (in parentheses) 75
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