AIB Investor Day
London, 8th November 2006
Meet the Management
Meet the Management
Meet the Management
Eugene Sheehy
C.E.O.
John O’Donnell
Group Financial Director
Colm Doherty
AIB Capital Markets
Gerry Byrne
AIB Poland
Donal Forde
AIB Bank RoI
Steve Meadows
Operations & Technology
Robbie Henneberry
AIB Bank UK
Rene Jones
CFO, M&T
Meet the Management
08.00 – 08.30
Refreshments
08.30 – 08.40
Introduction
Eugene Sheehy
08.40 – 09.10
AIB Bank Republic of Ireland
Donal Forde
09.10 – 09.40
AIB Bank United Kingdom
Robbie Henneberry
09.40 – 10.10
AIB Poland
Gerry Byrne
10.10 – 10.40
Refreshments
10.40 – 11.10
AIB Capital Markets
Colm Doherty
11.10 – 11.40
AIB Operations & Technology
Steve Meadows
11.40 – 12.10
M&T Bank
Rene Jones
12.10 – 12.25
Group Finance
John O’Donnell
12.25 – 12.55
Open Q & A
12.55 – 13.00
Wrap up and close
13.00
Refreshments
Eugene Sheehy
AIB Investor Day
London, 8th November 2006
Meet the Management
Donal Forde
Managing Director - AIB Bank Republic of Ireland
Forward Looking Statements
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 “forwardlooking” 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
2006
Positive environment
+
Our prime competitive position
On course for strong full year profit performance
2007 – 2010
Our medium term view
Positive economic environment to continue
 Favourable demographics - inward migration driving strong
population growth
 Housing market supported by strong demand
 Strong public finances - potential for increased government
spending
 Savings ratio remains high - latent investment and
consumption potential
 Interest rate levels still relatively accommodating
 Inflation to fall below 3% by end 2007, 2-3% range thereafter
GDP growth of 5 - 6% in 2007, gentle moderation thereafter
Competitive threats are manageable
Business Market - Threat from established Players
 AIB standing as primary Business Bank
 Relationship-based market
 Confident of sustaining our leadership position - recent momentum
reinforces that confidence
Retail Market - Threat from New Players (Den Danske / HBOS / Fortis)
 AIB underweight in many Retail product lines
 Less “incumbent” mindset - more attacking posture
 Focus on Personal Deposits, Consumer Lending, Life & Pensions,
General Insurance & Mortgages
Market repositioning in 2006 as early execution of this strategy
Upgrading distribution and operations capability

Branch channel





Internet & telephone channels



Accelerated internet recruitment
Centralised telephony
Channel-exclusive product and price propositions & stronger sales focus
Extending our distribution network



More radical centralisation of support / administration / account maintenance / telephony /
credit management
Heavy promotion of self-service / assisted-service banking
Targeting 25% increase in relationship management / sales capacity
Focused on business / premium-personal customers
Hibernian relationship / AA alliance
Mortgage intermediaries
Significant technology investments



New banking platform
New data centres
New core banking system
Driving sales momentum, cost efficiency and service differentiation
Focus on wealth management
 High growth potential
 Close gap in market share v natural share of client
relationships
 Actions / initiatives
 JV product suite targeted at base / centre of customer
pyramid
 Revitalised AIB wealth proposition targeted at emerging
wealth / top of customer pyramid
 Integrated distribution team / substantial investment in
technology, training and performance oversight
 Q3 performance very encouraging
Targeting €100m increase in profit by 2010
2007 – 2010: what you can expect from us

Irish market loan and deposit growth to be significantly ahead of European peers
 AIB targeting above market growth in both loans & deposits
 Significant market share gains in investment sales, pensions & general insurance
 Product margins

Improving in deposits

Stabilising in business and consumer lending
Mortgages reducing to c. 80 bps


Costs





Current core cost growth is 6 – 7%
Investment to sustain growth will add to this level
New pay structure increases variability
Over-riding discipline is positive jaws target of 3%
Asset quality

Confidence underpinned by economy, demographics and underwriting stance
Superior growth / productivity in outperforming market
In summary
2006
 On course for strong performance
2007 - 2010
 “Ireland Inc.” to outperform European peers
 AIB - sustaining its no.1 position in business market
- attacking underweight retail lines
 Investing in improved distribution, upgraded operations and
wealth management
 Confident that we will continue to outperform
Continuing double digit profit growth
AIB Investor Day
London, 8th November 2006
Meet the Management
Robbie Henneberry
Managing Director – AIB Group (UK) p.l.c.
Forward looking statements
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 “forwardlooking” 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
UK Division - a snapshot
 UK regulated & incorporated since 1996
 Trades as:
Allied Irish Bank (GB)
First Trust Bank (FTB)
 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
Strong track record
PBT CAGR 12.1%
240
220
200
180
160
140
120
100
80
60
40
20
0
Loans CAGR 21.0%
12,000
Deposits CAGR 14.4%
10,000
8,000
6,000
4,000
2,000
0
2000
2000
2001
2002
2003
IAS 2004
2001
2005
Loans
Cost / Income ratio
53%
2002
2003
2004
2005
Deposits
Impaired Loans
52%
51%
3
50%
49%
%
2
1.4 6
48%
1.3 7
1
1.0 2
0 .9 5
0 .9 1
0 .9 3
0 .7 9
47%
0
Dec-00
46%
2000
2001
2002
2003
2004
IAS 2004
2005
Dec-01
Dec-02
Dec-2003
Dec-2004
% of Average Loans
Dec-2005
Jun-2006
AIB (GB) – Great Britain
PBT CAGR 15.5%
£’m
140
120
100
80
PBT
60
40
20
0
2000
2001
2002
2003
IAS 2004
2005
 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
First Trust Bank – Northern Ireland
CAGR 8.9%
£’m
120
100
80
60
PBT
40
20
0
2000
2001
2002
2003
IAS 2004
2005
 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
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
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
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
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
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
AIB Investor Day
London, 8th November 2006
Meet the Management
Gerry Byrne
Managing Director - AIB Poland Division
Forward looking statements
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 “forwardlooking” 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
Why is AIB in Poland ?
 Large Market – 39m people with considerable employment
potential
 GDP per capita is 46% versus EU15
 One of the fastest growing economies, GDP now growing at c. 5%
 Total banking assets / GDP at 68% (EU15 203%)
 Only 60% of the population have bank accounts
 Branch coverage at 50% of EU average
 Excellent cultural fit
Banking environment (1995 – 2005)
1995 - 2000
2001 – 2005
GDP
5.6%
3.0%
Unemployment
13%
19%
Inflation
15%
3%
Fixed Investment
14%
-2%
Interest Rates
21%
8%
Key Headings
Banking Sector
AIB Strategic Action
First Mover advantage
BZ Acquisition
Increasing Competition
Business Re-alignment
Our 5 year performance
Bank Zachodni WBK S.A. - 2001 to H1, 2006
PBT CAGR + 50%
Loans CAGR 9% / Deposits + Funds CAGR 14.5%
PLN m
H1, 2006
800
690
700
500
388
400
260
300
200
571
570
600
122
100
0
2001
2002
2003
2004
2005
PLN bn
34
32
30
28
26
24
22
20
18
16
14
12
10
8
H1, 2006
2001
2003
2002
Loans
 People employed  from 10.2k to 7.8k
 Cost / income ratio  from 80% to 52%
 Impaired loans  from 20% to 6%
2004
2005
Deposits/Investment Funds
H1, 2006
Evolution of income & costs – carefully chosen growth
1,400
PLN'm
1,200
1,000
Loan Interest Income
800
exceeds
Deposit Interest Income
600
400
200
2002
Deposit Interest Income
2006
Loan Interest Income
Non Interest Income
Costs
Reshaping our business – continuous improvement
Branches
 372 branches, 605 ATMs
GDANSK
 30 new branches planned for 2007
 Expansion in key markets
SZCZECIN
Corporate Business Centres
 Large commercial & corporate focus
WARSAW
POZNAN
 Warsaw, Poznan, Wroclaw, Krakow,
Gdansk
LODZ
 65% total loans under CBC mgt.
 3 New Locations in 2007 – Katowice /
Szczecin / Lodz
External Channels
 Direct banking
 Intermediaries
 Mobile sales
WROCLAW
KATOWICE
KRAKOW
Our reshaped business – reaping the rewards
H1 2006 v H1 2005
Profit & Loss
 Total Operating Income
Balance Sheet / Products
+ 26%
 Corporate / SME
+ 10%
 Operating Expenses
+ 9%
 PLN Mortgages
+ 23%
 Provisions
- 2%
 Personal Loans
+ 93%
 Leasing
+ 16%
 Profit before Tax
+ 62%
 Mutual Funds
 Deposit Volumes
 E Banking/Payments
+ 230%
+ 7%
+ 13%
2006 profits: expected to be materially greater than 2005
Our reshaped business – developing our market position
Peer benchmarking in 2006
 Number 1 for asset quality with c. 6% impaired loans
 Number 1 for investment performance / number 2 in investment funds
 Number 1 in stockbroking
 Business loan growth 2x market level
 Top 3 ROE performance
 Number 2 for % gap between income and cost growth
Positive economic growth indicators
% Growth
2005
2006 (F)
2007 (F)
Inflation (YoY)
2.1%
1.2%
2.5%
GDP (YoY)
3.3%
5.2%
5.0%
Unemployment (Y/e)
17.6%
15.4%
14.2%
Interest Rates (Avrg.)
5.4%
4.0%
4.25%
Exports (YoY)
14.7%
19.5%
15.0%
Fixed Investment (YoY)
6.2%
12.6%
10.0%
Targeting outperformance in a high growth market 2006 - 2010
 High quality well spread sources of income
 Strong momentum in business / retail loans, deposits /
investment funds, leasing, brokerage & credit cards
 Further efficiency gains enabled by highly scaleable
platform
 Risk firmly managed by top class people, scoring
and decision engines
5 years to 2010 - what you can expect from us
 Maintenance of material income / cost gap
 Further % reduction in level of impaired loans
 ROIC to continue increasing from the current 25%
Primed to continue significant, well balanced growth
AIB Investor Day
London, 8th November 2006
Meet the Management
Colm Doherty
Managing Director - AIB Capital Markets
Forward looking statements
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 “forwardlooking” 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
Capital Markets comprises 3 business divisions
Strong, Recurring, Skills based
Normalised Pre Tax Profit

Corporate Banking
63%

Customer oriented 87/13

Global Treasury
27%

Good Earnings Mix

Investment Banking
10%
Interest Income : 52%
Profit Before Tax
Profit Before Tax
403m
317m
CAGR 21%
237.8m
2000
2001
2002
2003
2004
2005
1H
2006*
*excludes 25m gain on sale of business
Trading Income:
13%
Domestic dominance … but
decreasing importance

International expansion around proven
sector specialisms

Best in class enablement / risk
architecture

Rigorous cost focus - C/I ratio 43%

Solid Returns - ROE 20%
200.5m
155.6m
35%

301m
258m
Fee Income:
Corporate Banking - strong recurring earnings

PBT 2000-2005 : CAGR 27%

Consistent 20% + growth in profit pre provision

Good spread on earnings / volume mix 

Ireland
UK
155bps average portfolio margin
US
Weighted average credit grade of portfolio is constant International

RWA: €25 billion

ROE: 21%

Leading domestic Corporate Bank



Earnings
24%
25%
22%
29%
40% Corporate Clearing Accounts
International expansion based on sector specialisms
 Leveraged Debt  Asset Based Lending
 Debt Fund Management
 Property
 Energy
 Infrastructure Finance

Premium for sector knowledge and ability to manage complexity

Rigid ROE discipline
Average
Earning
Assets
5.0bn
4.5bn
4.0bn
5.0bn
Corporate Banking - best in class credit risk management

Selective Credit Underwriting


Diversified Portfolio



Emphasis on repayment sensitivity, covenants, collateral
Pricing


Robust methodology, empirically validated, rating agency endorsed.
Credit structuring


Advanced portfolio modelling / limit setting framework
Credit grading


Centralised credit platform / sector specific best practice models
Strong ROE discipline - value not volume. €3bn asset shed from portfolio in 2006
Dynamic provisioning

All active impaired loans paying current interest

Improving impaired loans trend
Exceptional experience on default v’s model EL
Corporate Banking - growth drivers



Clear Strategy

Regional ‘Relationship Bank’ in Ireland

Specialist lender in chosen niches elsewhere

Structuring complexity yields a better price

Developing debt fund management capability
Geographic expansion - the model travels well

Australasia

Canada
The credit cycle - benign or tough presents opportunity
Corporate Banking …….. Diverse…….Highly Profitable ………Sustainable
Global Treasury- strong recurring earnings

PBT 2000-2005: CAGR 24%

Customer income 56% revenues*


40% share domestic market

Strong Polish franchise
Trading income 44% revenues

short term trading

credit related trading

strategic trading

Consistent profits at all points in interest rate cycle

Average daily VAR €13 million

Best in class enablement / risk architecture

RWA €10 billion (€7 billion excluding liquidity assets)

ROE 27%
*pre internal distribution
Global Treasury- growth drivers
Treasury Services

Buoyant local economies (Ireland / Poland) underpin demand

Scope for increased product penetration

Leverage UK small company relationships more effectively

Cost efficiencies from technology platform
Trading

Capacity to put more risk to work
Treasury …Customer Driven……Low Risk Trading …Consistent Earnings
Investment Banking

Substantially Irish based business

Stockbroking; asset management; M&A; structured finance services

Low % of profits, higher volatility: 2000-2005 CAGR 0% (very strong base year)
No. 1 in M&A; structured finance services
No. 2 in stockbroking
No. 3 in asset management

Divested 50% interest in AIB/BNY JV

Sold retail funds to Aviva as part of Ark Life transaction

Growth drivers

Increasing demand for Private Client Wealth Management Services

Demand for M&A services robust

Continued economic buoyancy / positive equity market returns. Will support demand
for investment products / services
Conclusion
 Resilient high performing business positioned for
sustainable growth
 Increasing flexibility to diversify income streams
 Strong focus on productivity, significant income / cost gap
 Sophisticated and resilient risk management framework
 Uninterrupted profit growth record will continue
AIB Investor Day
London, 8th November 2006
Meet the Management
Steve Meadows
Group Director, Operations & Technology
Forward looking statements
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 “forwardlooking” 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
O&T formed to change AIB’s operating model
Pre-Oct ’05
O&T functions dispersed and fragmented across operating divisions
O&T scope today
People
3,786
Costs
2006
16%
€372m
AIB Group excl O&T
O&T
20,240
€1,873m
84%
84%
How our people are deployed
Back office operations
2,124
Technology
1,266
Enterprise support
396
16%
Operations & Technology (O&T)
A key enabler of our enterprise agenda
 Building an environment, framework and model
to sustain a positive gap between income and
cost growth
O&T strategy – 3 components
Service Quality
Managed
Cost
Operational
Excellence
2005
Risk
2009
Delivering
Transforming the
Operational
Excellence
Business Operating
Model
Enabling the
enlarged Enterprise
End game objectives
• Rapid speed to market
• Volume growth cost indifference
• Support business volume growth
• Business acquisition capability
O&T investment programme - a €400m commitment
Practical first steps
Datacentre Relocation
One Network (VoIP)
XP Desktops
Infrastructure upgrades
Operating model consolidation
Transforming
to support future growth
Wholesale Core Banking
Retail Core Banking
Credit decision and support
Regulatory agenda
Basel II
SOX
SEPA
EU Savings directive
Anti Money Laundering
Consumer Credit Act
Complaints Management
Driving quality, risk and cost benefits
Delivering
Operational
Excellence
Key Initiatives
Objectives
• Right first time
• Total Quality Management (TQM)
• Service delivery cycle times down
by 40%
• Automation tools
• Error rates / rework down 35%+
• Elimination of redundant activities
• Reduced unit production costs
• ABC unit cost management
• Controls framework embedded in
production operations
Investing to transform our business
Transforming the
Business Operating
Model
Key Initiatives
Objectives
• Core banking systems renewal
• Retirement of 20+ legacy systems
• Legacy systems retirement
• Core systems TCO reduction
• Utilisation of best-in-class offshore
developed systems
• Further unit processing cost reduction
Developing a standard operating model
Enabling the
enlarged Enterprise
Key Initiatives
Objectives
• Standard ‘1-Way’ operating model
•
Rapid speed to market
• Fully aligned business operating
model deployment
•
Volume growth cost indifference
•
Support business volume
growth
•
Business acquisition capability
• Production centre consolidation
• Common IT infrastructure deployment
O&T summary
Service Quality
Managed
Cost
Operational
Excellence
Risk
2005
2009
Delivering
Transforming the
Operational
Excellence
Business Operating
Model
Enabling the
enlarged Enterprise
 Underpinning our productivity drive
 Ensuring we can maintain a gap ≥ 3% between income
and cost growth
AIB Investor Day
London, 8th November 2006
Meet the Management
René Jones
Chief Financial Officer - M&T Bank Corporation
Forward looking statements
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 “forwardlooking” 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
M&T - A name known in Buffalo since 1856
•
•
•
•
One of the 20 Largest U.S. Banks
$13.5 Billion Market Cap
$56.4 Billion in assets
+670 branches in 6 States and the District
of Columbia
• Serving customers in 2 million households
and +150,000 businesses
• +13,500 employees
• +1,500 ATM’s
Environment for US banks
Best of times
 Many US Bank stocks near all-time highs
 “Own banks when short term interest rates peak”
 Benign credit environment
Worst of times
 NIM pressure – subdued revenue growth
 Revenue growth for top 50 US banks 2Q05 – 2Q06 – 6%
 EPS growth below long term average
 EPS growth for top 50 US banks 2Q05 – 2Q06 – 5%
 Slowdown in housing market
M&T reaction to current environment
 Seeing same slower revenue growth as the industry

Significant variability among geographic regions
 Closely managing expenses in response

Maintain positive operating leverage

Allocate resources toward fastest growing
businesses/geographies
 Maintaining standards for credit quality and returns

Excellent credit results
M&T Bank Corporation - Earnings Per Share Summary
($ in millions)
2005
Sept. YTD
2006
Sept. YTD
$
604
$
656
9%
$
5.18
$
5.75
11%
GAAP Net Income
$
577
$
626
8%
GAAP EPS
$
4.95
$
5.49
11%
Net Operating Income
Net Operating EPS
1
1
2006 vs. 2005
% Growth
(1) Excludes merger-related costs and amortization expense associated with intangible assets.
*Intangible Amortization net of tax: Sept. 2005 YTD =$27MM, Sept. 2006 YTD = $27MM Merger-related costs net of tax: Sept. 2006 YTD = $3MM
M&T Bank Corporation – nine month highlights
 Revenue growth of 4.7% year-over-year
 Average loans & leases grew 4.7%
 NIM declined to 3.69% from 3.79%
 Operating expenses up 2.7%*
 Net charge-offs of $43 million, down $11 million from 2005
* Excluding $18MM donation to the M&T Charitable Foundation.
M&T Corporation vs. Top 50
4.50
63.00
Net Interest Margin
59.31
60.00
4.23
4.25
57.00
4.00
Efficiency Ratio
56.45
3.97
54.00
3.77
3.64
3.69
3.56
2002
2003
2004
2005
MTB
0.50
0.40
0.30
1H06
51.43
51.00
48.00
3.50
2001
51.53
51.53
3.70
3.75
2001
Sept '06
YTD
2002
2003
MTB
Top 50 Median
2.00
Net Charge-Offs to Average Loans
2004*
2005
1H06
Sept '06
YTD **
Top 50 Median
Allowance to Loans
0.40
1.75
1.69
1.55
0.31
1.50
0.20
1.54
1.43
0.14
0.14
0.10
1.25
0.13
1.08
1.00
0.00
2001
2002
2003
MTB
2004
2005
1H06
Sept ' 06
YTD
2001
Top 50 Median
2002
2003
MTB
2004
2005
Top 50 Median
Note: Efficiency ratio excludes amortization expense associated with intangible assets, merger-related expenses, and G/L on investment securities.
*MTB’s efficiency ratio excludes the $25 million pretax contribution to The M&T Charitable Foundation.
** MTB’s efficiency ratio excludes the $18 million pretax contribution to The M&T Charitable Foundation and $13 million gain on an FHLB borrowing.
1H06
Sept '06
YTD
M&T Bank Corporation – pretax operating income by region
($ in millions)
Sept. '06
YTD
% Growth
Prior Year
3 Yr CAGR
06 vs. '03
319.8
21.7%
12.8%
Metro (2)
157.5
-0.6%
7.5%
Mid-Atlantic (3)
177.3
28.7%
33.2%
Pennsylvania (4)
163.1
25.7%
29.9%
Multi-Region
171.5
-26.4%
-9.3%
989.0
7.3%
10.7%
Upstate NY (1)
Total
$
$
(1) Includes Upstate NY and Western NY regions.
(2) Includes NYC, Philadelphia, and Tarrytown regions.
(3) Includes Baltimore, Washington DC, and Chesapeake regions.
(4) Includes Pennsylvania, less Philadelphia.
Note: Operating Income excludes amortization of intangibles, merger-related expenses and non-recurring items.
M&T per share data 1983-2005
$8.00
$7.03
$7.00
$6.00
$5.00
$4.00
+22% CAGR
$3.00
+18% CAGR
$2.00
$1.00
$0.00
1983
1985
1987
1989
1991
1993
1995
1997
1999
Diluted Net Operating Earnings
Note: Data prior to 1998 does not include provisions of SFAS No. 123 andNo.148 stock option expensing.
2001
2003
Dividends
2005
Recent performance
Stock Price
Performance since
Y/E 2004
Y/E 2005
MTB
11.2%
10.0%
BKX (1)
8.8%
9.1%
S&P 500
10.2%
7.0%
NASDAQ
3.8%
2.4%
Note: Reflects stock price performance through Sept 30. 2006
(1) BKX indicates the KBW Bank Index.
What makes M&T unique?*
Other
Shareholders
49.5%
AIB
24.0%
 Management’s interest
aligned with Shareholders’
Interests
 Over 50% Ownership
between AIB, M&T insiders
20.5%
6.0%
M&T
Management,
Directors and
Berkshire
HathawayWarren
Employees
Buffett
* As of 2/28/06. Includes options & deferred bonus shares
and Warren Buffett
M&T Bank Corporation… a solid investment
Source: IDC & Factset
 24.6% Annual rate of return since 1980
 13th best return of the entire universe of over a thousand U.S. based
stocks that have traded publicly since 1980
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
Company Name
Eaton Vance Corp.
Circuit City Stores Inc.
Stryker Corp.
Gap Inc.
State Street Corp.
Forest Laboratories Inc.
Countrywide Financial Corp.
Progressive Corp.
Mylan Laboratories Inc.
Wal-Mart Stores Inc.
Leucadia National Corp.
Robert Half International Inc.
M&T Bank Corp.
Industry
Annual Return (%)
Financials
30.3
Consumer Discretionary
27.5
Health Care
26.6
Consumer Discretionary
26.5
Financials
26.5
Health Care
26.3
Financials
26.2
Financials
25.9
Health Care
25.7
Consumer Staples
25.4
Financials
25.0
Industrials
24.7
Financials
24.6
$2,790 invested in M&T in 1980 would be worth $1 million today
Note: CAGR calculated assuming reinvestment of dividends through September 30, 2006.
Appendix
Reconciliation of GAAP and Non-GAAP Results of Operation
Net Income
and Earnings Per Share
$'s in millions
Net income
Intangible amortization,
net of tax
Merger-related expenses,
net of tax
Net operating income
Earnings Per Share
Diluted earnings per share
Intangible amortization,
net of tax
Merger-related expenses,
net of tax
Diluted net operating
earnings per share
Efficiency Ratio
$'s in millions
Non-interest expenses
less: intangible amortization
less:charitable contribution
less: merger-related expenses
Adjusted net operating expenses
Adjusted T.E. revenues*
Net operating efficiency ratio
Sept. '06
YTD
Sept. '05
YTD
2005
2004
2003
2002
2001
2000
1999
$625.9
$577.2
$782.2
$722.5
$573.9
$456.8
$353.1
$268.2
$252.4
27.0
26.9
34.7
46.1
47.8
32.5
99.4
56.1
42.4
4.8
16.4
3.0
3.0
-
-
-
39.2
-
$655.9
$604.1
$816.9
$768.6
$660.9
$489.2
$457.3
$340.7
$297.8
$5.49
$4.95
$6.73
6.00
4.95
4.78
3.58
$3.24
$3.13
0.23
0.23
0.30
0.38
0.41
0.34
1.00
0.67
0.52
0.03
$5.75
$5.18
-
-
0.34
-
0.05
0.20
0.04
$7.03
$6.38
$5.70
$5.12
$4.63
$4.11
$3.69
$1,167.9
44.3
18.0
5.0
$1,100.6
$1,116.0
44.1
$1,071.9
$1,485.1
56.8
$1,428.3
$1,516.0
75.4
25.0
$1,415.6
$1,448.2
78.2
60.4
$1,309.6
$961.6
51.5
$910.1
$980.6
121.7
8.0
$850.9
$718.6
69.6
26.0
$623.0
$596.7
49.7
4.7
$542.3
$2,153.4
$2,086.4
$2,789.5
$2,692.0
$2,443.7
$1,774.2
$1,651.4
$1,192.5
$1,047.9
51.1%
51.4%
51.2%
52.6%
53.6%
51.3%
51.5%
52.3%
Note: Effective January 1, 2003, M&T began recognizing expense for stock-based compensation in accordance with SFAS No. 123, as amended,
and chose the retroactive restatement method described in SFAS No. 148. As a result, financial information for all prior periods presented
has been restated to reflect the provisions of these pronouncements.
* Excludes securities transactions
51.8%
Reconciliation of Assets & Equity to Tangible Assets & Equity
Assets
$'s in millions
Average assets
Goodwill
Core deposit and other
intangible assets
Deferred taxes
Average tangible assets
Equity
$'s in millions
Average equity
Goodwill
Core deposit and other
intangible assets
Deferred taxes
Average tangible equity
Sept. '06 Sept. '05
YTD
YTD
2005
2004
2003
2002
2001
2000
1999
$ 55,591 $ 53,899 $ 54,135 $ 51,517 $ 45,349 $ 31,935 $ 30,842 $ 23,670 $ 21,065
(2,908)
(2,904)
(2,904)
(2,904)
(2,456)
(1,098)
(1,126)
(641)
(521)
(167)
39
(142)
55
(135)
52
(201)
-
(233)
-
(143)
46
(196)
56
(125)
30
(73)
22
$ 52,555 $ 50,908 $ 51,148 $ 48,412 $ 42,660 $ 30,740 $ 29,576 $ 22,934 $ 20,493
$
5,973 $ 5,772 $ 5,798 $ 5,701 $ 4,941 $ 3,026 $ 2,975 $
(2,908)
(2,904)
(2,904)
(2,904)
(2,456)
(1,098)
(1,126)
(167)
39
$
2,937 $
(142)
55
2,781 $
(135)
52
2,811 $
(201)
76
2,672 $
(233)
68
2,320 $
(143)
46
1,831 $
(196)
56
1,709 $
2,045 $
(641)
(125)
30
1,309 $
Note: Effective January 1, 2003, M&T began recognizing expense for stock-based compensation in accordance with SFAS No. 123,
as amended, and chose the retroactive restatement method described in SFAS No. 148. As a result, financial information for all
prior periods presented has been restated to reflect the provisions of these pronouncements.
1,744
(521)
(73)
22
1,172
AIB Investor Day
London, 8th November 2006
Meet the Management
John O’Donnell
Group Financial Director
Forward Looking Statements
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 “forwardlooking” 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
Some topical themes
 Capital allocation and management
 Funding
 Net interest margin
Capital allocation
 Allocation to support organic growth our priority

Best value creator

Plentiful supply for business exceeding benchmark return
 Business divisions as mini plcs, individual EPS assessment
 Primary focus on return on regulatory capital; supported and
complemented by return on economic capital

Detailed appraisal of return on incremental capital
 Basel II - conservative view of quantum and timing of benefits
Capital outlook
Assumptions
ROE
40% Div payout
25% Leverage
Asset sales & leasebacks
Securitisation, other assets
20%
(8%)
12%
3%
15%



15% Internal
Capital
Generation Rate
Management
2 year
visibility
on capital
(Target
tier 1 7%)
Actions
Further Options
Recourse to
shareholders
not on
agenda
Source of funds
%
100
80
60
10%
4%
10%
10%
6%
3%
7%
24%
25%
52%
49%
2005
H1 2006
40
20
0
Capital
Senior Debt
ACS
CDs & CPs
Deposits by banks
Customer a/cs
Debt funding – well distributed and diversified
Debt Distribution October 2006
€ (m)
4,000
3,500
Euro 82%
3,000
STG 14%
2,500
US$
4%
2,000
Step-up issues – adjusted
to earliest step-up date
1,500
1,000
500
0
2007 2008 2009 2010 2011 2012 2015 2020 2025 Perp.
ACS
Snr-Priv.Place.
Snr-Benchmk
€ (m)
Tier (ii)
Tier (i)
Moody’s
S&P
Fitch
Asset Covered Securities
3,500
Aaa
AAA
AAA
Senior Debt - Private Placements
2,800
Aa3
A+
AA-
Senior Debt - Benchmark Issues
6,750
Aa3
A+
AA-
Tier (ii)
3,500
A1
A(Lwr)/A-(Uppr)
A+
Tier (i)
2,700
A2
A-
A+
Total
19,250
Net interest margin – loans growing faster than deposits
%
30
28
28
27
25
20
20
16
14
15
Loans
Deposits
10
5
0
2004
2005
Jun-06
Net interest margin - re-investment of customer account funds
 Objective to reduce income volatility
 Average maturity c. 3.5 years
 October re-investment tranche positive; breaking
long negative sequence
 Lesser negative in 2007, turning positive in 2008
Net interest margin
Mix and competition
 Business mix (Republic of Ireland)
1998
2002
2003
June 2006
% of loan book
% of loan book
% of loan book
% of loan book
Branch loans
32
14
11
6
Home loans
29
31
34
33
Market / other loans
39
55
55
61
100
100
100
100
Total loans
 Margin on branch loans up to 4% higher than other loan categories

No material ongoing front book / back book issue
 Relative growth in other products also has mix effect e.g. corporate
loans, term deposits
 Competition expected to remain strong

Product margins resilient
Financial snapshot
 All businesses performing strongly and generating good
returns
 Income momentum underpinned by buoyant and well spread
pipelines
 Investing to sustain growth and maintaining significant
positive income / cost growth gap
 Asset quality remains very solid
 Growth built on robust capital and funding foundations
Well set to continue high quality growth
Contacts
Our Group Investor Relations Department will be happy to
facilitate your requests for any further information
Alan Kelly
alan.j.kelly@aib.ie

+353-1-6412162
Maurice Tracey
maurice.m.tracey@aib.ie

+353-1-6414191
Pat Clarke
patricia.m.clarke@aib.ie

+353-1-6412381
Alma Pearson
alma.e.pearson@aib.ie

+353-1-6413469
+353-1-660 0311
+353-1-641 2075
Visit our website www.aibgroup.com/investorrelations