Allied Irish Banks, p.l.c. Interim Results 30 June 2000

Business Wire, August 2, 2000

Stockbroking is another area where we can see excellent opportunities for AIB. Within the group, Allfirst is pioneering an on-line service where customers can buy, sell and track their personal stock portfolios from their computer. In Ireland, Goodbody Stockbrokers, part of AIB Capital Markets, will launch a new site offering online share trading later this year. This service will also be made available to customers of 24 Hour Online early next year.

The branch network will remain vital to AIB in this new era. The configuration of the network may change but there is no doubt of the importance of the branch as a sales and support location and, of course, as a place where customers can meet our customer service representatives for personalised financial advice.

AIB is proud to be a technologically advanced organisation. But we are not complacent. We are always alert to the opportunities presented by joint ventures with other specialist companies.

Let me give you just two examples. AIB is set to be the first bank in the world to offer a unique secure online payments service to credit card holders. Later this month, AIB Visa cardholders will be able to use TRANSACTonline to make purchases without transmitting their credit card numbers over the internet. This system uses groundbreaking software, developed by Orbiscom, a fast-growing Irish company, in which AIB has taken a minority shareholding.

Allfirst has also taken an equity stake in Politzer & Haney, a banking technology company. This company provides banking solutions to more than 350 US financial institutions, including eight of the top ten banks. More than 800 Allfirst customers use its products for cash management services. Allfirst's investment will help Politzer & Haney develop its next generation eConnection products.

We see great potential for growth in the business and corporate sectors. AIB Capital Markets has a diverse range of services for its customers. This includes a series of targeted websites on topics such as public private partnerships, investing in Ireland and management buy-outs.

The division is also pioneering e-business services delivered through the internet. For example, fxcentre.com provides clients of AIB Corporate and Commercial Treasury with online confirmation of foreign exchange deals and access to their international payment details. Full on-line currency trading is in the pipeline. New internet-based applications are planned for AIB Corporate Banking and AIB Govett.

In America, Allfirst continues to add value to its asset management business through the web delivery of account information to its customers through Trust Online and eTrust. Another interesting Allfirst service is GrowthTrack which allows more than 11,000 employees of 32 companies access through the internet to information on their defined contribution pension schemes. In Poland, we are preparing to launch internet-based services for companies. Other similar internet-based products are also set to roll out across the group.