AIB : Country by Country Report 2019

Country by Country Reporting

For the financial year ended 31 December 2019

AIB Group

Index

Page

1.	Basis of disclosure	2
2.	Parent company and Principal subsidiaries	3
3.	Turnover, Profit before taxation, Taxation and Employees	4
4.	Independent Auditor's Report	5

Basis of disclosure

The disclosures contained in this report have been prepared in accordance with Country by Country Reporting requirements under the Capital Requirements Directive (''CRD IV'') which have been transposed into Irish legislation as Regulation 77 of Statutory Instrument 158 of 2014 ("Regulation 77") as at 31 December 2019.

Regulation 77 requires each institution(1)to disclose annually, specifying, by Member State and by third country in which it has an establishment, the following information on a consolidation basis for the financial year.

For the purposes of this disclosure, Allied Irish Banks, p.l.c. and its subsidiaries are collectively referred to as 'AIB Group'.

(a) Name(s), nature of activities and geographical location;

This information is provided based on locations of operations of the parent and subsidiary companies of AIB Group.

(b) Turnover;

Turnover is reported on a consolidated basis for each country. The geographical distribution of turnover is based primarily on the location of the office recording the transaction.

(c) Number of employees on a full time equivalent basis;

The number of employees on a full time equivalent ("FTE") basis is reported as an average number of employees, analysed as to geography.

(d) Profit or loss before tax;

Profit before tax is reported on a consolidated basis for each country.

(e) Tax on profit or loss; and

Tax on profit or loss, for the purposes of country by country reporting, is interpreted as the corporation tax paid/refunded in each geographical jurisdiction in the year.

(f) Public subsidies received.

The definition of 'public subsidies' has been interpreted as direct support by the Government. It does not include central bank operations that are designed for financial stability purposes or operations that aim to facilitate the functioning of the monetary policy transmission.

No public subsidies were received by the Group during the year ended 31 December 2019.

The following AIB credit institutions in the Republic of Ireland, authorised by the Central Bank of Ireland/Single Supervisory Mechanism, are required to comply with Regulation 77:

• - Allied Irish Banks, p.l.c.

• - AIB Mortgage Bank

• - EBS d.a.c.

• - EBS Mortgage Finance

This report fulfils the obligation of these Irish credit institutions in relation to Regulation 77.

These Irish licensed entities are required to file regulatory returns with the Central Bank of Ireland for the purposes of assessing, inter alia, their capital adequacy and their balance sheets. For AIB Group (UK) p.l.c., regulatory returns are filed with the Prudential Regulatory Authority.

Country by Country disclosures are prepared under International Financial Reporting Standards as adopted by the European Union except in relation to the scope of consolidation which is prepared on a prudential basis. The principal difference between the consolidated statutory financial statements and the prudential basis relates to the Group's acquisition of the majority stake in Semeral Ltd, a holding company for Payzone Ireland, which is fully consolidated in the statutory financial statements but treated as an investment under the prudential consolidation in line with Article 4(1) of the Capital Requirements Regulation.

(1)Credit institutions and investment firms under Regulation 77.

Parent company

Country	Parent company	Nature of activities
Republic of Ireland	Allied Irish Banks, p.l.c.	A direct subsidiary of AIB Group plc(1)
and the principal operating company
of AIB Group and holds the majority
of the subsidiaries within the Group.
Its activities include banking and
financial services.
Principal subsidiaries(2)
Country	Principal subsidiary or branch	Nature of activities
Republic of Ireland	AIB Mortgage Bank	Issue of mortgage covered securities.
Republic of Ireland	EBS d.a.c.	Mortgages and savings.
United Kingdom	AIB Group (UK) p.l.c.	Banking and financial services.
Rest of the World(3)	N/A	Banking and financial services.

(1)On 8 December 2017, Allied Irish Banks, p.l.c. was acquired by AIB Group plc. AIB Group plc, the holding company, is quoted on the Euronext Dublin

(formerly 'Irish Stock Exchange').

(2)In line with those set out in the financial statements of Allied Irish Banks, p.l.c. at 31 December 2019.

(3)There are no principal subsidiaries operated in the Rest of the World. The turnover is derived from the operations of smaller branches and entities of the

Parent Company primarily in North America. The turnover of € 4 million (31 December 2018: € 9 million) is not considered material in the context of the requirement to disclose country by country information.

Turnover, Profit before taxation, Taxation and Employees

AIB Group(1)

For the year ended 31 December 2019

Turnover(2)

€ m

Country

Republic of Ireland2,292

United Kingdom358

Rest of the World(4)4

Total

2,654

Profit/(loss)	Taxation	Average
before tax	(refund)/paid	FTEs(3)
€ m	€ m	€ m
335	30	8,755
178	26	1,026
(13)	-	59
500	56	9,840

For the year ended 31 December 2018

Turnover(2)

€ mProfit/(loss) before tax € mTaxation (refund)/paid € m

Average

FTEs(3)

€ m

Country

Republic of Ireland United Kingdom Rest of the World(4)

Total

2,559 311 9 2,879

1,111 128 13 1,252

22 8,681

22 1,066

- 54

44

9,801

Subsidiaries, based in the Republic of Ireland, which are credit institutions
Turnover(2)	Profit/(loss)	Taxation	Average
before tax	(refund)/paid	FTEs(3)
€ m	€ m	€ m	€ m
105	15	2
4	8	1
34	5	-

For the year ended 31 December 2019

AIB Mortgage Bank	495
EBS d.a.c.(5)	270
EBS Mortgage Finance	109
Turnover(2)	Profit/(loss)	Taxation	Average
before tax	(refund)/paid	FTEs(3)
€ m	€ m	€ m	€ m
AIB Mortgage Bank	324	143	-	2
EBS d.a.c.(5)	298	120	9	1
EBS Mortgage Finance	125	45	7	-

For the year ended 31 December 2018

(1)Allied Irish Banks, p.l.c. and its subsidiaries on a group consolidated basis. Any differences with items reported in this table and those reported in Allied

Irish Banks, p.l.c. Annual Financial Report 2019 are due to the scope of consolidation noted previously (i.e. country by country disclosures are prepared under the prudential basis).

(2)Turnover consists of net interest income and other income/loss (e.g. dividend income, net fee and commission income, net trading income, other financial income, other operating income and loss on disposal of loans and advances).

In deriving 'turnover' by country, intercompany turnover arising within a country is eliminated but intercompany turnover between countries is reported in the above turnover by geography.

(3)In addition to the numbers presented, a small number of AIB Group employees maintain a parallel employment relationship with AIB Mortgage Bank,

EBS d.a.c. and EBS Mortgage Finance in order to facilitate delivery of outsourced service activities under the Outsourcing and Agency Agreement with

Allied Irish Banks, p.l.c.

(4)There are no principal subsidiaries operating in the Rest of the World. The turnover is derived from the operations of smaller branches and entities of

Allied Irish Banks, p.l.c. primarily in North America. The turnover of € 4 million (31 December 2018: € 9 million) is not considered material in the context of the requirement to disclose country by country information.

(5)EBS d.a.c. and its subsidiaries on a group consolidated basis.