AIB : Annual Financial Report 2025

About this update from Aib Group Plc

Annual Report AIB Group plc Annual Financial Report For the year ended 31 December 2025 AIB Group plc is the holding company for Allied Irish Banks, p.l.c. (AIB). AIB is a financial services group operating predominantly in Ireland and the United Kingdom. We provide a range of services to personal, business and corporate customers, with market-leading positions in key segments in our domestic market. With 3.4 million customers, our purpose is empowering people to build a sustainable future. Our reporting suite Annual Financial Results Presentation Sustainability Disclosures Tables Social Impact Report 2024-2025 Our Annual Financial Results presentation provides a summary of AIB's performance, while delivering key highlights for our shareholders and broader stakeholder groups. Our Sustainability Disclosures Tables provide supplementary information that is required by certain stakeholders. Our Social Impact Report outlines what we are doing to make a positive difference to communities, to the lives of our customers and colleagues, and to climate and nature every day. View online View online View online On our cover In 2025, we launched our new AIB brand campaign 'For the life you're after', celebrating the small, determined and decisive actions that help people achieve the life they're after. This copy of the statutory annual report of AIB Group plc for the year ended 31 December 2025 is not presented in the ESEF-format as specified in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 201G/815). The ESEF annual report will also be published on: https://aib.ie/investorrelations/financial-information/results-centre/2025-financial-results Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 01 What's inside this report Delivering growth, efficiency and customer value Performance, purpose and momentum Annual Review 0 2 Business Performance 0 4 AIB Group at a Glance 0 6 Chair's Statement 08 Chief Executive's Review Climate, community and impact Sustainability Reporting 42 Sustainability Statement 42 Our Approach to Sustainability 55 Climate & Environmental Action 12 Economic Overview G2 14 Our Strategic Progress 114 16 Risk Summary 17 1G Principal Risks Evolving and Emerging Risks 75 Societal & Workforce Progress Governance & Responsible Business Task Force on Climate-related Financial D isclosures (TCFD) Business Review 22 Operating and Financial Review 38 Capital Effective governance and accountability in practice Governance Report 118 Governance in Action 120 Chair's Introduction 120 Corporate Governance Headlines at a Glance 121 Corporate Governance Framework 122 Our Board of Directors 126 Our Executive Leadership Team 128 Board Leadership, Purpose and Governance 134 Board Activities 136 Stakeholder Engagement 140 Report of the Board Audit Committee 143 Report of the Board Risk Committee 146 Report of the Nomination and Corporate Governance Committee 148 Board Composition and Succession 152 Report of the Remuneration Committee 155 Corporate Governance Remuneration Statement 164 Report of the Sustainable Business Advisory Committee 165 Report of the Technology and Data Advisory Committee 166 Internal Controls 168 Viability Statement 16G Directors' Report 172 Schedule to the Directors' Report 174 Other Governance Information 175 Supervision and Regulation Risk Management 178 Risk Management Approach Financial Statements 242 Statement of Directors' Responsibilities 243 Independent Auditors' Report 253 Consolidated Financial Statements 25G Notes to the Consolidated Financial Statements 331 AIB Group plc Company Financial Statements 333 Notes to AIB Group plc Country by Country Report 338 Basis of preparation 33G Parent company and principal subsidiaries 33G Turnover, Profit before taxation, Taxation and Employees 340 Independent Auditors' Report General Information 344 EU Taxonomy Disclosure Tables Shareholder Information Forward Looking Statement Principal Addresses Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 Business Performance Financial Performance Profit After Tax Net Interest Income Net Credit Impairment Charge 02 2025 Results ‌€2,13Gm €3,748m €172m €2,351m €2,13Gm €4,12Gm €3,748m €55m €172m 2024 2025 Resilient profit after tax of €2.1bn Operating profit 1 €2.4bn, operating income down 8% reflecting lower interest rates with operating expenses up 1%, an impairment charge of €172m and a gain on exceptional items of €156m 2024 2025 Impacted by lower interest rates Down 9%, in line with expectations, due to lower interest rates and higher interest expense on customer deposits partially offset by balance sheet growth. Net interest margin (NIM) of 2.73% 2024 2025 Asset quality has remained stable Impairment charge of €172m, representing 24bps of average customer loans. ECL balance sheet cover of 1.6% NPE ratio 2.2% Non-performing exposures 2 (NPEs) down 20% to €1.6bn New Lending Gross Loans Customer Deposits 3 €14.7bn €72.3bn €117.2bn €10G.8bn €117.2bn €14.5bn €14.7bn €71.2bn €72.3bn 2024 2025 New lending up 2% Growth in property and personal lending partially offset by lower mortgage lending 2024 2025 Gross loans increased €1.1bn or 2% Underlying growth of €2.4bn or 3% excluding adverse foreign exchange movements and loan disposals 2024 2025 Customer deposits up 7% Strong growth of €7.4bn, ahead of expectations, driven by growth in personal and SME Operating profit before impairment losses and exceptional items. NPEs refers to non-performing loans (NPLs) and excludes €155m of off-balance sheet commitments. Customer deposits excludes cash collateral from derivative counterparties. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 03 Medium-term Financial Targets (2026) Return on Tangible Equity 1 A measure of how well capital is deployed to generate sustainable earnings CET1 Ratio (fully loaded) A measure of our ability to withstand financial stress and remain solvent Absolute Cost Base 2 Cost of running the business Target: 15% Target: >14% Target: <€2.0bn 25.0% 16.2% €1,GG2m 26.7% 25.0% 15.1% 16.2% €1,G71m €1,GG2m 2024 2025 Return on tangible equity substantially ahead of medium-term target 2024 2025 Strong capital position, well in excess of regulatory requirements. Distributions of €2.25bn - interim dividend €263m, buyback of €1.0bn to be initiated and proposed final dividend of €G88m 2024 2025 Cost income ratio 2 44%. Costs up 1% reflecting strong cost discipline. Staff numbers down 3% to 10,207 Sustainability Performance 3 Greening our Business Helping Customers to Buy their First Home Universal Inclusion Target: €30bn by 2030 Target: >€6bn by 2026 Target: Gender balanced 6 €22.Gbn €5.4bn 42% €16.6bn €22.Gbn €2.8bn €5.4bn 43% 42% 2024 2025 Amount of cumulative new green and transition 4 lending since 201G Continued growth in new green and transition lending in 2025, up 38% on 2024. Delivered by strong performance in energy-efficient residential and commercial buildings, renewable energy and transition financing. 76% of €30bn target achieved 2024 2025 Amount of cumulative new lending to first-time buyers since 2024 Strong performance in new lending to first-time buyers in 2025, which accounted for 61% of AIB Group new mortgage lending in the Republic of Ireland. Since 2024 we have supported c.1Gk customers 5 to buy their first home 2024 2025 Women as % of ELT and management 7 Gender balance maintained across management levels. Targeted programmes on leadership development and career progressions strategy have been implemented to ensure that our female workforce has the resources and opportunities needed to succeed and thrive within AIB Return on Tangible Equity (RoTE) is based on the target CET1 capital on a fully loaded basis. For definition and basis of calculation, see pages 36 and 40. Before exceptional items, bank levies and regulatory fees. For exceptional items, see pages 26 and 36. Our approach continues to evolve which may result in variations in methodologies and reported outcomes over time. In 2025 Transition Finance was incorporated into our green and transition lending reporting and has been applied to all relevant new lending activity from 1st January 2025. Our green and transition lending definition is aligned to our Sustainable Lending Framework (SLF), which outlines the key parameters on which a transaction can be classified as green or transition. Customer is defined at account level, as such two buyers for the one property are only counted as one customer. The Equileap annual Gender Equality Global Report & Ranking equates 'gender balanced' with between 40% and 60% women. Within AIB's career structure management is defined as those in Level 4-6 positions including the Executive Leadership Team (ELT) & Goodbody. Goodbody was not included in the prior years figure and has not been restated, because the differing career structures in AIB and Goodbody did not allow for a consolidated Group level metric. Payzone, contractors, AIB staff on career break or unpaid leave and Board members are excluded from the figure. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 04 Introduction AIB Group at a Glance ‌Our purpose is empowering people to build a sustainable future Our business lines 1 Climate G Infrastructure Capital Relationship and transaction-driven model Climate C Infrastructure Capital specialises in lending to large scale renewable and infrastructure projects, which are key drivers for sustainable economic growth, across Ireland, the UK, Europe and North America. Retail Banking (incl. AIB UK) 3.18m Active customers Retail Banking supports our personal and business customers with a range of banking and financial services. In Ireland, AIB offers retail banking services through branch, phone and digital channels with an expanded reach via EBS, Haven, AIB life, Payzone and Nifti. In Northern Ireland, AIB offers full-service retail banking. And in Great Britain, we support our corporate customers with sector-specific expertise. Our brands Capital Markets Relationship-driven model Capital Markets, which includes Goodbody, serves the Group's large and medium-sized business customers as well as our private banking customers, taking a partnership approach and providing deep sector expertise combined with our comprehensive product offering. 1 In July 2025, the Group announced the simplification of its management structure and the integration of the UK into Retail Banking enabling the Group to focus on three business lines: Retail Banking, Capital Markets, and Climate & Infrastructure Capital. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 05 €3Gm €0.6bn €1.5bn Operating Contribution by business line 1 See Operating and Financial Review: p.30 to 35 €6.3bn €17.2bn €48.7bn Loan Book by business line 1 See Operating and Financial Review: p.30 to 35 FY2025 Total €2.2bn 2 FY2025 Total €72.3bn 2 Retail Banking (incl. AIB UK) Capital Markets Climate & Infrastructure Capital 1 In July 2025, the Group announced the simplification of its management structure and the integration of the UK into Retail Banking enabling the Group to focus on three business lines: Retail Banking, Capital Markets, and Climate & Infrastructure Capital. 2. Includes Group Segment. Investment thesis Earnings resilience and strong growth outlook Revenue diversification G wealth opportunity Focused on operational efficiency and resilience Strong capital generation and shareholder returns Underpinned by Supportive domestic macro backdrop Conservative credit management Robust balance sheet Leading ESG strategy and credentials Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 06 Chair's Statement The right strategy for long-term success ‌ I would like to thank our 3.4 million customers for their loyalty and trust in us. We will continue to put them at the forefront of our decision-making as we empower them to build a sustainable future. Jim Pettigrew Chair 2025 - AIB's watershed year By any measure, 2025 will be remembered as a watershed year for AIB as the Group returned to full private ownership, the Irish State was repaid its investment in the Group dating back to the global financial crisis and the obligations under the Relationship Framework Agreement with the Minister for Finance were retired. These events conclude what was a very regrettable period for the Group when it had to rely on the State for support. AIB owes an immense debt of gratitude to Irish taxpayers for the support provided throughout that challenging time. 2025 was also a further year of strong performance and profitability, which saw the Group generate net interest income of €3,748m despite falling interest rates in the eurozone in particular. Profit after tax amounted to €2,13Gm (2024: €2,351m) resulting in earnings per share of G3.3 cent (2024: G2.5 cent). I encourage you to read our Chief Executive's review of performance on pages 8 to 11 for further detail. Capital, dividend and other distributions We understand the importance, for many of our stakeholders, of generating and maintaining strong levels of capital. Our medium-term target is to maintain our level of CET1 capital above 14%. While we commenced the year with 15.1%, our business generated organically, a furthe r c. 370 bps of CET1 during 2025, which supported the following distributions. I was delighted when the Board agreed in July to reinstate the interim dividend for the first time since 2008, when we declared an interim payment of 12.328 cent per share, amounting to €263m. Reflecting the strong performance achieved in 2025 and the robust capital position of the Group as we entered the year, the Board has resolved to distribute all of the after-tax profits generated. Subject to approval of shareholders at the Annual General Meeting on 30 April 2026, a final ordinary cash dividend of 46.257 cent per share, amounting to €G88m, will be paid on 8 May 2026 to shareholders on the register at the close of business on 27 March 2026. When combined with the interim dividend of 12.328 cent, the total dividend for the year will amount to 58.585 cent, a 58% in crease over the cash dividend declared for 2024, of 36.G84 cent per share. Your Board has also resolved to distribute €1bn by way of an on-market share buyback programme to commence immediately, and we intend to launch a follow on Odd-Lot Offer to smaller shareholders in response to requests from shareholders at the 2025 Annual General Meeting. The necessary pre-approval for these two reductions in capital has been received from the European Central Bank. Taking account of the capital generated in 2025 together with the distribution s described above, the Group has finished the year with a CET1 ratio of 16.2% , well above the Group's medium-term target. State shareholding Following receipt of shareholder approval at the 2025 Annual General Meeting, the Group successfully concluded an off-market purchase of 1G1,671,857 ordinary shares from the Minister for Finance on 7 May 2025, for a total consideration of €1.2bn. This represented 8.2% of the issued share capital, and the shares were cancelled on settlement. The Minister continued with a programme of selling down the Irish State's holding in the Group during 2025, through a combination of placings and a daily share trading programme and, on 17 June 2025, announced the complete divestment of the State's holding following a placing of the final 2.06% held prior to that date. On 31 October 2025, AIB announced the agreement with the Minister for Finance for the cancellation of warrants over 271,166,685 shares held by the Minister on the payment of €3G0m. This ended the involvement of the Irish State's direct economic interest in the Group, and brought the total proceeds repaid to the State by AIB to c. €21bn, including levies of c. €650m and other fees. On behalf of the Board, I welcome our new shareholders and I thank you and our other longer-standing investors for your support and your confidence in the Board and management of the Group, together with the strategy we are pursuing. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 07 Corporate governance Your Board's commitment to the highest standards of corporate governance is resolute and I invite you to review the section of this Annual Report setting out Governance in Action at AIB. This is set out on pages 118 to 175. Stakeholder engagement Shareholders will appreciate, as the Board does, that there are additional stakeholders who are important to the long-term sustainable success of the Group. These include our customers, employees, suppliers, debt investors, regulators, and the communities we serve. We have set out elsewhere in this Annual Report our key points of engagement with these stakeholder groups, and I encourage you to invest some time in reading those sections. Executive remuneration The remuneration restrictions introduced by the Irish government in 200G presented, in recent years, a material talent retention risk, placing AIB at a significant disadvantage to our domestic competitors in the retention and attraction of talent. I have highlighted here my ongoing engagement with successive Ministers for Finance since 2023 with a view to having these restrictions removed, following the reduction in the Irish State's shareholding in the Group below 50% in June of that year. Following the return of AIB to full private ownership and the retiring of most of the provisions of the Relationship Framework Agreement with the Minister for Finance, the cap on salaries of €500,000 was eventually removed in July 2025. We welcomed the Minister making clear his view in the Oireachtas that "decisions regarding remuneration are the sole responsibility of the board and management of the banks which must be run on an independent and commercial basis". That said, the remaining remuneration restrictions, which effectively prohibit payment of variable remuneration above €20,000, given the punitive tax rules applying, perpetuate the uneven playing field for the Group in competing for experienced executives within and outside of the banking sector. This also prevents the Board from more closely aligning the interests of its Executive Directors and senior management with those of shareholders, which is a central plank of good, effective governance. I will continue my engagement with the Minister for Finance and advocate for change, until such time as this critical impediment to rewarding top performance and effective risk management in banking is removed. We are very fortunate to have successfully retained the talented executives we have in recent years. Board changes The following Board changes were recorded during the year. Helen Normoyle, a non-executive Director since 2015, resigned at the 2025 Annual General Meeting having served nine years on the Board. In her period on the Board, she served on the Nomination and Corporate Governance Committee, the Technology and Data Advisory Committee and she led the Sustainable Business Advisory Committee as chair since its establishment, making a huge contribution to AIB over this time. She was also Senior Independent Director, a role Elaine MacLean assumed on Helen's retirement. Ann O'Brien and Raj Singh resigned from the Board with effect from 31 December 2025, having served more than six years as independent non-executive Directors, following their appointment to the Board on the nomination of the Minister for Finance. Ann served on the Audit and Remuneration Committees and chaired the Technology and Data Advisory Committee since its establishment in 2021. Raj brought his considerable experience to bear on the Risk Committee and also on the Sustainable Business Advisory Committee. I wish to record the appreciation of the entire Board to Helen, Ann and Raj for their considerable contribution to the Group and to the Board, and to wish each of them well for the future. I was very pleased to announce the appointment of Anne Sheehan as an independent non-executive Director on 1 September 2025. Anne, who is General Manager of Enterprise Commercial for Europe North at Microsoft, also joined the Technology and Data Advisory Committee and we look forward greatly to hearing her experience and contribution in the years ahead. In conclusion I would like to thank our employees for their commitment to the Group and, on your behalf, I would like to thank our 3.4 million customers for their loyalty and trust in us. We will continue to put them at the forefront of our decision-making as we empower them to build a sustainable future. Finally, I want to thank you, our shareholders, for your continued support. I am confident that, as we enter the final year of our three-year strategic cycle, we are pursuing the right strategy for the long-term success of the Group for our shareholders and for our other stakeholders. Thank you for your trust in us. Jim Pettigrew Chair 3 March 2026 Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 08 Chief Executive's Review Progress with purpose ‌ AIB aims to be the bank of choice in Ireland, building trust and demonstrating reliability, capability and adaptability while also providing savings, investment and protection choice, in a modern, digital-first way. Colin Hunt Chief Executive Officer I am pleased to present another strong set of financial results for 2025, as AIB executed its strategy in an environment marked by evolving geopolitical dynamics, stabilising interest rates and rapid technological advancement. Our expanding customer base, the strength of our balance sheet and the momentum across our business delivered a robust financial performance for the year. Profit after tax was €2.1bn, return on tangible equity (RoTE) exceeded our target at 25% and our CET1 ratio of 16.2% remained well above regulatory requirements. This strong capital position supported by ample funding provides significant strategic flexibility for the Group. It enables us to continue to serve our customers, supporting the Irish economy, investing in our business, and delivering attractive returns to shareholders. Subject to shareholder approval, we will pay a final ordinary cash dividend for the year of 46.257c per share, equating to c. €G88m, and launch a €1bn share buyback programme. Our market leading franchise remains a clear differentiator. Operating in a resilient and open domestic economy, we serve 3.4 million customers, maintain the country's largest branch network, and benefit from a highly recognised and trusted brand. Customer deposits for the year grew by 7% to €117.2bn at the end of 2025, gross loans increased by 3% on an underlying basis and reached €72.3bn, and new lending was €14.7bn. As interest rates stabilised during the year, our net interest income was over Our journey timeline 2010 State support Following the financial crisis, the Irish State recapitalised AIB to safeguard customers and the economy; we simplified the business and reduced risk. 2017 IPO AIB returned to public markets, marking a milestone in recovery and beginning the State's orderly sell-down. 2025 Full private ownership On 17 June 2025 the State completed its exit. 2017-2025 Staged sell-downs Consistent implementation of our strategy and stronger capital generation supported successive share placements and buybacks, progressively reducing the State's shareholding. €3.7bn with a net interest margin of 2.7%. We further strengthened our balance sheet by reducing our non-performing exposures (NPEs) by 20% during the year to €1.6bn, resulting in an NPE ratio of 2.2%. Other income for the year was €756m with fee and commission income at €6G2m, up 4% and reflecting in some part the sustained progress of our savings, investments and protection offerings. Having re-introduced core wealth capability to the Group in recent years, our Goodbody and AIB life businesses provide a platform for long-term growth in fee-based income and revenue diversification while adding customer choice and value. Assets under management for the Group in 2025 amounted to €18.3bn (€16.8bn in 2024). Costs for the year amounted to €1.GGbn, an increase of 1% on the previous year and beating expectations. Our cost income ratio was 44% in 2025. We will maintain our laser focus on cost discipline as a core driver of sustainable performance. Customer first AIB aims to be the bank of choice in Ireland, building trust and demonstrating reliability, capability and adaptability, while also providing savings, investment and protection choice, in a modern, digital-first and easy-to-use way, that provides security for the future, conveniently. We are also here to support infrastructure and housing development to accommodate a growing population, with an emphasis on large-scale renewable energy and social infrastructure projects. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 0G In 2025, our continued efforts to improve efficiency through automation and simplification led directly to an enhanced customer service experience. Key examples of this are in our Customer Engagement Centre (CEC). Our digital assistant Abi has used artificial intelligence (AI) to support over 1.33 million customers since its initial roll out in December 2024, and is now active on 66 customer journeys (56 at year end 2025; 8 at year end 2024), facilitating an average of c. 5,200 calls a day. Importantly, when informed that they will be dealing with a digital assistant, 7G.5% of customers chose to continue to engage Abi. We also rolled out AI-powered speech analytics that gives us detailed insights into the types of calls being received, which allows us to address customer needs with targeted initiatives. Our digital offerings continue to be the preferred channel for both personal and business customers to engage with us - particularly our mobile apps. During 2025, personal customers interacted via the app an average of 3.14 million times per day, while 88% of loan applications were made online. We materially completed the delivery of SEPA Instant in October, meeting demand for speed and convenience while aligning with European regulatory standards. Ongoing investment in our branch network as part of the Greener Branches Refurbishment Programme is a key element of our ambition to decarbonise our own operations and ensure that our physical footprint remains progressive, energy-efficient and welcoming to our customers and the communities we serve. The €40m programme of investment announced in 2024 included upgrades to 127 AIB branches, with 35 undergoing full refurbishments (including 26 in 2025 alone), delivering modern banking halls, clear interaction spaces, increased accessibility for the visually impaired and enhanced privacy for customers. Built for the future A new, next generation app in 2026 True innovation means enabling customers to bank when and where they want to, simply, efficiently and securely. Our mobile app sits at the heart of this. To ensure our app evolves along with our customers' needs, we are investing significantly to deliver a new, next-generation app in the second half of 2026, built for the future with modern cloud architecture, enhanced security and modular design. Our new app will empower customers with their own data and personalised insights to help them with their day-to-day banking, supporting them to make financial decisions, with AIB as a trusted partner. 2.2 million of our customers choose this channel In a highly competitive mortgage market, the Group retains an overall market share of 30% and is the primary direct-to-consumer mortgage provider in Ireland, with a 46% share of that market. Total mortgage lending across our brands in Ireland was €4.3bn for the year. Our commitment to supporting Ireland's housing needs is steadfast. In 2025, we provided €0.Gbn to fund significant residential developments, including social and affordable homes, helping to increase the number of units being built. We are ready and willing to provide even more financing and bolster much needed housing supply for all, as outlined in the Government's housing plan, 'Delivering Homes, Building Communities'. We continue to see growth across our savings, investments and protection businesses - Goodbody and AIB life - reflecting customers' increasing confidence in the value, clarity and choice we provide to help them plan for the future and for the unexpected. Goodbody's wealth business saw steady growth in 2025 and AIB life continues to gain market share. Our network of 130 Financial Advisors guided over 34,000 customers to consider their financial wellbeing and goals during the year, while AIB life policy holders amounted to c. 56,000 at year end. Underlying all of these initiatives is our ongoing customer segmentation work, aimed at improving our customer data and analytics so that we can know every element of our customer base better, understand them and anticipate their needs. This customer segmentation programme allows us to provide more tailored support by way of propositions, services, and communications, building resilience into our market share across key segments and, importantly, building trust with our customers. It is also a key enabler of our digitalisation strategy. These efforts contributed to another year of excellent customer advocacy, with continued strength in our Net Promoter Score (NPS) performance. Of our six key customer journeys, five saw further improvement in 2025 (Personal (41), Channel (62), SME Aggregated (6G), NI Transactional (55), Retail SME (2G)) and the sixth held steady on an already record-breaking score (Homes NPS (66)). These numbers evidence the trust customers place in AIB every day. Greening our business I continue to believe - and the Group continues to demonstrate - that we can do well while doing good. At year end 2025, we had provided a total of €22.Gbn in green and transition finance, tracking ahead of target. In the year alone, we provided €6.3bn in green and transition finance, a 23% increase on 2024 and representing 43% of all new lending. The most encouraging element of this lending is green mortgages, where energy-efficient houses and apartments are attractive to both build and to buy. AIB is a trusted green mortgage provider, with 62% of all new mortgage lending going to energy-efficient homes in 2025 - 60% when including the UK - meaning thousands more people are living in warmer, healthier and cost-effective homes. Helping customers purchase their first home is a strategic priority from a societal perspective. €2.6bn of new lending went to first-time buyers in 2025, supporting c. G,000 customers. This brings our lending to first-time buyers over the past two years to €5.4bn in total, progressing well towards our goal to provide €6bn by the end of 2026. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 10 Chief Executive's Review continued Sustainable economic growth Financing renewable energy and community impact Our Climate & Infrastructure Capital division continues to actively support customers financing the transition to a greener future. €46.7m, of a €140m total term loan, was provided to Derrinlough Wind Farm in 2025, with AIB acting as both Agent and Account Bank. This wind farm, located in Co. Offaly, is a flagship renewable energy project developed by BnM. The project provides an installed capacity of 126 MW, sufficient to supply clean electricity to approximately 68,000 homes annually. Derrinlough Wind Farm DAC makes annual contributions of €2/MWh (per Loss-Adjusted Metered Generation) into the Community Benefit Fund which supports local community groups, non-profit organisations, and social enterprises. €54.7m Total facilities committed For SMEs, farmers, charities and community organisations, we launched the Business Sustainability Loan in July. Over 50% of applications to date have come from the agricultural sector, showing its relevance and flexibility. In our own business, we continue to make progress towards our 2030 ambition to decarbonise our own operations. Additionally, G2% of our own electrical energy needs is now sourced through our VPPA from two solar farms in Co. Wexford. We continue to embed sustainable practices, attitudes and governance in our operations and culture. Importantly, we are empowering large-scale, infrastructural change around the world. While 2025 was an unpredictable year in terms of global development and political sentiment towards climate action, our Climate & Infrastructure Capital loan book nevertheless grew, and opportunities in our key markets remain strong. We also issued three green bonds in 2025, amounting to €1.8bn. Our Green Bond Framework covers projects in renewable energy, green buildings, clean transportation, the circular economy and waste management. Since 2020, we have issued nine green bonds, raising €6.45bn - increasing to €8.2bn in ESG bonds when social bonds are included too. In terms of social value, our branch network allows us to reach communities the length and breadth of the island of Ireland. This is particularly evident in our support of the GOAL Mile at Christmas, which continues to grow in popularity and presence in towns and neighbourhoods nationwide, helped in no small way by our own branch managers who run GOAL Miles in their localities. In wider community initiatives, our continued sponsorship of the GAA places us at the beating heart of Ireland, while the AIB Community Meals programme, run by our long-standing Charity Partner FoodCloud, provided 52,100 meals to those who need it, rescuing 2,672 tonnes of surplus food in 2025. Operational efficiency G resilience Our focus on operational efficiency and resilience continued to produce transformative and enduring results for the Group in 2025. During the year, we accelerated the adoption of AI and automation across core processes and further reinforced our resilience and business continuity frameworks while also progressing a more dynamic approach to workforce planning. We continue to invest in our technology architecture, reflecting the critical role that secure and scalable systems play in enabling AIB's long-term success. This investment allows us to accelerate the modernisation of our technology estate, strengthen our cyber and operational resilience, and deploy advanced digital capabilities that improve service reliability and customer experience. The Group is laying the groundwork for AI integration, with early investments in data infrastructure and governance frameworks. This will be essential in addressing the emergence of new technology, which is extraordinarily fast paced. In the short term, I see AI very quickly helping us to eliminate complexity and enable colleagues to focus on what matters most for our customers. During 2025 we invested in our cloud architecture as part of our scalable backbone to enable secure banking. We established a third data centre in the cloud for on-demand capacity and faster provisioning, accelerating development and testing, boosting delivery speed and reliability. At the same time, we also reduced our physical data centre footprint by 20%. We closed 2025 with GG.GG% service availability for mission critical services - the highest in the Group's history and achieved in the most demanding operating environment we have faced during the busiest year in terms of change delivery. Building on last year's strong outcome (GG.G8%), this included our most successful December on record. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 11 Dynamic Workforce Planning Shaping our workforce for the future Dynamic Workforce Planning (DWP), is a transformative enterprise-wide programme designed to ensure our organisation has the right capability, in the right places, at the right times, by introducing a future-focused and data-driven approach to workforce planning. It enables leaders to anticipate organisational needs, identify skill gaps early, and plan for the workforce of the future by combining predictive analytics, strategic planning frameworks, and people insights. Through ongoing business area roll outs in 2025, 67% of our workforce are covered by models and scenarios, aligning workforce planning with business strategy. Covers 67% of our workforce ‌We have a very sharp focus on resilience in terms of anticipating, preparing for, and protecting the bank and our customers, against an increasingly complex threat landscape. In 2025, we brought previously separate resilience capabilities into a single, unified model; the establishment of a new Resilience Fusion Centre accelerates this transformation, enabling a more predictive, intelligence-led approach to integrated resilience. I am looking forward to reporting further on this area, in which AIB aims to be world class. Empowering all of this technological infrastructure is, of course, our people, along with our culture and our values. The AIB brand and our strong Employee Value Proposition (EVP) continue to attract quality talent. Using dynamic workforce planning, we are aligning skills, capacity and organisational design with the evolving needs of our business and customers. Our 3,000 people leaders play a vital role in steering the organisation, and in 2025 we engaged and inspired this group via our New Era Leadership training, including a day-long, in-person Leadership Summit in September. Outlook A transforming world has transforming needs. While focusing on delivering our current strategy in the year ahead, we are also mindful of our longterm external context, ensuring we can adapt to the emerging trends that will affect our business. In this regard, there are three dynamics - or 'mega-trends' - that we are most alert to. Firstly, ageing demographics. Ireland is currently experiencing sustained population growth, underpinned by net inward migration meaning the country benefits from a younger, expanding and more dynamic workforce. However, the old-age dependency ratio - a demographic indicator that shows how many older people (typically aged 65+) are supported by the working-age population - is projected to rise from 23% in 2023 to 55% by 2065. 1 This will add strain on our workforce, public finances, healthcare, and pensions, while increasing the potential for the Group's savings and investment propositions. In that respect, we continue to see extraordinary potential in the second trend: the green transition and associated electrification. Investment in global energy transition has exceeded $2tn, more than doubling since 2020, 2 and sustainable finance is now well and truly mainstream. The future of infrastructure is green. The third trend is digitalisation, which has seen a surge in recent years and creates great opportunity for our sector. It is anticipated that Generative AI will drive significant additional value to global banking. While AI's full scale and implications can not be determined at this stage, it is at least poised to boost productivity in customer service, risk, compliance, and automation. Against this dynamic backdrop, we are focused on completing the final year of this strategic cycle and planning for the future with confidence. Our next generation app, launching in 2026, will play its part. It will empower customers with their own data and insights to help them with their day-to-day banking and support them to make financial decisions. While the roll out of this app will take place in second half of the year, customers will shortly benefit from the launch of Zippay, the industry-wide peer-to-peer payments solution. 2026 will also mark AIB's 60th anniversary, and we intend to commemorate our journey so far by sharing the stories, values, and moments that have shaped our lasting impact on Irish society, our customers, and our colleagues, bringing our heritage to life in a meaningful and accessible way. As we honour this important milestone, we remain firmly focused on building a simpler, smarter and more sustainable bank for our customers and the communities and economies we support. With a strong foundation, clear strategic ambition, and a deep sense of purpose, we will continue to support our customers and generate value for all our stakeholders - helping them succeed in the years ahead as we empower people to build a sustainable future. Colin Hunt Chief Executive Officer 3 March 2026 Source: Central Statistics Office Source: Bloomberg New Energy Finance (NEF) Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 12 Economic Overview Our Operating Context ‌In 2025, changes in global trade influenced both the international and Irish economies. Yet, despite heightened levels of uncertainty, Ireland saw solid growth, while the labour market remained robust. Global growth amid heightened uncertainty In 2025, the global economy continued to grow at a decent pace, despite the heightened uncertainty related to US trade policy and wider geopolitical risk. While the downside risks to the economic outlook remain, some of the potentially severe tail risks diminished throughout the year. In particular, the US and EU concluded a framework trade deal, with most EU goods now facing a 15% US tariff. This is a materially better outcome than was mooted in early 2025 by the US Administration. It is also likely that Ireland's effective rate for its exports will be lower than the headline 15% rate, given the exemptions at lower rates for some pharmaceuticals, aircraft parts and other sectors. Against this backdrop, the global economy continued to expand at a moderate pace in 2025. In the main advanced economies, US growth slowed from the exceptional out-turns of 2023/24 but remained robust. With the US labour market and consumption weaker, the economy has been underpinned by a surge in investment in AI technology. European economies have continued to lag, with Germany and the UK seeing a weakening growth trajectory throughout the year. The IMF estimates that the world economy grew by 3.3% in 2025. However, growth has remained uneven, with US GDP expanding by 2.1% last year, compared to 1.4% in both the UK and the Eurozone. 3.3% 1.5% Estimated global economic growth in 2025 GDP growth in the Eurozone in 2025 Inflation (%) Irish unemployment rate (%) 12 11 10 9 8 7 6 5 4 3 2 1 0 -1 -2 Jan Jan Ireland EU UK Jan Jan Jan 5.5 5.0 4.5 4.0 Jan Jan Jan Jan Jan 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Source: CSO, EuroStat, ONS New dwelling completions (Total, 4 Ǫrt Mov Avg) 39,000 36,000 33,000 30,000 Source: CSO Irish private sector deposits and household savings ratio (€bn) Private sector deposits Household savings 24.0 320 300 280 27,000 24,000 21,000 18,000 15,000 260 240 220 200 180 160 18.0 (%) 12.0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec 2018 Source: CSO 2019 2020 2021 2022 2023 2024 2025 2021 2021 2022 2022 2023 2023 Source: CSO, CBI 2024 2024 2025 2025 Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 13 Irish domestic economy remains in good shape Following a modest rise in GDP in 2024, growth accelerated sharply in 2025, mostly due to developments in the export sector. According to the CSO flash estimate, GDP expanded by 12.6% in 2025, up from 2.6% in 2024. While tariff frontrunning has been a factor in the surge in exports in 2025, the emergence of weight-loss drug production in Ireland was also prominent. Indeed, a specific product related to this sector accounted for a third of all Irish pharma exports in 2025. Furthermore, the domestic economy has continued to grow at a solid pace, with the available data indicating modified domestic demand expanded by 4% year-on-year between Ǫ1-Ǫ3. Growth in the domestic economy was driven by consumer spending and business investment, which continued to perform strongly in 2025. Despite heightened geopolitical uncertainty, the IDA announced a strong year for FDI, with 323 new investments and FDI employment up 1.5% to 312,400. Jobs growth was evident across the economy, albeit at a more moderate pace than 2024. The number of people in employment rose by c. 57,000 people during 2025, to over 2.8 million people. Meanwhile, the unemployment rate averaged 4.7% for the year. Inflation rose somewhat throughout 2025, with the annual HICP rising from 1.7% in January to 2.7% in December, largely due to base effects, but also some modest inflationary pressures in the domestic economy. Overall, HICP inflation averaged 2.1% in 2025. House price inflation eases, but supply constraints remain House price inflation moderated slightly in 2025. The latest CSO data shows prices were up by 7% year-on-year in December 2025, compared to 8.G% at end-2024. In terms of supply, housing completions totalled 36,300 in 2025, compared to 30,200 in 2024, and 32,500 in 2023. Meanwhile, official government data shows housing commencements slowed to 16,400 in 2025, following a surge in 2024 of c. 6G,000 which reflected the expiration of Government policy incentives in that year. However, the main factor influencing house prices remained the mismatch between supply and demand. Despite increases in housing supply during the year, the number of new units built per annum to meet pent-up demand needs to be higher. Policy changes by the Government to boost construction, including the National Development Plan and Infrastructure Taskforce, were also announced throughout 2025. In this regard, the latest forecast from the Central Bank of Ireland indicates that housing completions could amount to 37,000 in 2026 and 40,500 in 2027. At the same time, household savings were maintained at a very high level in 2025. This manifested itself in a further rise in levels of Irish household deposits. These stood at €170bn in December, up from €15Gbn in December 2024. Real income growth and high levels of savings contributed to the robust rise in residential property prices in 2025. 4.7% €170bn Average unemployment rate in Ireland during 2025 Irish household deposits in December Outlook for 2026 All the main international forecasters are projecting another year of modest growth for the global economy in 2026. World output is forecast to expand by 3.3% this year according to the IMF. However, there are significant downside risks to the outlook amid elevated levels of uncertainty, most notably owing to current geopolitical tensions and the potential for further volatility in US trade and economic policy. In the US, growth is projected to remain robust, amid a continued growth cycle in AI investment and a relatively tight labour market. Growth in Europe is expected to be in line with recent years, as falling inflation and interest rates support activity, alongside a boost from government spending. From an Irish perspective, growth is expected to continue at a robust pace, albeit with risks tilted to the downside. GDP is forecast to grow solidly, underpinned by the continued uptick in exports seen in 2025. Furthermore, the domestic economy is set to continue to grow at a decent pace, aided by ongoing employment growth and a continued rise in real wages. The public finances are in strong shape, allowing fiscal policy to remain supportive of activity also. Meanwhile, private sector balance sheets are characterised by low debt and high savings. Thus, most forecasts are for Irish modified domestic demand to grow by around 2-3% in 2026. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 14 Our Strategic Progress Progress Towards our Strategic Goals ‌Our Group strategy remains centred on an informed view of our customers' needs, anchored in a sustainable agenda and underpinned by a commitment to operational efficiency and resilience. Customer first Building trust and long-term relationships with our customers by providing more connected financial solutions. Greening our business Ensuring sustainable finance and responsible business practices to build our shared future. Operational efficiency G resilience Ensuring we have the appropriate capability, capacity and resilience to support the Group's strategic ambition. Customers at the heart of what we do I have been extremely satisfied with AIB's customer service and overall banking experience. The online and mobile platforms are user-friendly and reliable, making it easy to manage my accounts and transactions. Overall, AIB has made my banking straightforward and convenient, which is why I would confidently recommend it to others. A greener, more sustainable future I have told a good few farmers now about it. I thought it was very straightforward and simple and the rate is very good. It was a great chance to buy machinery. I was very satisfied with it. Strengthening our operations AIB customer support member was incredibly helpful and efficient to deal with. At the time, I was distraught as there had been fraudulent activity on my card but his swift response and decisive action put my mind at rest and gave me confidence in your systems. Relationship Journey Customer Business Sustainability Loan Customer Card Replacement Customer Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 15 Customer first Greening our business Operational efficiency G resilience 2025 outcomes Customer experience performance, measured by Net Promoter Score (NPS), was highly positive in 2025 demonstrating our unwavering customer focus. Of our six key customer journeys - including Channel, Homes and Retail SME - five saw noteworthy growth in 2025 with the sixth holding steady on an already record-breaking result. Completed upgrades in 127 of our 170 AIB branches, including 35 full refurbishments and the roll out of 60 Cash and Cheque Lodgement (CCL) machines, as part of a €40m investment programme. In March, AIB became the first bank in Ireland to achieve Autism Friendly Accreditation from AsIAm for all 170 branches. Abi, our AI-powered digital assistant, helped 1.33 million customers across 56 journeys, with 7G.5% of customers choosing to proceed once informed she is a virtual assistant. Launched the AIB Life Hub, a new regular savings investment platform from AIB life, on our mobile app. Seamlessly delivered SEPA Instant Payments in October, ahead of the regulatory deadline. 79.5% 7C.5 % of customers choose to engage Abi; highlighting the effectiveness of our AI-powered digital assistant Provided a total o f €22.Gbn in green and transition finance since 201G, including €6.3bn in 2025. 43% of all new lending was green or transition in 2025. 60% of all Group mortgage drawdowns in 2025 were for energy-efficient homes. Issued three green bonds, bringing the total amount raised in ESG bonds since 2020 to €8.2bn. Launched the Business Sustainability Loan, complimenting the suite of sustainable finance products available to our personal and business customers. G2% of the Group's electrical energy needs was sourced through our VPPA from two solar farms in County Wexford. Published our Climate Transition Plan, using what we've done so far to develop a strong blueprint for action for the coming years. We also launched our first Social Impact Report, highlighting the real difference we are making to communities. 92% C2% equivalent of the Group's electrical energy needs was sourced from solar farms; on track to decarbonise our operations by 2030 Rolled out Microsoft Copilot to all staff, embedding AI into workflows with Responsible AI controls and EU AI Act compliance. Indus try-leading GG.GG%+ availability across critical service s and recorded zero critical cyber incidents. Continued simplification: retired 56 legacy applications decommissioned across the strategic cycle. Rolled out Dynamic Workforce Planning (DWP) programme to 67% of our workforce, transforming how we plan for a future-ready talent by adopting a data-led and enterprise-wide approach. Continued enhancement of our employee proposition , including updated compassion leave and family leave options, to cover foster care leave and paid neonatal leave. Launched our New Era Leadership programme to train, engage and inspire our 3,000+ people leaders across the Group. 99.99% Industry-leading CC.CC % availability across mission critical services; customer impacting events remain at a minimum Looking ahead to 2026 2026 will see the continuation of our digital channel evolution with the launch of a new industry payments process through Zippay and, importantly, the roll out of our own next generation mobile app later in the year. More broadly, we will continue to deliver market-leading products and propositions, with a focus on younger customers, and prioritise a seamless, customer-focused experience with integrated journeys across all touchpoints. Through our Climate C Infrastructure Capital function, we are well positioned to finance transformative renewable energy projects as well as green buildings, clean transportation, circular economy and waste management, supporting key social infrastructure. In addition, we will continue to deliver best-in-class transition propositions for all of our customers across our brands, while driving credibility based on expert research, analysis and business insight tools. We will continue to increase the volume of sales and servicing carried out digitally, with continued automation of branch processes to make things even more convenient for our customers. In addition, we will harness technology to transform our mortgage enterprise and simplify our credit suite, speeding up loan processes and SME loan decisioning. We will continue to invest in talent while harnessing both AI and the cloud so that we are positioned to remain resilient, competitive and future-ready. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 16 Risk Summary Our Approach to Risk ‌Our prudent approach to risk management is fundamental for the Group to achieve its strategic objectives. Our Risk Management Framework (RMF) sets out the governance, principles, arrangements, roles and responsibilities in place for the Group to manage its risks. The Group's risk management principles are: Risk Governance and Oversight 1 The Group Board is ultimately accountable for all risk-taking activity in the Group. 2 The Group has a clearly defined risk framework and policy architecture. 3 All risks are managed in accordance with the risk management lifecycle. 4 Appropriate arrangements are in place to manage risks in the Group's subsidiaries and joint ventures. Identification and Assessment 5 Risks are identified and assessed using top-down and bottom-up approaches, and where possible models are used to measure risk. 6 The Group actively takes risk in pursuit of its strategic objectives. Management, Monitoring and Reporting 7 Risks are managed within an agreed risk appetite. 8 Risk monitoring and reporting support risk decision-making. Risk Culture G Risk culture is an integral part of our RMF. Control Environment 10 The Risk function provides independent challenge and assurance to all key strategic decisions. 11 The Group adopts a Three Lines of Defence (3LOD) approach to risk management. We operate an enterprise-wide RMF, which is centred around the embedding of a strong risk culture and ensures the governance and capabilities are in place to facilitate a consistent approach to risk management across the Group. The risk management approach is set out in more detail on pages 177 to 23G . The RMF aligns our risk approach to our overall strategic objectives. The RMF is designed and maintained by the Risk function, and is subject to annual review and approval by the Board. The RMF governs the way in which we identify and manage the Group's risks. We identified 11 Principal Risks which are described on page s 17 to 18 . Evolving and Emerging Risks are set out on page 1G . On an annual basis, the Board sets out the maximum amount of risk the Group is willing to accept within our Risk Appetite Statement (RAS). The approved risk thresholds are monitored and reported on an ongoing basis to the Board Risk Committee to ensure the Group remains within our risk appetite. RAS metrics are also reported to the Board as part of the escalation process for RAS breaches. We test the resilience of our strategy across each of the Principal Risks through scenario analysis and stress testing. The scenarios used are informed by the key emerging risks and are used to assess the Internal Capital Adequacy Assessment Process (ICAAP), the Internal Liquidity Adequacy Assessment Process (ILAAP) and the three-year financial plan. The Risk Management section, from pages 177 to 23G, gives more detail on how risk is managed within the Group, detailing the approach to risk governance including the 3LOD Committee structures, risk appetite and stress testing. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 17 Principal Risks ‌Key developments in 2025 Management and mitigation Key Risk Indicators Credit Risk See: p. 188 - 222 The credit quality of the lending portfolio has remained stable during the year as the Irish economy continued to show resilience despite a challenging international backdrop. New lending activity remained in line with targeted quality levels, with 43% of total new lending relating to green and transition lending, consistent with the Group's ongoing strategy to support sustainable finance. Expected Credit Losses (ECLs) continue to reflect the Group's proactive stance on emerging risks while maintaining a comprehensive and forward-looking approach to assessing the credit environment, ensuring that the level of ECL stock remains appropriate. The Group Credit Risk Framework is the overarching Board-approved document which sets out the principles of how the Group identifies, assesses, approves, monitors and reports credit risk to ensure that robust credit risk management is in place. The material risk assessment process identifies the impact, likelihood and control effectiveness of the three credit risk sub categories - credit default risk, concentration risk and country risk. This in turn informs the Board-approved risk appetite. These risks are further mitigated through the concentration and country risk frameworks and approved RAS limits. Asset class concentration risk metrics Country concentration risk metrics Non-performing exposures (NPEs) as a % of customer loans Expected credit loss (ECL) cover rates Market G Equity Risk See: p. 223- 226 The Credit Spread Risk in the Banking Book (CSRBB) perimeter was expanded to include Hold to Collect (HTC) Bonds, which are classified for accounting purposes with the intention to hold until maturity. Previously, only Hold to Collect and Sell (HTCS) Bonds were captured within this perimeter. Market Risk, Equity Risk and Pension Risk are managed within the overall Group RMF and their respective risk frameworks supported by policies and procedures including the MRA and RAS processes. Other key elements include: defined Market Risk, Equity Risk and Pension Risk Strategies; periodic reporting to ALCo, GRC and Board; second line of defence (2LOD) review and challenge of Market Risk, Equity Risk and Pension Risk activities; and Stress Testing, including ICAAP. Earnings sensitivity Interest rate capital at risk Creditspreadcapitalatrisk Pension capital at risk Equity nominal investment Equity Risk Weighted Assets(RWA)% Liquidity G Funding Risk See: p. 227 - 232 The Group maintained a strong liquidity and funding position with liquid assets continuing to exceed the regulatory minimum and internal risk appetite. Customer deposits have continued to grow, reflecting a strong and resilient Irish economy. The Internal Liquidity Adequacy Assessment Process (ILAAP) Framework sets out the approach to manage the Group's Liquidity Risk, funding concentrations and compliance with the Board's risk appetite. A suite of tools is used to monitor, limit and stress test the liquidity and funding risks on the balance sheet. Liquidity key risk indicators are monitored daily. Performance is reported to the Group Asset and Liability Committee (ALCo) on a regular basis. Liquidity coverage ratio (LCR) Survival period Net stable funding ratio (NSFR) Capital Adequacy Risk See: p. 233 A strong capital position was maintained throughout 2025 with buffers to regulatory requirements for Fully Loaded Common Equity Tier 1 (CET1) and Total Capital ratios. Stress testing activities demonstrated robustness of the capital position including in the annual ICAAP. The Group also conducted a second Significant Risk Transfer (SRT) in December 2025, which benefited the CET1 ratio by c. 25 bps. The Capital Adequacy Framework outlines the processes for identifying, assessing and managing the risks related to Capital Adequacy, through the ICAAP, with Capital and Stress Testing Policies also embedded. ICAAP results and internal stress testing, are reviewed by 2LOD. Sensitivity analysis and capital buffers provide protection against measurement and forecasting errors. Oversight is via CRO, CFO reports, ALCO, and Board reporting, with robust controls including RAS and RAROC thresholds. Fully loaded CET1 ratio Fully loaded Total Capital Ratio Aggregate Group RAROC on new business Information Security (including Cyber) Risk - New See: p. 233 From 1 January 2025 Information Security (including Cyber) risk was deemed a principal risk for the Group. The Information Security (including Cyber) Risk Framework and updated policy introduced new Cyber Risk principles, defined sub risks and was overseen by Operational Risk leadership. Business Model Risk See: p. 234 The Group manages risk through integrated controls, regular staff training, data security measures, and thorough incident response planning within the RMF. Compliance with internal standards like Digital Operational Resilience Act (DORA) and New York State Department of Financial Services (NYDFS) supports continual risk monitoring and improvement. Time to detect Cyber Incidents Reportable Cyber Incidents Phishing simulations involving High Risk Users The Group returned to private ownership in 2025 as the Irish Government exited its remaining ownership position. The Group continues to progress our 2024-2026 Strategy expanding green lending, launching instant payment transfers and maintaining a strong deposit base. The Business Model Risk Framework sets principles, responsibilities, and governance for overseeing Business Model Risk. Performance is monitored via the CFO report, strategic proof points and risk appetite metrics are reported in the CRO report. This ensures timely escalation of key issues. Operating profit % variance to plan Return on Tangible Equity (RoTE) Net Interest Margin (NIM) Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 18 Principal Risks continued ‌Key developments in 2025 Management and mitigation Key Risk Indicators Operational G Resilience Risk See: p. 235 Following the approval of the 2025 Material Risk Assessment, Operational Risk has been expanded to Operational & Resilience Risk. This has been driven primarily by industry and regulatory trends. Transaction Execution & Delivery Risk has been introduced as a new sub risk within Operational & Resilience Risk. The Operational Risk Management (ORM) Framework sets out the principles, supporting policies, roles and responsibilities, governance arrangements and processes for operational risk management across the Group. The sub risks are owned and actively monitored under the ORM Framework and underlying policies to ensure material operational risks are managed effectively within the Group RAS limits. The ORM Framework and policies set out the process for risk and control assessments, identification of the key non-financial risks arising from business processes and activities. It also includes the process for escalation of the relevant RAS metric limit and watch-trigger breaches. Cumulative operational risk losses Number of Tier 1 & Tier 2 Third Party providers with a poor Vendor Security rating The availability of Critical Information Systems to enable business operations Climate G Environmental (CGE) Risk See: p. 236 C&E Policy was updated in 2025 to ensure alignment with regulatory requirements, including the EBA Guidelines on the management of ESG risks. A new overarching qualitative RAS statement was introduced, with three new RAS metrics, two of which are forward looking. Market & Equity risk was newly identified as having a primary impact in the 2025 Transmission Channel analysis, credit and operational risks were unchanged. Management of C&E Risks remains a regulatory focus, in particular managing greenwashing risks and ESG disclosures. The C&E Risk Framework sets out the principles, roles and responsibilities, governance arrangements and processes for C&E Risk across the Group. The CRO report provides an update on the risk profile, and monitoring C&E metrics and other risk metrics which identify the impact from C&E Risk. The Sustainability dashboard provides a quarterly update on key performance metrics, including new green and transition lending and financed emission target metrics. Physical risk data capture % of new lending non-green or transition Environmental Risk -Sector Breaches Model G AI Risk See: p. 237 In 2025, AI Risk was integrated into the Model Risk taxonomy. A single solution was implemented to manage end-to-end model lifecycle. The Group has made tangible progress on the Internal Rating Based (IRB) repair phase and has also commenced the work on the rollout phase, extending advanced risk models across key portfolios in line with regulatory requirements. The IRB approach is a regulatory framework that allows banks to use their own risk models to estimate credit risk and determine capital requirements, subject to supervisory approval. The Group Model & AI Risk management suite of documents sets out the Group's approach to management, measurement and reporting of Model & AI Risk. In addition, dedicated committees, forums and teams ensure the risk is appropriately identified and managed within each stage of the Model & AI Risk management lifecycle. Ǫuarterly risk score of live and approved models in use Culture Risk G Conduct Risk See: p. 237 The revised definitions for Culture Risk and Conduct Risk are now embedded in an updated Culture Risk and Conduct Risk Framework and Group Conduct Risk Policy. New and enhanced culture metrics have been introduced, and will be reported through the CRO and Compliance Insights reports. The integrated culture tracker was enhanced to include metrics covering people, customer, and risk dimensions, providing a unified view of cultural progress, enabling effective oversight at Board level. Both qualitative and quantitative RAS have been updated, reflecting the growing importance of Culture Risk & Conduct Risk. Embedding and monitoring new Culture Risk & Conduct Risk metrics to identify emerging risks and ensure alignment with Group values. Maintain oversight of mandatory training across the Group. Ongoing monitoring of updated qualitative and quantitative RAS. Completion of mandatory training courses Critical & high customer impacting conduct issues Culture metric (composite of three culture risk measures) Regulatory Compliance Risk See: p. 239 The level of regulatory change remained high in 2025 as the regulatory landscape for the banking sector continued to evolve. Key regulatory programmes supported across 2025 include the revised Consumer Protection Code, the EU AML Reform Package and the new EBA Guidelines on ESG Risk Management. Basel IV was successfully implemented in January 2025, resulting in a significant increase for CET 1. The Prudential Regulation Authority (PRA) announced their decision to delay the implementation of Basel 3.1 rulebook until January 2027. A Regulatory Compliance Risk Management Framework is in place and is supported by a suite of policies. Board accountability with regular reporting to Group Risk Committee (GRC) and Board Risk Committee (BRC). A number of risk assessments are in place within the Compliance function for the identification, assessment, management, monitoring and reporting of risks, as well as controls to mitigate the risks. A process is in place for the management of regulatory change. Staff education and awareness of regulatory compliance obligations. Regulatory breaches Impact assessment for delayed delivery of regulatory directive change initiatives Number of data protection incidents that resulted in a significant personal data breach Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 1G Evolving and Emerging Risks ‌The Group identifies evolving and emerging risks as part of the MRA process. Evolving and Emerging Risks are developing risk drivers that may increase in significance for the Group over time. These risks may have a high level of uncertainty with respect to outcome and timing but could potentially have a material impact on the Group's strategy, operations and on our customers. The evolving and emerging risks identified are: How we responded during 2025 Geopolitical Risk The risk that geopolitical developments and tensions could escalate and could negatively impact the Group's operations or result in other financial or macroeconomic impacts. In 2025, Geopolitical Risk remained a prominent feature of the global economic environment. While global conflicts persisted, trade uncertainty dominated as the new US administration pursued its tariff agenda amid elevated FDI and supply - chain risks. The Group established a standing Geopolitical Working Group (GWG) to strengthen horizon - scanning and structured escalation. The Group reported monthly via the CRO Report to the GRC and BRC. The Group developed a structured geopolitical risk heatmap and associated indicator framework to identify emerging vulnerabilities with potential macroeconomic implications. These outputs were incorporated into governance processes and used to inform scenario design and calibration as well as ECL scenario weightings. Geopolitical scenarios were integrated into the business plan, ICAAP, ILAAP and ECL frameworks. This included the development of a dedicated Trade and FDI scenario. The Group convened dedicated Geopolitical Group Credit Committees and undertook targeted portfolio and case - level reviews across sectors and borrowers with heightened exposure, particularly in manufacturing and export - reliant segments. Monitoring frequency was increased and underwriting standards were tightened in sensitive areas. GWG outputs were integrated into information security processes, reflecting the observed increase in geopolitical related cyber - activity. The Group activated an external intelligence capability to provide bank - specific geopolitical and cyber intelligence, thereby strengthening threat - level reporting and escalation protocols. The Group conducted a comprehensive geopolitical transmission-channel assessment, capturing shocks through the ECB's three defined transmission channels, including the Financial Market channel, and impacts across the Real Economy and Safety and Security channels and developed a material risk heatmap that directly informed scenario design. The Group continued to apply sanctions requirements in various jurisdictions as applicable. Digital Competitor Risk The risk posed by financial service providers operating outside the traditional banking model, such as fintechs, digital - first platforms, stablecoin issuers, and other emerging digital currency ecosystems whose technology - driven offerings can erode the Group's market share, disrupt customer relationships, and challenge the relevance of traditional products and services. Competition from non-traditional banks, fintechs and big tech players continued to rapidly evolve in 2025 with these entities offering tailored, technology-driven solutions to emerging customer segments. Furthermore, the increased prominence of stablecoin and the prospect of Central Bank Digital Currencies (CBDCs) have the potential to disrupt financial systems, increase operational risks, challenge the Group's intermediary role and business model. The Group has responded through major digital upgrades such as the ongoing development of the next generation mobile app, SEPA Instant payments, preparation for Zippay's launch in 2026, the scaling of AI - enabled service as well as scaled enterprise AI adoption, modernised data foundations and strengthened its Customer First engagement. The Group accelerated digital onboarding, SME and retail journey redesign; grew our set of secure partner connections; and targeted propositions where the Group have distinctive data and underwriting advantages. The Group strengthened personalisation, segmentation, insights and Customer First programmes to deepen engagement and reduce attrition. The detailed customer segmentation analysis is a key enabler of future personalisation capability particularly via our enhanced mobile app. The Group continued to closely monitor developments in crypto-asset regulation, tokenised deposits and CBDCs and advanced its assessment of strategic opportunities for digital-asset participation. Technology Evolution Risk The risk that rapid advances in technologies alongside evolving cyber threats, cloud concentration and expanding data volumes and obligations, lead to operational disruption, model misuse, regulatory noncompliance or customer detriment. The global risk landscape in 2025 was marked by rapid AI adoption, the growing use of AI by threat actors, increasing cloud dependency and expanding volumes of sensitive data. These developments intensified operational and conduct risk exposures, increased cloud concentration and exit risk, and added complexity through evolving data protection and data sovereignty regulation. In response to the evolving global risk environment, the Group continued to recalibrate risk frameworks with cyber security elevated as a principal risk, model risk expanded to explicitly encompass AI, and operational risk was reframed to place greater emphasis on resilience and service continuity. Operating models for cyber security and operational resilience continued to mature in response to a more complex threat environment. Improvements in leadership oversight, threat intelligence, detection and response capability enhanced threat and detection effectiveness, supporting service stability and resilience, with critical services delivering GG.GG% availability and no critical cyber incidents reported. Enterprise approaches to AI risk management matured significantly. The Group advanced AI strategies and model governance frameworks, including systematic identification of AI use cases and the enhancement of associated controls. Dedicated AI oversight and centre of excellence models supported stronger compliance and detection metrics across AI systems and model lifecycle management. Data and third party risk controls were further uplifted to reflect increasing regulatory and resilience expectations. Improvements in data quality and lineage, encryption and access management, alongside more rigorous third party oversight and exit planning, strengthened compliance and reduced concentration and dependency risks. Targeted investment in workforce training and customer communications reinforced risk culture. Focused initiatives on AI use, fraud prevention, cyber hygiene and data handling improved awareness metrics and are expected to contribute to lower frequency and impact of technology-enabled loss events over time. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 20 Highlight Supporting young talent Running alongside the annual AIB Portrait Prize, the AIB Young Portrait Prize is an inclusive art competition with the aim of fostering and supporting creativity, originality, and self-expression in children and young people. The AIB Portrait Prize exhibition, featuring 26 shortlisted works, and the AIB Young Portrait Prize exhibition, showcasing 20 portraits, are open at the National Gallery of Ireland until 15 March, and will continue their journey together to the Regional Cultural Centre, Letterkenny, and to the Waterford Gallery of Art later in 2026. On the left: overall winner of the AIB Young Portrait Prize, Guorui Sui (age 11) "My Own World of Fantasy, 2025". Guorui says: "This self-portrait captures me in my happy place - surrounded by my favourite toys, away from the real world where not everything goes your way. I'm 11, nearing those 'teenage years' everyone talks about. I know the 'grown-up' world is coming, with its complexities and worries. So I'm soaking up every last bit of being a kid. Maybe I'm a 'late bloomer' or just refusing to leave the era of pure innocence. I'm happy to be its king for a little longer." The AIB Portrait Prize and AIB Young Portrait Prize capture a moment in time in Irish society and reflect our people, our stories and our history. We are proud to sponsor these important competitions which present the diversity of Ireland today. Photo © Niamh Barry Background photograph features the National Gallery of Ireland Shaw Room Photo © NGI Photographer Roy Hewson. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 21 ‌Business Review In this section Operating and Financial Review 22 Capital 38 Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 22 Business Review 1. Operating and Financial Review ‌Basis of presentation The operating and financial review is prepared using IFRS and non-IFRS measures to analyse the Group's performance, providing comparability year-on-year. These performance measures are consistent with those presented to the Board and Executive Leadership Team. Non-IFRS measures include management performance measures which are considered Alternative Performance Measures (APMs). APMs arise where the basis of calculation is derived from non-IFRS measures. A description of the Group's APMs and their calculation is set out on page 36 . These measures should be considered in conjunction with IFRS measures as set out in the consolidated financial statements from page 253 . A reconciliation between the IFRS and management performance summary income statements is set out on page 37 . Figures presented in the operating and financial review may be subject to rounding and thereby differ to the Risk Management section and the consolidated financial statements. Basis of calculation Percentages are calculated on exact numbers and therefore may differ from the percentages based on rounded numbers. The impact of currency movements is calculated by comparing the results for the current reporting period to results for the comparative reporting period retranslated at exchange rates for the current reporting period. 2025 2024 change Management performance - Summary income statement € m € m % Net interest income 3,748 4,12G -G Other income 1 756 77G -3 Total operating income 1 4,504 4,G08 -8 Personnel expenses 1 (G66) (G80) -1 General and administrative expenses 1 (735) (6G0) 6 Depreciation, impairment and amortisation (2G1) (301) -3 Total operating expenses 1 (1,GG2) (1,G71) 1 Bank levies and regulatory fees 1 (114) (138) -18 Operating profit before impairment losses and exceptional items 1 Net credit impairment charge 2,3G8 (172) 2,7GG (55) -14 Operating profit before exceptional items 1 2,226 2,744 -1G Income from equity accounted investments 1 17 26 -32 Loss on disposal of business - (2) Profit before exceptional items 1 2,243 2,768 -1G Exceptional items 1 156 (66) Profit before taxation 2,3GG 2,702 -11 Income tax charge (260) (351) -26 Profit for the year 2,13G 2,351 -G Performance has been adjusted to exclude items viewed as exceptional by management and which management view as distorting comparability of performance year-on-year. The adjusted performance measure is considered an APM. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 23 Net interest income 2025 € m 2024 € m change % Interest income 4,G2G 5,374 -8 Interest expense (1,181) (1,245) -5 Net interest income 3,748 4,12G -G Average interest earning assets 137,35G 130,1G0 6 % % change Net interest margin (NIM) 2.73 3.16 -0.43 Net interest income €3,748m Net interest income decreased by €381 million or G% compared to 2024. The reduction primarily reflected lower average interest rates in 2025 compared to 2024 and an increase in interest expense on customer deposits partially offset by higher average interest earning assets. Interest income of €4,G2G million in 2025 decreased by €445 million or 8% compared to 2024 primarily due to: Reduced asset yields driven by lower average Euro, Sterling and US Dollar interest rates reflecting the graduated reduction in official interest rates by central banks over the last 18 months, with the impact mitigated through the Group's structural hedging programme(SHP) 1 and partially offset by: Higher average customer loan volumes primarily driven by an increase in new lending and the completion of loan acquisitions from Ulster Bank in the second half of 2024. Increase in loans and advances to banks and investment security volumes. Average balance sheet Interest expense of €1,181 million in 2025 decreased by €64 million or 5% compared to 2024. The decrease in funding costs was primarily due to: Lower other debt issued and subordinated liabilities funding costs due to the impact of lower interest rates and credit spreads, partially offset by: Higher interest expense on customer deposits as customers avail of higher yielding term products. Net interest margin 2.73% NIM decreased by 43 basis points to 2.73% in 2025 compared to 3.16% in 2024 primarily driven by the impact of lower interest rates, partially mitigated by SHP. Average interest earning assets of €137.4 billion in 2025 were €7.2 billion or 6% higher compared to 2024 underpinned by growth in customer deposits and other debt issued. Year ended Year ended 31 December 2025 31 December 2024 Average Interest Average Average Interest Average Assets € m € m % € m € m % Loans and advances to customers 1 71,131 3,12G 4.40 68,300 2,817 4.11 Investment securities 20,035 632 3.15 18,011 841 4.66 Cash, loans and advances to banks 2 46,1G3 1,168 2.53 43,87G 1,716 3.G0 Average interest earning assets 137,35G 4,G2G 3.5G 130,1G0 5,374 4.12 Non-interest earning assets 7,68G 7,816 Total average assets 145,048 4,G2G 138,006 5,374 Liabilities G equity Deposits by banks 2 1,548 45 2.G3 1,328 60 4.50 Deposits and advances from customers 1 54,032 523 0.G7 4G,242 468 0.G5 Other debt issued G,03G 43G 4.86 8,563 53G 6.2G Subordinated liabilities 1,738 88 5.04 1,645 112 6.80 Lease liabilities 248 10 3.87 268 G 3.30 Average interest earning liabilities 66,605 1,105 1.66 61,046 1,188 1.G4 Non-trading derivatives (economic hedges) Non-interest earning liabilities 63,185 76 62,010 57 Equity 15,258 14,G50 Total average liabilities G equity 145,048 1,181 138,006 1,245 Net interest income 3,748 2.73 4,12G 3.16 balance rate balance rate The Group's structural hedging programme resulted in a negative impact of €82m on income from Loans and advances to customers in 2025 (2024: €618m), and a positive impact of €70m on income from Deposits and advances from customers (2024: €37m), arising from cash flow and portfolio fair value hedges. See notes 4 and 5 to the consolidated financial statements. Cash, loans and advances to banks and Deposits by banks include Securities financing. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 24 Business Review 1. Operating and Financial Review continued Other income 1 2025 € m 2024 € m change % Net fee and commission income* 6G2 666 4 Net trading income G 50 -82 Net gain on financial assets measured at FVTPL 48 82 -41 Other income/(expense) 7 (1G) Total other income 756 77G -3 *Net fee and commission income 2025 € m 2024 € m change % Customer accounts and payment services 264 268 -1 Card income 165 148 11 Customer related foreign exchange 87 G1 -5 Wealth and insurance 84 7G 7 Lending related fees 58 56 3 Investment banking 31 18 77 Other fees and commissions 3 6 -51 Total net fee and commission income 6G2 666 4 Other income before exceptional items. A gain of €7m on exceptional items in 2025 comprises: a net gain of €7m on disposal of loan portfolios. A gain of €20m on exceptional items in 2024 comprises: net fee and commission income of €15m, other operating income of €4m and €1m net gain on disposal of loan portfolios. Other income €756m Other income decreased by €23 million or 3% compared to 2024 as higher fee and commission income was more than offset by lower equity investment gains and other items. Net trading income of €G million decreased by €41 million compared to 2024, primarily reflecting the non-recurrence of income from loan acquisition forward contracts in the current year and lower income on non-customer foreign exchange contracts. Net gain on financial assets measured at fair value of €48 million in 2025 decreased by €34 million compared to 2024 driven by a lower gain on equity investments. Other income of €7 million in 2025 increased by €26 million compared to an other expense of €1G million in 2024, primarily due to a lower loss on disposal of investment securities in the current year. Net fee and commission income €6G2m Net fee and commission income increased by €26 million or 4% compared to 2024 primarily reflecting higher card, investment banking and wealth & insurance income partially offset by lower customer related foreign exchange income. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 25 Operating expenses 1 2025 € m 2024 € m change % Personnel expenses G66 G80 -1 General and administrative expenses 735 6G0 6 Depreciation, impairment and amortisation 2G1 301 -3 Total operating expenses 1,GG2 1,G71 1 Staff numbers 2 Staff numbers at period end 10,207 10,46G -3 Average staff numbers 10,347 10,655 -3 Cost income ratio % % change Cost income ratio 1 44 40 4 Cost income ratio (IFRS basis) 47 45 2 Bank levies and regulatory fees 2025 € m 2024 € m change % Irish bank levy G4 G4 Deposit Guarantee Scheme Fees (11) 11 Other regulatory levies and charges 31 33 Total bank levies and regulatory fees 114 138 -18 Before bank levies and regulatory fees and exceptional items. The cost of exceptional items of €8m in 2025 (2024: €86m) comprised: personnel expenses €16m (2024: €4m) and a general and administrative expenses writeback of €8m (2024: €82m expense). Staff numbers are on a full time equivalent (FTE) basis. Net credit impairment charge 2025 € m 2024 € m change % Non-property business (G5) (14) Personal (68) (80) -15 Property and construction (40) 1 Residential mortgage 33 36 -8 Loans and advances to customers 3 (170) (57) Investment securities and securities financing (2) 2 Total net credit impairment charge (172) (55) The 2025 impairment outcome included a €178m charge on loans and advances to customers (2024: €60m), partially offset by an €8m writeback on off - balance sheet exposures (2024: €3m writeback). Total operating expenses €1,GG2m Operating expenses increased by €21 million or 1% compared to 2024. Personnel expenses decreased by €14 million compared to 2024 primarily due to a decrease in the allowance for variable pay, lower severance costs and a reduction in average staff numbers partially offset by salary inflation. General and administrative expenses increased by €45 million compared to 2024 primarily driven by the impact of inflation, higher business volumes and higher operating expense-related investment spend. Depreciation, impairment and amortisation decreased by €10 million compared to 2024 primarily due to lower impairments in the current year. Cost income ratio 44% Costs of €1,GG2 million and income of €4,504 million resulted in a cost income ratio of 44% in 2025 compared to 40% in 2024. Bank levies and regulatory fees €114m Total bank levies and regulatory fees reduced by €24 million compared to 2024. The decrease was driven by the Deposit Guarantee Scheme (DGS), following confirmation that no payment was required to the DGS Contribution Fund for 2024 or 2025, alongside the release of a related prior - year accrual. Net credit impairment charge €172m There was a net credit impairment charge of €172 million in 2025, compared to €55 million in 2024, with the prior year having benefited from writebacks in a small number of exposures in the leisure and property sectors. For further information see pages 182 to 222 in the Risk Management section. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 26 Business Review 1. Operating and Financial Review continued ‌Exceptional items 2025 € m 2024 € m Gain on disposal of equity accounted investments 157 - Customer redress and legal claims 8 (46) Gain on disposal of loan portfolios 7 1 Restructuring costs (16) (4) Inorganic transaction costs - (32) Other - 15 Total exceptional items 156 (66) Income tax 2025 2024 Income tax charge €m 260 351 Effective tax rate % 11 13 Exceptional items €156m These gains/(costs) were viewed as exceptional by management. Gain on disposal of equity accounted investments reflects a gain on the sale of the Group's minority shareholding in AIB Merchant Services. Customer redress and legal claims reflect a net writeback/(charge) to provisions for remediation payments to customers and associated costs in respect of legacy matters. Gain on disposal of loan portfolios relates to the disposal of non-performing loan portfolios completed in prior years. Restructuring costs reflect termination benefit costs resulting from the implementation of the Group's strategy. Inorganic transaction costs included costs associated with the acquisition and migration of a portfolio of Ulster Bank tracker (and linked) mortgages in 2024. Other included a fee receivable on the exit of a servicing agreement for a non-core legacy business in 2024. Income tax charge €260m The income tax charge was €260 million in 2025, representing an effective tax rate of 11% compared to a tax charge of €351 million in 2024 (effective tax rate 13%). The reduction in the effective tax rate in 2025 primarily reflected the tax - exempt income earned during the year and the recognition of deferred tax assets in respect of unutilised tax losses incurred in prior years. For further information see note 13 and note 25 to the consolidated financial statements. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 27 31 Dec 31 Dec Assets 2025 € bn 2024 € bn change % Gross loans 72.3 71.2 2 ECL allowance (1.1) (1.3) -15 Net loans to customers 71.2 6G.G 2 Investment securities 21.5 18.7 15 Cash, loans and advances to banks 41.2 38.6 7 Securities financing 7.3 6.6 10 Other assets 7.0 7.5 -7 of which: Deferred tax assets 2.1 2.3 -10 Derivatives financial instruments 1.C 2.1 -22 Remaining assets 3.3 3.1 6 Total assets 148.2 141.3 5 Performing Non-performing Loans to Summary of movement in loans to customers loans € bn loans € bn customers € bn Gross loans (opening balance 1 January 2025) 6G.2 2.0 71.2 New lending 14.7 - 14.7 Redemptions (11.7) (0.6) (12.3) Portfolio disposals (0.1) (0.3) (0.4) Net movement to non-performing (0.6) 0.6 - Write-offs and restructures - (0.1) (0.1) Foreign exchange and other movements (0.8) - (0.8) Gross loans (closing balance 31 December 2025) 70.7 1.6 72.3 ECL allowance (0.6) (0.5) (1.1) Net loans (closing balance 31 December 2025) 70.1 1.1 71.2 Gross loans €72.3bn Gross loans increased by €1.1 billion or 2% compared to 31 December 2024 driven by underlying growth of €2.4 billion or 3%, as new lending exceeded redemptions, partially offset by adverse foreign exchange movements of €0.G billion and portfolio disposals of €0.4 billion. New lending €14.7bn New lending was €0.2 billion or 2% higher compared to 2024. New lending comprises €13.3 billion of term lending (2024: €13.0 billion) and €1.4 billion of transaction lending (2024: €1.5 billion). Irish mortgage lending of €4.3 billion, representing a market share of 30% (2024: 36%), was 5% lower compared to 2024 reflecting heightened market competition. Personal lending was up 4% to €1.4 billion. Non-property lending of €6.8 billion was in line with 2024 as higher corporate lending was offset by lower Climate & Infrastructure Capital lending. Property related lending was 25% higher at €2.0 billion reflecting some recovery in real estate lending from a subdued prior year. Investment securities €21.5bn Investment securities, primarily held for liquidity purposes, increased by €2.8 billion or 15% from 31 December 2024 due to increased holdings in government and supranational securities. Cash, loans and advances to banks €41.2bn Cash, loans and advances to banks, including €40.6 billion of cash and balances at central banks, were €2.6 billion higher than 31 December 2024 as the growth in customer deposits outpaced the growth in customer loans, investment securities and securities financing. Annual Business Sustainability Governance Risk Financial Country by General AIB Group plc Review Review Reporting Report Management Statements Country Report Information Annual Financial Report 2025 28 Business Review 1. Operating and Financial Review continued Credit profile of loan portfolio The table below summarise the credit profile of the loan portfolio by asset class and includes a range of credit metrics that the Group uses in managing the portfolio. Further information on the Group's risk profile and non-performing loans is available in the Risk Management section on pages 182 t o 222. 31 December 2025 31 December 2024 Loans to customers at amortised cost Residential mortgages € bn Other personal € bn Property and construction € bn Non-property business € bn Total € bn Residential mortgages € bn Other personal € bn Property and construction € bn Non-property business € bn Total € bn Gross loans to customers 37.5 3.4 8.4 22.G 72.2 37.0 3.3 8.7 22.2 71.2 of which: Stage 2 1.8 0.5 2.4 3.1 7.8 1.5 0.G 2.7 2.8 8.0 Non-performing loans 0.7 0.1 0.3 0.5 1.C 0.5 0.1 0.5 0.5 2.0 Total ECL allowance 0.2 0.1 0.4 0.4 1.1 0.3 0.1 0.4 0.5 1.3 Total ECL allowance cover 0.5 % 3.8 % 5.2 % 1.8 % 1.6 % 0.7 % 4.2 % 5.3 % 2.1 % 1.G % of which: Stage 2 2.7 % 8.3 % 3.0 % C.1 % C.4 % 2.8 % 8.4 % 8.3 % 7.0 % G.G % Non-performing loans 17.3 % 70.5 % 40.8 % 31.3 % 30.1 % 24.1 % GG.0 % 33.2 % 35.2 % 32.4 % Non-performing loans as a percentage of gross loans 1.8 % 2.5 % 4.0 % 2.2 % 2.2 % 2.4 % 3.1 % 6.1 % 2.2 % 2.8 % Non-performing loans ratio 2.2% Non-performing loans as a percentage of gross loans to customers was 2.2% at 31 December 2025 compared to 2.8% at 31 December 2024. The decrease reflected a reduction in non-performing loan volumes by €0.4 billion or 20% to €1.6 billion at 31 December 2025 driven by disposal and restructuring activity during the year. ECL cover 1.6% The expected credit loss balance sheet cover was 1.6% at 31 December 2025 compared to 1.G% at 31 December 2024. The movement reflected a decrease in the ECL allowance by €0.2 billion to €1.1 billion at 31 December 2025 driven by the reduction in non-performing loan volumes. 2025

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