Public statement relating to Settlement Agreement between the Central Bank of Ireland and Allied Irish Banks, plc

• Date: 17 December 2013

1

Settlement Agreement between the Central Bank of Ireland

and Allied Irish Banks, p.l.c.

The Central Bank of Ireland (the “Central Bank”) has entered into a Settlement Agreement

with effect from 17 December 2013 with Allied Irish Banks, p.l.c. (the “Firm”), a regulated

financial services provider, in relation to contraventions of the Central Bank’s Requirements

for the Management of Liquidity Risk (the “Requirements”) and the European Communities

(Licensing and Supervision of Credit Institutions) Regulations 1992 (S.I. 395 of 1992) (the

“Regulations”).

Reprimand and fine

The Central Bank reprimanded the Firm and required it to pay a monetary penalty of

€490,000.

Contraventions

The four contraventions, which occurred at various periods between September 2007 and

May 2013, were as follows:

1. the Firm failed to have adequate internal controls in place to ensure the integrity of

its regulatory liquidity reporting in breach of Regulation 16(3)(c) of the Regulations;

2. the Firm failed to comply with Section 3.2.2 of the Requirements by not ensuring the

integrity of liquidity reporting to the Central Bank;