Business Wire: AIB and Bankinter Enter Correspondent Banking Agreement to Provide Loans for Irish Residents Buying Property in Spain

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AIB and Bankinter Enter Correspondent Banking Agreement to Provide Loans for Irish Residents Buying Property in Spain

Business Editors

DUBLIN, Ireland--(BUSINESS WIRE)--July 20, 2001

Allied Irish Banks, p.l.c, ('AIB') and Bankinter S.A. have entered into a correspondent banking agreement, which will facilitate the financing of property in Spain for Irish residents. The new service will be available with effect from Monday July 23 rd.

The new arrangement will draw together AIB's extensive distribution capability in Ireland, and Bankinter's financial services expertise and knowledge of the Spanish property market. Irish residents will now be able to obtain finance, secured on Spanish property, by making a loan application to Bankinter via AIB Mortgages Direct. The loan application process has been designed by AIB and Bankinter in order to ensure a fast and simple route from application to agreement. The customer only needs to ring AIB Mortgages Direct at 1890 24 24 25.

Commenting on the launch of the new service, Eugene Sheehy, Managing Director, AIB Bank, Republic of Ireland, said

'Many of our customers are looking abroad for opportunities to invest in property and we are delighted to be able to offer a service that simplifies the buying process. This arrangement complements our existing market strategy and approach to innovation in the provision of mortgages for our customers. We feel privileged to have worked with our colleagues in Bankinter and look forward to delivering this innovative service to our customers.'

Jaime Echegoyen, General Manager, Bankinter, commented

"Our virtual banking business model, coupled with a very promising chemistry with AIB, enables both of us to offer clients the no-border benefits of a single currency. Solid client relationship building is certainly one of our Irish colleagues' most important competitive advantages. The combination of our state-of-the-art technology, local knowledge, and AIB's market presence makes this project very attractive."

AIB Group is Ireland's leading banking and financial services organisation and, at December 2000, had total assets of Euro79.7bn. Bankinter is Spain's 5th largest commercial banking Group and as at December 2000, had total assets of Euro19.1bn.

For further information contact: AIB GROUP BANKINTER Catherine Burke Rita Rodriguez Head of Corporate Relations

Communication Department Bankcentre Paseo de la Castellana, 29 Dublin 4 28046 Madrid 00 353 1 6600311

00 34 91 3397535

FACT SHEET (y/e 12/2000)

Bankinter S.A.
     ----------------------------------------- --------------------
     Total Assets                                      Euro19.1bn
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     ROE                                                     13.4%
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Net Profit (pretax)                                Euro152.5m
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Branches                                                 276
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Employees                                              2,919
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Agents                                                 1,313
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Virtual Branches                                         350
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Customers                                        1m (internet
                                                          300,000)
     ----------------------------------------- --------------------

Bankinter is one of Spain's most progressive and efficient Banking groups. It is the 5th largest commercial Bank in Spain with a special emphasis on conducting business online. With only 0.7% of the country's branches it has captured 2.5% of customer population, 26% of Spanish on-line market, 4% of mortgages and 5.5% of stockbroking. It is the recognised market leader in Internet banking using an integrated, multi-channel approach. It is highly rated for its innovation in retail banking distribution and pioneering approach to customer relationships.

AIB Group
     ----------------------------------------- --------------------
     Total Assets                                      Euro79.7bn
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     ROE                                                     21.6%
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Net Profit (pretax)                                Euro1,251m
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Branches (ROI)                                           298
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Employees (ROI)                                       10,000
     ----------------------------------------- --------------------
     ----------------------------------------- --------------------
     Customers (ROI)                                          1.5m
     ----------------------------------------- --------------------

AIB Group operates principally in Ireland, Britain, USA and Poland. It is Ireland's leading financial services organisation with particular strengths in Business and Personal banking, home mortgages and wealth management.