##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, DC 20549


FORM 20-F


|                                         |  |   |  |                                                                                                         
|---------------------------------------- |  | - |  | --------------------------------------------------------------------------------------------------------
|(Mark One)                               |  | o |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR
    12(g)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|OR                                      
|                                         |  | x |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934                
|For the fiscal year ended March 31, 2007
|OR                                      
|                                         |  | o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934            
|                                        
|                                         |  |   |  | For the transition period
    from                 to                                                   
|OR                                      
|                                         |  | o |  | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D)
    OF THE SECURITIES EXCHANGE ACT OF 1934         
|                                         |  |   |  | Date of event requiring this shell company report                                                       
|Commission file number: 1-14452         

THE GOVERNOR AND COMPANY OF


THE BANK OF IRELAND


(Exact name of registrant as specified in its charter)


IRELAND


(Jurisdiction of incorporation or organization)


LOWER BAGGOT STREET, DUBLIN 2, IRELAND


(Address of principal executive offices)


+353 1 6615933


(Telephone number of principal executive offices)




|                                                                                                                   |  |                                          
|------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------
|Title of each class                                                                                                |  | Name of each exchange on which registered
|                                                                                                                   |  |                                          
| Ordinary Stock (nominal value of
    0.64 each)                                                                 |  | The New York Stock Exchange*             
| American Depositary Shares, each representing four
    units of Ordinary Stock (nominal value of
    0.64 each) |  | The New York Stock Exchange              



|  |                                                                                                                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Not for trading, but only in connection with the registration of
    American Depositary Shares representing such Ordinary Stock,
    pursuant to the requirements of the Securities and Exchange
    Commission.












[X] [     ]




[     ] [X]




[X] [     ]


12b-2




|                            |                            |                              
|--------------------------- | -------------------------- | -----------------------------
|Large accelerated file  [X] | Accelerated filer  [     ] | Non-accelerated file  [     ]



[     ] [X]


12b-2


[     ] [X]










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2



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The Governor and Company of The Bank of Ireland


ANNUAL REPORT ON FORM 20-F


Table of Contents


|     |  |                                                                          |  |      |    | 
|---- |  | ------------------------------------------------------------------------ |  | ---- | -- | 
|     |  |                                                                          |  | Page |   
|     |  |                                                                          |  |      |   
|Item |  | Caption                                                                  |  |      |    | 
|     |  | Presentation of Information                                              |  |      | 5  | 
|     |  | Forward-Looking Information                                              |  |      | 5  | 
|     |  | Definitions                                                              |  |      | 5  | 
|     |  | Reporting Currency                                                       |  |      | 5  | 
|     |  | Exchange Rates                                                           |  |      | 6  | 
|    
|     |  | Part I                                                                   |  |      |    | 
|1    |  | Identity of Directors, Senior
    Management & Advisors (not applicable) |  |      | 7  | 
|2    |  | Offer Statistics & Expected
    Timetable (not applicable)               |  |      | 7  | 
|3    |  | Key Information                                                          |  |      | 7  | 
|     |  | Selected Financial Data                                                  |  |      | 7  | 
|     |  | Risk Factors                                                             |  |      | 11 | 
|4    |  | Information on the Company                                               |  |      | 12 | 
|     |  | General                                                                  |  |      | 12 | 
|     |  | Principal Capital Expenditures and
    Divestitures                      |  |      | 12 | 
|     |  | Recent Developments                                                      |  |      | 13 | 
|     |  | Business Overview                                                        |  |      | 13 | 
|     |  | Strategy                                                                 |  |      | 14 | 
|     |  | Corporate Structure                                                      |  |      | 15 | 
|     |  | Description of Property                                                  |  |      | 18 | 
|     |  | Competition                                                              |  |      | 19 | 
|     |  | Supervision and Regulation                                               |  |      | 20 | 
|     |  | The Irish Economy                                                        |  |      | 25 | 
|4A   |  | Unresolved Staff Comments                                                |  |      | 25 | 
|5    |  | Operating & Financial Review
    and Prospects                           |  |      | 25 | 
|     |  | Critical Accounting Estimates and
    Judgements                         |  |      | 26 | 
|     |  | Liquidity and Capital Resources                                          |  |      | 28 | 
|     |  | Analysis of Results of Operations                                        |  |      | 32 | 
|     |  | Average Balance Sheet and Interest Rates                                 |  |      | 52 | 
|     |  | Description of Assets &
    Liabilities                                  |  |      | 55 | 
|6    |  | Directors, Senior Management and
    Employees                           |  |      | 81 | 
|     |  | Directors and Senior Management                                          |  |      | 81 | 
|     |  | Remuneration of Directors and Officers                                   |  |      | 84 | 
|     |  | Corporate Governance Statement                                           |  |      | 87 | 
|     |  | Court of Directors                                                       |  |      | 87 | 
|     |  | Court Committees                                                         |  |      | 92 | 
|     |  | Employees                                                                |  |      | 93 | 
|     |  | Stock options                                                            |  |      | 93 | 

3



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|        |  |                                                                                                     |  |      |     | 
|------- |  | --------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|        |  |                                                                                                     |  | Page |    
|        |  |                                                                                                     |  |      |    
|7       |  | Major Stockholders and Related Party
    Transactions                                               |  |      | 95  | 
|        |  | Control of Registrant                                                                               |  |      | 95  | 
|        |  | Related Party Transactions                                                                          |  |      | 95  | 
|        |  | Description of U.S. stockholders                                                                    |  |      | 95  | 
|        |  | Relations with Stockholders                                                                         |  |      | 95  | 
|8       |  | Financial Information                                                                               |  |      | 96  | 
|        |  | Dividend Policy                                                                                     |  |      | 96  | 
|        |  | Legal Proceedings                                                                                   |  |      | 97  | 
|        |  | Prospective Accounting Changes                                                                      |  |      | 97  | 
|9       |  | The Offer and Listing                                                                               |  |      | 98  | 
|        |  | Nature of Trading Market                                                                            |  |      | 98  | 
|10      |  | Additional Information                                                                              |  |      | 100 | 
|        |  | Charter and Bye-Laws                                                                                |  |      | 100 | 
|        |  | Exchange controls and other limitations
    affecting security holders                              |  |      | 105 | 
|        |  | Taxation                                                                                            |  |      | 105 | 
|        |  | Documents available through the SEC                                                                 |  |      | 108 | 
|11      |  | Quantitative and Qualitative Disclosures
    about Market Risk                                      |  |      | 108 | 
|        |  | Risk Management and Control                                                                         |  |      | 108 | 
|12      |  | Description of Securities other than
    Equity Securities (not applicable)                         |  |      | 118 | 
|       
|        |  | Part II                                                                                             |  |      |     | 
|13      |  | Defaults, Dividend Arrearages &
    Delinquencies (not applicable)                                  |  |      | 119 | 
|14      |  | Material Modifications to the Rights of
    Security Holders & Use of Proceeds (not
    applicable) |  |      | 119 | 
|15      |  | Controls and Procedures                                                                             |  |      | 119 | 
|16      |  | A. Audit Committee Financial
    Expert                                                             |  |      | 119 | 
|        |  | B. Code of Ethics                                                                                   |  |      | 120 | 
|        |  | C. Principal Accountant Fees and
    Services                                                       |  |      | 120 | 
|        |  | D. Exemptions from the Listing Standards
    for Audit Committees                                   |  |      | 120 | 
|        |  | E. Purchases of Equity Securities by the
    Issuer and Affiliated Purchasers                       |  |      | 120 | 
|       
|        |  | Part III                                                                                            |  |      |     | 
|17      |  | Financial Statements                                                                                |  |      | 121 | 
|18      |  | Financial Statements                                                                                |  |      | 121 | 
|19      |  | Exhibits                                                                                            |  |      | 121 | 
|EX-12.1
|EX-12.2
|EX-13.1
|EX-13.2
|EX-15.1



4



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PRESENTATION OF INFORMATION


20-F, 









FORWARD-LOOKING INFORMATION







DEFINITIONS











REPORTING CURRENCY







5



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EXCHANGE RATES







|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|---------------------------------- |  | -------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                                   |  | Year ended March 31, |       
|                                   |  |                      |       
|                                   |  | 2007                 |        |  | 2006 |  |        | 2005 |  |  | 2004   |  |  | 2003 |       
|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |       
|                                   |  | (dollars per )      |       
|Euro/dollar rates:                 |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|March 31                           |  |                      | 1.3374 |  |      |  | 1.2139 |      |  |  | 1.2969 |  |  |      | 1.2292 |  |  |  | 1.0900 | 
|Average(1)                         |  |                      | 1.2943 |  |      |  | 1.2163 |      |  |  | 1.2653 |  |  |      | 1.1808 |  |  |  | 1.0033 | 
|High                               |  |                      | 1.3374 |  |      |  | 1.3093 |      |  |  | 1.3625 |  |  |      | 1.2848 |  |  |  | 1.1062 | 
|Low                                |  |                      | 1.2091 |  |      |  | 1.1667 |      |  |  | 1.1801 |  |  |      | 1.0621 |  |  |  | 0.8750 | 
|March 31 rate used by the Group(2) |  |                      | 1.3318 |  |      |  | 1.2104 |      |  |  | 1.2964 |  |  |      | 1.2224 |  |  |  | 1.0895 | 
|Average rate used by the Group(2)  |  |                      | 1.2912 |  |      |  | 1.2126 |      |  |  | 1.2647 |  |  |      | 1.1796 |  |  |  | 1.0051 | 





|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|---------------------------------- |  | -------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                                   |  | Year ended March 31, |       
|                                   |  |                      |       
|                                   |  | 2007                 |        |  | 2006 |  |        | 2005 |  |  | 2004   |  |  | 2003 |       
|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |       
|                                   |  | (STG£ per )         |       
|Euro/sterling rates:               |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|March 31 rate used by the Group(2) |  |                      | 0.6798 |  |      |  | 0.6964 |      |  |  | 0.6885 |  |  |      | 0.6659 |  |  |  | 0.6896 | 
|Average rate used by the Group(2)  |  |                      | 0.6783 |  |      |  | 0.6826 |      |  |  | 0.6834 |  |  |      | 0.6926 |  |  |  | 0.6460 | 






|    |                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------
|(1) | The average of the Noon Buying Rates on the last day of each
    month during the Groups financial year.
|   
|(2) | The rates used by the Group in the preparation of its
    consolidated financial statements.             

6



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PART 1





Item 1     IDENTITY OF
DIRECTORS, SENIOR MANAGEMENT & ADVISORS







Item 2     OFFER STATISTICS
& EXPECTED TIMETABLE







Item 3     KEY INFORMATION





SELECTED FINANCIAL DATA








7



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SELECTED CONSOLIDATED FINANCIAL DATA


Table 1


|                                                                                         |  |                                               |         |                                 |      |  |         |           |  |  |           |   |  |  |         |  
|---------------------------------------------------------------------------------------- |  | --------------------------------------------- | ------- | ------------------------------- | ---- |  | ------- | --------- |  |  | --------- | - |  |  | ------- | -
|                                                                                         |  | At and for the Financial Year Ended March 31, |        
|                                                                                         |  |                                               |        
|                                                                                         |  |                                               |         | 2006                            |      |  | 2005    |          
|                                                                                         |  | 2007(1)                                       |         |                                 | 2007 |  |         | Restated* |  |  | Restated* |  
|                                                                                         |  |                                               |         |                                 |      |  |         |           |  |  |           |  
|                                                                                         |  | U.S.$m                                        |         |                                 |     
|                                                                                         |  |                                               |         | (in  millions, except per unit |     
|                                                                                         |  |                                               |         | amounts and percentages)        |     
|Income Statement Data                                                                    |  |                                               |         |                                 |      |  |         |           |  |  |           |   |  |  |         |  
|Amounts in accordance with IFRS:                                                         |  |                                               |         |                                 |      |  |         |           |  |  |           |   |  |  |         |  
|Interest income                                                                          |  |                                               | 11,001  |                                 |      |  | 8,137   |           |  |  | 5,954     |   |  |  | 4,263   |  
|Interest expense                                                                         |  |                                               | (7,274  | )                               |      |  | (5,380  | )         |  |  | (3,647    | ) |  |  | (2,332  | )
|Net interest income                                                                      |  |                                               | 3,727   |                                 |      |  | 2,757   |           |  |  | 2,307     |   |  |  | 1,931   |  
|Insurance net premium income                                                             |  |                                               | 2,958   |                                 |      |  | 2,188   |           |  |  | 1,298     |   |  |  | 1,791   |  
|Fees and commissions income                                                              |  |                                               | 1,214   |                                 |      |  | 898     |           |  |  | 912       |   |  |  | 1,163   |  
|Fees and commissions expense                                                             |  |                                               | (216    | )                               |      |  | (160    | )         |  |  | (170      | ) |  |  | (263    | )
|Net trading (expense)/income                                                             |  |                                               | (95     | )                               |      |  | (70     | )         |  |  | 30        |   |  |  | 66      |  
|Life assurance investment income and gains                                               |  |                                               | 334     |                                 |      |  | 247     |           |  |  | 599       |   |  |  | 672     |  
|Other operating income                                                                   |  |                                               | 269     |                                 |      |  | 199     |           |  |  | 116       |   |  |  | 98      |  
|Profit on disposal of business activities                                                |  |                                               | 329     |                                 |      |  | 243     |           |  |  | 176       |   |  |  | 11      |  
|Profit on sale of property                                                               |  |                                               | 118     |                                 |      |  | 87      |           |  |  |          |   |  |  |        |  
|Total Operating Income                                                                   |  |                                               | 8,638   |                                 |      |  | 6,389   |           |  |  | 5,268     |   |  |  | 5,469   |  
|Increase in insurance contract liabilities and claims paid                               |  |                                               | (2,992  | )                               |      |  | (2,213  | )         |  |  | (1,666    | ) |  |  | (2,222  | )
|Total Operating Income, net of Insurance Claims                                          |  |                                               | 5,646   |                                 |      |  | 4,176   |           |  |  | 3,602     |   |  |  | 3,247   |  
|Total Operating expenses                                                                 |  |                                               | (2,919  | )                               |      |  | (2,159  | )         |  |  | (2,020    | ) |  |  | (2,051  | )
|Impairment losses                                                                        |  |                                               | (139    | )                               |      |  | (103    | )         |  |  | (103      | ) |  |  | 21      |  
|Share of profit of associated undertakings and joint ventures                            |  |                                               | 59      |                                 |      |  | 44      |           |  |  | 45        |   |  |  | 30      |  
|Profit before taxation                                                                   |  |                                               | 2,647   |                                 |      |  | 1,958   |           |  |  | 1,524     |   |  |  | 1,247   |  
|Taxation                                                                                 |  |                                               | (413    | )                               |      |  | (306    | )         |  |  | (303      | ) |  |  | (256    | )
|Profit for the period                                                                    |  |                                               | 2,234   |                                 |      |  | 1,652   |           |  |  | 1,221     |   |  |  | 991     |  
|Profit attributable to minority interests                                                |  |                                               | 1       |                                 |      |  | 1       |           |  |  | (9        | ) |  |  | (1      | )
|Profit attributable to stockholders                                                      |  |                                               | 2,233   |                                 |      |  | 1,651   |           |  |  | 1,230     |   |  |  | 992     |  
|Per Unit of Ordinary Stock                                                               |  |                                               |         |                                 |      |  |         |           |  |  |           |   |  |  |         |  
|Earnings per unit of
    0.64 ordinary
    stock                                        |  |                                               | 232.8c  |                                 |      |  | 172.2c  |           |  |  | 128.5c    |   |  |  | 104.4c  |  
|Diluted earnings per unit of
    0.64 ordinary
    stock                                |  |                                               | 231.2c  |                                 |      |  | 171.0c  |           |  |  | 127.6c    |   |  |  | 103.6c  |  
|Dividends(2)                                                                             |  |                                               | 81.7c   |                                 |      |  | 60.4c   |           |  |  | 52.5c     |   |  |  | 45.6c   |  
|Number of shares used in EPS calculation (in millions)                                   |  |                                               | 950     |                                 |      |  | 950     |           |  |  | 947       |   |  |  | 942     |  
|Number of shares used in Diluted EPS calculation (in millions)                           |  |                                               | 957     |                                 |      |  | 957     |           |  |  | 954       |   |  |  | 950     |  
|Balance Sheet Data                                                                       |  |                                               |         |                                 |      |  |         |           |  |  |           |   |  |  |         |  
|Amounts in accordance with IFRS:                                                         |  |                                               |         |                                 |      |  |         |           |  |  |           |   |  |  |         |  
|Total assets                                                                             |  |                                               | 255,275 |                                 |      |  | 188,813 |           |  |  | 162,212   |   |  |  | 127,690 |  
|Loans and advances to customers (net of impairment for losses on
    loans and advances) |  |                                               | 169,065 |                                 |      |  | 125,048 |           |  |  | 101,246   |   |  |  | 79,836  |  
|Loans and advances to banks                                                              |  |                                               | 9,748   |                                 |      |  | 7,210   |           |  |  | 12,188    |   |  |  | 9,496   |  
|Impairment losses on loans and advances                                                  |  |                                               | (579    | )                               |      |  | (428    | )         |  |  | (359      | ) |  |  | (319    | )
|Available-for-sale financial assets                                                      |  |                                               | 45,223  |                                 |      |  | 33,449  |           |  |  | 28,205    |   |  |  |        |  
|Debt securities                                                                          |  |                                               |        |                                 |      |  |        |           |  |  |          |   |  |  | 22,711  |  
|Deposits by banks                                                                        |  |                                               | 27,588  |                                 |      |  | 20,405  |           |  |  | 32,312    |   |  |  | 20,865  |  
|Customer accounts                                                                        |  |                                               | 97,719  |                                 |      |  | 72,277  |           |  |  | 61,710    |   |  |  | 60,185  |  
|Debt securities in issue                                                                 |  |                                               | 80,475  |                                 |      |  | 59,523  |           |  |  | 36,814    |   |  |  | 21,217  |  
|Subordinated liabilities                                                                 |  |                                               | 10,556  |                                 |      |  | 7,808   |           |  |  | 6,493     |   |  |  | 4,086   |  
|Minority interests                                                                       |  |                                               | 46      |                                 |      |  | 34      |           |  |  | 45        |   |  |  | 135     |  
|Share capital                                                                            |  |                                               | 896     |                                 |      |  | 663     |           |  |  | 663       |   |  |  | 663     |  
|Share premium account                                                                    |  |                                               | 1,042   |                                 |      |  | 771     |           |  |  | 767       |   |  |  | 767     |  
|Retained profit                                                                          |  |                                               | 6,317   |                                 |      |  | 4,672   |           |  |  | 3,188     |   |  |  | 2,334   |  
|Other reserves                                                                           |  |                                               | 1,224   |                                 |      |  | 905     |           |  |  | 803       |   |  |  | 629     |  
|Own shares held for the benefit of life assurance policyholders                          |  |                                               | (388    | )                               |      |  | (287    | )         |  |  | (235      | ) |  |  | (206    | )
|Stockholders equity                                                                     |  |                                               | 9,091   |                                 |      |  | 6,724   |           |  |  | 5,186     |   |  |  | 4,187   |  






|  |                                                              
|- | -------------------------------------------------------------
|* | Restated for change in accounting policy  see page
    F-26.

8



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##### Table of Contents



Table 2


|                                                     |                                    |                                               |         |        |                                                          |  |         |              |  |      |              |       |      |              |         |       |              |  |         |       |  |  |        |        | 
|---------------------------------------------------- | ---------------------------------- | --------------------------------------------- | ------- | ------ | -------------------------------------------------------- |  | ------- | ------------ |  | ---- | ------------ | ----- | ---- | ------------ | ------- | ----- | ------------ |  | ------- | ----- |  |  | ------ | ------ | 
|                                                     |                                    | At and for the Financial Year Ended March 31, |        
|                                                     |                                    |                                               |        
|                                                     |                                    |                                               |         | 2006   |                                                          |  | 2005    |              |  | 2004 |              |       | 2003 |             
|                                                     |                                    | 2007(1)                                       |         |        | 2007                                                     |  |         | Restated(11) |  |      | Restated(11) |       |      | Restated(11) |         |       | Restated(11) | 
|                                                     |                                    |                                               |         |        |                                                          |  |         |              |  |      |              |       |      |              |         |       |              | 
|                                                     |                                    | U.S.$m                                        |         |        | (in  millions, except per unit amounts and percentages) | 
|Amounts in accordance with U.S. GAAP:
    (11)       |                                    |                                               |         |        |                                                          |  |         |              |  |      |              |       |      |              |         |       |              |  |         |       |  |  |        |       
|Net income attributable to holders of ordinary stock |                                    |                                               | 2,238   |        |                                                          |  | 1,655   |              |  |      | 743          |       |      |              | 758     |       |              |  | 896     |       |  |  | 1,148  |       
|Net income from continuing operations                |                                    |                                               | 1,912   |        |                                                          |  | 1,414   |              |  |      | 707          |       |      |              | 725     |       |              |  | 869     |       |  |  | 1,123  |       
|Net income per unit of ordinary stock                |                                    |                                               |         |        |                                                          |  |         |              |  |      |              |       |      |              |         |       |              |  |         |       |  |  |        |       
|                                                     | Basic                              |                                               |         | 235.5c |                                                          |  |         | 174.2c       |  |      |              | 78.5c |      |              |         | 80.5c |              |  |         | 93.2c |  |  |        | 115.8c | 
|                                                     | Basic from continuing operations   |                                               |         | 201.2c |                                                          |  |         | 148.8c       |  |      |              | 74.7c |      |              |         | 77.0c |              |  |         | 90.4c |  |  |        | 113.3c | 
|                                                     | Diluted                            |                                               |         | 233.8c |                                                          |  |         | 172.9c       |  |      |              | 77.9c |      |              |         | 79.8c |              |  |         | 92.6c |  |  |        | 114.7c | 
|                                                     | Diluted from continuing operations |                                               |         | 199.8c |                                                          |  |         | 147.8c       |  |      |              | 74.1c |      |              |         | 76.3c |              |  |         | 89.8c |  |  |        | 112.2c | 
|Stockholders equity                                 |                                    |                                               | 7,678   |        |                                                          |  | 5,679   |              |  |      | 4,822        |       |      |              | 4,641   |       |              |  | 4,476   |       |  |  | 4,218  |       
|Total assets                                         |                                    |                                               | 269,602 |        |                                                          |  | 199,410 |              |  |      | 161,548      |       |      |              | 127,458 |       |              |  | 108,326 |       |  |  | 91,369 |       

Table 3


|                                                           |  |                      |      |      |           |  |      |           |  |  |      | 
|---------------------------------------------------------- |  | -------------------- | ---- | ---- | --------- |  | ---- | --------- |  |  | ---- | 
|                                                           |  | At and for the       |     
|                                                           |  | Financial Year Ended |     
|                                                           |  | March 31,            |     
|                                                           |  |                      |     
|                                                           |  |                      |      | 2006 |           |  | 2005 |          
|                                                           |  | 2007                 |      |      | Restated* |  |      | Restated* | 
|                                                           |  |                      |      |      |           |  |      |           | 
|                                                           |  | (in percentages)     |     
|Other Financial Data                                       |  |                      |      |      |           |  |      |           |  |  |      | 
|Return on average total assets(3)                          |  |                      | 0.9  |      |           |  | 0.8  |           |  |  | 0.8  | 
|Return on average stockholders equity(4)                  |  |                      | 26.9 |      |           |  | 25.7 |           |  |  | 22.4 | 
|Net interest margin(5)                                     |  |                      | 1.8  |      |           |  | 1.8  |           |  |  | 2.0  | 
|Cost/income ratio(6)                                       |  |                      | 51   |      |           |  | 55   |           |  |  | 63   | 
|Impairment losses to total loans                           |  |                      | 0.3  |      |           |  | 0.4  |           |  |  | 0.4  | 
|Provisions for impairment losses to average total loans(7) |  |                      | 0.1  |      |           |  | 0.1  |           |  |  | 0.0  | 
|Tier 1 capital ratio(8)                                    |  |                      | 8.2  |      |           |  | 7.5  |           |  |  | 7.9  | 
|Total capital ratio(8)                                     |  |                      | 11.8 |      |           |  | 11.4 |           |  |  | 10.9 | 
|Stockholders equity to assets(9)                          |  |                      | 3.6  |      |           |  | 3.2  |           |  |  | 3.3  | 
|Dividend payout ratio(10)                                  |  |                      | 32   |      |           |  | 37   |           |  |  | 41   | 






| |   |                                                              
| | - | -------------------------------------------------------------
| | * | Restated for change in accounting policy  see
    page F-26.



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Translated solely for convenience into dollars at
    1.00 =
    U.S.$1.3520, the Noon Buying Rate on June 29, 2007.                                                                                                                                                                                                                                                                                                                                                                            
|
| | (2) | See Item 8 Financial Information  Dividend
    Policy for details of dividends per unit of Ordinary Stock
    in dollars.                                                                                                                                                                                                                                                                                                                                                                     
|
| | (3) | Return on average total assets represents profit attributable to
    the ordinary stockholders as a percentage of average total
    assets. The calculation of the average balances for all years
    includes daily, weekly or monthly averages for certain reporting
    units. See Item 5 Operating & Financial Review
    and Prospects  Average Balance Sheet and Interest
    Rates. The Group considers these average balances to be
    representative of the operations of the Group.
|
| | (4) | Return on average stockholders equity represents profit
    attributable to the ordinary stockholders as a percentage of
    average stockholders funds, excluding minority interests.                                                                                                                                                                                                                                                                                                         
|
| | (5) | Net interest margin represents net interest income as a
    percentage of average interest earning assets.                                                                                                                                                                                                                                                                                                                                                                                       

9



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| |     |                                                                                                                                                                                                                             
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (6) | The cost/income ratio is determined by dividing the total
    expenses including goodwill impairment of the Group by the total
    income of the Group including income from associated
    undertakings and joint ventures.



| |     |                                                                                                                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (7) | Provision for impairment losses to average loans is calculated
    by dividing the annual impairment losses by average loans to
    customers.                                                                                                                                                                     
|
| | (8) | The target standard risk-asset ratio set by the Basel Committee
    is 8%, of which the Tier 1 element must be at least 4%. The
    minimum risk-asset ratio is set by Financial Regulator and
    satisfies capital adequacy requirements of the European Union.
    The ratio given for 2005 is at April 1, 2005.
|
| | (9) | Stockholders equity excludes minority interests.                                                                                                                                                                                                                                                                  



|     |                                                                                                                                                                                                      
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Dividend payout ratio is calculated by dividing the annual
    equity dividend paid by profit attributable to ordinary
    stockholders.                                                             
|    
|(11) | Certain U.S. GAAP information has been restated in the
    previously reported U.S. GAAP reconciliation as a result of the
    change in accounting policy set out in footnote (1) on
    page F-121.

|                                                                |  |      |       |   |      |  |       |      |  |  |       |   |  |  |       |  
|--------------------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | - |  |  | ----- | -
|                                                                |  | 2006 |       |   | 2005 |  |       | 2004 |  |  | 2003  |  
|                                                                |  |      |       |   |      |  |       |      |  |  |       |  
|                                                                |  | m   |       |   | m   |  |       | m   |  |  | m    |  
|U.S. GAAP Net income                                            |  |      | 803   |   |      |  | 814   |      |  |  | 912   |   |  |  | 1,114 |  
|Treasury shares                                                 |  |      | (75   | ) |      |  | (63   | )    |  |  | (16   | ) |  |  | 34    |  
|Effective interest rate                                         |  |      | (21   | ) |      |  | 7     |      |  |  |      |   |  |  |      |  
|Fair value option                                               |  |      | 36    |   |      |  |      |      |  |  |      |   |  |  |      |  
|                                                                |  |      |       |   |      |  |       |      |  |  |       |  
|Adjusted net income under U.S. GAAP                             |  |      | 743   |   |      |  | 758   |      |  |  | 896   |   |  |  | 1,148 |  
|                                                                |  |      |       |   |      |  |       |      |  |  |       |  
|Total Stockholders funds under U.S. GAAP as previously reported |  |      | 4,976 |   |      |  | 4,730 |      |  |  | 4,499 |   |  |  | 4,235 |  
|Treasury Shares                                                 |  |      | (142  | ) |      |  | (90   | )    |  |  | (48   | ) |  |  | (42   | )
|Effective interest rate                                         |  |      | (37   | ) |      |  | (24   | )    |  |  |      |   |  |  |      |  
|Property                                                        |  |      | 25    |   |      |  | 25    |      |  |  | 25    |   |  |  | 25    |  
|                                                                |  |      |       |   |      |  |       |      |  |  |       |  
|Adjusted stockholders equity under U.S. GAAP                    |  |      | 4,822 |   |      |  | 4,641 |      |  |  | 4,476 |   |  |  | 4,218 |  
|                                                                |  |      |       |   |      |  |       |      |  |  |       |  

10



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RISK FACTORS




Risks concerning borrower credit quality and general economic
conditions are inherent in the Groups business.




Market risks associated with fluctuations in short- and
long-term interest rates and foreign exchange rates are inherent
in the Groups business.




Operational risks are inherent in the Groups
business.




The Groups businesses are subject to substantial legal,
regulatory and governmental requirements and oversight.




11



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Risks associated with strategic decisions regarding organic
growth, the competitive environment and potential acquisitions
are inherent in the Groups business.




The Groups insurance businesses are subject to inherent
risk regarding claims provisions.







Item 4  INFORMATION ON THE COMPANY





GENERAL














PRINCIPAL CAPITAL EXPENDITURES AND DIVESTITURES


Acquisitions




Guggenheim Advisors




12



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Paul Capital Investments LLC




Burdale Financial Holdings Limited





Divestitures




Davy Stockbrokers


  


Enterprise Finance Europe GmbH


 


Bristol & West Branch Network




EuroConex Technologies Limited





Chase de Vere Financial Solutions plc and Moneyextra
Mortgages Limited


 





RECENT DEVELOPMENTS


None





BUSINESS OVERVIEW




13



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| |   |                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Corporate Banking, which is engaged in international lending,
    with offices located in the UK, Paris, Frankfurt and the U.S.;                                                  
|
| |  | Global Markets, which is responsible for managing the
    Groups liquidity and funding requirements, has offices in
    the U.S. and the UK;                                     
|
| |  | Bank of Ireland Asset Management, which provides investment
    management services to institutions and pension funds in the UK,
    the U.S., Australia, Canada and Japan;       
|
| |  | Iridian Asset Management which provides investment management
    services to U.S. institutional clients primarily in the
    foundation, endowment and corporate sectors;        
|
| |  | Guggenheim Advisors which provides fund of hedge funds
    investment services to U.S. institutional and high net worth
    clients and;                                          
|
| |  | Paul Capital Investments (a joint venture with Paul Capital
    Partners) which provides private equity investment and advisory
    services to institutional investors worldwide.




STRATEGY






| |   |                                                                             
| | - | ----------------------------------------------------------------------------
| |  | maximising the return from our leading position in the Irish
    market;    
|
| |  | substantially reshaping and growing our business in the UK; and             
|
| |  | developing our portfolio of international, niche skill-based
    businesses.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We compete from a position of strength in our core market: we
    have a leading distribution platform; broad product offering; a
    relentless focus on customer service; and highly committed
    employees. Collectively, these translate into a sustainable
    competitive advantage and provide us with the capability to
    drive further growth in a competitive marketplace.                                                                                                                                              
|
| |  | In the UK, we have successfully restructured our businesses and
    now have a clear focus on three areas with significant growth
    potential: business banking (which includes Northern Ireland),
    mortgages and consumer financial services. In business banking,
    we have delivered very strong loan and resource growth, in
    mortgages we continue to build our specialist lending portfolios
    and in consumer financial services, we continue to build on our
    successful relationship with the UK Post Office.
|
| |  | In Capital Markets, we continue our corporate banking geographic
    expansion to the UK, the U.S. and Continental Europe. Our Global
    Markets business enjoyed strong growth in customer income, while
    our asset management business has made progress in its
    turnaround phase.                                                                                                                                                                                                                                          

14



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##### Table of Contents





   






| |   |                                                                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Consolidated and standardised similar activities into a single
    manufacturing function now employing in excess of 4,500 staff.
    The consolidated activities include credit operations, contact
    centres, payments, IT and banking services; and
|
| |  | Consolidated support functions into single Group-wide centres of
    excellence. The consolidated support functions activities
    includes human resource management, finance, legal services and
    corporate communications.                        









| |   |                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To drive further growth from our leading Irish franchise;                                                                                             
|
| |  | To significantly reposition the geographic earnings profile of
    the Group increasing the profit contribution from our
    international businesses.



| |   |                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------
| |  | Grow the United Kingdom as our second core market;                                                             
|
| |  | Drive significant international expansion in our niche
    skill-based businesses with a particular U.S. focus;



| |   |                                                 
| | - | ------------------------------------------------
| |  | Maximise efficiency from our new business model.






CORPORATE STRUCTURE




15



---



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Retail Republic of Ireland






 














16



---



##### Table of Contents



Bank of Ireland Life




Capital Markets












UK Financial Services












17



---



##### Table of Contents









Group Centre




MATERIAL SUBSIDIARIES




|                                               |  |                                                  |  |               |         |  |           |  |             | 
|---------------------------------------------- |  | ------------------------------------------------ |  | ------------- | ------- |  | --------- |  | ----------- | 
|                                               |  |                                                  |  | Country of    |         |  | Statutory | 
|Name                                           |  | Principal activity                               |  | incorporation |         |  | year end  | 
|                                               |  |                                                  |  |               |         |  |           | 
|Bank of Ireland Asset Management Limited       |  | Asset management                                 |  |               | Ireland |  |           |  | March 31    | 
|Bank of Ireland International Finance Limited* |  | International asset financing                    |  |               | Ireland |  |           |  | March 31    | 
|Bank of Ireland Life Holdings plc*             |  | Life assurance and pensions                      |  |               | Ireland |  |           |  | December 31 | 
|Bank of Ireland Mortgage Bank*                 |  | Mortgage lending and mortgage covered securities |  |               | Ireland |  |           |  | March 31    | 
|Bristol & West plc                             |  | Mortgages, savings and investments               |  |               | England |  |           |  | March 31    | 
|ICS Building Society*                          |  | Building society                                 |  |               | Ireland |  |           |  | December 31 | 
|IBI Corporate Finance Limited*                 |  | Corporate finance                                |  |               | Ireland |  |           |  | March 31    | 






|  |                                                                          
|- | -------------------------------------------------------------------------
|* | Direct subsidiary of The Governor and Company of the Bank of
    Ireland.






DESCRIPTION OF PROPERTY






18



---



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 








COMPETITION




Ireland and Northern Ireland










19



---



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Great Britain






Inquiries














| |   |                    
| | - | -------------------
| |  | Retail Banking; and
|
| |  | Business insurance.

http://ec.europa.eu/comm/competition/antitrust/
others/sector  inquiries/ financial 
services/.





SUPERVISION AND REGULATION


IRELAND




20



---



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21



---



##### Table of Contents





















22



---



##### Table of Contents










UNITED KINGDOM










23



---



##### Table of Contents















UNITED STATES








24



---



##### Table of Contents












THE IRISH ECONOMY


 







Item 4A     UNRESOLVED STAFF
COMMENTS







Item 5     OPERATING &
FINANCIAL REVIEW AND PROSPECTS


Overview




25



---



##### Table of Contents



  




  


  







| |   |                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 54 million
    relates to accounting for investment contracts in our Life
    business with income being recognised over the life of the
    investment contract;                                                         
|
| |  | 4 million
    relates to instruments that have characteristics of debt being
    classified as liabilities with the associated interest costs
    reflected in the income statement; and                                  
|
| |  | 32 million
    relates to the recognition of certain upfront origination fees
    over the expected life of the underlying asset, rather than
    being taken immediately to income (Effective Interest Rate
    (E.I.R)).




CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS






|    |                                        
|--- | ---------------------------------------
|(a) | Impairment losses on loans and advances



26



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##### Table of Contents





|    |                          
|--- | -------------------------
|(b) | Fair value of derivatives





|    |                    
|--- | -------------------
|(c) | Retirement Benefits





|    |                          
|--- | -------------------------
|(d) | Life Assurance Operations







|    |         
|--- | --------
|(e) | Taxation





|    |         
|--- | --------
|(f) | Goodwill

 




27



---



##### Table of Contents










LIQUIDITY AND CAPITAL RESOURCES














|                         |  |                 |        |         |           |  |         |            |  |  |           |  |  |       |        |  |  |  |        | 
|------------------------ |  | --------------- | ------ | ------- | --------- |  | ------- | ---------- |  |  | --------- |  |  | ----- | ------ |  |  |  | ------ | 
|                         |  |                 |        | Between |           |  | Between |            |  |  |           | 
|                         |  | Within          |        |         | one and   |  |         | two and    |  |  | Over five |  |  |      
|                         |  | one year        |        |         | two years |  |         | five years |  |  | years     |  |  | Total |       
|                         |  |                 |        |         |           |  |         |            |  |  |           |  |  |       |       
|                         |  | (in  millions) |       
|Longterm debt  dated    |  |                 |       |         |           |  |        |            |  |  | 775       |  |  |       | 3,539  |  |  |  | 4,314  | 
|Debt securities in issue |  |                 | 24,413 |         |           |  | 5,821   |            |  |  | 13,098    |  |  |       | 16,191 |  |  |  | 59,523 | 
|Operating leases         |  |                 | 62     |         |           |  | 60      |            |  |  | 157       |  |  |       | 405    |  |  |  | 684    | 
|Capital commitments      |  |                 | 3      |         |           |  |        |            |  |  |          |  |  |       |       |  |  |  | 3      | 



28



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##### Table of Contents



Capital Resources




|                                         |  |                 |        |      |           |  |        |           |  |  |       | 
|---------------------------------------- |  | --------------- | ------ | ---- | --------- |  | ------ | --------- |  |  | ----- | 
|                                         |  | At March 31,    |       
|                                         |  |                 |       
|                                         |  |                 |        | 2006 |           |  | 2005   |          
|                                         |  | 2007            |        |      | Restated* |  |        | Restated* | 
|                                         |  |                 |        |      |           |  |        |           | 
|                                         |  | (in  millions) |       
|Stockholders funds                      |  |                 |        |      |           |  |        |           |  |  |       | 
|Equity (including other equity reserves) |  |                 | 6,659  |      |           |  | 5,121  |           |  |  | 4,122 | 
|Non-cumulative preference stock          |  |                 | 65     |      |           |  | 65     |           |  |  | 65    | 
|Minority interests equity                |  |                 | 34     |      |           |  | 45     |           |  |  | 135   | 
|Undated loan capital                     |  |                 | 3,494  |      |           |  | 2,880  |           |  |  | 1,980 | 
|Dated loan capital                       |  |                 | 4,314  |      |           |  | 3,613  |           |  |  | 2,106 | 
|                                         |  |                 |        |      |           |  |        |           | 
|Total capital resources                  |  |                 | 14,566 |      |           |  | 11,724 |           |  |  | 8,408 | 
|                                         |  |                 |        |      |           |  |        |           | 






|  |                                                       
|- | ------------------------------------------------------
|* | Restated for change in accounting policy see page F-24

        


   


|                  |  |                      
|----------------- |  | ---------------------
|                  |  | Senior Debt          
|                  |  |                      
|Moodys           |  | Aa2                  
|Standard & Poors |  | A+ (positive outlook)
|Fitch             |  | AA-                  
|DBRS              |  | AA (mid)             



Capital Adequacy Requirements






29



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##### Table of Contents







Capital Adequacy Data




|                                          |  |                 |         |   |           |  |        |          |  |  |        |  
|----------------------------------------- |  | --------------- | ------- | - | --------- |  | ------ | -------- |  |  | ------ | -
|                                          |  | March 31,       |         |   | March 31, |  |        | April 1, | 
|                                          |  | 2007            |         |   | 2006      |  |        | 2005     | 
|                                          |  |                 |         |   |           |  |        |          | 
|                                          |  | (in  millions) |        
|Capital Base                              |  |                 |         |   |           |  |        |          |  |  |        |  
|Ordinary Share capital                    |  |                 | 656     |   |           |  | 656    |          |  |  | 656    |  
|Eligible reserves                         |  |                 | 5,539   |   |           |  | 3,941  |          |  |  | 3,073  |  
|Equity minority interests in subsidiaries |  |                 | 34      |   |           |  | 45     |          |  |  | 135    |  
|Preference stock and preference shares    |  |                 | 65      |   |           |  | 65     |          |  |  | 65     |  
|Bristol & West preference shares          |  |                 | 74      |   |           |  | 72     |          |  |  |       |  
|Perpetual preferred securities            |  |                 | 3,319   |   |           |  | 2,516  |          |  |  | 1,686  |  
|Regulatory adjustments (net)              |  |                 | (379    | ) |           |  | 39     |          |  |  | 405    |  
|                                          |  |                 |         |   |           |  |        |          | 
|Total Tier 1 capital                      |  |                 | 9,308   |   |           |  | 7,334  |          |  |  | 6,020  |  
|                                          |  |                 |         |   |           |  |        |          | 
|Revaluation reserves  property and other |  |                 | 647     |   |           |  | 690    |          |  |  | 454    |  
|IBNR provisions                           |  |                 | 134     |   |           |  | 127    |          |  |  | 137    |  
|Subordinated perpetual debt capital       |  |                 | 294     |   |           |  | 431    |          |  |  | 294    |  
|Subordinated dated debt capital           |  |                 | 3,995   |   |           |  | 3,405  |          |  |  | 2,106  |  
|Less supervisory deductions               |  |                 | (32     | ) |           |  |       |          |  |  |       |  
|                                          |  |                 |         |   |           |  |        |          | 
|Total Tier 2 capital                      |  |                 | 5,038   |   |           |  | 4,653  |          |  |  | 2,991  |  
|                                          |  |                 |         |   |           |  |        |          | 
|Tier 1 and Tier 2 capital                 |  |                 | 14,346  |   |           |  | 11,987 |          |  |  | 9,011  |  
|Supervisory deductions                    |  |                 | (1,019  | ) |           |  | (870   | )        |  |  | (768   | )
|                                          |  |                 |         |   |           |  |        |          | 
|Total Capital                             |  |                 | 13,327  |   |           |  | 11,117 |          |  |  | 8,243  |  
|                                          |  |                 |         |   |           |  |        |          | 
|Risk weighted assets                      |  |                 |         |   |           |  |        |          |  |  |        |  
|Banking book                              |  |                 | 109,968 |   |           |  | 93,398 |          |  |  | 73,251 |  
|Trading book                              |  |                 | 2,972   |   |           |  | 4,112  |          |  |  | 2,635  |  
|                                          |  |                 |         |   |           |  |        |          | 
|Total risk weighted assets                |  |                 | 112,940 |   |           |  | 97,510 |          |  |  | 75,886 |  
|                                          |  |                 |         |   |           |  |        |          | 
|Capital ratios                            |  |                 |         |   |           |  |        |          |  |  |        |  
|Tier 1                                    |  |                 | 8.2%    |   |           |  | 7.5%   |          |  |  | 7.9%   |  
|Equity Tier 1                             |  |                 | 5.2%    |   |           |  | 4.8%   |          |  |  | 5.5%   |  
|                                          |  |                 |         |   |           |  |        |          | 
|Total                                     |  |                 | 11.8%   |   |           |  | 11.4%  |          |  |  | 10.9%  |  
|                                          |  |                 |         |   |           |  |        |          | 





 


30



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##### Table of Contents



   





       






| |   |                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Align capital management to the Groups strategy.                                                                                                                       
|
| |  | Meet the requirements of equity and debt investors.                                                                                                                     
|
| |  | Achieve the optimal mix of capital to meet the Groups
    regulatory requirements and rating ambitions.                                                                
|
| |  | Manage capital in aggregate and at business level, ensuring that
    capital is only invested in businesses meeting or exceeding the
    Groups hurdle rates of return.



Off Balance Sheet Arrangements


|                                                     |  |                 |        |  |       |  |        |       |  |  |        | 
|---------------------------------------------------- |  | --------------- | ------ |  | ----- |  | ------ | ----- |  |  | ------ | 
|                                                     |  | March 31,       |       
|                                                     |  |                 |       
|                                                     |  | 2007            |        |  | 2006  |  |        | 2005  | 
|                                                     |  | Total           |        |  | Total |  |        | Total | 
|                                                     |  |                 |        |  |       |  |        |       | 
|Contingent Liabilities                               |  |                
|                                                     |  | (in  millions) |       
|Acceptances and endorsements                         |  |                 | 39     |  |       |  | 37     |       |  |  | 34     | 
|Guarantees and assets pledged as collateral security |  |                 |        |  |       |  |        |       |  |  |        | 
| Assets pledged                                     |  |                 |       |  |       |  |       |       |  |  |       | 
| Guarantees and irrevocable letters of credit       |  |                 | 1,719  |  |       |  | 1,354  |       |  |  | 1,268  | 
|Other contingent liabilities                         |  |                 | 745    |  |       |  | 675    |       |  |  | 643    | 
|                                                     |  |                 |        |  |       |  |        |       | 
|                                                     |  |                 | 2,503  |  |       |  | 2,066  |       |  |  | 1,945  | 
|Lending commitments                                  |  |                 | 36,013 |  |       |  | 30,937 |       |  |  | 29,296 | 
|                                                     |  |                 |        |  |       |  |        |       | 
|Total contingent liabilities and commitments         |  |                 | 38,516 |  |       |  | 33,003 |       |  |  | 31,241 | 
|                                                     |  |                 |        |  |       |  |        |       | 



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ANALYSIS OF RESULTS OF OPERATIONS


Basis of Preparation and Presentation


20-F




Results of Operations  Group Analysis


Review of Group Performance


Group Income Statement


|                                                               |  |                 |        |                |           |  |                |           |  |  |        |  
|-------------------------------------------------------------- |  | --------------- | ------ | -------------- | --------- |  | -------------- | --------- |  |  | ------ | -
|                                                               |  |                 |        | March 31, 2006 |           |  | March 31, 2005 |          
|                                                               |  | March 31, 2007  |        |                | Restated* |  |                | Restated* | 
|                                                               |  |                 |        |                |           |  |                |           | 
|                                                               |  | (in  millions) |       
|Net interest income                                            |  |                 | 2,757  |                |           |  | 2,307          |           |  |  | 1,931  |  
|Other income (net of insurance claims)                         |  |                 | 1,419  |                |           |  | 1,295          |           |  |  | 1,316  |  
|                                                               |  |                 |        |                |           |  |                |           | 
|Total operating income (net of insurance claims)               |  |                 | 4,176  |                |           |  | 3,602          |           |  |  | 3,247  |  
|Operating expenses                                             |  |                 | (2,159 | )              |           |  | (2,020         | )         |  |  | (2,051 | )
|Impairment losses                                              |  |                 | (103   | )              |           |  | (103           | )         |  |  | 21     |  
|Share of associated undertakings and joint ventures (post tax) |  |                 | 44     |                |           |  | 45             |           |  |  | 30     |  
|                                                               |  |                 |        |                |           |  |                |           | 
|Total profit before tax                                        |  |                 | 1,958  |                |           |  | 1,524          |           |  |  | 1,247  |  
|Taxation                                                       |  |                 | (306   | )              |           |  | (303           | )         |  |  | (256   | )
|Minority interest                                              |  |                 | (1     | )              |           |  | 9              |           |  |  | 1      |  
|Dividends on other equity interests                            |  |                 | (15    | )              |           |  | (13            | )         |  |  | (8     | )
|                                                               |  |                 |        |                |           |  |                |           | 
|Profit attributable to ordinary stockholders                   |  |                 | 1,636  |                |           |  | 1,217          |           |  |  | 984    |  
|                                                               |  |                 |        |                |           |  |                |           | 
|Basic EPS c per share                                          |  |                 | 172.2c |                |           |  | 128.5c         |           |  |  | 104.4c |  






|  |                                                       
|- | ------------------------------------------------------
|* | Restated for change in accounting policy see page F-26



Income




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Net Interest Income




|                    |  |                 |       |  |                |  |       |                |  |  |       | 
|------------------- |  | --------------- | ----- |  | -------------- |  | ----- | -------------- |  |  | ----- | 
|                    |  | March 31, 2007  |       |  | March 31, 2006 |  |       | March 31, 2005 | 
|                    |  |                 |       |  |                |  |       |                | 
|                    |  | (in  millions) |      
|Net interest income |  |                 | 2,757 |  |                |  | 2,307 |                |  |  | 1,931 | 
|                    |  |                 |       |  |                |  |       |                | 

Financial Year ended March 31, 2007 compared to
financial year ended March 31, 2006


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financial year ended March 31, 2005


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##### Table of Contents





Group Net Interest Margin




|                                                |  |                |      |  |                |  |      |                |  |  |      | 
|----------------------------------------------- |  | -------------- | ---- |  | -------------- |  | ---- | -------------- |  |  | ---- | 
|                                                |  | March 31, 2007 |      |  | March 31, 2006 |  |      | March 31, 2005 | 
|                                                |  |                |      |  |                |  |      |                | 
|Average interest earning assets
    ( billion) |  |                | 156  |  |                |  | 129  |                |  |  | 97   | 
|                                                |  |                |      |  |                |  |      |                | 
|Group net interest margin (%)                   |  |                | 1.77 |  |                |  | 1.79 |                |  |  | 2.00 | 
|                                                |  |                |      |  |                |  |      |                | 

Financial Year ended March 31, 2007 compared to
financial year ended March 31, 2006


 




Financial Year ended March 31, 2006 compared to
financial year ended March 31, 2005






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Balance sheet structure where there was an increase in wholesale
    funding as loan growth continued to outpace deposit growth.
    Wholesale funding has increased from 35% to 46% of total funding
    over the year to March 31, 2006, with 6% of this increase
    due to the sale of Bristol & West branch network and its
    related deposit book.                                                                                                                                                                               
|
| |  | The lower returns being earned on the investment of credit
    balances (customer funds held in non interest-bearing current
    accounts) in the current low interest rate environment. The Bank
    of Ireland policy is to re-invest credit balances on average
    over a four year investment horizon. As interest rates remain
    low we are re-investing funds that are maturing from a higher
    interest rate environment at lower rates. The low interest rate
    environment also has an impact on other liability margins.
|
| |  | Product mix where the impact of volumes in lower margin
    products, including mortgages and corporate banking loans,
    growing faster than higher margin products.                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Competitive pressure impacting lending and deposit pricing in
    Ireland.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | The transition to IFRS had no impact on the change in net
    interest margin percentage due to a number of offsetting factors
    such as, recognizing origination fees on an effective yield
    basis over the average life of the asset, the reclassification
    of income between net interest income and other income and the
    reclassification of certain assets on transition to IFRS.                                                                                                                                       



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|                                 |                     |                        |      |      |      |  |      |      |  |  |      |      | 
|-------------------------------- | ------------------- | ---------------------- | ---- | ---- | ---- |  | ---- | ---- |  |  | ---- | ---- | 
|                                 |                     | For the Financial Year |     
|                                 |                     | Ended March 31,        |     
|                                 |                     |                        |     
|                                 |                     | 2007                   |      |      | 2006 |  |      | 2005 | 
|                                 |                     |                        |      |      |      |  |      |      | 
|                                 |                     | (percentages)          |     
|Ireland                          |                     |                        |      |      |      |  |      |      |  |  |      |     
|European interbank offered rate: |                     |                        |      |      |      |  |      |      |  |  |      |     
|                                 | One month Euribor   |                        |      | 3.86 |      |  |      | 2.65 |  |  |      | 2.13 | 
|                                 | Three month Euribor |                        |      | 3.92 |      |  |      | 2.81 |  |  |      | 2.18 | 
|United Kingdom                   |                     |                        |      |      |      |  |      |      |  |  |      |     
|London interbank offered rate:   |                     |                        |      |      |      |  |      |      |  |  |      |     
|                                 | One month           |                        |      | 5.47 |      |  |      | 4.59 |  |  |      | 4.87 | 
|                                 | Three month         |                        |      | 5.62 |      |  |      | 4.61 |  |  |      | 4.98 | 
|United States                    |                     |                        |      |      |      |  |      |      |  |  |      |     
|Prime Rate                       |                     |                        | 8.25 |      |      |  | 7.75 |      |  |  | 5.75 |     

Other Income




|             |  |                 |       |                |           |  |                |           |  |  |       | 
|------------ |  | --------------- | ----- | -------------- | --------- |  | -------------- | --------- |  |  | ----- | 
|             |  |                 |       | March 31, 2006 |           |  | March 31, 2005 |          
|             |  | March 31, 2007  |       |                | Restated* |  |                | Restated* | 
|             |  |                 |       |                |           |  |                |           | 
|             |  | (in  millions) |      
|Other Income |  |                 | 1,419 |                |           |  | 1,295          |           |  |  | 1,316 | 
|             |  |                 |       |                |           |  |                |           | 






|  |                                                        
|- | -------------------------------------------------------
|* | Restated for change in accounting policy see page F-26.

Financial Year ended March 31, 2007 compared to
financial year ended March 31, 2006


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##### Table of Contents






Financial Year ended March 31, 2006 compared to
financial year ended March 31, 2005


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


Operating Expenses


Total Operating Expenses




|                   |  |                 |       |  |                |  |       |                |  |  |       | 
|------------------ |  | --------------- | ----- |  | -------------- |  | ----- | -------------- |  |  | ----- | 
|                   |  | March 31, 2007  |       |  | March 31, 2006 |  |       | March 31, 2005 | 
|                   |  |                 |       |  |                |  |       |                | 
|                   |  | (in  millions) |      
|Operating expenses |  |                 | 2,159 |  |                |  | 2,020 |                |  |  | 2,051 | 

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##### Table of Contents



Financial Year ended March 31, 2007 compared to
financial year ended March 31, 2006


  


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 






| |   |                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Investment costs relating to the development of our Global
    Markets and Corporate Banking activities in Europe and the
    United States together with the costs associated with the
    continuing development of POFS added two percentage points.
|
| |  | Compliance costs associated with the Sarbanes-Oxley and
    Basel II programmes added two percentage points.                                                                                                                                           
|
| |  | Business as usual cost growth of eight percent where three
    percent was due to volume growth and performance related
    compensation. The remaining five percent was due to inflation.                                                             
|
| |  | Cost savings arising from the continued successful
    implementation of the Strategic Transformation Programme reduced
    cost growth by three percentage points.                                                                                    

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financial year ended March 31, 2005


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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Increased compliance costs associated with the introduction of
    the Basel II and Sarbanes-Oxley (SOx) initiatives. The
    increase in expenditure relating to the introduction of these
    programmes is one percentage point of the increase in total
    Operating Expenses in the current year. Increased expenditure
    relating to these initiatives is expected to continue into next
    year.                         
|
| |  | Increased pension costs arising from IAS 19 added two
    percentage points to total Operating Expenses as a result of the
    lower discount rate applied to the value of pension liabilities.
    Under IFRS, the accounting deficit relating to the liabilities
    of the pension fund are carried on the balance sheet, and the
    costs associated with this deficit are charged through the
    income statement and equity.
|
| |  | The Group continues to invest in growth opportunities both in
    our domestic markets and internationally. In Business Banking UK
    we expanded our Relationship Management Team. Capital Markets
    continued to expand the geographic scope of its operations with
    investment in the UK, Paris, Frankfurt and the U.S.. These
    investment costs contributed two percentage points to cost
    growth for the year.     
|
| |  | The Strategic Transformation Programme (STP) has
    delivered cost savings at Group level of
    35 million,
    or two percentage points of a decrease, against our target for
    the year of
    30 million
    for the year to March 31, 2006.                                                                                                                                                                             
|
| |  | Other items including salary inflation, performance-related pay
    and volume-related costs contributed five percent of the
    increase.                                                                                                                                                                                                                                                                                          











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##### Table of Contents



Impairment of Loans and Advances


Asset Quality


|                                                 |  |                |     |  |                |  |     |                |  |  |     |  
|------------------------------------------------ |  | -------------- | --- |  | -------------- |  | --- | -------------- |  |  | --- | -
|                                                 |  | March 31, 2007 |     |  | March 31, 2006 |  |     | March 31, 2005 | 
|                                                 |  |                |     |  |                |  |     |                | 
|Total average customer advances
    (bn)        |  |                | 116 |  |                |  | 93  |                |  |  | 74  |  
|Impaired loans
    (m)                          |  |                | 968 |  |                |  | 796 |                |  |  | 710 |  
|Impairment provision
    (m)                    |  |                | 428 |  |                |  | 359 |                |  |  | 319 |  
|Coverage ratio                                   |  |                | 44% |  |                |  | 45% |                |  |  | 45% |  
|Impairment losses on loans and advances
    (m) |  |                | 103 |  |                |  | 103 |                |  |  | (21 | )
|Impairment losses on loans and advances (bps)    |  |                | 9   |  |                |  | 11  |                |  |  | (3  | )



Financial Year ended March 31, 2007 compared to
financial year ended March 31, 2006


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Financial Year ended March 31, 2006 compared to
financial year ended March 31, 2005


  


 


Share of Associated Undertakings and Joint Ventures





Balance Sheet  Capital and Funding


   


|                           |  |                                     |    |  |          |  |    |           |  |  |    | 
|-------------------------- |  | ----------------------------------- | -- |  | -------- |  | -- | --------- |  |  | -- | 
|                           |  | % Growth March 2007 over March 2006 |   
|                           |  |                                     |   
|                           |  | Risk Weighted                       |    |  | Customer |  |    |          
|                           |  | Assets                              |    |  | Lending  |  |    | Resources | 
|                           |  |                                     |    |  |          |  |    |           | 
|Retail Republic of Ireland |  |                                     | 26 |  |          |  | 25 |           |  |  | 11 | 
|Capital Markets            |  |                                     | 21 |  |          |  | 17 |           |  |  | 9  | 
|UK Financial Services      |  |                                     | 21 |  |          |  | 18 |           |  |  | 47 | 
|                           |  |                                     |    |  |          |  |    |           | 
|Group                      |  |                                     | 21 |  |          |  | 21 |           |  |  | 16 | 
|                           |  |                                     |    |  |          |  |    |           | 

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##### Table of Contents



Capital






 


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Funding


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##### Table of Contents



Taxes




|                                                                                                              |  |                                     |       |      |           |  |       |           |  |  |       |  
|------------------------------------------------------------------------------------------------------------- |  | ----------------------------------- | ----- | ---- | --------- |  | ----- | --------- |  |  | ----- | -
|                                                                                                              |  | For the Financial year ended        |      
|                                                                                                              |  | March 31,                           |      
|                                                                                                              |  |                                     |      
|                                                                                                              |  |                                     |       | 2006 |           |  | 2005  |          
|                                                                                                              |  | 2007                                |       |      | Restated* |  |       | Restated* | 
|                                                                                                              |  |                                     |       |      |           |  |       |           | 
|                                                                                                              |  | (in  millions, except percentages) |      
|Average statutory corporation tax rate                                                                        |  |                                     | 12.5% |      |           |  | 12.5% |           |  |  | 12.5% |  
|                                                                                                              |  |                                     |       |      |           |  |       |           | 
|Profit on ordinary activities before tax multiplied by the
    standard rate of Corporate tax in Ireland      |  |                                     | 245   |      |           |  | 191   |           |  |  | 157   |  
|Effects of:                                                                                                   |  |                                     |       |      |           |  |       |           |  |  |       |  
|Levy on certain financial institutions                                                                        |  |                                     |      |      |           |  | 20    |           |  |  | 26    |  
|Foreign earnings subject to different rates of tax                                                            |  |                                     | 49    |      |           |  | 78    |           |  |  | 49    |  
|Life Assurance  different basis of taxation                                                                  |  |                                     | 16    |      |           |  | 61    |           |  |  | 31    |  
|Derecognition on consolidation of investment return on treasury
    shares held by BOI Life for policyholders |  |                                     | 8     |      |           |  | 9     |           |  |  | 8     |  
|Tax exempted profits and income at a reduced Irish tax rate                                                   |  |                                     | (26   | )    |           |  | (71   | )         |  |  | (18   | )
|Non-deductible expenses                                                                                       |  |                                     | 11    |      |           |  | 12    |           |  |  | 1     |  
|Prior year adjustments                                                                                        |  |                                     | 6     |      |           |  | 5     |           |  |  | 5     |  
|Share of associated undertakings and joint ventures                                                           |  |                                     | (5    | )    |           |  | (6    | )         |  |  | (5    | )
|Other adjustments for income tax purposes                                                                     |  |                                     | 2     |      |           |  | 4     |           |  |  | 2     |  
|                                                                                                              |  |                                     |       |      |           |  |       |           | 
|Income tax charge                                                                                             |  |                                     | 306   |      |           |  | 303   |           |  |  | 256   |  
|                                                                                                              |  |                                     |       |      |           |  |       |           | 
|Effective tax rates                                                                                           |  |                                     | 15.6% |      |           |  | 19.9% |           |  |  | 20.5% |  






|  |                                                           
|- | ----------------------------------------------------------
|* | Restated for change in accounting policy see
    page F-26

Financial year ended March 31, 2007 compared to
financial year ended March 31, 2006




Financial year ended March 31, 2006 compared to
financial year ended March 31, 2005


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##### Table of Contents



Divisional Performance: Profit Before Tax


|                           |  |                 |       |           |                |  |           |                |  |  |       |  
|-------------------------- |  | --------------- | ----- | --------- | -------------- |  | --------- | -------------- |  |  | ----- | -
|                           |  | March 31, 2007  |       |           | March 31, 2006 |  |           | March 31, 2005 | 
|                           |  |                 |       |           |                |  |           |                | 
|                           |  |                 |       | Restated* |                |  | Restated* |               
|                           |  | (in  millions) |      
|Retail Republic of Ireland |  |                 | 785   |           |                |  | 550       |                |  |  | 470   |  
|BOI Life                   |  |                 | 167   |           |                |  | 203       |                |  |  | 161   |  
|Capital Markets            |  |                 | 572   |           |                |  | 471       |                |  |  | 459   |  
|UK Financial Services      |  |                 | 447   |           |                |  | 525       |                |  |  | 334   |  
|Group Centre               |  |                 | (13   | )         |                |  | (225      | )              |  |  | (177  | )
|                           |  |                 |       |           |                |  |           |                | 
|Profit before tax          |  |                 | 1,958 |           |                |  | 1,524     |                |  |  | 1,247 |  
|                           |  |                 |       |           |                |  |           |                | 






|  |                                                           
|- | ----------------------------------------------------------
|* | Restated for change in accounting policy see
    Page F-26

Retail Republic of Ireland




Retail Republic of Ireland: Income Statement


|                                        |  |                 |       |   |                |  |       |                |  |  |       |  
|--------------------------------------- |  | --------------- | ----- | - | -------------- |  | ----- | -------------- |  |  | ----- | -
|                                        |  | March 31, 2007  |       |   | March 31, 2006 |  |       | March 31, 2005 | 
|                                        |  |                 |       |   |                |  |       |                | 
|                                        |  | (in  millions) |      
|Net interest income                     |  |                 | 1,311 |   |                |  | 1,119 |                |  |  | 1,019 |  
|Other income*                           |  |                 | 464   |   |                |  | 356   |                |  |  | 316   |  
|                                        |  |                 |       |   |                |  |       |                | 
|Total operating income                  |  |                 | 1,775 |   |                |  | 1,475 |                |  |  | 1,335 |  
|Total operating expenses                |  |                 | (927  | ) |                |  | (871  | )              |  |  | (814  | )
|Impairment losses on loans and advances |  |                 | (63   | ) |                |  | (54   | )              |  |  | (51   | )
|                                        |  |                 |       |   |                |  |       |                | 
|Profit before tax                       |  |                 | 785   |   |                |  | 550   |                |  |  | 470   |  
|                                        |  |                 |       |   |                |  |       |                | 






|  |                                                          
|- | ---------------------------------------------------------
|* | Includes share of associated undertakings/joint ventures.

Financial year ended March 31, 2007 compared to
financial year ended March 31, 2006









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 


Financial year ended March 31, 2006 compared to
financial year ended March 31, 2005


   








| |   |                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------
| |  | clear strategic focus on service excellence delivered through
    our Changing for You Customer Programme
|
| |  | highly effective and responsible sales model                                                               
|
| |  | leading multi-channel distribution capability                                                              







| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | the effect of the low interest rate environment on liability
    margins                         
|
| |  | the higher rate of loan growth compared with resources leading
    to higher wholesale borrowings
|
| |  | changing product mix                                                                             
|
| |  | competition.                                                                                     



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Bank of Ireland Life


|                  |  |                 |     |  |                |  |     |                |  |  |     | 
|----------------- |  | --------------- | --- |  | -------------- |  | --- | -------------- |  |  | --- | 
|                  |  | March 31, 2007  |     |  | March 31, 2006 |  |     | March 31, 2005 | 
|                  |  |                 |     |  |                |  |     |                | 
|                  |  | (in  millions) |    
|Profit before tax |  |                 | 167 |  |                |  | 203 |                |  |  | 161 | 
|                  |  |                 |     |  |                |  |     |                | 

Financial year ended March 31, 2007 compared to
financial year ended March 31, 2006


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financial year ended March 31, 2005


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##### Table of Contents



Capital Markets




Capital Markets: Income Statement


|                                        |  |                 |       |   |                |  |      |                |  |  |      |  
|--------------------------------------- |  | --------------- | ----- | - | -------------- |  | ---- | -------------- |  |  | ---- | -
|                                        |  | March 31, 2007  |       |   | March 31, 2006 |  |      | March 31, 2005 | 
|                                        |  |                 |       |   |                |  |      |                | 
|                                        |  | (in  millions) |      
|Net interest income                     |  |                 | 671   |   |                |  | 461  |                |  |  | 306  |  
|Other income*                           |  |                 | 378   |   |                |  | 458  |                |  |  | 562  |  
|                                        |  |                 |       |   |                |  |      |                | 
|Total operating income                  |  |                 | 1,049 |   |                |  | 919  |                |  |  | 868  |  
|Total operating expenses                |  |                 | (456  | ) |                |  | (425 | )              |  |  | (371 | )
|Impairment losses on loans and advances |  |                 | (21   | ) |                |  | (23  | )              |  |  | (38  | )
|                                        |  |                 |       |   |                |  |      |                | 
|Profit before tax                       |  |                 | 572   |   |                |  | 471  |                |  |  | 459  |  
|                                        |  |                 |       |   |                |  |      |                | 






|  |                                                          
|- | ---------------------------------------------------------
|* | Includes share of associated undertakings/joint ventures.

Financial year ended March 31, 2007 compared to
financial year ended March 31, 2006




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financial year ended March 31, 2005


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##### Table of Contents







UK Financial Services (UKFS)


(£ Sterling)




UK Financial Services: Income Statement


|                                        |  |                    |      |   |                |  |      |                |  |  |      |  
|--------------------------------------- |  | ------------------ | ---- | - | -------------- |  | ---- | -------------- |  |  | ---- | -
|                                        |  | March 31, 2007     |      |   | March 31, 2006 |  |      | March 31, 2005 | 
|                                        |  |                    |      |   |                |  |      |                | 
|                                        |  | (in Stg£ millions) |     
|Net interest income                     |  |                    | 531  |   |                |  | 493  |                |  |  | 421  |  
|Other income*                           |  |                    | 122  |   |                |  | 211  |                |  |  | 176  |  
|                                        |  |                    |      |   |                |  |      |                | 
|Total operating income                  |  |                    | 653  |   |                |  | 704  |                |  |  | 597  |  
|Total operating expenses                |  |                    | (337 | ) |                |  | (329 | )              |  |  | (376 | )
|Impairment losses on loans and advances |  |                    | (13  | ) |                |  | (17  | )              |  |  | 7    |  
|                                        |  |                    |      |   |                |  |      |                | 
|Profit before tax                       |  |                    | 303  |   |                |  | 358  |                |  |  | 228  |  
|                                        |  |                    |      |   |                |  |      |                | 






|  |                                                          
|- | ---------------------------------------------------------
|* | Includes share of associated undertakings/joint ventures.

The exchange rate applied by the Group in converting the
above Sterling amounts to Euro for the purposes of preparing the
consolidated financial statements was 0.6783 to March 31,
2007, 0.6826 to March 31, 2006 and 0.6834 to March 31,
2005 .


Financial year ended March 31, 2007 compared to
financial year ended March 31, 2006










48



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Financial year ended March 31, 2006 compared to
financial year ended March 31, 2005






| |   |                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Post Office Financial Services (POFS) was transferred to
    our UKFS Division.                                                                                                                           
|
| |  | First Rate Travel Services (FRES), our personal foreign exchange
    travel service joint venture with the UK Post Office, was
    transferred from our Capital Markets Division to our UKFS
    Division.

49



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50



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##### Table of Contents







2-in


Group Centre


Financial year ended March 31, 2007 compared to
financial year ended March 31, 2006


 


       


   


Financial year ended March 31, 2006 compared to
financial year ended March 31, 2005


  


       


  


51



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##### Table of Contents






AVERAGE BALANCE SHEET AND INTEREST RATES




|                                                      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|----------------------------------------------------- |  | --------------- | ------- | - | -------- |  | ------- | --------------- |  |  | ------- | ------- |  | --------------- | ------- | - | ---- |  | ----- | ------- |  |  | -------- |  |  | ---- | ------- | - |  |  | ----- |  |  |  | --- | 
|                                                      |  | 2007            |         |   | 2006     |  |         | 2005            | 
|                                                      |  |                 |         |   |          |  |         |                 | 
|                                                      |  | Average         |         |   |          |  | Average |                 |  |  |         | Average |  |                 |        
|                                                      |  | Balance         |         |   | Interest |  |         | Rate            |  |  | Balance |         |  | Interest        |         |   | Rate |  |       | Balance |  |  | Interest |  |  | Rate |        
|                                                      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |        
|                                                      |  |                 |         |   |          |  |         |                 |  |  |         | %       | 
|                                                      |  | (in  millions) |         |   | %        |  |         | (in  millions) |  |  | %       |         |  | (in  millions) |         |   |     
|ASSETS                                                |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Loans to banks                                        |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 7,625   |   |          |  | 259     |                 |  |  | 3.4     |         |  |                 | 9,268   |   |      |  | 226   |         |  |  | 2.4      |  |  |      | 6,834   |   |  |  | 221   |  |  |  | 3.2 | 
|Foreign offices                                       |  |                 | 726     |   |          |  | 33      |                 |  |  | 4.5     |         |  |                 | 238     |   |      |  | 12    |         |  |  | 5.0      |  |  |      | 987     |   |  |  | 57    |  |  |  | 5.8 | 
|Loans to customers(1)                                 |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 62,584  |   |          |  | 3,354   |                 |  |  | 5.4     |         |  |                 | 49,969  |   |      |  | 2,309 |         |  |  | 4.6      |  |  |      | 38,671  |   |  |  | 1,789 |  |  |  | 4.6 | 
|Foreign offices                                       |  |                 | 53,133  |   |          |  | 3,140   |                 |  |  | 5.9     |         |  |                 | 43,106  |   |      |  | 2,464 |         |  |  | 5.7      |  |  |      | 35,634  |   |  |  | 2,047 |  |  |  | 5.7 | 
|Central government and other eligible bills           |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 |        |   |          |  |        |                 |  |  |        |         |  |                 | 126     |   |      |  | 1     |         |  |  | 0.8      |  |  |      | 7       |   |  |  |      |  |  |  |    | 
|Foreign offices                                       |  |                 |        |   |          |  |        |                 |  |  |        |         |  |                 |        |   |      |  |      |         |  |  |         |  |  |      |        |   |  |  |      |  |  |  |    | 
|Debt Securities                                       |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 30,368  |   |          |  | 1,283   |                 |  |  | 4.2     |         |  |                 | 24,380  |   |      |  | 869   |         |  |  | 3.6      |  |  |      | 13,307  |   |  |  | 361   |  |  |  | 2.7 | 
|Foreign offices                                       |  |                 | 1,414   |   |          |  | 59      |                 |  |  | 4.2     |         |  |                 | 1,518   |   |      |  | 64    |         |  |  | 4.2      |  |  |      | 1,125   |   |  |  | 57    |  |  |  | 5.1 | 
|Other financial assets at fair value through P/L      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 29      |   |          |  |        |                 |  |  |        |         |  |                 | 152     |   |      |  | 1     |         |  |  | 0.7      |  |  |      |        |   |  |  |      |  |  |  |    | 
|Foreign offices                                       |  |                 | 276     |   |          |  | 13      |                 |  |  | 4.7     |         |  |                 | 232     |   |      |  | 10    |         |  |  | 4.3      |  |  |      |        |   |  |  |      |  |  |  |    | 
|                                                      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |        
|Total interest-earning assets                         |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |         |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 100,606 |   |          |  | 4,896   |                 |  |  | 4.9     |         |  |                 | 83,895  |   |      |  | 3,406 |         |  |  | 4.1      |  |  |      | 58,819  |   |  |  | 2,371 |  |  |  | 4.0 | 
|Foreign offices                                       |  |                 | 55,549  |   |          |  | 3,245   |                 |  |  | 5.8     |         |  |                 | 45,094  |   |      |  | 2,550 |         |  |  | 5.7      |  |  |      | 37,746  |   |  |  | 2,161 |  |  |  | 5.7 | 
|Net swap interest                                     |  |                 |        |   |          |  | 7       |                 |  |  |        |         |  |                 |        |   |      |  | 34    |         |  |  |         |  |  |      |        |   |  |  |      |  |  |  |    | 
|                                                      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |        
|                                                      |  |                 | 156,155 |   |          |  | 8,148   |                 |  |  | 5.2     |         |  |                 | 128,989 |   |      |  | 5,990 |         |  |  | 4.6      |  |  |      | 96,565  |   |  |  | 4,532 |  |  |  | 4.7 | 
|Allowance for impairment losses                       |  |                 | (391    | ) |          |  |        |                 |  |  |        |         |  |                 | (341    | ) |      |  |      |         |  |  |          |  |  |      | (443    | ) |  |  |      |  |  |  |     | 
|Non interest earning assets(2)                        |  |                 | 22,146  |   |          |  |         |                 |  |  |         |         |  |                 | 18,615  |   |      |  |      |         |  |  |          |  |  |      | 21,181  |   |  |  |      |  |  |  |     | 
|                                                      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |        
|Total Assets                                          |  |                 | 177,910 |   |          |  | 8,148   |                 |  |  | 4.6     |         |  |                 | 147,263 |   |      |  | 5,990 |         |  |  | 4.1      |  |  |      | 117,303 |   |  |  | 4,532 |  |  |  | 3.9 | 
|                                                      |  |                 |         |   |          |  |         |                 |  |  |         |         |  |                 |         |   |      |  |       |         |  |  |          |  |  |      |        
|Percentage of assets applicable to foreign activities |  |                 | 32.5%   |   |          |  |         |                 |  |  |         |         |  |                 | 31.8%   |   |      |  |       |         |  |  |          |  |  |      | 34.2%   |   |  |  |       |  |  |  |     | 

52



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AVERAGE BALANCE SHEET AND INTEREST RATES (continued)


|                                                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|---------------------------------------------------------- |  | --------------- | ------- |  | -------- |  | ------- | --------------- |  |  | ------- | ------- |  | --------------- | ------- |  | ---- |  | ----- | ------- |  |  | -------- |  |  | ---- | ------- |  |  |  | ----- |  |  |  | --- | 
|                                                           |  | 2007            |         |  | 2006     |  |         | 2005            | 
|                                                           |  |                 |         |  |          |  |         |                 | 
|                                                           |  | Average         |         |  |          |  | Average |                 |  |  |         | Average |  |                 |        
|                                                           |  | Balance         |         |  | Interest |  |         | Rate            |  |  | Balance |         |  | Interest        |         |  | Rate |  |       | Balance |  |  | Interest |  |  | Rate |        
|                                                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |        
|                                                           |  |                 |         |  |          |  |         |                 |  |  |         | %       | 
|                                                           |  | (in  millions) |         |  | %        |  |         | (in  millions) |  |  | %       |         |  | (in  millions) |         |  |     
|LIABILITIES AND STOCKHOLDERS EQUITY                       |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Deposits by banks                                          |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Domestic offices                                           |  |                 | 12,526  |  |          |  | 294     |                 |  |  | 2.2     |         |  |                 | 15,840  |  |      |  | 364   |         |  |  | 2.3      |  |  |      | 11,147  |  |  |  | 225   |  |  |  | 2.0 | 
|Foreign offices                                            |  |                 | 15,318  |  |          |  | 772     |                 |  |  | 5.0     |         |  |                 | 10,878  |  |      |  | 534   |         |  |  | 4.9      |  |  |      | 8,980   |  |  |  | 358   |  |  |  | 4.0 | 
|Customer accounts                                          |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Domestic offices                                           |  |                 | 31,389  |  |          |  | 880     |                 |  |  | 2.8     |         |  |                 | 28,178  |  |      |  | 560   |         |  |  | 2.0      |  |  |      | 24,136  |  |  |  | 413   |  |  |  | 1.7 | 
|Foreign offices                                            |  |                 | 25,331  |  |          |  | 1,129   |                 |  |  | 4.5     |         |  |                 | 20,579  |  |      |  | 839   |         |  |  | 4.1      |  |  |      | 21,929  |  |  |  | 896   |  |  |  | 4.1 | 
|Debt securities in issue                                   |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Domestic offices                                           |  |                 | 36,214  |  |          |  | 1,609   |                 |  |  | 4.4     |         |  |                 | 23,800  |  |      |  | 827   |         |  |  | 3.5      |  |  |      | 13,977  |  |  |  | 316   |  |  |  | 2.3 | 
|Foreign offices                                            |  |                 | 6,914   |  |          |  | 326     |                 |  |  | 4.7     |         |  |                 | 6,393   |  |      |  | 301   |         |  |  | 4.7      |  |  |      | 3,769   |  |  |  | 168   |  |  |  | 4.5 | 
|Subordinated liabilities                                   |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Domestic offices                                           |  |                 | 3,722   |  |          |  | 167     |                 |  |  | 4.5     |         |  |                 | 2,955   |  |      |  | 120   |         |  |  | 4.1      |  |  |      | 2,248   |  |  |  | 119   |  |  |  | 5.3 | 
|Foreign offices                                            |  |                 | 3,357   |  |          |  | 214     |                 |  |  | 6.4     |         |  |                 | 2,284   |  |      |  | 137   |         |  |  | 6.0      |  |  |      | 1,442   |  |  |  | 106   |  |  |  | 7.4 | 
|                                                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |        
|Total interest bearing liabilities                         |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Domestic offices                                           |  |                 | 83,851  |  |          |  | 2,950   |                 |  |  | 3.5     |         |  |                 | 70,773  |  |      |  | 1,871 |         |  |  | 2.6      |  |  |      | 51,508  |  |  |  | 1,073 |  |  |  | 2.1 | 
|Foreign offices                                            |  |                 | 50,920  |  |          |  | 2,441   |                 |  |  | 4.8     |         |  |                 | 40,134  |  |      |  | 1,811 |         |  |  | 4.5      |  |  |      | 36,120  |  |  |  | 1,528 |  |  |  | 4.2 | 
|                                                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |        
|                                                           |  |                 | 134,771 |  |          |  | 5,391   |                 |  |  | 4.0     |         |  |                 | 110,907 |  |      |  | 3,682 |         |  |  | 3.3      |  |  |      | 87,628  |  |  |  | 2,601 |  |  |  | 3.0 | 
|Non interest bearing liabilities                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |         |  |  |  |       |  |  |  |     | 
|Current accounts                                           |  |                 | 11,958  |  |          |  |        |                 |  |  |        |         |  |                 | 10,578  |  |      |  |      |         |  |  |          |  |  |      | 8,886   |  |  |  |      |  |  |  |     | 
|Other non interest bearing liabilities(2)                  |  |                 | 25,069  |  |          |  |        |                 |  |  |        |         |  |                 | 20,987  |  |      |  |      |         |  |  |          |  |  |      | 16,340  |  |  |  |      |  |  |  |     | 
|Stockholders equity                                       |  |                 | 6,112   |  |          |  |        |                 |  |  |        |         |  |                 | 4,791   |  |      |  |      |         |  |  |          |  |  |      | 4,449   |  |  |  |      |  |  |  |     | 
|                                                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |        
|Total liabilities and stockholders equity                 |  |                 | 177,910 |  |          |  | 5,391   |                 |  |  | 3.0     |         |  |                 | 147,263 |  |      |  | 3,682 |         |  |  | 2.5      |  |  |      | 117,303 |  |  |  | 2,601 |  |  |  | 2.2 | 
|                                                           |  |                 |         |  |          |  |         |                 |  |  |         |         |  |                 |         |  |      |  |       |         |  |  |          |  |  |      |        
|Percentage of liabilities applicable to foreign activities |  |                 | 32.5%   |  |          |  |         |                 |  |  |         |         |  |                 | 31.8%   |  |      |  |       |         |  |  |          |  |  |      | 34.2%   |  |  |  |       |  |  |  |     | 






|    |                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Loans to customers include non-accrual loans and loans
    classified as problem loans.                                                                                                  
|   
|(2) | The balance sheets of the life assurance companies have been
    consolidated and are reflected under Non interest earning
    assets and Other non interest bearing
    liabilities.

53



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Change in Net Interest Income  Volume and Rate
Analysis




|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|------------------------------------------------- |  | ------------------------------------ | ----- | - | -------------- |  | --- | ------ |  |  | ------- | - |  | ------- | ----- | - | ------ |  | ---- | - |  |  | ----- | -
|                                                  |  | 2007 over 2006                       |       |   | 2006 over 2005 | 
|                                                  |  |                                      |       |   |                | 
|                                                  |  | Increase/(Decrease) due to change in |      
|                                                  |  |                                      |      
|                                                  |  | Average                              |       |   | Average        |  |     | Net    |  |  | Average |   |  | Average |       |   | Net    | 
|                                                  |  | Volume                               |       |   | Rate           |  |     | Change |  |  | Volume  |   |  | Rate    |       |   | Change | 
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 
|                                                  |  | (in  millions)                      |      
|INTEREST EARNING ASSETS                           |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Loans to Banks                                    |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | (45   | ) |                |  | 78  |        |  |  | 33      |   |  |         | 67    |   |        |  | (62  | ) |  |  | 5     |  
|Foreign offices                                   |  |                                      | 22    |   |                |  | (1  | )      |  |  | 21      |   |  |         | (39   | ) |        |  | (6   | ) |  |  | (45   | )
|Loans to customers                                |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | 640   |   |                |  | 405 |        |  |  | 1,045   |   |  |         | 522   |   |        |  | (2   | ) |  |  | 520   |  
|Foreign offices                                   |  |                                      | 590   |   |                |  | 86  |        |  |  | 676     |   |  |         | 427   |   |        |  | (10  | ) |  |  | 417   |  
|Central government and other eligible bills       |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      |      |   |                |  | (1  | )      |  |  | (1      | ) |  |         |      |   |        |  | 1    |   |  |  | 1     |  
|Foreign offices                                   |  |                                      |      |   |                |  |    |        |  |  |        |   |  |         |      |   |        |  |     |   |  |  |      |  
|Debt securities                                   |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | 236   |   |                |  | 178 |        |  |  | 414     |   |  |         | 369   |   |        |  | 139  |   |  |  | 508   |  
|Foreign offices                                   |  |                                      | (4    | ) |                |  | (1  | )      |  |  | (5      | ) |  |         | 18    |   |        |  | (11  | ) |  |  | 7     |  
|Other financial assets at fair value through P/ L |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      |      |   |                |  | (1  | )      |  |  | (1      | ) |  |         | 1     |   |        |  |     |   |  |  | 1     |  
|Foreign offices                                   |  |                                      | 2     |   |                |  | 1   |        |  |  | 3       |   |  |         | 10    |   |        |  |     |   |  |  | 10    |  
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 
|Total interest income                             |  |                                      | 1,441 |   |                |  | 744 |        |  |  | 2,185   |   |  |         | 1,375 |   |        |  | 49   |   |  |  | 1,424 |  
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 
|INTEREST BEARING LIABILITIES                      |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Deposits by Banks                                 |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | (78   | ) |                |  | 8   |        |  |  | (70     | ) |  |         | 105   |   |        |  | 34   |   |  |  | 139   |  
|Foreign offices                                   |  |                                      | 223   |   |                |  | 15  |        |  |  | 238     |   |  |         | 84    |   |        |  | 92   |   |  |  | 176   |  
|Customer accounts                                 |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | 70    |   |                |  | 250 |        |  |  | 320     |   |  |         | 75    |   |        |  | 72   |   |  |  | 147   |  
|Foreign offices                                   |  |                                      | 207   |   |                |  | 83  |        |  |  | 290     |   |  |         | (55   | ) |        |  | (2   | ) |  |  | (57   | )
|Debt securities in issue                          |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | 510   |   |                |  | 272 |        |  |  | 782     |   |  |         | 290   |   |        |  | 221  |   |  |  | 511   |  
|Foreign offices                                   |  |                                      | 25    |   |                |  |    |        |  |  | 25      |   |  |         | 123   |   |        |  | 10   |   |  |  | 133   |  
|Subordinated liabilities                          |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        |  |      |   |  |  |       |  
|Domestic offices                                  |  |                                      | 33    |   |                |  | 14  |        |  |  | 47      |   |  |         | 32    |   |        |  | (31  | ) |  |  | 1     |  
|Foreign offices                                   |  |                                      | 68    |   |                |  | 9   |        |  |  | 77      |   |  |         | 53    |   |        |  | (22  | ) |  |  | 31    |  
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 
|Total interest bearing expense                    |  |                                      | 1,058 |   |                |  | 651 |        |  |  | 1,709   |   |  |         | 707   |   |        |  | 374  |   |  |  | 1,081 |  
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 
|Net interest income                               |  |                                      | 383   |   |                |  | 93  |        |  |  | 476     |   |  |         | 668   |   |        |  | (325 | ) |  |  | 343   |  
|Net swap interest                                 |  |                                      |       |   |                |  |     |        |  |  | (27     | ) |  |         |       |   |        |  |      |   |  |  | 34    |  
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 
|Total change in net interest income               |  |                                      |       |   |                |  |     |        |  |  | 449     |   |  |         |       |   |        |  |      |   |  |  | 377   |  
|                                                  |  |                                      |       |   |                |  |     |        |  |  |         |   |  |         |       |   |        | 

54



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##### Table of Contents






DESCRIPTION OF ASSETS AND LIABILITIES




Assets


Loan Portfolio














55



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##### Table of Contents



Total loans to customers




Table 1


|                            |  |                 |         |   |      |  |         |      |  |  |        |  
|--------------------------- |  | --------------- | ------- | - | ---- |  | ------- | ---- |  |  | ------ | -
|                            |  | At March 31,    |        
|                            |  |                 |        
|                            |  | 2007            |         |   | 2006 |  |         | 2005 | 
|                            |  | IFRS            |         |   | IFRS |  |         | IFRS | 
|                            |  |                 |         |   |      |  |         |      | 
|                            |  | (in  millions) |        
|Ireland                     |  |                 |         |   |      |  |         |      |  |  |        |  
|Agriculture                 |  |                 | 1,300   |   |      |  | 1,160   |      |  |  | 1,145  |  
|Energy                      |  |                 | 889     |   |      |  | 485     |      |  |  | 476    |  
|Manufacturing               |  |                 | 5,492   |   |      |  | 4,850   |      |  |  | 4,245  |  
|Construction and property   |  |                 | 16,305  |   |      |  | 10,726  |      |  |  | 8,065  |  
|Distribution                |  |                 | 3,305   |   |      |  | 2,986   |      |  |  | 2,239  |  
|Transport                   |  |                 | 1,829   |   |      |  | 1,168   |      |  |  | 982    |  
|Financial                   |  |                 | 2,381   |   |      |  | 1,676   |      |  |  | 1,399  |  
|Business and other services |  |                 | 6,328   |   |      |  | 6,112   |      |  |  | 4,165  |  
|Personal                    |  |                 |         |   |      |  |         |      |  |  |        |  
| residential mortgages     |  |                 | 24,634  |   |      |  | 19,827  |      |  |  | 15,686 |  
| other lending             |  |                 | 6,146   |   |      |  | 5,212   |      |  |  | 4,538  |  
|                            |  |                 |         |   |      |  |         |      | 
|                            |  |                 | 68,609  |   |      |  | 54,202  |      |  |  | 42,940 |  
|                            |  |                 |         |   |      |  |         |      | 
|United Kingdom              |  |                 |         |   |      |  |         |      |  |  |        |  
|Agriculture                 |  |                 | 105     |   |      |  | 69      |      |  |  | 67     |  
|Energy                      |  |                 | 83      |   |      |  | 48      |      |  |  | 61     |  
|Manufacturing               |  |                 | 1,183   |   |      |  | 842     |      |  |  | 657    |  
|Construction and property   |  |                 | 10,077  |   |      |  | 7,057   |      |  |  | 4,242  |  
|Distribution                |  |                 | 520     |   |      |  | 289     |      |  |  | 186    |  
|Transport                   |  |                 | 319     |   |      |  | 292     |      |  |  | 293    |  
|Financial                   |  |                 | 353     |   |      |  | 430     |      |  |  | 237    |  
|Business and other services |  |                 | 2,911   |   |      |  | 2,199   |      |  |  | 1,746  |  
|Commercial mortgages        |  |                 | 3,313   |   |      |  | 2,595   |      |  |  | 2,228  |  
|Personal                    |  |                 |         |   |      |  |         |      |  |  |        |  
| residential mortgages     |  |                 | 35,056  |   |      |  | 31,171  |      |  |  | 25,653 |  
| other lending             |  |                 | 2,947   |   |      |  | 2,411   |      |  |  | 1,845  |  
|                            |  |                 |         |   |      |  |         |      | 
|                            |  |                 | 56,867  |   |      |  | 47,403  |      |  |  | 37,215 |  
|                            |  |                 |         |   |      |  |         |      | 
|Group total loan portfolio  |  |                 | 125,476 |   |      |  | 101,605 |      |  |  | 80,155 |  
|Allowance for loan losses   |  |                 | (428    | ) |      |  | (359    | )    |  |  | (319   | )
|                            |  |                 |         |   |      |  |         |      | 
|Total                       |  |                 | 125,048 |   |      |  | 101,246 |      |  |  | 79,836 |  
|                            |  |                 |         |   |      |  |         |      | 

56



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##### Table of Contents



Total loans to customers (continued)


Table 2


|                            |  |                 |        |   |         |  |        |  
|--------------------------- |  | --------------- | ------ | - | ------- |  | ------ | -
|                            |  | At March 31,    |       
|                            |  |                 |       
|                            |  | 2004            |        |   | 2003    | 
|                            |  | IR GAAP         |        |   | IR GAAP | 
|                            |  |                 |        |   |         | 
|                            |  | (in  millions) |       
|Ireland                     |  |                 |        |   |         |  |        |  
|Agriculture                 |  |                 | 1,134  |   |         |  | 1,142  |  
|Energy                      |  |                 | 485    |   |         |  | 650    |  
|Manufacturing               |  |                 | 3,579  |   |         |  | 3,866  |  
|Construction and property   |  |                 | 6,111  |   |         |  | 4,666  |  
|Distribution                |  |                 | 1,575  |   |         |  | 1,391  |  
|Transport                   |  |                 | 954    |   |         |  | 486    |  
|Financial                   |  |                 | 1,311  |   |         |  | 817    |  
|Business and other services |  |                 | 3,147  |   |         |  | 2,865  |  
|Personal                    |  |                 |        |   |         |  |        |  
| residential mortgages     |  |                 | 12,360 |   |         |  | 10,005 |  
| other lending             |  |                 | 3,614  |   |         |  | 3,025  |  
|                            |  |                 |        |   |         | 
|                            |  |                 | 34,270 |   |         |  | 28,913 |  
|                            |  |                 |        |   |         | 
|United Kingdom              |  |                 |        |   |         |  |        |  
|Agriculture                 |  |                 | 69     |   |         |  | 58     |  
|Energy                      |  |                 | 63     |   |         |  | 158    |  
|Manufacturing               |  |                 | 1,275  |   |         |  | 721    |  
|Construction and property   |  |                 | 2,572  |   |         |  | 1,984  |  
|Distribution                |  |                 | 203    |   |         |  | 224    |  
|Transport                   |  |                 | 337    |   |         |  | 249    |  
|Financial                   |  |                 | 173    |   |         |  | 96     |  
|Business and other services |  |                 | 1,375  |   |         |  | 1,250  |  
|Commercial mortgages        |  |                 | 2,130  |   |         |  | 1,855  |  
|Personal                    |  |                 |        |   |         |  |        |  
| residential mortgages     |  |                 | 24,073 |   |         |  | 20,863 |  
| other lending             |  |                 | 1,472  |   |         |  | 995    |  
|                            |  |                 |        |   |         | 
|                            |  |                 | 33,742 |   |         |  | 28,453 |  
|                            |  |                 |        |   |         | 
|United States               |  |                 |        |   |         |  |        |  
|Commercial loans            |  |                 |       |   |         |  | 1      |  
|                            |  |                 |        |   |         | 
|                            |  |                 |       |   |         |  | 1      |  
|                            |  |                 |        |   |         | 
|Group total loan portfolio  |  |                 | 68,012 |   |         |  | 57,367 |  
|Allowance for loan losses   |  |                 | (472   | ) |         |  | (480   | )
|                            |  |                 |        |   |         | 
|Total                       |  |                 | 67,540 |   |         |  | 56,887 |  
|                            |  |                 |        |   |         | 

57



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##### Table of Contents



Total loans to customers (%)




Table 1


|                            |  |              |        |  |      |  |       |      |  |  |       | 
|--------------------------- |  | ------------ | ------ |  | ---- |  | ----- | ---- |  |  | ----- | 
|                            |  | At March 31, |       
|                            |  |              |       
|                            |  | 2007         |        |  | 2006 |  |       | 2005 | 
|                            |  | IFRS         |        |  | IFRS |  |       | IFRS | 
|                            |  |              |        |  |      |  |       |      | 
|                            |  | (%)          |        |  | (%)  |  |       | (%)  | 
|Ireland                     |  |              |        |  |      |  |       |      |  |  |       | 
|Agriculture                 |  |              | 1.0    |  |      |  | 1.1   |      |  |  | 1.4   | 
|Energy                      |  |              | 0.7    |  |      |  | 0.5   |      |  |  | 0.6   | 
|Manufacturing               |  |              | 4.4    |  |      |  | 4.8   |      |  |  | 5.3   | 
|Construction and property   |  |              | 13.0   |  |      |  | 10.6  |      |  |  | 10.1  | 
|Distribution                |  |              | 2.6    |  |      |  | 2.9   |      |  |  | 2.8   | 
|Transport                   |  |              | 1.5    |  |      |  | 1.1   |      |  |  | 1.2   | 
|Financial                   |  |              | 2.0    |  |      |  | 1.7   |      |  |  | 1.7   | 
|Business and other services |  |              | 5.0    |  |      |  | 6.0   |      |  |  | 5.2   | 
|Personal                    |  |              |        |  |      |  |       |      |  |  |       | 
| residential mortgages     |  |              | 19.6   |  |      |  | 19.5  |      |  |  | 19.6  | 
| other lending             |  |              | 4.9    |  |      |  | 5.1   |      |  |  | 5.7   | 
|                            |  |              |        |  |      |  |       |      | 
|                            |  |              | 54.7   |  |      |  | 53.3  |      |  |  | 53.6  | 
|                            |  |              |        |  |      |  |       |      | 
|United Kingdom              |  |              |        |  |      |  |       |      |  |  |       | 
|Agriculture                 |  |              | 0.1    |  |      |  | 0.1   |      |  |  | 0.1   | 
|Energy                      |  |              | 0.1    |  |      |  | 0.0   |      |  |  | 0.1   | 
|Manufacturing               |  |              | 1.0    |  |      |  | 0.8   |      |  |  | 0.8   | 
|Construction and property   |  |              | 8.0    |  |      |  | 6.9   |      |  |  | 5.3   | 
|Distribution                |  |              | 0.4    |  |      |  | 0.3   |      |  |  | 0.2   | 
|Transport                   |  |              | 0.3    |  |      |  | 0.3   |      |  |  | 0.4   | 
|Financial                   |  |              | 0.3    |  |      |  | 0.4   |      |  |  | 0.3   | 
|Business and other services |  |              | 2.3    |  |      |  | 2.2   |      |  |  | 2.1   | 
|Commercial mortgages        |  |              | 2.6    |  |      |  | 2.6   |      |  |  | 2.8   | 
|Personal                    |  |              |        |  |      |  |       |      |  |  |       | 
| residential mortgages     |  |              | 27.9   |  |      |  | 30.7  |      |  |  | 32.0  | 
| other lending             |  |              | 2.3    |  |      |  | 2.4   |      |  |  | 2.3   | 
|                            |  |              |        |  |      |  |       |      | 
|                            |  |              | 45.3   |  |      |  | 46.7  |      |  |  | 46.4  | 
|                            |  |              |        |  |      |  |       |      | 
|Group total loan portfolio  |  |              | 100.00 |  |      |  | 100.0 |      |  |  | 100.0 | 
|                            |  |              |        |  |      |  |       |      | 

58



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##### Table of Contents



Total loans to customers (%) (continued)


Table 2


|                            |  |              |       |  |         |  |       | 
|--------------------------- |  | ------------ | ----- |  | ------- |  | ----- | 
|                            |  | At March 31, |      
|                            |  |              |      
|                            |  | 2004         |       |  | 2003    | 
|                            |  | IR GAAP      |       |  | IR GAAP | 
|                            |  |              |       |  |         | 
|                            |  | (%)          |       |  | (%)     | 
|Ireland                     |  |              |       |  |         |  |       | 
|Agriculture                 |  |              | 1.7   |  |         |  | 2.0   | 
|Energy                      |  |              | 0.7   |  |         |  | 1.1   | 
|Manufacturing               |  |              | 5.3   |  |         |  | 6.7   | 
|Construction and property   |  |              | 9.0   |  |         |  | 8.1   | 
|Distribution                |  |              | 2.3   |  |         |  | 2.4   | 
|Transport                   |  |              | 1.4   |  |         |  | 0.9   | 
|Financial                   |  |              | 1.9   |  |         |  | 1.4   | 
|Business and other services |  |              | 4.6   |  |         |  | 5.0   | 
|Personal                    |  |              |       |  |         |  |       | 
| residential mortgages     |  |              | 18.2  |  |         |  | 17.5  | 
| other lending             |  |              | 5.3   |  |         |  | 5.3   | 
|                            |  |              |       |  |         | 
|                            |  |              | 50.4  |  |         |  | 50.4  | 
|                            |  |              |       |  |         | 
|United Kingdom              |  |              |       |  |         |  |       | 
|Agriculture                 |  |              | 0.1   |  |         |  | 0.1   | 
|Energy                      |  |              | 0.1   |  |         |  | 0.3   | 
|Manufacturing               |  |              | 1.9   |  |         |  | 1.3   | 
|Construction and property   |  |              | 3.7   |  |         |  | 3.4   | 
|Distribution                |  |              | 0.3   |  |         |  | 0.4   | 
|Transport                   |  |              | 0.5   |  |         |  | 0.4   | 
|Financial                   |  |              | 0.3   |  |         |  | 0.2   | 
|Business and other services |  |              | 2.0   |  |         |  | 2.2   | 
|Commercial mortgages        |  |              | 3.1   |  |         |  | 3.2   | 
|Personal                    |  |              |       |  |         |  |       | 
| residential mortgages     |  |              | 35.4  |  |         |  | 36.4  | 
| other lending             |  |              | 2.2   |  |         |  | 1.7   | 
|                            |  |              |       |  |         | 
|                            |  |              | 49.6  |  |         |  | 49.6  | 
|                            |  |              |       |  |         | 
|United States               |  |              |       |  |         |  |       | 
|Commercial loans            |  |              |      |  |         |  |      | 
|                            |  |              |       |  |         | 
|                            |  |              |      |  |         |  |      | 
|                            |  |              |       |  |         | 
|Group total loan portfolio  |  |              | 100.0 |  |         |  | 100.0 | 
|                            |  |              |       |  |         | 

59



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##### Table of Contents



Analysis of Loans to Customers by Maturity and Interest
Rate Sensitivity




|                        |  |                      |        |                 |            |  |        |         |  |  |        |  |  |  |         | 
|----------------------- |  | -------------------- | ------ | --------------- | ---------- |  | ------ | ------- |  |  | ------ |  |  |  | ------- | 
|                        |  | As at March 31, 2007 |       
|                        |  |                      |       
|                        |  |                      |        | After 1 year    |            |  |       
|                        |  | Within               |        |                 | but within |  |        | After 5 |  |  |       
|                        |  | 1 year               |        |                 | 5 years    |  |        | years   |  |  | Total  | 
|                        |  |                      |        |                 |            |  |        |         |  |  |        | 
|                        |  |                      |        | (in  millions) |            |  |       
|Ireland                 |  |                      | 12,320 |                 |            |  | 21,366 |         |  |  | 34,923 |  |  |  | 68,609  | 
|United Kingdom          |  |                      | 7,459  |                 |            |  | 16,907 |         |  |  | 32,501 |  |  |  | 56,867  | 
|                        |  |                      |        |                 |            |  |        |         |  |  |        | 
|Total loans by maturity |  |                      | 19,779 |                 |            |  | 38,273 |         |  |  | 67,424 |  |  |  | 125,476 | 
|                        |  |                      |        |                 |            |  |        |         |  |  |        | 
|Fixed rate              |  |                      | 3,006  |                 |            |  | 7,328  |         |  |  | 4,367  |  |  |  | 14,701  | 
|Variable rate           |  |                      | 16,773 |                 |            |  | 30,945 |         |  |  | 63,057 |  |  |  | 110,775 | 
|                        |  |                      |        |                 |            |  |        |         |  |  |        | 
|Total loans by maturity |  |                      | 19,779 |                 |            |  | 38,273 |         |  |  | 67,424 |  |  |  | 125,476 | 
|                        |  |                      |        |                 |            |  |        |         |  |  |        | 

60



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##### Table of Contents





|                            |  |                      |        |              |            |  |        |         |  |  |        |  |  |  |         | 
|--------------------------- |  | -------------------- | ------ | ------------ | ---------- |  | ------ | ------- |  |  | ------ |  |  |  | ------- | 
|                            |  | As at March 31, 2007 |       
|                            |  |                      |       
|                            |  |                      |        | After 1 year |            |  |       
|                            |  | Within               |        |              | but within |  |        | After 5 |  |  |       
|                            |  | 1 year               |        |              | 5 years    |  |        | years   |  |  | Total  | 
|                            |  |                      |        |              |            |  |        |         |  |  |        | 
|                            |  | (in  millions)      |       
|Ireland                     |  |                      |        |              |            |  |        |         |  |  |        |  |  |  |         | 
|Agriculture                 |  |                      | 475    |              |            |  | 419    |         |  |  | 406    |  |  |  | 1,300   | 
|Energy                      |  |                      | 53     |              |            |  | 371    |         |  |  | 465    |  |  |  | 889     | 
|Manufacturing               |  |                      | 771    |              |            |  | 3,108  |         |  |  | 1,613  |  |  |  | 5,492   | 
|Construction and property   |  |                      | 4,612  |              |            |  | 7,253  |         |  |  | 4,440  |  |  |  | 16,305  | 
|Distribution                |  |                      | 900    |              |            |  | 1,073  |         |  |  | 1,332  |  |  |  | 3,305   | 
|Transport                   |  |                      | 183    |              |            |  | 974    |         |  |  | 672    |  |  |  | 1,829   | 
|Financial                   |  |                      | 389    |              |            |  | 802    |         |  |  | 1,190  |  |  |  | 2,381   | 
|Business and other services |  |                      | 1,282  |              |            |  | 2,045  |         |  |  | 3,002  |  |  |  | 6,328   | 
|Personal                    |  |                      |        |              |            |  |        |         |  |  |        |  |  |  |         | 
| residential mortgages     |  |                      | 987    |              |            |  | 3,480  |         |  |  | 20,167 |  |  |  | 24,634  | 
| other lending             |  |                      | 2,668  |              |            |  | 1,842  |         |  |  | 1,636  |  |  |  | 6,146   | 
|                            |  |                      |        |              |            |  |        |         |  |  |        | 
|                            |  |                      | 12,320 |              |            |  | 21,366 |         |  |  | 34,923 |  |  |  | 68,609  | 
|                            |  |                      |        |              |            |  |        |         |  |  |        | 
|United Kingdom              |  |                      |        |              |            |  |        |         |  |  |        |  |  |  |         | 
|Agriculture                 |  |                      | 55     |              |            |  | 33     |         |  |  | 17     |  |  |  | 105     | 
|Energy                      |  |                      | 30     |              |            |  | 37     |         |  |  | 16     |  |  |  | 83      | 
|Manufacturing               |  |                      | 493    |              |            |  | 608    |         |  |  | 82     |  |  |  | 1,183   | 
|Construction and property   |  |                      | 2,358  |              |            |  | 5,392  |         |  |  | 2,327  |  |  |  | 10,077  | 
|Distribution                |  |                      | 174    |              |            |  | 253    |         |  |  | 93     |  |  |  | 520     | 
|Transport                   |  |                      | 123    |              |            |  | 158    |         |  |  | 38     |  |  |  | 319     | 
|Financial                   |  |                      | 119    |              |            |  | 152    |         |  |  | 82     |  |  |  | 353     | 
|Business and other services |  |                      | 649    |              |            |  | 1,031  |         |  |  | 1,231  |  |  |  | 2,911   | 
|Commercial Mortgages        |  |                      | 177    |              |            |  | 1,037  |         |  |  | 2,099  |  |  |  | 3,313   | 
|Personal                    |  |                      |        |              |            |  |        |         |  |  |        |  |  |  |         | 
| residential mortgages     |  |                      | 1,792  |              |            |  | 7,193  |         |  |  | 26,071 |  |  |  | 35,056  | 
| other lending             |  |                      | 1,489  |              |            |  | 1,013  |         |  |  | 445    |  |  |  | 2,947   | 
|                            |  |                      |        |              |            |  |        |         |  |  |        | 
|                            |  |                      | 7,459  |              |            |  | 16,907 |         |  |  | 32,501 |  |  |  | 56,867  | 
|                            |  |                      |        |              |            |  |        |         |  |  |        | 
|Group total loan portfolio  |  |                      | 19,779 |              |            |  | 38,273 |         |  |  | 67,424 |  |  |  | 125,476 | 
|                            |  |                      |        |              |            |  |        |         |  |  |        | 

Movement in the Allowance for Loan Losses










61



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##### Table of Contents





  


   


62



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##### Table of Contents



Movement in the Allowance for Loan Losses




Table 1


|                                                   |                |                                |       |       |            |  |       |            |   |  |        |        |  
|-------------------------------------------------- | -------------- | ------------------------------ | ----- | ----- | ---------- |  | ----- | ---------- | - |  | ------ | ------ | -
|                                                   |                | Financial year ended March 31, |      
|                                                   |                |                                |      
|                                                   |                | 2007                           |       |       | 2006       |  |       | 2005       |  
|                                                   |                | IFRS                           |       |       | IFRS       |  |       | IFRS(1)    |  
|                                                   |                |                                |       |       |            |  |       |            |  
|                                                   |                | Impairment                     |       |       | Impairment |  |       | Impairment |  
|                                                   |                |                                |       |       |            |  |       |            |  
|                                                   |                | (in  millions)                |      
|Allowance at beginning of year                     |                |                                | 359.0 |       |            |  | 318.7 |            |   |  | 471.8  |       
|Total allowance                                    |                |                                | 359.0 |       |            |  | 318.7 |            |   |  | 471.8  |       
|                                                   |                |                                |       |       |            |  |       |            |  
|Exchange adjustments                               |                |                                | 0.7   |       |            |  | 0.6   |            |   |  | (9.2   | )     
|                                                   |                |                                |       |       |            |  |       |            |  
|Other Movements                                    |                |                                | (1.3  | )     |            |  |      |            |   |  |       |       
|                                                   |                |                                |       |       |            |  |       |            |  
|Recovery of amounts previously charged off:        |                |                                |       |       |            |  |       |            |   |  |        |       
|                                                   | Ireland        |                                |       | 16.8  |            |  |       | 19.6       |   |  |        | 19.5   |  
|                                                   | United Kingdom |                                |       | 2.2   |            |  |       | 1.7        |   |  |        | 1.9    |  
|                                                   |                |                                |       |       |            |  |       |            |  
|Total recovery of amounts previously charged off   |                |                                | 19.0  |       |            |  | 21.3  |            |   |  | 21.4   |       
|                                                   |                |                                |       |       |            |  |       |            |  
|Amounts charged off:                               |                |                                |       |       |            |  |       |            |   |  |        |       
|                                                   | Ireland        |                                |       | (27.5 | )          |  |       | (71.9      | ) |  |        | (131.9 | )
|                                                   | United Kingdom |                                |       | (25.2 | )          |  |       | (13.1      | ) |  |        | (12.6  | )
|                                                   |                |                                |       |       |            |  |       |            |  
|Total amounts charged off                          |                |                                | (52.7 | )     |            |  | (85.0 | )          |   |  | (144.5 | )     
|                                                   |                |                                |       |       |            |  |       |            |  
|Provision for impairment losses charged to income: |                |                                |       |       |            |  |       |            |   |  |        |       
|                                                   | Ireland        |                                |       | 77.4  |            |  |       | 73.5       |   |  |        | 86.6   |  
|                                                   | United Kingdom |                                |       | 26.0  |            |  |       | 29.9       |   |  |        | (7.4   | )
|                                                   |                |                                |       |       |            |  |       |            |  
|                                                   |                |                                | 103.4 |       |            |  | 103.4 |            |   |  | 79.2   |       
|                                                   |                |                                |       |       |            |  |       |            |  
|Impairment loss write back                         |                |                                |      |       |            |  |      |            |   |  | (100   | )     
|Allowance at end of year                           |                |                                | 428.1 |       |            |  | 359.0 |            |   |  | 318.7  |       
|Total allowance                                    |                |                                | 428.1 |       |            |  | 359.0 |            |   |  | 318.7  |       
|                                                   |                |                                |       |       |            |  |       |            |  






|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32
    and 39 and IFRS 4.

63



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Movement in the Allowance for Loan Losses (continued)


Table 2


|                                                 |                |                                |        |        |         |  |       |          |   |  |         |       |   |  |       |       |  
|------------------------------------------------ | -------------- | ------------------------------ | ------ | ------ | ------- |  | ----- | -------- | - |  | ------- | ----- | - |  | ----- | ----- | -
|                                                 |                | Financial year ended March 31, |       
|                                                 |                |                                |       
|                                                 |                | 2004                           |        |        | 2003    | 
|                                                 |                | IR GAAP                        |        |        | IR GAAP | 
|                                                 |                |                                |        |        |         | 
|                                                 |                | Specific                       |        |        | General |  |       | Specific |   |  | General |      
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|                                                 |                | (in  millions)                |       
|Allowance at beginning of year                   |                |                                | 169.5  |        |         |  | 310.2 |          |   |  | 158.8   |       |   |  | 341.4 |      
|Total allowance                                  |                | 479.7                          |        | 500.2 
|                                                 |                |                                |        |       
|Exchange adjustments                             |                |                                | 1.3    |        |         |  | 5.9   |          |   |  | (7.7    | )     |   |  | (22.4 | )    
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Recovery of amounts previously charged off:      |                |                                |        |        |         |  |       |          |   |  |         |       |   |  |       |      
|                                                 | Ireland        |                                |        | 12.3   |         |  |       |         |   |  |         | 4.1   |   |  |       |      |  
|                                                 | United Kingdom |                                |        | 0.7    |         |  |       |         |   |  |         | 1.5   |   |  |       |      |  
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Total recovery of amounts previously charged off |                |                                | 13.0   |        |         |  |      |          |   |  | 5.6     |       |   |  |      |      
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Amounts charged off:                             |                |                                |        |        |         |  |       |          |   |  |         |       |   |  |       |      
|                                                 | Ireland        |                                |        | (105.3 | )       |  |       |         |   |  |         | (77.4 | ) |  |       |      |  
|                                                 | United Kingdom |                                |        | (9.3   | )       |  |       |         |   |  |         | (19.0 | ) |  |       |      |  
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Total amounts charged off                        |                |                                | (114.6 | )      |         |  |      |          |   |  | (96.4   | )     |   |  |      |      
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Provision for loan losses charged to income:     |                |                                |        |        |         |  |       |          |   |  |         |       |   |  |       |      
|                                                 | Ireland        |                                |        | 113.0  |         |  |       | (29.7    | ) |  |         | 102.5 |   |  |       | (25.2 | )
|                                                 | United Kingdom |                                |        | 8.6    |         |  |       | (5.4     | ) |  |         | 6.7   |   |  |       | 16.4  |  
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|                                                 |                |                                | 121.6  |        |         |  | (35.1 | )        |   |  | 109.2   |       |   |  | (8.8  | )    
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Allowance at end of year                         |                |                                | 190.8  |        |         |  | 281.0 |          |   |  | 169.5   |       |   |  | 310.2 |      
|                                                 |                |                                |        |        |         |  |       |          |   |  |         |      
|Total allowance                                  |                | 471.8                          |        | 479.7 
|                                                 |                |                                |        |       

64



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Provisions and allowances for loan losses (%)




Table 1


|                                                                                         |  |                              |         |  |      |  |        |         |  |  |        |  
|---------------------------------------------------------------------------------------- |  | ---------------------------- | ------- |  | ---- |  | ------ | ------- |  |  | ------ | -
|                                                                                         |  | For the Financial Year Ended |        
|                                                                                         |  | March 31,                    |        
|                                                                                         |  |                              |        
|                                                                                         |  | 2007                         |         |  | 2006 |  |        | 2005    | 
|                                                                                         |  | IFRS                         |         |  | IFRS |  |        | IFRS(1) | 
|                                                                                         |  |                              |         |  |      |  |        |         | 
|                                                                                         |  | (in  millions,              |        
|                                                                                         |  | except percentages)          |        
|                                                                                         |  | %                            |         |  | %    |  |        | %       | 
|Allowance at end of year as a percentage of total loans to
    customers at end of year: |  |                              |         |  |      |  |        |         |  |  |        |  
|Ireland                                                                                  |  |                              | 0.50    |  |      |  | 0.53   |         |  |  | 0.64   |  
|United Kingdom                                                                           |  |                              | 0.14    |  |      |  | 0.15   |         |  |  | 0.11   |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Total                                                                                    |  |                              | 0.34    |  |      |  | 0.35   |         |  |  | 0.40   |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Specific                                                                                 |  |                              | 0.23    |  |      |  | 0.23   |         |  |  | 0.23   |  
|IBNR                                                                                     |  |                              | 0.11    |  |      |  | 0.12   |         |  |  | 0.17   |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Total                                                                                    |  |                              | 0.34    |  |      |  | 0.35   |         |  |  | 0.40   |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Allowance at end of year as a percentage of impaired loans at
    end of year(2)         |  |                              |         |  |      |  |        |         |  |  |        |  
|Ireland                                                                                  |  |                              | 50.91   |  |      |  | 51.08  |         |  |  | 100.50 |  
|United Kingdom                                                                           |  |                              | 28.13   |  |      |  | 30.86  |         |  |  | 70.00  |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Total                                                                                    |  |                              | 44.21   |  |      |  | 45.25  |         |  |  | 95.10  |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Average loans to customers(3)                                                            |  |                              | 115,717 |  |      |  | 93,075 |         |  |  | 74,304 |  
|Provisions charged to income as a percentage of average loans to
    customers:          |  |                              |         |  |      |  |        |         |  |  |        |  
|Specific                                                                                 |  |                              | 0.09    |  |      |  | 0.10   |         |  |  | 0.16   |  
|IBNR                                                                                     |  |                              |        |  |      |  | 0.01   |         |  |  | (0.05  | )
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Total                                                                                    |  |                              | 0.09    |  |      |  | 0.11   |         |  |  | 0.11   |  
|                                                                                         |  |                              |         |  |      |  |        |         | 
|Net loans charged off as a percentage of average loans to
    customers                  |  |                              | 0.03    |  |      |  | 0.07   |         |  |  | 0.17   |  
|                                                                                         |  |                              |         |  |      |  |        |         | 






|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32
    and 39 and IFRS 4.

65



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Provisions and allowances for loan losses (%) (continued)


Table 2


|                                                                                                              |  |                              |        |   |         |  |        |  
|------------------------------------------------------------------------------------------------------------- |  | ---------------------------- | ------ | - | ------- |  | ------ | -
|                                                                                                              |  | For the Financial Year ended |       
|                                                                                                              |  | March 31,                    |       
|                                                                                                              |  |                              |       
|                                                                                                              |  | 2004                         |        |   | 2003    | 
|                                                                                                              |  | IR GAAP                      |        |   | IR GAAP | 
|                                                                                                              |  |                              |        |   |         | 
|                                                                                                              |  | (in  millions,              |       
|                                                                                                              |  | except percentages)          |       
|                                                                                                              |  | %                            |        |   | %       | 
|Allowance at end of year as a percentage of total loans to
    customers at end of year:                      |  |                              |        |   |         |  |        |  
|Ireland                                                                                                       |  |                              | 0.92   |   |         |  | 1.12   |  
|United Kingdom                                                                                                |  |                              | 0.46   |   |         |  | 0.54   |  
|                                                                                                              |  |                              |        |   |         | 
|Total                                                                                                         |  |                              | 0.69   |   |         |  | 0.84   |  
|                                                                                                              |  |                              |        |   |         | 
|Specific                                                                                                      |  |                              | 0.28   |   |         |  | 0.30   |  
|General                                                                                                       |  |                              | 0.41   |   |         |  | 0.54   |  
|                                                                                                              |  |                              |        |   |         | 
|Total                                                                                                         |  |                              | 0.69   |   |         |  | 0.84   |  
|                                                                                                              |  |                              |        |   |         | 
|Allowance at end of year as a percentage of loans accounted for
    on a non-accrual basis at end of year(2): |  |                              |        |   |         |  |        |  
|Ireland                                                                                                       |  |                              | 98.0   |   |         |  | 121.3  |  
|United Kingdom                                                                                                |  |                              | 293.2  |   |         |  | 300.5  |  
|                                                                                                              |  |                              |        |   |         | 
|Total                                                                                                         |  |                              | 125.7  |   |         |  | 150.1  |  
|                                                                                                              |  |                              |        |   |         | 
|Average loans to customers(3)                                                                                 |  |                              | 62,129 |   |         |  | 57,145 |  
|Provisions charged to income as a percentage of average loans to
    customers:                               |  |                              |        |   |         |  |        |  
|Specific                                                                                                      |  |                              | 0.20   |   |         |  | 0.20   |  
|General                                                                                                       |  |                              | (0.06  | ) |         |  | (0.02  | )
|                                                                                                              |  |                              |        |   |         | 
|Total                                                                                                         |  |                              | 0.14   |   |         |  | 0.18   |  
|                                                                                                              |  |                              |        |   |         | 
|Net loans charged off as a percentage of average loans to
    customers                                       |  |                              | 0.16   |   |         |  | 0.16   |  
|                                                                                                              |  |                              |        |   |         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Prior to the implementation of IFRS accruing loans which were
    contractually past due 90 days or more as to principal or
    interest payments and loans which were troubled debt
    restructurings as defined in SFAS No. 15
    Accounting by Debtors and Creditors for Troubled Debt
    Restructuring were not included. The March 2007
    calculation (44.21%) which is based on impaired loans does
    include accruing loans which are contractually past due
    90 days or more as to principal or interest payments. The
    comparable figure for March 2006 is 45.25%.
|   
|(3) | Average loans include average interest earning and non-interest
    earning loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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Loans charged off




Table 1


|                            |  |                 |      |  |      |  |      |         |  |  |       | 
|--------------------------- |  | --------------- | ---- |  | ---- |  | ---- | ------- |  |  | ----- | 
|                            |  | At March 31,    |     
|                            |  |                 |     
|                            |  | 2007            |      |  | 2006 |  |      | 2005    | 
|                            |  | IFRS            |      |  | IFRS |  |      | IFRS(1) | 
|                            |  |                 |      |  |      |  |      |         | 
|                            |  | (in  millions) |     
|Ireland                     |  |                 |      |  |      |  |      |         |  |  |       | 
|Agriculture                 |  |                 | 1.3  |  |      |  | 2.0  |         |  |  | 3.6   | 
|Energy                      |  |                 |     |  |      |  |     |         |  |  | 7.7   | 
|Manufacturing               |  |                 | 1.5  |  |      |  | 1.2  |         |  |  | 1.5   | 
|Construction and property   |  |                 | 0.9  |  |      |  | 1.8  |         |  |  | 2.2   | 
|Distribution                |  |                 | 0.7  |  |      |  | 2.9  |         |  |  | 2.0   | 
|Transport                   |  |                 |     |  |      |  |     |         |  |  |      | 
|Financial                   |  |                 |     |  |      |  |     |         |  |  |      | 
|Business and Other Services |  |                 | 6.6  |  |      |  | 20.7 |         |  |  | 47.2  | 
|Personal                    |  |                 |      |  |      |  |      |         |  |  |       | 
| residential mortgages     |  |                 |     |  |      |  |     |         |  |  |      | 
| other lending             |  |                 | 16.5 |  |      |  | 43.3 |         |  |  | 67.7  | 
|                            |  |                 |      |  |      |  |      |         | 
|                            |  |                 | 27.5 |  |      |  | 71.9 |         |  |  | 131.9 | 
|                            |  |                 |      |  |      |  |      |         | 
|United Kingdom              |  |                 |      |  |      |  |      |         |  |  |       | 
|Agriculture                 |  |                 |     |  |      |  | 0.1  |         |  |  | 0.1   | 
|Manufacturing               |  |                 | 1.0  |  |      |  | 0.4  |         |  |  | 2.8   | 
|Construction and property   |  |                 | 0.3  |  |      |  | 0.2  |         |  |  | 0.1   | 
|Distribution                |  |                 | 0.2  |  |      |  | 0.4  |         |  |  | 0.1   | 
|Transport                   |  |                 |     |  |      |  |     |         |  |  |      | 
|Financial                   |  |                 |     |  |      |  |     |         |  |  |      | 
|Business and Other Services |  |                 | 8.9  |  |      |  | 0.6  |         |  |  | 1.5   | 
|Commercial mortgages        |  |                 |     |  |      |  | 0.4  |         |  |  | 1.0   | 
|Personal                    |  |                 |      |  |      |  |      |         |  |  |       | 
| residential mortgages     |  |                 | 2.2  |  |      |  |     |         |  |  |      | 
| other lending             |  |                 | 12.6 |  |      |  | 11.0 |         |  |  | 7.0   | 
|                            |  |                 |      |  |      |  |      |         | 
|                            |  |                 | 25.2 |  |      |  | 13.1 |         |  |  | 12.6  | 
|                            |  |                 |      |  |      |  |      |         | 
|Group total                 |  |                 | 52.7 |  |      |  | 85.0 |         |  |  | 144.5 | 
|                            |  |                 |      |  |      |  |      |         | 






|    |                                                                               
|--- | ------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32, 39
    and IFRS 4.

67



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##### Table of Contents



Loans charged off (continued)


Table 2


|                            |  |                 |       |  |         |  |      | 
|--------------------------- |  | --------------- | ----- |  | ------- |  | ---- | 
|                            |  | At March 31,    |      
|                            |  |                 |      
|                            |  | 2004            |       |  | 2003    | 
|                            |  | IR GAAP         |       |  | IR GAAP | 
|                            |  |                 |       |  |         | 
|                            |  | (in  millions) |      
|Ireland                     |  |                 |       |  |         |  |      | 
|Agriculture                 |  |                 | 3.3   |  |         |  | 2.9  | 
|Energy                      |  |                 | 15.4  |  |         |  | 5.0  | 
|Manufacturing               |  |                 | 5.2   |  |         |  | 21.9 | 
|Construction and property   |  |                 | 4.3   |  |         |  | 1.8  | 
|Distribution                |  |                 | 1.6   |  |         |  | 2.1  | 
|Transport                   |  |                 |      |  |         |  |     | 
|Financial                   |  |                 |      |  |         |  |     | 
|Business and Other Services |  |                 | 22.1  |  |         |  | 14.5 | 
|Personal                    |  |                 |       |  |         |  |      | 
| residential mortgages     |  |                 |      |  |         |  |     | 
| other lending             |  |                 | 53.4  |  |         |  | 29.2 | 
|                            |  |                 |       |  |         | 
|                            |  |                 | 105.3 |  |         |  | 77.4 | 
|                            |  |                 |       |  |         | 
|United Kingdom              |  |                 |       |  |         |  |      | 
|Agriculture                 |  |                 | 0.1   |  |         |  | 0.1  | 
|Manufacturing               |  |                 | 0.6   |  |         |  | 7.6  | 
|Construction and property   |  |                 | 0.5   |  |         |  | 1.1  | 
|Distribution                |  |                 | 0.5   |  |         |  | 0.3  | 
|Transport                   |  |                 |      |  |         |  |     | 
|Financial                   |  |                 |      |  |         |  |     | 
|Business and Other Services |  |                 | 1.2   |  |         |  | 2.7  | 
|Commercial mortgages        |  |                 | 1.4   |  |         |  | 2.2  | 
|Personal                    |  |                 |       |  |         |  |      | 
| residential mortgages     |  |                 | 0.6   |  |         |  | 0.2  | 
| other lending             |  |                 | 4.4   |  |         |  | 4.8  | 
|                            |  |                 |       |  |         | 
|                            |  |                 | 9.3   |  |         |  | 19.0 | 
|                            |  |                 |       |  |         | 
|Group total                 |  |                 | 114.6 |  |         |  | 96.4 | 
|                            |  |                 |       |  |         | 

68



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##### Table of Contents



Recoveries of loans previously charged off




Table 1


|                            |  |                 |      |  |      |  |      |         |  |  |      | 
|--------------------------- |  | --------------- | ---- |  | ---- |  | ---- | ------- |  |  | ---- | 
|                            |  | At March 31,    |     
|                            |  |                 |     
|                            |  | 2007            |      |  | 2006 |  |      | 2005    | 
|                            |  | IFRS            |      |  | IFRS |  |      | IFRS(1) | 
|                            |  |                 |      |  |      |  |      |         | 
|                            |  | (in  millions) |     
|Ireland                     |  |                 |      |  |      |  |      |         |  |  |      | 
|Agriculture                 |  |                 | 0.8  |  |      |  | 0.5  |         |  |  | 0.6  | 
|Manufacturing               |  |                 | 0.3  |  |      |  | 0.2  |         |  |  | 1.0  | 
|Construction and property   |  |                 | 0.5  |  |      |  | 0.3  |         |  |  | 0.8  | 
|Distribution                |  |                 | 0.7  |  |      |  | 0.3  |         |  |  | 0.3  | 
|Transport                   |  |                 |     |  |      |  |     |         |  |  |     | 
|Financial                   |  |                 |     |  |      |  |     |         |  |  |     | 
|Business and Other Services |  |                 | 2.6  |  |      |  | 8.2  |         |  |  | 6.9  | 
|Personal                    |  |                 |      |  |      |  |      |         |  |  |      | 
| residential mortgages     |  |                 |     |  |      |  |     |         |  |  |     | 
| other lending             |  |                 | 11.9 |  |      |  | 10.1 |         |  |  | 9.9  | 
|                            |  |                 |      |  |      |  |      |         | 
|                            |  |                 | 16.8 |  |      |  | 19.6 |         |  |  | 19.5 | 
|                            |  |                 |      |  |      |  |      |         | 
|United Kingdom              |  |                 |      |  |      |  |      |         |  |  |      | 
|Agriculture                 |  |                 |     |  |      |  | 0.1  |         |  |  |     | 
|Manufacturing               |  |                 |     |  |      |  | 0.3  |         |  |  | 0.1  | 
|Construction and property   |  |                 |     |  |      |  | 0.1  |         |  |  | 0.1  | 
|Distribution                |  |                 |     |  |      |  | 0.1  |         |  |  | 0.1  | 
|Transport                   |  |                 |     |  |      |  |     |         |  |  |     | 
|Financial                   |  |                 |     |  |      |  |     |         |  |  |     | 
|Business and Other Services |  |                 |     |  |      |  | 0.2  |         |  |  | 0.3  | 
|Commercial mortgages        |  |                 |     |  |      |  | 0.1  |         |  |  | 0.3  | 
|Personal                    |  |                 |      |  |      |  |      |         |  |  |      | 
| residential mortgages     |  |                 | 0.9  |  |      |  |     |         |  |  | 0.1  | 
| other lending             |  |                 | 1.3  |  |      |  | 0.8  |         |  |  | 0.9  | 
|                            |  |                 |      |  |      |  |      |         | 
|                            |  |                 | 2.2  |  |      |  | 1.7  |         |  |  | 1.9  | 
|                            |  |                 |      |  |      |  |      |         | 
|Group total                 |  |                 | 19.0 |  |      |  | 21.3 |         |  |  | 21.4 | 
|                            |  |                 |      |  |      |  |      |         | 






|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32 and
    39 and IFRS 4.

69



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##### Table of Contents



Recoveries of loans previously charged off (continued)


Table 2


|                            |  |                 |      |  |         |  |     | 
|--------------------------- |  | --------------- | ---- |  | ------- |  | --- | 
|                            |  | At March 31,    |     
|                            |  |                 |     
|                            |  | 2004            |      |  | 2003    | 
|                            |  | IR GAAP         |      |  | IR GAAP | 
|                            |  |                 |      |  |         | 
|                            |  | (in  millions) |     
|Ireland                     |  |                 |      |  |         |  |     | 
|Agriculture                 |  |                 | 0.5  |  |         |  | 0.2 | 
|Manufacturing               |  |                 | 3.5  |  |         |  | 1.3 | 
|Construction and property   |  |                 | 0.3  |  |         |  | 0.1 | 
|Distribution                |  |                 | 0.3  |  |         |  | 0.1 | 
|Transport                   |  |                 |     |  |         |  |    | 
|Financial                   |  |                 |     |  |         |  |    | 
|Business and Other Services |  |                 | 3.1  |  |         |  | 0.6 | 
|Personal                    |  |                 |      |  |         |  |     | 
| residential mortgages     |  |                 |     |  |         |  |    | 
| other lending             |  |                 | 4.6  |  |         |  | 1.8 | 
|                            |  |                 |      |  |         | 
|                            |  |                 | 12.3 |  |         |  | 4.1 | 
|                            |  |                 |      |  |         | 
|United Kingdom              |  |                 |      |  |         |  |     | 
|Agriculture                 |  |                 |     |  |         |  |    | 
|Manufacturing               |  |                 | 0.3  |  |         |  | 0.1 | 
|Construction and property   |  |                 |     |  |         |  |    | 
|Distribution                |  |                 |     |  |         |  | 0.4 | 
|Transport                   |  |                 |     |  |         |  |    | 
|Financial                   |  |                 |     |  |         |  |    | 
|Business and Other Services |  |                 | 0.1  |  |         |  | 0.1 | 
|Commercial mortgages        |  |                 | 0.1  |  |         |  | 0.4 | 
|Personal                    |  |                 |      |  |         |  |     | 
| residential mortgages     |  |                 |     |  |         |  |    | 
| other lending             |  |                 | 0.2  |  |         |  | 0.5 | 
|                            |  |                 |      |  |         | 
|                            |  |                 | 0.7  |  |         |  | 1.5 | 
|                            |  |                 |      |  |         | 
|Group total                 |  |                 | 13.0 |  |         |  | 5.6 | 
|                            |  |                 |      |  |         | 

70



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##### Table of Contents



Analysis of allowances for loan losses by sector




Table 1


|                            |  |                 |       |  |      |  |       |         |  |  |       | 
|--------------------------- |  | --------------- | ----- |  | ---- |  | ----- | ------- |  |  | ----- | 
|                            |  | At March 31,    |      
|                            |  |                 |      
|                            |  | 2007            |       |  | 2006 |  |       | 2005    | 
|                            |  | IFRS            |       |  | IFRS |  |       | IFRS(1) | 
|                            |  |                 |       |  |      |  |       |         | 
|                            |  | (in  millions) |      
|Ireland                     |  |                 |       |  |      |  |       |         |  |  |       | 
|Agriculture                 |  |                 | 11.0  |  |      |  | 10.4  |         |  |  | 11.6  | 
|Energy                      |  |                 |      |  |      |  | 0.1   |         |  |  | 8.4   | 
|Manufacturing               |  |                 | 32.0  |  |      |  | 5.3   |         |  |  | 8.4   | 
|Construction and property   |  |                 | 11.5  |  |      |  | 8.5   |         |  |  | 5.6   | 
|Distribution                |  |                 | 16.2  |  |      |  | 9.1   |         |  |  | 6.6   | 
|Transport                   |  |                 |      |  |      |  |      |         |  |  |      | 
|Financial                   |  |                 |      |  |      |  |      |         |  |  |      | 
|Business and Other Services |  |                 | 86.9  |  |      |  | 95.0  |         |  |  | 51.5  | 
|Personal                    |  |                 |       |  |      |  |       |         |  |  |       | 
| residential mortgages     |  |                 | 7.0   |  |      |  | 7.8   |         |  |  | 4.0   | 
| other lending             |  |                 | 82.6  |  |      |  | 52.9  |         |  |  | 60.4  | 
|                            |  |                 |       |  |      |  |       |         | 
|                            |  |                 | 247.2 |  |      |  | 189.1 |         |  |  | 156.5 | 
|                            |  |                 |       |  |      |  |       |         | 
|United Kingdom              |  |                 |       |  |      |  |       |         |  |  |       | 
|Agriculture                 |  |                 | 0.4   |  |      |  | 0.6   |         |  |  | 0.2   | 
|Manufacturing               |  |                 | 1.4   |  |      |  | 0.9   |         |  |  | 1.4   | 
|Construction and property   |  |                 | 13.0  |  |      |  | 1.2   |         |  |  | 1.9   | 
|Distribution                |  |                 | 3.7   |  |      |  | 0.4   |         |  |  | 0.7   | 
|Transport                   |  |                 |      |  |      |  |      |         |  |  |      | 
|Financial                   |  |                 |      |  |      |  |      |         |  |  |      | 
|Business and Other Services |  |                 | 4.2   |  |      |  | 13.8  |         |  |  | 4.4   | 
|Commercial mortgages        |  |                 |      |  |      |  | 0.3   |         |  |  | 3.5   | 
|Personal                    |  |                 |       |  |      |  |       |         |  |  |       | 
| residential mortgages     |  |                 | 9.0   |  |      |  | 7.4   |         |  |  | 0.7   | 
| other lending             |  |                 | 14.6  |  |      |  | 18.4  |         |  |  | 12.1  | 
|                            |  |                 |       |  |      |  |       |         | 
|                            |  |                 | 46.3  |  |      |  | 43.0  |         |  |  | 24.9  | 
|                            |  |                 |       |  |      |  |       |         | 
|Total specific allowance    |  |                 | 293.5 |  |      |  | 232.1 |         |  |  | 181.4 | 
|Total IBNR allowance        |  |                 | 134.6 |  |      |  | 126.9 |         |  |  | 137.3 | 
|                            |  |                 |       |  |      |  |       |         | 
|Total group allowance       |  |                 | 428.1 |  |      |  | 359.0 |         |  |  | 318.7 | 
|                            |  |                 |       |  |      |  |       |         | 






|    |                                                                               
|--- | ------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32, 39
    and IFRS 4.

71



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##### Table of Contents



Analysis of allowances for loan losses by
sector (continued)


Table 2


|                            |  |                 |       |  |         |  |       | 
|--------------------------- |  | --------------- | ----- |  | ------- |  | ----- | 
|                            |  | At March 31,    |      
|                            |  |                 |      
|                            |  | 2004            |       |  | 2003    | 
|                            |  | IR GAAP         |       |  | IR GAAP | 
|                            |  |                 |       |  |         | 
|                            |  | (in  millions) |      
|Ireland                     |  |                 |       |  |         |  |       | 
|Agriculture                 |  |                 | 13.1  |  |         |  | 11.2  | 
|Energy                      |  |                 | 11.1  |  |         |  | 5.9   | 
|Manufacturing               |  |                 | 6.3   |  |         |  | 9.6   | 
|Construction and property   |  |                 | 8.3   |  |         |  | 12.9  | 
|Distribution                |  |                 | 8.3   |  |         |  | 7.0   | 
|Transport                   |  |                 |      |  |         |  |      | 
|Financial                   |  |                 |      |  |         |  |      | 
|Business and Other Services |  |                 | 60.7  |  |         |  | 28.9  | 
|Personal                    |  |                 |       |  |         |  |       | 
| Residential Mortgages     |  |                 | 0.9   |  |         |  | 0.6   | 
| Other Lending             |  |                 | 58.7  |  |         |  | 71.2  | 
|                            |  |                 |       |  |         | 
|                            |  |                 | 167.4 |  |         |  | 147.3 | 
|                            |  |                 |       |  |         | 
|United Kingdom              |  |                 |       |  |         |  |       | 
|Agriculture                 |  |                 | 0.1   |  |         |  | 0.1   | 
|Manufacturing               |  |                 | 4.1   |  |         |  | 4.2   | 
|Construction and property   |  |                 | 1.9   |  |         |  | 2.4   | 
|Distribution                |  |                 | 0.6   |  |         |  | 0.5   | 
|Transport                   |  |                 |      |  |         |  |      | 
|Financial                   |  |                 |      |  |         |  |      | 
|Business and Other Services |  |                 | 5.0   |  |         |  | 4.7   | 
|Commercial mortgages        |  |                 | 1.8   |  |         |  | 1.1   | 
|Personal                    |  |                 |       |  |         |  |       | 
| Residential Mortgages     |  |                 | 0.2   |  |         |  | 0.3   | 
| Other Lending             |  |                 | 9.7   |  |         |  | 8.9   | 
|                            |  |                 |       |  |         | 
|                            |  |                 | 23.4  |  |         |  | 22.2  | 
|                            |  |                 |       |  |         | 
|Total specific allowance    |  |                 | 190.8 |  |         |  | 169.5 | 
|Total general allowance     |  |                 | 281.0 |  |         |  | 310.2 | 
|                            |  |                 |       |  |         | 
|Total group allowance       |  |                 | 471.8 |  |         |  | 479.7 | 
|                            |  |                 |       |  |         | 

72



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##### Table of Contents



Loan losses as a percentage of total loans




Table 1


|                            |  |              |      |  |      |  |      |         |  |  |      | 
|--------------------------- |  | ------------ | ---- |  | ---- |  | ---- | ------- |  |  | ---- | 
|                            |  | At March 31, |     
|                            |  |              |     
|                            |  | 2007         |      |  | 2006 |  |      | 2005    | 
|                            |  | IFRS         |      |  | IFRS |  |      | IFRS(1) | 
|                            |  |              |      |  |      |  |      |         | 
|                            |  | (%)          |      |  | (%)  |  |      | (%)     | 
|Ireland                     |  |              |      |  |      |  |      |         |  |  |      | 
|Agriculture                 |  |              | 0.85 |  |      |  | 0.90 |         |  |  | 1.01 | 
|Energy                      |  |              |     |  |      |  | 0.02 |         |  |  | 1.76 | 
|Manufacturing               |  |              | 0.58 |  |      |  | 0.11 |         |  |  | 0.20 | 
|Construction and property   |  |              | 0.07 |  |      |  | 0.08 |         |  |  | 0.07 | 
|Distribution                |  |              | 0.49 |  |      |  | 0.30 |         |  |  | 0.29 | 
|Transport                   |  |              |     |  |      |  |     |         |  |  |     | 
|Financial                   |  |              |     |  |      |  |     |         |  |  |     | 
|Business and Other Services |  |              | 1.37 |  |      |  | 1.57 |         |  |  | 1.24 | 
|Personal                    |  |              |      |  |      |  |      |         |  |  |      | 
| Residential Mortgages     |  |              | 0.03 |  |      |  | 0.03 |         |  |  | 0.03 | 
| Other Lending             |  |              | 1.34 |  |      |  | 1.05 |         |  |  | 1.33 | 
|                            |  |              |      |  |      |  |      |         | 
|                            |  |              | 0.36 |  |      |  | 0.35 |         |  |  | 0.36 | 
|                            |  |              |      |  |      |  |      |         | 
|United Kingdom              |  |              |      |  |      |  |      |         |  |  |      | 
|Agriculture                 |  |              | 0.38 |  |      |  | 0.87 |         |  |  | 0.30 | 
|Manufacturing               |  |              | 0.12 |  |      |  | 0.11 |         |  |  | 0.21 | 
|Construction and property   |  |              | 0.13 |  |      |  | 0.02 |         |  |  | 0.04 | 
|Distribution                |  |              | 0.71 |  |      |  | 0.14 |         |  |  | 0.38 | 
|Transport                   |  |              |     |  |      |  |     |         |  |  |     | 
|Financial                   |  |              |     |  |      |  |     |         |  |  |     | 
|Business and Other Services |  |              | 0.14 |  |      |  | 0.63 |         |  |  | 0.25 | 
|Commercial mortgages        |  |              |     |  |      |  | 0.01 |         |  |  | 0.16 | 
|Personal                    |  |              |      |  |      |  |      |         |  |  |      | 
| Residential Mortgages     |  |              | 0.03 |  |      |  | 0.02 |         |  |  |     | 
| Other Lending             |  |              | 0.50 |  |      |  | 0.76 |         |  |  | 0.66 | 
|                            |  |              |      |  |      |  |      |         | 
|                            |  |              | 0.08 |  |      |  | 0.09 |         |  |  | 0.07 | 
|                            |  |              |      |  |      |  |      |         | 
|Total specific allowance    |  |              | 0.23 |  |      |  | 0.23 |         |  |  | 0.23 | 
|Total IBNR allowance        |  |              | 0.11 |  |      |  | 0.12 |         |  |  | 0.17 | 
|                            |  |              |      |  |      |  |      |         | 
|Total group allowance       |  |              | 0.34 |  |      |  | 0.35 |         |  |  | 0.40 | 
|                            |  |              |      |  |      |  |      |         | 






|    |                                                                               
|--- | ------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32, 39
    and IFRS 4.

73



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##### Table of Contents



Loan losses as a percentage of total loans (Continued)


Table 2


|                            |  |             |      |  |         |  |      | 
|--------------------------- |  | ----------- | ---- |  | ------- |  | ---- | 
|                            |  | At March 31 |     
|                            |  |             |     
|                            |  | 2004        |      |  | 2003    | 
|                            |  | IR GAAP     |      |  | IR GAAP | 
|                            |  |             |      |  |         | 
|                            |  | (%)         |      |  | (%)     | 
|Ireland                     |  |             |      |  |         |  |      | 
|Agriculture                 |  |             | 1.16 |  |         |  | 0.98 | 
|Energy                      |  |             | 2.29 |  |         |  | 0.91 | 
|Manufacturing               |  |             | 0.18 |  |         |  | 0.25 | 
|Construction and property   |  |             | 0.14 |  |         |  | 0.28 | 
|Distribution                |  |             | 0.53 |  |         |  | 0.50 | 
|Transport                   |  |             |     |  |         |  |     | 
|Financial                   |  |             |     |  |         |  |     | 
|Business and Other Services |  |             | 1.93 |  |         |  | 1.01 | 
|Personal                    |  |             |      |  |         |  |      | 
| Residential Mortgages     |  |             | 0.01 |  |         |  | 0.01 | 
| Other Lending             |  |             | 1.62 |  |         |  | 2.35 | 
|                            |  |             |      |  |         | 
|                            |  |             | 0.49 |  |         |  | 0.51 | 
|                            |  |             |      |  |         | 
|United Kingdom              |  |             |      |  |         |  |      | 
|Agriculture                 |  |             | 0.14 |  |         |  | 0.17 | 
|Manufacturing               |  |             | 0.32 |  |         |  | 0.58 | 
|Construction and property   |  |             | 0.07 |  |         |  | 0.12 | 
|Distribution                |  |             | 0.30 |  |         |  | 0.22 | 
|Transport                   |  |             |     |  |         |  |     | 
|Financial                   |  |             |     |  |         |  |     | 
|Business and Other Services |  |             | 0.36 |  |         |  | 0.38 | 
|Commercial mortgages        |  |             | 0.08 |  |         |  | 0.06 | 
|Personal                    |  |             |      |  |         |  |      | 
| Residential Mortgages     |  |             |     |  |         |  |     | 
| Other Lending             |  |             | 0.66 |  |         |  | 0.89 | 
|                            |  |             |      |  |         | 
|                            |  |             | 0.07 |  |         |  | 0.08 | 
|                            |  |             |      |  |         | 
|Total specific allowance    |  |             | 0.28 |  |         |  | 0.30 | 
|Total general allowance     |  |             | 0.41 |  |         |  | 0.54 | 
|                            |  |             |      |  |         | 
|Total group allowance       |  |             | 0.69 |  |         |  | 0.84 | 
|                            |  |             |      |  |         | 

Risk Elements in Lending








74



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##### Table of Contents







Table 1


|                                                                                                      |  |                 |     |  |      |  |     |         |  |  |     | 
|----------------------------------------------------------------------------------------------------- |  | --------------- | --- |  | ---- |  | --- | ------- |  |  | --- | 
|                                                                                                      |  | At March 31,    |    
|                                                                                                      |  |                 |    
|                                                                                                      |  | 2007            |     |  | 2006 |  |     | 2005    | 
|                                                                                                      |  | IFRS            |     |  | IFRS |  |     | IFRS(1) | 
|                                                                                                      |  |                 |     |  |      |  |     |         | 
|                                                                                                      |  | (in  millions) |    
|Loans accounted for on a non-accrual basis                                                            |  |                 |     |  |      |  |     |         |  |  |     | 
|Ireland(2)                                                                                            |  |                 | 402 |  |      |  | 284 |         |  |  | 275 | 
|United Kingdom(2)                                                                                     |  |                 | 89  |  |      |  | 57  |         |  |  | 60  | 
|                                                                                                      |  |                 |     |  |      |  |     |         | 
|Total                                                                                                 |  |                 | 491 |  |      |  | 341 |         |  |  | 335 | 
|                                                                                                      |  |                 |     |  |      |  |     |         | 
|Accruing loans which are contractually past due 90 days
    or more as to principal or interest(3)(4) |  |                 |     |  |      |  |     |         |  |  |     | 
|Ireland                                                                                               |  |                 | 280 |  |      |  | 281 |         |  |  | 206 | 
|United Kingdom                                                                                        |  |                 | 197 |  |      |  | 174 |         |  |  | 169 | 
|                                                                                                      |  |                 |     |  |      |  |     |         | 
|Total                                                                                                 |  |                 | 477 |  |      |  | 455 |         |  |  | 375 | 
|                                                                                                      |  |                 |     |  |      |  |     |         | 
|Restructured loans not included above                                                                 |  |                 |    |  |      |  |    |         |  |  |    | 
|                                                                                                      |  |                 |     |  |      |  |     |         | 






| |     |                                                                                  
| | --- | ---------------------------------------------------------------------------------
| | (1) | Figures presented in accordance with IFRS excluding IAS 32
    and 39 and IFRS 4.

Table 2


|                                                                                                      |  |                 |     |  |         |  |     | 
|----------------------------------------------------------------------------------------------------- |  | --------------- | --- |  | ------- |  | --- | 
|                                                                                                      |  | At March 31,    |    
|                                                                                                      |  |                 |    
|                                                                                                      |  | 2004 IR         |     |  | 2003 IR | 
|                                                                                                      |  | GAAP            |     |  | GAAP    | 
|                                                                                                      |  |                 |     |  |         | 
|                                                                                                      |  | (in  millions) |    
|Loans accounted for on a non-accrual basis                                                            |  |                 |     |  |         |  |     | 
|Ireland(2)                                                                                            |  |                 | 322 |  |         |  | 268 | 
|United Kingdom(2)                                                                                     |  |                 | 53  |  |         |  | 51  | 
|                                                                                                      |  |                 |     |  |         | 
|Total                                                                                                 |  |                 | 375 |  |         |  | 319 | 
|                                                                                                      |  |                 |     |  |         | 
|Accruing loans which are contractually past due 90 days
    or more as to principal or interest(3)(4) |  |                 |     |  |         |  |     | 
|Ireland                                                                                               |  |                 | 216 |  |         |  | 228 | 
|United Kingdom                                                                                        |  |                 | 132 |  |         |  | 160 | 
|                                                                                                      |  |                 |     |  |         | 
|Total                                                                                                 |  |                 | 348 |  |         |  | 388 | 
|                                                                                                      |  |                 |     |  |         | 
|Restructured loans not included above                                                                 |  |                 |    |  |         |  |    | 
|                                                                                                      |  |                 |     |  |         | 






|    |                                                                                                                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Includes loans in Ireland and the United Kingdom where interest
    is accrued but provision has been made. The loans on
    which no interest is accrued amounted to
    224 million
    at March 31, 2007 (2006:
    213 million)
    and the provisions thereon amounted to
    125 million
    at March 31, 2007 (2006:
    119 million).
|   
|(3) | Overdrafts generally have no fixed repayment schedule and are
    not included in this category.                                                                                                                                                                                                                                                 
|   
|(4) | Includes home mortgage loans in Ireland and the United Kingdom
    (March 31, 2007:
    136.0 million
    in Ireland and
    153 million
    in the United Kingdom) which are secured and, typically in the
    UK, where the original loan to value ratio exceeds 75%, benefit
    from mortgage indemnity insurance.                         

75



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##### Table of Contents







Cross-Border Outstandings






|                                    |  |                                     |       |  |              |  |            |                |  |  |       |    |            |           |       |  |  |  |       | 
|----------------------------------- |  | ----------------------------------- | ----- |  | ------------ |  | ---------- | -------------- |  |  | ----- | -- | ---------- | --------- | ----- |  |  |  | ----- | 
|                                    |  | Banks and                           |       |  |              |  | Commercial |                |  |  |       | As |           
|                                    |  | other                               |       |  | Government   |  |            | and industrial |  |  |       |    | percentage |          
|                                    |  | financial                           |       |  | and official |  |            | and other      |  |  |       |    | of total   |          
|                                    |  | institutions                        |       |  | institutions |  |            | private sector |  |  | Total |    |            | assets(2) |      
|                                    |  |                                     |       |  |              |  |            |                |  |  |       |    |            |           |      
|                                    |  | (in  millions, except percentages) |      
|IFRS                                |  |                                     |       |  |              |  |            |                |  |  |       |    |            |           |       |  |  |  |       | 
|As at March 31, 2007 United Kingdom |  |                                     | 2,818 |  |              |  |           |                |  |  | 1,195 |    |            |           | 4,013 |  |  |  | 2.12% | 
|IFRS                                |  |                                     |       |  |              |  |            |                |  |  |       |    |            |           |       |  |  |  |       | 
|As at March 31, 2006 United Kingdom |  |                                     | 2,452 |  |              |  |           |                |  |  | 761   |    |            |           | 3,213 |  |  |  | 2.00% | 
|IFRS(1)                             |  |                                     |       |  |              |  |            |                |  |  |       |    |            |           |       |  |  |  |       | 
|As at March 31, 2005 United Kingdom |  |                                     | 2,025 |  |              |  |           |                |  |  | 599   |    |            |           | 2,624 |  |  |  | 2.10% | 






|    |                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Figures presented in accordance with IFRS excluding IAS 32
    and 39 and IFRS 4.                                                                                                                                                          
|   
|(2) | Assets, consisting of total assets as reported in the
    consolidated balance sheet plus acceptances were
    188.9 billion
    at March 31, 2007
    (162.4 billion
    at March 31, 2006, March 31, 2005 IR GAAP:
    126.5 billion).

 


76



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##### Table of Contents



Debt Securities




|                                           |  |                 |        |  |      |  |        |      |  |  |        | 
|------------------------------------------ |  | --------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                           |  | At March 31,    |       
|                                           |  |                 |       
|                                           |  | 2007            |        |  | 2006 |  |        | 2005 | 
|                                           |  |                 |        |  |      |  |        |      | 
|                                           |  | (in  millions) |       
|Irish Government                           |  |                 | 2,535  |  |      |  | 2,975  |      |  |  | 3,569  | 
|Other European government                  |  |                 | 5,789  |  |      |  | 4,556  |      |  |  | 2,600  | 
|U.S. Treasury and U.S. government agencies |  |                 | 225    |  |      |  | 520    |      |  |  |       | 
|Collateralised Mortgage Obligations        |  |                 | 2,242  |  |      |  | 2,659  |      |  |  |       | 
|Corporate bonds                            |  |                 | 24,194 |  |      |  | 13,776 |      |  |  | 15,027 | 
|Other securities                           |  |                 | 1,859  |  |      |  | 7,048  |      |  |  | 1,515  | 
|                                           |  |                 |        |  |      |  |        |      | 
|                                           |  |                 | 36,844 |  |      |  | 31,534 |      |  |  | 22,711 | 
|                                           |  |                 |        |  |      |  |        |      | 

  




|                                         |  |                                     |       |                  |                   |  |                   |                    |          |  |                |  |  |          |      |  |         |  |          |        |  |  |         |  |  |  |     |  |  |  |      | 
|---------------------------------------- |  | ----------------------------------- | ----- | ---------------- | ----------------- |  | ----------------- | ------------------ | -------- |  | -------------- |  |  | -------- | ---- |  | ------- |  | -------- | ------ |  |  | ------- |  |  |  | --- |  |  |  | ---- | 
|                                         |  | At March 31, 2007                   |      
|                                         |  |                                     |      
|                                         |  |                                     |       | More than 1 year |                   |  | More than 5 years |                    |          | 
|                                         |  | Less than 1 year                    |       |                  | less than 5 years |  |                   | less than 10 years |          |  | After 10 years | 
|                                         |  |                                     |       |                  |                   |  |                   |                    |          |  |                | 
|                                         |  |                                     |       | Weighted         |                   |  |                   |                    | Weighted |  |                |  |  | Weighted |      |  |         |  | Weighted |       
|                                         |  |                                     |       | Average          |                   |  |                   |                    | Average  |  |                |  |  | Average  |      |  |         |  | Average  |       
|                                         |  | Market                              |       |                  | Percent           |  |                   | Market             |          |  | Percent        |  |  | Market   |      |  | Percent |  |          | Market |  |  | Percent | 
|                                         |  | Value                               |       |                  | Yield             |  |                   | Value              |          |  | Yield          |  |  | Value    |      |  | Yield   |  |          | Value  |  |  | Yield   | 
|                                         |  |                                     |       |                  |                   |  |                   |                    |          |  |                |  |  |          |      |  |         |  |          |        |  |  |         | 
|                                         |  | (in  millions, except percentages) |      
|Irish government                         |  |                                     | 1,572 |                  |                   |  | 4.21              |                    |          |  | 83             |  |  |          | 3.25 |  |         |  | 317      |        |  |  | 4.40    |  |  |  |    |  |  |  |     | 
|Other European government                |  |                                     | 240   |                  |                   |  | 3.34              |                    |          |  | 1,873          |  |  |          | 3.63 |  |         |  | 2,071    |        |  |  | 3.56    |  |  |  |    |  |  |  |     | 
|U.S. Treasury & U.S. government agencies |  |                                     | 224   |                  |                   |  | 4.14              |                    |          |  |               |  |  |          |     |  |         |  |         |        |  |  |        |  |  |  |    |  |  |  |     | 
|Collateralised Mortgage Obligations      |  |                                     | 47    |                  |                   |  | 5.98              |                    |          |  | 1,083          |  |  |          | 5.74 |  |         |  | 910      |        |  |  | 5.27    |  |  |  | 202 |  |  |  | 4.14 | 
|Corporate bonds                          |  |                                     | 6,212 |                  |                   |  | 4.61              |                    |          |  | 13,611         |  |  |          | 4.54 |  |         |  | 2,945    |        |  |  | 4.13    |  |  |  | 380 |  |  |  | 4.13 | 
|Other                                    |  |                                     | 430   |                  |                   |  | 4.62              |                    |          |  | 684            |  |  |          | 4.76 |  |         |  | 401      |        |  |  | 5.68    |  |  |  | 115 |  |  |  | 6.25 | 
|                                         |  |                                     |       |                  |                   |  |                   |                    |          |  |                |  |  |          |      |  |         |  |          |        |  |  |         | 
|Total market value                       |  |                                     | 8,725 |                  |                   |  |                   |                    |          |  | 17,334         |  |  |          |      |  |         |  | 6,644    |        |  |  |         |  |  |  | 697 |  |  |  |      | 
|                                         |  |                                     |       |                  |                   |  |                   |                    |          |  |                |  |  |          |      |  |         |  |          |        |  |  |         | 



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##### Table of Contents



Loans and Advances to Banks








|                                              |  |                 |       |  |      |  |        |      |  |  |       | 
|--------------------------------------------- |  | --------------- | ----- |  | ---- |  | ------ | ---- |  |  | ----- | 
|                                              |  | At March 31,    |      
|                                              |  |                 |      
|                                              |  | 2007            |       |  | 2006 |  |        | 2005 | 
|                                              |  |                 |       |  |      |  |        |      | 
|                                              |  | (in  millions) |      
|Placings with banks repayable within 30 days: |  |                 |       |  |      |  |        |      |  |  |       | 
|Domestic                                      |  |                 | 4,296 |  |      |  | 6,466  |      |  |  | 3,393 | 
|Foreign                                       |  |                 | 1,769 |  |      |  | 958    |      |  |  | 356   | 
|                                              |  |                 |       |  |      |  |        |      | 
|Total                                         |  |                 | 6,065 |  |      |  | 7,424  |      |  |  | 3,749 | 
|                                              |  |                 |       |  |      |  |        |      | 
|Placings with banks repayable beyond 30 days: |  |                 |       |  |      |  |        |      |  |  |       | 
|Domestic                                      |  |                 | 1,026 |  |      |  | 4,674  |      |  |  | 4,492 | 
|Foreign                                       |  |                 | 119   |  |      |  | 90     |      |  |  | 106   | 
|                                              |  |                 |       |  |      |  |        |      | 
|Total                                         |  |                 | 1,145 |  |      |  | 4,764  |      |  |  | 4,598 | 
|                                              |  |                 |       |  |      |  |        |      | 
|Total                                         |  |                 | 7,210 |  |      |  | 12,188 |      |  |  | 8,347 | 
|                                              |  |                 |       |  |      |  |        |      | 

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##### Table of Contents



LIABILITIES


Deposits




|                         |  |                 |        |  |      |  |        |      |  |  |        | 
|------------------------ |  | --------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                         |  | 2007            |        |  | 2006 |  |        | 2005 | 
|                         |  |                 |        |  |      |  |        |      | 
|                         |  | (in  millions) |       
|Branches in Ireland      |  |                 | 40,733 |  |      |  | 37,791 |      |  |  | 32,142 | 
|Branches outside Ireland |  |                 | 26,476 |  |      |  | 21,544 |      |  |  | 22,809 | 
|                         |  |                 |        |  |      |  |        |      | 
|Total                    |  |                 | 67,209 |  |      |  | 59,335 |      |  |  | 54,951 | 
|                         |  |                 |        |  |      |  |        |      | 

|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|------------------------ |  | ------------- | --- |  | --------------- |  | ------------- | ----------- |  |  | --------------- | ------------- |  | ----------- | ------ |  | --------------- |  | --- |  |  |  | ------ | 
|                         |  | Average       |     |  |                 |  | Average       |             |  |  |                 | Average       |  |             |       
|                         |  | Interest Rate |     |  |                 |  | Interest Rate |             |  |  |                 | Interest Rate |  |             |       
|                         |  | during 2007   |     |  | 2007            |  |               | during 2006 |  |  | 2006            |               |  | during 2005 |        |  | 2005            | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|                         |  | %             |     |  | (in  millions) |  |               | %           |  |  | (in  millions) |               |  | %           |        |  | (in  millions) | 
|Branches in Ireland      |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Current accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Interest bearing         |  |               | 2.0 |  |                 |  | 1,348         |             |  |  | 1.0             |               |  |             | 1,096  |  |                 |  | 1.1 |  |  |  | 971    | 
|Non-interest bearing     |  |               |    |  |                 |  | 10,813        |             |  |  |                |               |  |             | 9,613  |  |                 |  |    |  |  |  | 8,006  | 
|Deposit accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Demand                   |  |               | 2.1 |  |                 |  | 14,932        |             |  |  | 0.6             |               |  |             | 12,535 |  |                 |  | 0.7 |  |  |  | 11,488 | 
|Time                     |  |               | 3.5 |  |                 |  | 13,209        |             |  |  | 1.5             |               |  |             | 14,506 |  |                 |  | 0.8 |  |  |  | 11,035 | 
|Other deposits           |  |               | 3.9 |  |                 |  | 431           |             |  |  | 3.5             |               |  |             | 41     |  |                 |  | 6.8 |  |  |  | 642    | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|                         |  |               |     |  |                 |  | 40,733        |             |  |  |                 |               |  |             | 37,791 |  |                 |  |     |  |  |  | 32,142 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|Branches outside Ireland |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Current accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Interest bearing         |  |               | 3.9 |  |                 |  | 2,874         |             |  |  | 4.6             |               |  |             | 2,499  |  |                 |  | 3.5 |  |  |  | 2,553  | 
|Non-interest bearing     |  |               |    |  |                 |  | 1,145         |             |  |  |                |               |  |             | 965    |  |                 |  |    |  |  |  | 880    | 
|Deposit accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Demand                   |  |               | 3.7 |  |                 |  | 8,774         |             |  |  | 4.7             |               |  |             | 6,058  |  |                 |  | 4.0 |  |  |  | 7,975  | 
|Time                     |  |               | 5.1 |  |                 |  | 12,944        |             |  |  | 5.8             |               |  |             | 11,612 |  |                 |  | 4.5 |  |  |  | 11,397 | 
|Other Deposits           |  |               | 4.3 |  |                 |  | 739           |             |  |  | 4.5             |               |  |             | 410    |  |                 |  |    |  |  |  | 4      | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|                         |  |               |     |  |                 |  | 26,476        |             |  |  |                 |               |  |             | 21,544 |  |                 |  |     |  |  |  | 22,809 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|Total                    |  |               |     |  |                 |  | 67,209        |             |  |  |                 |               |  |             | 59,335 |  |                 |  |     |  |  |  | 54,951 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 







79



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|                        |  |                   |        |  |        |  |       |        |  |  |         |  |  |  |       | 
|----------------------- |  | ----------------- | ------ |  | ------ |  | ----- | ------ |  |  | ------- |  |  |  | ----- | 
|                        |  | At March 31, 2007 |       
|                        |  |                   |       
|                        |  | 0-3               |        |  | 3-6    |  |       | 6-12   |  |  | Over 12 | 
|                        |  | months            |        |  | months |  |       | months |  |  | months  | 
|                        |  |                   |        |  |        |  |       |        |  |  |         | 
|                        |  | (in  millions)   |       
|Time deposits           |  |                   |        |  |        |  |       |        |  |  |         |  |  |  |       | 
|Domestic branches       |  |                   | 7,785  |  |        |  | 682   |        |  |  | 271     |  |  |  | 1,788 | 
|Foreign branches        |  |                   | 9,123  |  |        |  | 537   |        |  |  | 639     |  |  |  | 641   | 
|Certificates of deposit |  |                   |        |  |        |  |       |        |  |  |         |  |  |  |       | 
|Domestic branches       |  |                   | 2,964  |  |        |  | 1,983 |        |  |  | 410     |  |  |  | 1,324 | 
|Foreign branches        |  |                   | 3,354  |  |        |  | 912   |        |  |  | 327     |  |  |  | 86    | 
|                        |  |                   |        |  |        |  |       |        |  |  |         | 
|                        |  |                   | 23,226 |  |        |  | 4,114 |        |  |  | 1,647   |  |  |  | 3,829 | 
|                        |  |                   |        |  |        |  |       |        |  |  |         | 



Short-Term Borrowings




|                          |             |                                     |        |      |      |  |        |      |  |  |        |      | 
|------------------------- | ----------- | ----------------------------------- | ------ | ---- | ---- |  | ------ | ---- |  |  | ------ | ---- | 
|                          |             | At March 31,                        |       
|                          |             |                                     |       
|                          |             | 2007                                |        |      | 2006 |  |        | 2005 | 
|                          |             |                                     |        |      |      |  |        |      | 
|                          |             | (in  millions, except percentages) |       
|Debt securities in issue  |             |                                     |        |      |      |  |        |      |  |  |        |     
|End of year outstandings  |             |                                     | 59,523 |      |      |  | 36,814 |      |  |  | 21,217 |     
|Highest month-end balance |             |                                     | 59,523 |      |      |  | 36,814 |      |  |  | 21,217 |     
|Average balance           |             |                                     | 43,128 |      |      |  | 30,193 |      |  |  | 17,746 |     
|Average rate of interest  |             |                                     |        |      |      |  |        |      |  |  |        |     
|                          | At year-end |                                     |        | 4.1% |      |  |        | 4.1% |  |  |        | 2.5% | 
|                          | During year |                                     |        | 4.5% |      |  |        | 3.7% |  |  |        | 3.0% | 
|Deposits by banks         |             |                                     |        |      |      |  |        |      |  |  |        |     
|End of year outstandings  |             |                                     | 14,258 |      |      |  | 22,385 |      |  |  | 17,539 |     
|Highest month-end balance |             |                                     | 22,536 |      |      |  | 22,958 |      |  |  | 19,020 |     
|Average balance           |             |                                     | 18,518 |      |      |  | 19,079 |      |  |  | 16,370 |     
|Average rate of interest  |             |                                     |        |      |      |  |        |      |  |  |        |     
|                          | At year-end |                                     |        | 5.3% |      |  |        | 3.7% |  |  |        | 3.4% | 
|                          | During year |                                     |        | 4.1% |      |  |        | 2.9% |  |  |        | 2.2% | 
|Repurchase agreements     |             |                                     |        |      |      |  |        |      |  |  |        |     
|End of year outstandings  |             |                                     | 6,147  |      |      |  | 10,167 |      |  |  | 3,326  |     
|Highest month-end balance |             |                                     | 13,881 |      |      |  | 10,832 |      |  |  | 4,173  |     
|Average balance           |             |                                     | 10,796 |      |      |  | 7,692  |      |  |  | 3,757  |     
|Average rate of interest  |             |                                     |        |      |      |  |        |      |  |  |        |     
|                          | At year-end |                                     |        | 5.1% |      |  |        | 3.4% |  |  |        | 2.3% | 
|                          | During year |                                     |        | 3.4% |      |  |        | 3.5% |  |  |        | 2.2% | 



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##### Table of Contents






Item 6     DIRECTORS, SENIOR
MANAGEMENT AND EMPLOYEES





DIRECTORS AND SENIOR MANAGEMENT






|                      |  |     |    |  |               |                                                    |                           |  |      | 
|--------------------- |  | --- | -- |  | ------------- | -------------------------------------------------- | ------------------------- |  | ---- | 
|Name                  |  | Age |    |  | Position held |                                                    | Year appointed a director | 
|                      |  |     |    |  |               |                                                    |                           | 
|Directors             |  |     |    |  |               |                                                    |                           |  |      | 
|Richard Burrows       |  |     | 61 |  |               | Governor                                           |                           |  | 2000 | 
|George M Magan        |  |     | 61 |  |               | Deputy Governor                                    |                           |  | 2003 | 
|Brian J Goggin [2004] |  |     | 55 |  |               | Group Chief Executive                              |                           |  | 2000 | 
|John ODonovan [2001] |  |     | 55 |  |               | Group Chief Financial Officer                      |                           |  | 2002 | 
|David J Dilger        |  |     | 50 |  |               | Non-Executive Director                             |                           |  | 2003 | 
|Paul M Haran          |  |     | 50 |  |               | Non-Executive Director                             |                           |  | 2005 | 
|Dennis Holt           |  |     | 58 |  |               | Non-Executive Director                             |                           |  | 2006 | 
|Declan McCourt        |  |     | 61 |  |               | Non-Executive Director                             |                           |  | 2004 | 
|Caroline A Marland    |  |     | 61 |  |               | Non-Executive Director                             |                           |  | 2001 | 
|Thomas J Moran        |  |     | 54 |  |               | Non-Executive Director                             |                           |  | 2001 | 
|Terence V Neill       |  |     | 61 |  |               | Non-Executive Director                             |                           |  | 2004 | 
|Richie Boucher [2005] |  |     | 48 |  |               | Chief Executive, Retail Financial Services Ireland |                           |  | 2006 | 
|Des Crowley [2006]    |  |     | 47 |  |               | Chief Executive, UK Financial Services             |                           |  | 2006 | 
|Denis Donovan [2006]  |  |     | 53 |  |               | Chief Executive, Capital Markets                   |                           |  | 2006 | 
|Executive Officers    |  |     |    |  |               |                                                    |                           |  |      | 
|John Clifford         |  |     | 57 |  |               | Group Secretary                                    |                           |  |      | 
|Ronan Murphy          |  |     | 55 |  |               | Group Chief Risk Officer                           |                           |  |      | 
|Tony Wyatt            |  |     | 57 |  |               | Director, Group Manufacturing                      |                           |  |      | 

Non-Executive Officers


Richard Burrows


Governor


2002-2005,




George M Magan FCA


Deputy Governor






81



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##### Table of Contents



Executive Directors


Brian J Goggin M Sc (Mgt), FCCA


Group Chief Executive






John ODonovan B Comm, FCA


Group Chief Financial Officer






Des Crowley BA(Mod) Econ, FCMA


Chief Executive, UK Financial Services






Richie Boucher


Chief Executive, Retail Financial Services Ireland






Denis Donovan B Comm, MBA


Chief Executive, Capital Markets






82



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##### Table of Contents



Non-Executive Directors


David J Dilger CBE, BA,
FCA






Paul M Haran M Sc, B
Sc






Dennis Holt BA,
ACIB






Caroline A Marland






Declan McCourt BL, MA,
MBA






Thomas J Moran B
Sc






83



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##### Table of Contents



Terence V Neill MA, M. Sc
(Econ)








|   |                                                           
|-- | ----------------------------------------------------------
|() | Senior Independent Director                               
|  
|+  | Chairman of Group Audit Committee                         
|  
|++ | Member of Group Audit Committee                           
|  
|X  | Chairman of Group Remuneration Committee                  
|  
|XX | Member of Group Remuneration Committee                    
|  
|C  | Chairman of Group Nomination & Governance Committee       
|  
|CC | Member of Group Nomination & Governance Committee         
|  
|T* | Chairman, Board of Trustees of the Bank Staff Pension Fund
|  
|T  | Trustee of the Bank Staff Pension Fund                    

Terms of Office of the Directors


re-election





REMUNERATION OF DIRECTORS AND OFFICERS


 


Executive Directors Remuneration Policy




Service contracts




Employee Stock Issue Scheme




84



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##### Table of Contents













Group Sharesave Scheme


    






Stock Option Scheme




85



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##### Table of Contents





Long Term Incentive Plan


Plan-2004 Plan-1999






|                                                                |  |                                                                                                                        
|--------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------
|                                                               
|The Banks total shareholder return performance                 |  | % of Units of Stock subject to an Award which may                                                                      
|relative to the Comparator Companies                            |  | be issued or transferred                                                                                               
|                                                               
|Equal to or better than the company ranked second               |  | 100%                                                                                                                   
|                                                               
|Between the company ranked median and the company ranked second |  | Greater than 35% and less than 100% (Pro rata based on the
    Banks performance relative to the Comparator Companies)
|                                                               
|Equal to the median                                             |  | 35%                                                                                                                    
|                                                               
|Below median                                                    |  | Nil                                                                                                                    
|                                                               







Group Pension Plans




 


86



---



##### Table of Contents



Interest of Management in Certain Transactions




Indebtedness of Directors and Executive Officers


 





CORPORATE GOVERNANCE STATEMENT











The Court of Directors








| |   |                                                                                             
| | - | --------------------------------------------------------------------------------------------
| |  | the determination of strategy and company values;                                           
|
| |  | overseeing the management of the business including control
    systems and risk management;
|
| |  | approving material acquisitions, disposals and investment
    decisions;                    
|
| |  | overseeing corporate governance and succession planning;                                    
|
| |  | guarantees entered into by the Group, other than in the normal
    course of business and;  
|
| |  | changes in Group pension schemes.                                                           

87



---



##### Table of Contents









Governor and Group Chief Executive










Board Balance and Independence






Appointments to the Court








88



---



##### Table of Contents





Information and Professional Development






Performance Evaluation








Election/Re-Election of Directors




re-elected re-election.


re-election




89



---



##### Table of Contents



Remuneration








Accountability and Audit


F-2.


Internal Controls




non-U.S.






| |   |                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a clearly defined organisation structure with defined authority
    limits and reporting mechanisms to higher levels of management
    and to the Court, which support the maintenance of a strong
    control environment;                                                                                                                                            
|
| |  | establishment of Committees with responsibility for core policy
    areas;                                                                                                                                                                                                                                                                                             
|
| |  | a comprehensive set of policies and procedures relating to
    financial controls, asset and liability management (including
    interest, currency and liquidity risk), operational risk and
    credit risk management.                                                                                                                                              
|
| |  | a Code of Conduct setting out the standards of behaviour
    expected of all Directors, Officers and employees. This covers
    arrangements, should the need arise, for the independent
    investigation and follow up of any concerns raised by staff
    regarding matters of financial reporting or other matters;                                                
|
| |  | monthly reporting by business units which enables progress
    against business objectives to be monitored, trends to be
    evaluated and variances to be acted upon;                                                                                                                                                                                                 
|
| |  | a semi-annual detailed operational risk assessment by all Group
    businesses with reports to Divisional Management on the
    effectiveness of their risk management systems. Heads of
    business units are required to certify the accuracy of the
    self-assessment and the results arising from this process are
    noted by the Group Risk Policy Committee.



90



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##### Table of Contents







Audit Committee and Auditors






| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | the integrity of the financial statements and any related formal
    announcements;                             
|
| |  | overseeing the relationship between the Group and its external
    auditors;                                    
|
| |  | the review of the Groups internal controls, including
    financial controls;                                  
|
| |  | the effectiveness of the internal audit, compliance and risk
    management functions;                          
|
| |  | the review of the internal and external audit plans and
    subsequent findings;                                
|
| |  | the selection of accounting policies;                                                                           
|
| |  | the review of the auditors report;                                                                             
|
| |  | obligations under applicable laws and regulations including SOx;
    and                                        
|
| |  | the review of the effectiveness of the services provided by the
    external auditors and other related matters.



91



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Attendance at scheduled meetings during the year ended
March 31, 2007


|                 |                                                                                                                    |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|---------------- | ------------------------------------------------------------------------------------------------------------------ | ----- | - | ----------- | --------- |  | ---------- | ------------ |  | ------------ | --------- |  |  | - | - |  | - |  | - | - |  |  | - |  |  |  | - |  |  |  | - |  | 
|                 |                                                                                                                    |       |   |             |           |  |            |              |  | Group        |           |  | 
|                 |                                                                                                                    |       |   |             |           |  |            | Nomination & |  |              | Group     | 
|                 |                                                                                                                    |       |   | Group Audit |           |  | Governance |              |  | Remuneration |          
|                 |                                                                                                                    | Court |   |             | Committee |  |            | Committee    |  |              | Committee | 
|                 |                                                                                                                    |       |   |             |           |  |            |              |  |              |           | 
|Name             |                                                                                                                    | A     |   |             | B         |  |            | A            |  |              | B         |  |  | A |   |  | B |  |   | A |  |  | B | 
|                 |                                                                                                                    |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   | 
|Roy E Bailie     |                                                                                                                    |       | 2 |             |           |  | 2          |              |  |              | 3         |  |  |   | 3 |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                 | Retired July 21, 2006                                                                                              |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Richie Boucher   |                                                                                                                    |       | 5 |             |           |  | 5          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                 | Appointed October 6, 2006                                                                                          |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Richard Burrows  |                                                                                                                    |       | 8 |             |           |  | 8          |              |  |              |          |  |  |   |  |  |   |  | 3 |   |  |  | 3 |  |  |  | 6 |  |  |  | 5 | 
|Des Crowley      |                                                                                                                    |       | 5 |             |           |  | 5          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                 | Appointed October 6, 2006                                                                                          |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|David Dilger     |                                                                                                                    |       | 8 |             |           |  | 8          |              |  |              | 7         |  |  |   | 7 |  |   |  | 3 |   |  |  | 3 |  |  |  |  |  |  |  |  | 
|Denis Donovan    |                                                                                                                    |       | 5 |             |           |  | 5          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                 | Appointed October 6, 2006                                                                                          |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Brian J Goggin   |                                                                                                                    |       | 8 |             |           |  | 8          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Paul Haran       |                                                                                                                    |       | 8 |             |           |  | 8          |              |  |              |          |  |  |   |  |  |   |  | 3 |   |  |  | 3 |  |  |  |  |  |  |  |  | 
|Mike Hodgkinson  |                                                                                                                    |       | 2 |             |           |  | 2          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                 | Retired July 21, 2006                                                                                              |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Dennis Holt      |                                                                                                                    |       | 5 |             |           |  | 5          |              |  |              | 3         |  |  |   | 3 |  |   |  |  |   |  |  |  |  |  |  | 5 |  |  |  | 5 | 
|                 | Appointed October 6, 2006; appointed to Audit Committee
    & Remuneration Committee October 10, 2006              |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|George Magan     |                                                                                                                    |       | 8 |             |           |  | 7          |              |  |              | 4         |  |  |   | 3 |  |   |  | 2 |   |  |  | 2 |  |  |  | 6 |  |  |  | 6 | 
|                 | Retired from Audit Committee October 10, 2006; appointed to
    Nomination & Governance Committee October 10, 2006 |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Caroline Marland |                                                                                                                    |       | 8 |             |           |  | 7          |              |  |              |          |  |  |   |  |  |   |  | 3 |   |  |  | 3 |  |  |  |  |  |  |  |  | 
|Declan McCourt   |                                                                                                                    |       | 8 |             |           |  | 7          |              |  |              | 7         |  |  |   | 7 |  |   |  |  |   |  |  |  |  |  |  | 6 |  |  |  | 5 | 
|Tom Moran        |                                                                                                                    |       | 8 |             |           |  | 7          |              |  |              | 7         |  |  |   | 6 |  |   |  | 3 |   |  |  | 3 |  |  |  |  |  |  |  |  | 
|Terry Neill      |                                                                                                                    |       | 8 |             |           |  | 7          |              |  |              | 7         |  |  |   | 7 |  |   |  |  |   |  |  |  |  |  |  | 6 |  |  |  | 5 | 
|Denis OBrien    |                                                                                                                    |       | 3 |             |           |  | 3          |              |  |              |          |  |  |   |  |  |   |  | 1 |   |  |  | 1 |  |  |  | 2 |  |  |  | 2 | 
|                 | Resigned September 12, 2006                                                                                        |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|John ODonovan   |                                                                                                                    |       | 8 |             |           |  | 8          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Mary Redmond     |                                                                                                                    |       | 2 |             |           |  | 2          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                 | Retired July 21, 2006                                                                                              |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 










Court Sub-Committees


Group Risk Policy Committee


Group Investment Committee


92



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##### Table of Contents





|                                                                                                                                                                                               |  |                                                                                                                                                                                         |  | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
|Group Risk Policy Committee                                                                                                                                                                    |  | Group Investment Committee                                                                                                                                                              |  | 
|                                                                                                                                                                                               |  |                                                                                                                                                                                         |  | 
|Ronan Murphy (Chairman)
    Richie Boucher*
    John Clifford
    Des Crowley*
    Denis Donovan*
    Brian J Goggin*
    Brian Lillis
    Vincent Mulvey
    John ODonovan*
    Mick Sweeney |  | Brian J Goggin* (Chairman)
    Richie Boucher*
    John Clifford
    Des Crowley*
    Denis Donovan*
    Cyril Dunne
    Lewis Love
    Ronan Murphy
    John ODonovan*
    Tony Wyatt |  | 

*     Court member


New York Stock Exchange (NYSE) Corporate Governance
Requirements


All non-U.S. companies listed on the NYSE are required to
disclose any significant differences between their corporate
governance practices and the requirements of the NYSE applicable
to U.S. companies.







EMPLOYEES









STOCK OPTIONS






93



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##### Table of Contents





|                        |  |                |           |  |                 |  |                       | 
|----------------------- |  | -------------- | --------- |  | --------------- |  | --------------------- | 
|                        |  | Number         |           |  |                
|                        |  | Outstanding at |           |  |                
|Exercise price ( cent) |  | June 29, 2007  |           |  | Exercise Period | 
|                        |  |                |           |  |                 | 
|5.753                   |  |                | 1,000     |  |                 |  | Nov 2000  Nov 2007   | 
|8.264                   |  |                | 156,000   |  |                 |  | May 2001  May 2008   | 
|8.933                   |  |                | 220,000   |  |                 |  | Jul 2002  Jul 2009   | 
|6.96                    |  |                | 281,000   |  |                 |  | May 2003  May 2010   | 
|9.15                    |  |                | 111,650   |  |                 |  | Nov 2003  Nov 2010   | 
|11.05                   |  |                | 404,000   |  |                 |  | May 2004  May 2011   | 
|10.54                   |  |                | 15,000    |  |                 |  | Nov 2004  Nov 2011   | 
|12.50                   |  |                | 540,000   |  |                 |  | Jun 2005  Jun 2012   | 
|10.65                   |  |                | 10,000    |  |                 |  | Dec 2005  Dec 2012   | 
|10.77                   |  |                | 984,500   |  |                 |  | Jun 2006  Jun 2013   | 
|10.54                   |  |                | 90,000    |  |                 |  | Dec 2006  Dec 2013   | 
|10.76                   |  |                | 1,451,000 |  |                 |  | Jul 2007  Jul 2014   | 
|12.85                   |  |                | 1,122,000 |  |                 |  | Jun 2008  Jun 2015   | 
|13.68                   |  |                | 47,514    |  |                 |  | Jan 2009  Jan 2016   | 
|14.00                   |  |                | 1,315,900 |  |                 |  | Jul 2009  Jul 2016   | 
|17.16                   |  |                | 87,290    |  |                 |  | Dec 2009  Dec 2016   | 
|15.45                   |  |                | 1,100,500 |  |                 |  | June 2010  June 2017 | 





|             |  |                     |         | 
|------------ |  | ------------------- | ------- | 
|             |  | UNITS OF 0.64      |        
|             |  | OF ORDINARY STOCK   |        
|             |  | As at June 29, 2007 |        
|             |  | Beneficial          |        
|             |  |                     |        
|DIRECTORS    |  |                     |         | 
|R Boucher    |  |                     | 1,923   | 
|R Burrows    |  |                     | 110,443 | 
|D Crowley    |  |                     | 94,365  | 
|D J Dilger   |  |                     | 2,998   | 
|D Donovan    |  |                     | 100,507 | 
|B J Goggin   |  |                     | 432,964 | 
|P M Haran    |  |                     | 2,407   | 
|D Holt       |  |                     | 5,031   | 
|J D McCourt  |  |                     | 25,674  | 
|G M Magan    |  |                     | 1,898   | 
|C A Marland  |  |                     | 2,201   | 
|T J Moran    |  |                     | 2,194   | 
|T V Neill    |  |                     | 94,300  | 
|J ODonovan  |  |                     | 77,050  | 
|SECRETARY    |  |                     |         | 
|J B Clifford |  |                     | 128,515 | 



94



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Limitations on Stock Issue and Stock Option Plans









|       |                                                  
|------ | -------------------------------------------------
|Item 7 | MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS




CONTROL OF REGISTRANT




|                                          |  |            |            |  |   |  |     | 
|----------------------------------------- |  | ---------- | ---------- |  | - |  | --- | 
|NAME                                      |  | Units held |            |  | % | 
|                                          |  |            |            |  |   | 
|Bank of Ireland Asset Management Limited* |  |            | 55,014,085 |  |   |  | 5.6 | 






|  |                                                                                                                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | This stockholding is not beneficially owned but is held on
    behalf of a range of clients, none of whom hold, so far as the
    Directors have been notified, more than 3% of the Issued
    Ordinary Stock.




RELATED PARTY TRANSACTIONS







DESCRIPTION OF U.S. STOCKHOLDERS







RELATIONS WITH STOCKHOLDERS


Relations with Stockholders


20-F




95



---



##### Table of Contents














|       |                      
|------ | ---------------------
|Item 8 | FINANCIAL INFORMATION






DIVIDEND POLICY




|                                    |  |                 |       |  |                   |  |       | 
|----------------------------------- |  | --------------- | ----- |  | ----------------- |  | ----- | 
|                                    |  | Dividends       |       |  | Translated into   | 
|                                    |  | per unit of     |       |  | U.S. cents        | 
|                                    |  | Ordinary Stock  |       |  | per Unit of       | 
|Dividend Payment Date               |  | (in euro cents) |       |  | Ordinary Stock(1) | 
|                                    |  |                 |       |  |                   | 
|Financial Year ended March 31, 2007 |  |                 |       |  |                   |  |       | 
|July 27, 2007 (2)                   |  |                 | 39.40 |  |                   |  | 53.27 | 
|January 16, 2007                    |  |                 | 21.00 |  |                   |  | 27.13 | 
|Financial Year ended March 31, 2006 |  |                 |       |  |                   |  |       | 
|July 28, 2006                       |  |                 | 34.30 |  |                   |  | 43.73 | 
|January 11, 2006                    |  |                 | 18.20 |  |                   |  | 22.09 | 
|Financial Year ended March 31, 2005 |  |                 |       |  |                   |  |       | 
|July 15, 2005                       |  |                 | 29.00 |  |                   |  | 34.91 | 
|January 5, 2005                     |  |                 | 16.60 |  |                   |  | 22.06 | 
|Financial Year ended March 31, 2004 |  |                 |       |  |                   |  |       | 
|July 16, 2004                       |  |                 | 26.60 |  |                   |  | 33.08 | 
|January 6, 2004                     |  |                 | 14.80 |  |                   |  | 18.90 | 
|Financial Year ended March 31, 2003 |  |                 |       |  |                   |  |       | 
|July 18, 2003                       |  |                 | 23.80 |  |                   |  | 26.75 | 
|January 7, 2003                     |  |                 | 13.20 |  |                   |  | 13.75 | 






|    |                                                            
|--- | -----------------------------------------------------------
|(1) | Translated at the Noon Buying Rate on the dates of payment.
|   
|(2) | Translated at the Noon Buying Rate on June 29, 2007.       



96



---



##### Table of Contents






LEGAL PROCEEDINGS







PROSPECTIVE ACCOUNTING CHANGES/ IMPACT OF NEW ACCOUNTING
POLICIES


IFRS
























97



---



##### Table of Contents



U.S. GAAP




SFAS 156  Servicing of Financial
Assets  an amendment to SFAS 140




SFAS 157  Fair Value Measurements




SFAS 159  The Fair Value Option for
Financial Assets and Financial Liabilities




Interpretation No. 48  Accounting for
Uncertainty in Income Taxes  an Interpretation of
FASB Statement No. 109









|       |                      
|------ | ---------------------
|Item 9 | THE OFFER AND LISTING




NATURE OF THE TRADING MARKET


  


98



---



##### Table of Contents



 














|                               |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|------------------------------ |  | -------------- | ----- |  | ------------ |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                               |  | Ordinary Stock |       |  | ADSs         | 
|                               |  |                |       |  |              | 
|                               |  | High           |       |  | Low          |  |       | High |  |  | Low   | 
|                               |  |                |       |  |              |  |       |      |  |  |       | 
|                               |  | (in euro)      |       |  | (in dollars) | 
|Financial Year ended March 31, |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|2003                           |  |                | 14.05 |  |              |  | 8.70  |      |  |  | 52.40 |  |  |  | 34.70 | 
|2004                           |  |                | 11.85 |  |              |  | 9.80  |      |  |  | 60.20 |  |  |  | 42.60 | 
|2005                           |  |                | 13.24 |  |              |  | 9.70  |      |  |  | 70.60 |  |  |  | 47.12 | 
|2006                           |  |                | 15.50 |  |              |  | 11.65 |      |  |  | 76.00 |  |  |  | 60.10 | 
|2007                           |  |                | 18.65 |  |              |  | 13.10 |      |  |  | 97.98 |  |  |  | 66.38 | 

99



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|                         |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|------------------------ |  | -------------- | ----- |  | ------------ |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                         |  | Ordinary Stock |       |  | ADSs         | 
|                         |  |                |       |  |              | 
|                         |  | High           |       |  | Low          |  |       | High |  |  | Low   | 
|                         |  |                |       |  |              |  |       |      |  |  |       | 
|                         |  | (in euro)      |       |  | (in dollars) | 
|Financial year 2005/2006 |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|First quarter            |  |                | 13.42 |  |              |  | 11.65 |      |  |  | 65.57 |  |  |  | 60.63 | 
|Second quarter           |  |                | 13.89 |  |              |  | 12.61 |      |  |  | 68.72 |  |  |  | 62.51 | 
|Third quarter            |  |                | 13.80 |  |              |  | 12.35 |      |  |  | 66.31 |  |  |  | 60.10 | 
|Fourth quarter           |  |                | 15.50 |  |              |  | 13.50 |      |  |  | 76.00 |  |  |  | 65.62 | 
|Financial year 2006/2007 |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|First quarter            |  |                | 15.35 |  |              |  | 13.10 |      |  |  | 75.94 |  |  |  | 66.38 | 
|Second quarter           |  |                | 15.42 |  |              |  | 13.15 |      |  |  | 79.44 |  |  |  | 67.19 | 
|Third quarter            |  |                | 17.50 |  |              |  | 15.20 |      |  |  | 92.17 |  |  |  | 77.60 | 
|Fourth quarter           |  |                | 18.65 |  |              |  | 15.89 |      |  |  | 97.98 |  |  |  | 85.93 | 
|Financial year 2007/2008 |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|First quarter            |  |                | 16.85 |  |              |  | 14.78 |      |  |  | 91.00 |  |  |  | 80.46 | 
|Month ended              |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|January 2007             |  |                | 18.00 |  |              |  | 17.12 |      |  |  | 93.50 |  |  |  | 88.80 | 
|February 2007            |  |                | 18.65 |  |              |  | 17.25 |      |  |  | 97.98 |  |  |  | 90.70 | 
|March 2007               |  |                | 17.41 |  |              |  | 15.89 |      |  |  | 92.60 |  |  |  | 85.93 | 
|April 2007               |  |                | 16.70 |  |              |  | 15.66 |      |  |  | 91.00 |  |  |  | 85.63 | 
|May 2007                 |  |                | 16.85 |  |              |  | 15.85 |      |  |  | 90.90 |  |  |  | 86.21 | 
|June 2007                |  |                | 16.15 |  |              |  | 14.78 |      |  |  | 87.10 |  |  |  | 80.46 | 








|        |                       
|------- | ----------------------
|Item 10 | ADDITIONAL INFORMATION




CHARTER AND BYE-LAWS




|   |                                 
|-- | --------------------------------
|1. | Objects and Registration Details



| |                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Governor and Company of the Bank of Ireland (the
    Bank) is registered in Ireland with the Companies
    Office under
    No. C-1. The
    corporation was established pursuant to a Charter granted by
    King George III on foot of an Act of the Irish Parliament passed
    in 1781/82. The Charter was granted in 1783.                                                
|
| | The corporations objects and purposes were set out
    originally in the Charter and have been amended by legislation
    (in 1872 and 1929) and by resolutions passed by the stockholders
    meeting in General Court in 1972 and 1995. The principal objects
    of the corporation are to carry on the business of banking and
    to undertake all types of financial services.



|   |          
|-- | ---------
|2. | Directors



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Any Director interested in a contract must declare his/her
    interest at a meeting of the Directors at which the question of
    entering into such contract first arises. The Bye-Laws also
    require that a Director may not vote in respect of any proposal
    in which he or any person connected with him has a material
    interest of making this determination. Interests in stock,
    shares, debenture or other securities of the Group are
    disregarded for the purpose. A Director cannot be counted in a
    quorum of the Court of Directors or of the meeting of a
    committee in relation to any resolution on which he is debarred
    from voting. The prohibition on voting in respect of contracts
    in which Directors are interested is disapplied in respect of
    proposals:



| |     |                                                                                                                                                
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | where a Director is given security or indemnified in respect of
    money lent or obligations incurred by him for the benefit of the
    Group;

100



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| |     |                                                                                                                                                                                                                                                                     
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) | giving security or indemnifying a third party in respect of a
    debt or obligation of the Group;                                                                                                                                                                  
|
| | (c) | relating to an offer of debentures or securities of the Group in
    which a Director is interested as an underwriter;                                                                                                                                              
|
| | (d) | regarding any proposal concerning any other company in which a
    Director is interested, directly or indirectly, provided that
    the director does not hold or is not beneficially interested in
    more than 1% of any class of share capital of that company;
|
| | (e) | regarding any pension or retirement fund or stock option scheme
    from which a Director might benefit and which has been approved
    by the Revenue Commissioners; and                                                                                           
|
| | (f) | regarding any proposal to purchase and maintain insurance
    against any liability incurred by Directors and Officers of the
    Group.                                                                                                                            



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The remuneration of Directors is fixed from time to time by the
    stockholders in General Court. Such remuneration is divided
    among them as the Directors determine. Such remuneration shall
    be independent of any remuneration to which a Director may be
    entitled in respect of any other office or appointment within
    the Group. In the absence of an independent quorum, the
    Directors are not competent to vote compensation to themselves
    or any members of their body. The Governor and Deputy Governor,
    elected from time to time by the Directors, are office holders
    and are remunerated on terms established by the Directors.
|
| | Directors may exercise all the borrowing powers of the Group and
    may give security in connection therewith. These borrowing
    powers may be amended or restricted only by the stockholders in
    General Court.                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | There is no age limit requirement in the Bye-laws that specifies
    when a Director must retire. However the Directors have adopted
    as a guideline that the normal retirement age for non-executive
    directors is age 68.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | All Directors must hold at least 1,000 units of Ordinary Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | In accordance with The Combined Code on Corporate
    Governance, adopted by the Irish Stock Exchange and the
    London Stock Exchange, all Directors retire by rotation every
    three years and, if eligible, may offer themselves for
    re-election subject to satisfactory performance evaluation.                                                                                                                                                                                                                                                                                                                                                               



|   |                                           
|-- | ------------------------------------------
|3. | Rights and Restrictions Attaching to Stock



|    |               
|--- | --------------
|(a) | Ordinary Stock



| |                
| | ---------------
| | Dividend Rights



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Under Irish law, and under the Bye-Laws of the Group, dividends
    are payable on the Ordinary Stock of the Bank only out of
    profits available for distribution. Holders of the Ordinary
    Stock of the Bank are entitled to receive such dividends as may
    be declared by the stockholders General Court, provided that the
    dividend cannot exceed the amount recommended by the Directors.
    The Bank may pay stockholders such interim dividends as appear
    to the Directors to be justified by the profits of the Bank. Any
    dividend which has remained unclaimed for 12 years from the
    date of its declaration may be forfeited and cease to remain
    owing by the Bank.



| |              
| | -------------
| | Voting Rights



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Voting at any General Court is by a show of hands unless a poll
    is properly demanded. On a show of hands, every stockholder who
    is present in person or by proxy has one vote regardless of the
    number of units of stock held by him. On a poll, every
    stockholder who is present in person or by proxy has one vote
    for every unit of Ordinary Stock of
    0.64 each. A
    poll may be demanded by the chairman of the meeting or by at
    least nine members of the Group present in person or by proxy
    and entitled to vote on a poll. The necessary quorum for a
    General Court is 10 persons present in person or by proxy and
    entitled to vote.
|
| | All business is considered to be special business if it is
    transacted at an Extraordinary General Court as is all business
    transacted at an Annual General Court other than the declaration
    of a dividend, the consideration of the accounts, the balance
    sheet and reports of the Directors and Auditors, the election of
    Directors in the                                                                                                                                                                                                                                                                                                                         

101



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | place of those retiring, the re-appointment of the retiring
    Auditors, and the determination of the remuneration of the
    Auditors, all of which is deemed ordinary business. Special
    business is dealt with by way of a special resolution, which
    must be passed by not less than three fourths of the votes cast
    by such members as being entitled so to do, vote in person or,
    where proxies are allowed, by proxy at a General Court at which
    not less than 21 days notice specifying the intention
    to propose a resolution as a special resolution has been duly
    given. Ordinary business is dealt with by way of an ordinary
    resolution which requires a simple majority of the votes cast by
    the members voting in person or by proxy at a General Court.
    Where an equal number of votes has been cast on any resolution
    the chairman of the meeting is entitled to a second or casting
    vote.



| |                   
| | ------------------
| | Liquidation Rights



| |                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In the event of any surplus arising on the occasion of the
    liquidation of the Bank the Ordinary Stockholders would be
    entitled to a share in that surplus pro rata to their
    holdings of Ordinary Stock.



|    |                 
|--- | ----------------
|(b) | Preference Stock



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The capital of the Bank is divided into Ordinary Stock and
    Non-Cumulative Dollar Preference Stock, Non-Cumulative Sterling
    Preference Stock and Non-Cumulative Euro Preference Stock. At
    June 29, 2007 there were in issue 1,876,090 units of
    Non-Cumulative Sterling Preference Stock and 3,026,598 units of
    Non-Cumulative Euro Preference Stock. The holders of
    Non-Cumulative Sterling and Euro Preference Stock are entitled
    to a fixed annual dividend in accordance with the terms and
    conditions relating to the issue of the Preference Stock. Any
    dividend which has remained unclaimed for 12 years from the
    date of its declaration may be forfeited and cease to remain
    owing by the Bank.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | The Non-Cumulative Sterling Preference Stock and the
    Non-Cumulative Euro Preference Stock ranks pari passu inter
    se and the right to a fixed dividend is in priority to the
    dividend rights of Ordinary Stock in the capital of the Bank. On
    a winding up or other return of capital by the Bank the
    Non-Cumulative Sterling Preference Stockholders and the
    Non-Cumulative Euro Preference Stockholders are entitled to
    receive, out of the surplus assets available for distribution to
    the Banks members, an amount equal to the amount paid up
    on their Preference Stock including any Preference Dividend
    outstanding at the date of the commencement of the winding-up or
    other return of capital. Otherwise the preference stockholders
    are not entitled to any further or other right of participation
    in the assets of the Bank.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | Bye-Law 7 enables the Directors to issue and allot new
    Preference Stock (the 2005 Preference Stock) which
    can be either redeemable or non-redeemable, and can be
    denominated in U.S. dollars, in euro or in sterling. Any
    Preference Stock issued under Bye-Law 7 will rank equivalently
    to the existing Euro and Sterling Preference Stock as regards
    entitlements to dividends. On March 2, 2005, BOI Capital
    Funding (No. 1) LP, a limited partnership organised under
    the law of England and Wales, issued Preferred Securities to a
    value of
    600,000,000,
    which qualify as an Alternative Capital Instrument
    (ACI) for the purposes of the capital adequacy
    requirements of the Financial Regulator and thus contribute to
    the capital base of the Bank. On January 27, 2006, BOI
    Capital Funding (No. 2) LP, a limited partnership organised
    under the Law of England and Wales, issued Preferred Securities
    to a value of U.S.$800,000,000. On February 3, 2006, BOI
    Capital Funding (No. 3) LP, a limited partnership organised
    under the law of England and Wales, issued Preferred Securities
    to a value of U.S.$400,000,000. On September 19, 2006 BOI
    Capital Funding (No. 4) LP, a limited partnership
    established under the law of England and Wales, issued Preferred
    Securities to a value of Stg£500,000,000. Bye-Law 7 permits
    the substitution of all the outstanding Preferred Securities in
    the event of the occurrence of a Trigger Event. A Trigger Event
    will occur when the capital adequacy requirements of the
    Financial Regulator have been, or are expected to be, breached.



|   |                          
|-- | -------------------------
|4. | Variation of Class Rights



| |                                                                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The rights attached to the Ordinary Stock of the Group may be
    varied or abrogated, either while the Group is a going concern
    or during or in contemplation of a winding-up, with the sanction
    of a resolution passed at a class meeting of the holders of the
    Ordinary Stock. Similarly, the rights, privileges, limitations
    or restrictions

102



---



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | attached to the Preference Stock may be varied, altered or
    abrogated, either while the Group is a going concern or during
    or in contemplation of a winding-up, with the written consent of
    the holders of not less than 75% of such class of stock or with
    the sanction of a resolution passed at a class meeting at which
    the holders of 75% in nominal value of those in attendance vote
    in favour of the resolution.



|   |                            
|-- | ---------------------------
|5. | Convening of General Courts



| |                                                                                                                                                                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Annual General Courts and a Court called for the passing of a
    special resolution must be called by 21 days notice
    in writing. The notice must specify the place and date of the
    meeting and, in the case of special business, must give the
    general nature of that business. Admission to General Courts is
    limited to members of the Bank and validly appointed proxies.



|   |                                           
|-- | ------------------------------------------
|6. | Limitation on the Rights to Own Securities



| |                                                                                                                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Neither the Charter nor the Bye-Laws impose restrictions on the
    right of non-resident or foreign shareholders to own securities
    in the Group. See, however, Exchange Control and Other
    Limitations Affecting Security Holders on page 104, for
    restrictions imposed in the context of EU and UN sanctions.



|   |                      
|-- | ---------------------
|7. | Further Capital Calls



| |                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Bye-Laws 17 to 22 deal with the mechanisms that enable the
    Directors to make calls upon members in respect of any moneys
    unpaid on their stock. All of the issued Ordinary and Preference
    Stock is fully paid up.



|   |                                  
|-- | ---------------------------------
|8. | Limitation on a Change of Control



| |                
| | ---------------
| | Not applicable.



|   |                              
|-- | -----------------------------
|9. | Disclosure of Stock Ownership



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Under Irish company law where a person acquires an interest in
    shares in a public limited company (and the Group is considered
    to be a public limited company for these purposes) or ceases to
    be interested in such shares, he has an obligation to notify the
    company of the interests he has, or had, in its shares. The
    initial notifiable threshold is 5% of the aggregate nominal
    value of the issued share capital carrying rights to vote in all
    circumstances at a general meeting of the company. In addition,
    if the shares of the company are quoted on the Irish Stock
    Exchange and a person becomes aware that he has acquired, or has
    ceased to have an interest in, shares in a quoted company, he
    must notify the exchange when his interest in such shares
    exceeds or falls below, as the case may be, certain reference
    levels: 10%, 25%, 50% and 75%.                                                                                                                                                                                                                                                                                                                                              
|
| | Under the Bye-Laws of the Group any member may be requested to
    declare by statutory declaration whether he is beneficially
    entitled to Ordinary Stock of which he is the registered owner
    and, if not, to disclose the person or persons for whom he holds
    such Ordinary Stock in trust. Such a declaration must be made
    within 14 days of service of the notice. Failure to respond
    to the notice in the prescribed period entitles the Directors to
    serve a disenfranchisement notice to such member with the
    consequence that the member may not attend or vote, either
    personally or by proxy, at any General Court of the Group or
    exercise any other rights conferred by membership in respect of
    his holding Ordinary Stock (the Default Stock). In
    addition, where the Default Stock amounts to more than 5% of the
    Ordinary Stock then in issue of the Group then the
    disenfranchisement notice can state that no dividend will be
    payable on the Default Stock, and that no transfer of the
    Default Stock will be registered by, or on behalf of, the Group.
    A disenfranchisement notice may continue in effect for as long
    as the default in respect of which it was issued continues.



|    |                                                                                        
|--- | ---------------------------------------------------------------------------------------
|10. | Employee Share Schemes, Long Term Incentive Plan and
    Executive Stock Option Schemes



| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Stockholders of the Bank have from time to time approved (and
    renewed) executive stock option schemes and more broadly based
    employee profit participation plans.

103



---



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Group Sharesave Scheme (1999), established under similar
    enabling legislation in both Ireland and the United Kingdom,
    enables participating employees, who enter into a savings
    related contract, to be granted an option to acquire units of
    Ordinary Stock on completion of that contract at a price related
    to the market price which prevailed at the time of the granting
    of the option. Eligible employees, whose remuneration is subject
    to Irish or UK income tax, may be awarded options over stock the
    exercise price of which may be set at a discount of up to 25% of
    the prevailing stock market price (20% in the UK). Participants
    must take out an approved savings contract and may contribute
    from 12 to
    320 per month.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | The Long Term Incentive Plan (2004) is restricted to senior
    executive officers and focuses on the Groups Total
    Shareholder Return (TSR) relative to a group of 17
    leading European financial services businesses. The TSR takes
    into account both the Groups stock price performance and
    dividend payments to stockholders. The Long Term Incentive Plan
    is median-based and competitive relative to other leading
    financial services businesses in Europe, and provides incentives
    for eligible management that are aligned with stockholders
    interests, and is designed to ensure that the Group continues to
    recruit, retain and motivate high quality executives. Under the
    Plan, senior executives may receive conditional awards of stock
    worth up to one times salary each year (or up to 1.5 times
    salary in the case of the Group Chief Executive) but these
    awards will vest in full only if the Groups total
    shareholder return over three years is ranked first or second
    relative to a group of 17 leading European financial services
    businesses. No awards will vest if the Groups total
    shareholder return is below the median relative to those
    companies or if the average Return on Equity (ROE)
    is less than 20% per annum.
|
| | The Group Executive Stock Option Scheme (2004) focuses on
    underlying earnings per share (underlying EPS)
    growth. The scheme, which is median based and competitive in
    relation to other leading financial services businesses in
    Europe, also provides incentives for eligible management that
    are aligned with stockholders interests and to ensure that
    the Group can continue to recruit, retain and motivate high
    quality executives. Under the scheme, executives may be granted
    options to purchase stock up to one times salary each
    year. These options will only be exercisable if the Groups
    underlying EPS growth over three years exceeds the increase in
    the Consumer Price Index by at least 5% per annum compound.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | The Group Staff Stock Issue Scheme (2006) was established
    under profit sharing legislation and approved by the Revenue
    Commissioners in Ireland. All Irish-resident employees
    (including executive directors of the Bank and of participating
    companies) are eligible to participate in the scheme. As
    presently implemented the scheme allows the Group to make an
    award of free stock up to a maximum of 6% of the salary of
    eligible employees in any one year, up to a ceiling of
    12,700. Subject
    to being held in trust for a period of three years, the stock is
    passed to the employee tax free and is thereby a very tax
    efficient mechanism for creating employee stock ownership. The
    amount of stock allocated by the directors reflects the
    Groups performance but cannot exceed 5% of the
    consolidated profits of the Group in any year. The Stock
    Incentive Plan (2003) approved by the Inland Revenue of the
    United Kingdom, makes similar provisions for employees of the
    Bank or any participating company resident in the United Kingdom.                                                                                                                                                                                                        
|
| | The Restricted Stock Plan (2006) makes provision for the
    award, to U.S.-based employees of the Bank or participating
    subsidiaries, of Ordinary Stock of the Bank. Eligible employees
    must have been in continuous employment with the Bank or a
    participating subsidiary for a period of at least
    12 months. As in the case of the Staff Stock Issue (2006),
    stock awarded under the Restricted Stock Plan must be held for
    at least three years, and the maximum award cannot exceed 6% of
    the base salary in any year. Awards will be made at the
    discretion of the Directors, by reference to the profitability
    of the Bank, but may not exceed, other similar schemes, when
    cumulated with 5% of the consolidated profits of the Bank. No
    awards have been made under this plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| | All of the above stock issue and stock option schemes are
    subject to a range of flow rate controls approved by the
    stockholders and which conform to current institutional investor
    guidelines.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              



|    |                                             
|--- | --------------------------------------------
|10. | Directors and Officers Liability Insurance



| |                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Irish company law permits companies to purchase and maintain
    insurance against directors and officers liability.
    The Bye-Laws of the Group enable the Group to purchase such
    liability insurance and make it clear

104



---



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| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | that directors are entitled to vote and be counted in the quorum
    in respect of any resolution concerning the purchase of such
    insurance.




EXCHANGE CONTROLS AND OTHER LIMITATIONS AFFECTING SECURITY
HOLDERS







TAXATION


While the summary discussion relates
to material matters relevant to the tax laws of the United
States and Ireland, all holders should consult their own tax
advisors as to the Irish, U.S. or any other tax consequences of
the purchase, ownership and disposition of an interest in
Ordinary Stock or ADSs including the effect of any foreign state
or local tax laws as they apply to their particular
circumstances.










105



---



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Irish Taxation


http://www.revenue.ie/leaflets/dwtinfv3.pdf.






Gain on Disposition.


Irish Stamp Duty:






United States Federal Income Taxation


Dividends. non-corporate 121-day ex-dividend


106



---



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Gain on Disposition.




United States and Irish Estate and Gift Taxation




107



---



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inter
vivos









DOCUMENTS AVAILABLE THROUGH THE SEC


20-F 1-800-SEC-0330 www.sec.gov





Item 11     QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK





RISK MANAGEMENT AND CONTROL




Risk Management Approach










| |   |                                            
| | - | -------------------------------------------
| |  | Credit (including Group Credit Review);    
|
| |  | Market Risk;                               
|
| |  | Operational Risk;                          
|
| |  | Office of the Group Chief Risk Officer; and

108



---



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| |   |                              
| | - | -----------------------------
| |  | Regulatory Risk & Compliance.







| |     |                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------
| | (a) | Emphasising a portfolio approach to risk management in addition
    to a transactional approach;



| |     |                                                            
| | --- | -----------------------------------------------------------
| | (b) | Leading the discussion on the setting of risk appetite and;



| |     |                                                                                                                              
| | --- | -----------------------------------------------------------------------------------------------------------------------------
| | (c) | Providing appropriate risk measurements to influence the
    assessment of business performance and corporate development and



| |     |                                                                                                   
| | --- | --------------------------------------------------------------------------------------------------
| | (d) | Structuring business growth aspirations in a manner consistent
    with the Groups risk appetite.



Group Risk Governance Framework








| |   |                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Ensures that management is accountable for the effective
    identification, measurement and control of all key risks and
    that these risks are adequately covered by capital.
|
| |  | Ensures that management cannot materially alter the nature or
    scale of risk assumed by the Group without reference to the
    Court.                                         
|
| |  | Approves the terms of reference, operating parameters and
    membership of Group Risk Policy Committee (GRPC).                                                                
|
| |  | Approves the Group Risk Framework and Group Credit Policy and
    all material changes thereto.                                                                                  
|
| |  | Approves the Groups risk appetite and loss tolerance.                                                                                                                           
|
| |  | Approves other key high-level risk limits as required by risk
    policies.                                                                                                      
|
| |  | Reviews regular reports on the size and composition of all key
    risks.                                                                                                        
|
| |  | Reviews the proceedings of GRPC.                                                                                                                                                 







| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | Group Credit Committee  approval of all large credit
    transactions;    
|
| |  | Portfolio Review Committee  composition of the
    Groups loan portfolio;

109



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| |   |                                                                                                 
| | - | ------------------------------------------------------------------------------------------------
| |  | Group Asset and Liability Committee (ALCO)  market,
    liquidity risk and capital;            
|
| |  | Risk Measurement Committee  credit risk measurement
    and risk model validation              
|
| |  | Group Operational Risk Committee  operational risk;                                            
|
| |  | Group Regulatory Risk and Compliance Committee 
    regulatory risk and compliance;            
|
| |  | Group Debt Underwriting Committee  control and
    oversight of debt underwriting transactions;
|
| |  | Private Equity Governance Committee  approval of
    equity investments;                       
|
| |  | Group Tax Committee  oversight of tax policy; and                                              
|
| |  | Basel II Steering  governance & oversight of
    Basel II Programme.                           

Risk Concentrations




Risk Appetite






| |   |                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------
| |  | Ensure Short-Term Financial Stability (e.g. Loss Tolerance/
    Earnings volatility)                            
|
| |  | Maintain Capital Levels (e.g. Economic Capital, Target Capital
    Levels)                                      
|
| |  | Protect the Long Term Group Franchise (e.g. Target Debt Rating,
    Use of Risk/ Capital in Strategic Decisions)



Stress Testing/ Scenario Analysis






Basel II




110



---



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CREDIT RISK




Lending Authorities




Credit Policy




Country/ Bank Limits




Rating Methodologies








111



---



##### Table of Contents







Impairment Provisions






















112



---



##### Table of Contents



MARKET RISK


Policy and Governance










Risk Measurement and Control














113



---



##### Table of Contents



Trading and Banking Book Risk


intent to trade








|                                   |  |                 |     |  |                |  |     | 
|---------------------------------- |  | --------------- | --- |  | -------------- |  | --- | 
|                                   |  | Year Ended      |     |  | Year Ended     | 
|                                   |  | March 31, 2007  |     |  | March 31, 2006 | 
|                                   |  |                 |     |  |                | 
|                                   |  | (in  millions) |    
|Trading and Banking Books in BoIGM |  |                 |     |  |                |  |     | 
|End Year VaR                       |  |                 | 2.2 |  |                |  | 3.1 | 
|Average VaR                        |  |                 | 4.0 |  |                |  | 4.2 | 
|Highest VaR                        |  |                 | 8.2 |  |                |  | 7.6 | 
|Trading Book                       |  |                 |     |  |                |  |     | 
|End Year VaR                       |  |                 | 1.6 |  |                |  | 1.1 | 
|Average VaR                        |  |                 | 1.9 |  |                |  | 1.8 | 
|Highest VaR                        |  |                 | 3.1 |  |                |  | 4.0 | 

   


  




Derivatives




114



---



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F-17.


Policy










Collateral Agreements






STRUCTURAL FOREIGN EXCHANGE




115



---



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|                             |  |                 |       |  |                |  |       | 
|---------------------------- |  | --------------- | ----- |  | -------------- |  | ----- | 
|                             |  | March 31, 2007  |       |  | March 31, 2006 | 
|                             |  |                 |       |  |                | 
|                             |  | (in  millions) |      
|GBP                          |  |                 | 3,980 |  |                |  | 3,373 | 
|U.S.D                        |  |                 | 256   |  |                |  | 264   | 
|                             |  |                 |       |  |                | 
|Total structural FX position |  |                 | 4,236 |  |                |  | 3,637 | 
|                             |  |                 |       |  |                | 

 


LIQUIDITY RISK














OPERATIONAL RISK




Operational Risk Governance




116



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Operational Risk Management Approach








| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Formulation and dissemination of the Group Operational Risk
    Policy;                                                                                          
|
| |  | Establishment of organisational structures for the oversight,
    monitoring and management of operational risk throughout the
    Group;                        
|
| |  | Embedding the Operational Risk Management Process in all
    business and support units throughout the Group; and                                                
|
| |  | Creating awareness throughout the Group of the need to manage
    operational risk and training of relevant staff in the
    Operational Risk Management Process.



The Operational Risk Management Process




Operational Risk Reporting








117



---



##### Table of Contents



REGULATORY RISK & COMPLIANCE













Item 12 DESCRIPTION OF SECURITIES OTHER THAN EQUITY
SECURITIES




118



---



##### Table of Contents






PART II







|        |                                              
|------- | ---------------------------------------------
|Item 13 | DEFAULTS, DIVIDEND ARREARAGES & DELINQUENCIES








|        |                                                                               
|------- | ------------------------------------------------------------------------------
|Item 14 | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
    & USE OF PROCEEDS








|        |                        
|------- | -----------------------
|Item 15 | CONTROLS AND PROCEDURES



|    |                                                 
|--- | ------------------------------------------------
|(a) | Evaluation of Disclosure Controls and Procedures

13a-15(e)


(b) Managements Report on Internal Control over
Financial Reporting










Item 16







|         |                                 
|-------- | --------------------------------
|Item 16A | Audit Committee Financial Expert

20-F.


119



---



##### Table of Contents








|         |               
|-------- | --------------
|Item 16B | Code of Ethics








|         |                                       
|-------- | --------------------------------------
|Item 16C | Principal Accountant Fees and Services








|         |                                                           
|-------- | ----------------------------------------------------------
|Item 16D | Exemptions from the Listing Standards for Audit Committees








|         |                                                                           
|-------- | --------------------------------------------------------------------------
|Item 16E | Purchases of Equity Securities by the Issuer and Affiliated
    Purchasers



120



---



##### Table of Contents






PART III







|        |                     
|------- | --------------------
|Item 17 | FINANCIAL STATEMENTS








|        |                     
|------- | --------------------
|Item 18 | FINANCIAL STATEMENTS



|                                                        |  |      |      | 
|------------------------------------------------------- |  | ---- | ---- | 
|                                                        |  | Page |     
|                                                        |  |      |     
|Bank of Ireland Group Financial Statements:             |  |      |      | 
|Statement of Directors Responsibilities                |  |      | F-2  | 
|Report of Independent Registered Public Accounting Firm |  |      | F-3  | 
|Consolidated Income Statement                           |  |      | F-5  | 
|Consolidated Balance Sheet                              |  |      | F-6  | 
|Statement of Recognised Income and Expense              |  |      | F-7  | 
|Consolidated Cash Flow Statement                        |  |      | F-8  | 
|Index to Accounting policies                            |  |      | F-10 | 
|Index to Notes to the Consolidated Financial Statements |  |      | F-30 | 






|        |         
|------- | --------
|Item 19 | EXHIBITS

|     |  |   |  |                                                                                                                                                                                                                                                                                                                         
|---- |  | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1.1  |  |  |  | Charter & Acts (incorporated by reference to
    Exhibit 1.1 of the annual report on Form 20-F of The
    Governor and Company of the Bank of Ireland for the financial
    year ended March 31, 2001, File No. 1-14452).                                                                                               
|1.2  |  |  |  | Bye-Laws                                                                                                                                                                                                                                                                                                                
|4.1  |  |  |  | Rules of the Bank of Ireland Group Stock Options
    Scheme  2004 (incorporated by reference to
    Exhibit 4 of the annual report on Form 20-F of The
    Governor and Company of the Bank of Ireland for the financial
    year ended March 31, 2001, File No. 1-14452).                                             
|4.2  |  |  |  | Rules of the Bank of Ireland Group Long Term Performance Stock
    Plan (incorporated by reference to Exhibit 4 of the annual
    report on Form 20-F of The Governor and Company of the Bank
    of Ireland for the financial year ended March 31, 2001, File
    No. 1-14452).                                        
|4.3  |  |  |  | Rules of the Bank of Ireland Group Long Term Incentive Plan 2004
    and Executive Stock Option Scheme 2004 (incorporated by
    reference to Exhibit 4 of the annual report on
    Form 20-F of The Governor and Company of the Bank of
    Ireland for the financial year ended March 31, 2006, File
    No. 1-14452).
|4.4  |  |  |  | Rules of the Bank of Ireland Group Staff Stock Issue 2006
    (incorporated by reference to Exhibit 4 of the annual
    report on Form 20-F of The Governor and Company of the Bank
    of Ireland for the financial year ended March 31, 2006,
    File No. 1-14452).                                                  
|8    |  |  |  | List of significant subsidiaries  incorporated by
    reference to page 19 of this Form 20-F.                                                                                                                                                                                                                          
|12.1 |  |  |  | Certification by the Chief Executive Officer as required by
    Section 302 of Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                              
|12.2 |  |  |  | Certification by the Chief Financial Officer as required by
    Section 302 of Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                              
|13.1 |  |  |  | Certification by the Chief Executive Officer as required by
    Section 906 of Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                              
|13.2 |  |  |  | Certification by the Chief Financial Officer as required by
    Section 906 of Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                              
|15.1 |  |  |  | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                               

121



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##### Table of Contents



BANK OF IRELAND GROUP


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


Year Ended March 31, 2007


|                                                            |  |      |      | 
|----------------------------------------------------------- |  | ---- | ---- | 
|                                                            |  | Page |     
|                                                            |  |      |     
|Statement of Directors
    Responsibilities                |  |      | F-2  | 
|Report of Independent Registered Public
    Accounting Firm |  |      | F-3  | 
|Consolidated Income Statement                               |  |      | F-5  | 
|Consolidated Balance Sheet                                  |  |      | F-6  | 
|Consolidated Statement of Recognised Income
    and Expense |  |      | F-7  | 
|Consolidated Cash Flow Statement                            |  |      | F-8  | 
|Index to Accounting policies                                |  |      | F-10 | 
|Index to Notes to the Consolidated
    Financial Statements |  |      | F-32 | 

F-1



---



##### Table of Contents



BANK OF IRELAND GROUP





STATEMENT OF DIRECTORS RESPONSIBILITIES








| |   |                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------
| |  | select suitable accounting policies and then apply them
    consistently;                                                                          
|
| |  | make judgements and estimates that are reasonable and prudent;                                                                                     
|
| |  | state that the financial statements comply with IFRS;                                                                                              
|
| |  | prepare the financial statements on the going concern basis
    unless it is inappropriate to presume that the Group will
    continue in business.







F-2



---



##### Table of Contents



BANK OF IRELAND GROUP





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


Report of Independent Registered Public Accounting Firm


To the Court of Directors and members of The Governor and
Company of the Bank of Ireland




Consolidated financial statements








Internal control over financial reporting








F-3



---



##### Table of Contents









PricewaterhouseCoopers


Chartered Accountants and Registered Auditors


Dublin Ireland


July 24, 2007


F-4



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED INCOME STATEMENT


|                                                              |  |       |       |                      |      |      |        |           |      |    |           |   |  |  |        |  
|------------------------------------------------------------- |  | ----- | ----- | -------------------- | ---- | ---- | ------ | --------- | ---- | -- | --------- | - |  |  | ------ | -
|                                                              |  |       |       | Year Ended March 31, |     
|                                                              |  |       |       |                      |     
|                                                              |  |       |       |                      |      | 2006 |        |           | 2005 |   
|                                                              |  | Notes |       |                      | 2007 |      |        | Restated* |      |    | Restated* |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|                                                              |  |       |       | m                   |      |      | m     |           |      | m |          
|Interest Income                                               |  |       | 2     |                      |      |      | 8,137  |           |      |    | 5,954     |   |  |  | 4,263  |  
|Interest Expense                                              |  |       | 2     |                      |      |      | (5,380 | )         |      |    | (3,647    | ) |  |  | (2,332 | )
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Net Interest Income                                           |  |       |       |                      |      |      | 2,757  |           |      |    | 2,307     |   |  |  | 1,931  |  
|Insurance net premium income                                  |  |       |       |                      |      |      | 2,188  |           |      |    | 1,298     |   |  |  | 1,791  |  
|Fees and commissions income                                   |  |       |       |                      |      |      | 898    |           |      |    | 912       |   |  |  | 1,163  |  
|Fees and commissions expense                                  |  |       |       |                      |      |      | (160   | )         |      |    | (170      | ) |  |  | (263   | )
|Net trading (expense)/income                                  |  |       | 3     |                      |      |      | (70    | )         |      |    | 30        |   |  |  | 66     |  
|Life assurance investment income and gains                    |  |       | 45    |                      |      |      | 247    |           |      |    | 599       |   |  |  | 672    |  
|Other operating income                                        |  |       | 4     |                      |      |      | 199    |           |      |    | 116       |   |  |  | 98     |  
|Profit on disposal of business activities                     |  |       | 5     |                      |      |      | 243    |           |      |    | 176       |   |  |  | 11     |  
|Profit on sale of property                                    |  |       | 22    |                      |      |      | 87     |           |      |    |          |   |  |  |       |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Total Operating Income                                        |  |       |       |                      |      |      | 6,389  |           |      |    | 5,268     |   |  |  | 5,469  |  
|Increase in insurance contract liabilities and claims paid    |  |       |       |                      |      |      | (2,213 | )         |      |    | (1,666    | ) |  |  | (2,222 | )
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Total Operating Income, net of Insurance Claims               |  |       |       |                      |      |      | 4,176  |           |      |    | 3,602     |   |  |  | 3,247  |  
|Total Operating Expenses                                      |  |       | 6     |                      |      |      | (2,159 | )         |      |    | (2,020    | ) |  |  | (2,051 | )
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Operating Profit before Impairment Losses                     |  |       |       |                      |      |      | 2,017  |           |      |    | 1,582     |   |  |  | 1,196  |  
|Impairment losses                                             |  |       | 16,17 |                      |      |      | (103   | )         |      |    | (103      | ) |  |  | 21     |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Operating Profit                                              |  |       |       |                      |      |      | 1,914  |           |      |    | 1,479     |   |  |  | 1,217  |  
|Share of profit of associated undertakings and joint ventures |  |       |       |                      |      |      | 44     |           |      |    | 45        |   |  |  | 30     |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Profit before Taxation                                        |  |       |       |                      |      |      | 1,958  |           |      |    | 1,524     |   |  |  | 1,247  |  
|Taxation                                                      |  |       | 10    |                      |      |      | (306   | )         |      |    | (303      | ) |  |  | (256   | )
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Profit for the Period                                         |  |       |       |                      |      |      | 1,652  |           |      |    | 1,221     |   |  |  | 991    |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Attributable to minority interests                            |  |       |       |                      |      |      | 1      |           |      |    | (9        | ) |  |  | (1     | )
|Attributable to stockholders                                  |  |       |       |                      |      |      | 1,651  |           |      |    | 1,230     |   |  |  | 992    |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Profit for the Period                                         |  |       |       |                      |      |      | 1,652  |           |      |    | 1,221     |   |  |  | 991    |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Earnings per unit of
    0.64 ordinary
    stock             |  |       | 11    |                      |      |      | 172.2c |           |      |    | 128.5c    |   |  |  | 104.4c |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  
|Diluted earnings per unit of
    0.64 ordinary
    stock     |  |       | 11    |                      |      |      | 171.0c |           |      |    | 127.6c    |   |  |  | 103.6c |  
|                                                              |  |       |       |                      |      |      |        |           |      |    |           |  






| |   |                                                                
| | - | ---------------------------------------------------------------
| | * | Restated due to change in accounting policy  see
    page F-26



The notes on pages F-11 to F-135


Form an integral part of these consolidated financial
statements


F-5



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED BALANCE SHEET


|                                                                |  |       |    |              |      |      |         |           |  |  |         |  
|--------------------------------------------------------------- |  | ----- | -- | ------------ | ---- | ---- | ------- | --------- |  |  | ------- | -
|                                                                |  |       |    | At March 31, |     
|                                                                |  |       |    |              |     
|                                                                |  |       |    |              |      | 2006 |        
|                                                                |  | Notes |    |              | 2007 |      |         | Restated* | 
|                                                                |  |       |    |              |      |      |         |           | 
|                                                                |  |       |    | m           |      |      | m      |          
|ASSETS                                                          |  |       |    |              |      |      |         |           |  |  |         |  
|Cash and balances at central banks                              |  |       |    |              |      |      | 362     |           |  |  | 287     |  
|Items in the course of collection from other banks              |  |       |    |              |      |      | 811     |           |  |  | 930     |  
|Central government and other eligible bills                     |  |       | 12 |              |      |      | 11      |           |  |  | 8       |  
|Trading securities                                              |  |       | 13 |              |      |      | 520     |           |  |  | 620     |  
|Derivative financial instruments                                |  |       | 14 |              |      |      | 2,849   |           |  |  | 2,085   |  
|Other financial assets at fair value through P/ L               |  |       | 13 |              |      |      | 12,707  |           |  |  | 10,438  |  
|Loans and advances to banks                                     |  |       | 15 |              |      |      | 7,210   |           |  |  | 12,188  |  
|Available-for-sale financial assets                             |  |       | 17 |              |      |      | 33,449  |           |  |  | 28,205  |  
|Loans and advances to customers                                 |  |       | 16 |              |      |      | 125,048 |           |  |  | 101,246 |  
|Interest in associated undertakings                             |  |       | 18 |              |      |      | 26      |           |  |  | 21      |  
|Interest in joint ventures                                      |  |       | 19 |              |      |      | 73      |           |  |  | 75      |  
|Assets classified as held for sale                              |  |       |    |              |      |      | 83      |           |  |  |        |  
|Intangible assets  Goodwill                                    |  |       | 20 |              |      |      | 347     |           |  |  | 375     |  
|Intangible assets  Other                                       |  |       | 20 |              |      |      | 596     |           |  |  | 590     |  
|Investment property                                             |  |       | 21 |              |      |      | 1,142   |           |  |  | 807     |  
|Property, plant and equipment                                   |  |       | 22 |              |      |      | 665     |           |  |  | 860     |  
|Deferred tax assets                                             |  |       | 30 |              |      |      | 25      |           |  |  | 30      |  
|Other assets                                                    |  |       | 23 |              |      |      | 2,889   |           |  |  | 3,447   |  
|                                                                |  |       |    |              |      |      |         |           | 
|Total assets                                                    |  |       |    |              |      |      | 188,813 |           |  |  | 162,212 |  
|                                                                |  |       |    |              |      |      |         |           | 
|EQUITY AND LIABILITIES                                          |  |       |    |              |      |      |         |           |  |  |         |  
|Deposits by banks                                               |  |       | 24 |              |      |      | 20,405  |           |  |  | 32,312  |  
|Customer accounts                                               |  |       | 25 |              |      |      | 72,277  |           |  |  | 61,710  |  
|Items in the course of transmission to other banks              |  |       |    |              |      |      | 243     |           |  |  | 284     |  
|Derivative financial instruments                                |  |       | 14 |              |      |      | 2,935   |           |  |  | 1,647   |  
|Liabilities to customers under investment contracts             |  |       |    |              |      |      | 6,736   |           |  |  | 6,650   |  
|Debt securities in issue                                        |  |       | 26 |              |      |      | 59,523  |           |  |  | 36,814  |  
|Insurance contract liabilities                                  |  |       | 44 |              |      |      | 7,190   |           |  |  | 5,192   |  
|Other liabilities                                               |  |       | 28 |              |      |      | 3,983   |           |  |  | 4,711   |  
|Deferred tax liabilities                                        |  |       | 30 |              |      |      | 278     |           |  |  | 207     |  
|Provisions                                                      |  |       | 29 |              |      |      | 87      |           |  |  | 153     |  
|Retirement benefit obligations                                  |  |       | 34 |              |      |      | 590     |           |  |  | 808     |  
|Subordinated liabilities                                        |  |       | 27 |              |      |      | 7,808   |           |  |  | 6,493   |  
|                                                                |  |       |    |              |      |      |         |           | 
|Total liabilities                                               |  |       |    |              |      |      | 182,055 |           |  |  | 156,981 |  
|Equity                                                          |  |       |    |              |      |      |         |           |  |  |         |  
|Share capital                                                   |  |       | 37 |              |      |      | 663     |           |  |  | 663     |  
|Share premium account                                           |  |       | 38 |              |      |      | 771     |           |  |  | 767     |  
|Retained profit                                                 |  |       | 38 |              |      |      | 4,672   |           |  |  | 3,188   |  
|Other reserves                                                  |  |       | 38 |              |      |      | 905     |           |  |  | 803     |  
|Own shares held for the benefit of life assurance policyholders |  |       |    |              |      |      | (287    | )         |  |  | (235    | )
|                                                                |  |       |    |              |      |      |         |           | 
|Stockholders equity                                            |  |       |    |              |      |      | 6,724   |           |  |  | 5,186   |  
|Minority interests                                              |  |       | 36 |              |      |      | 34      |           |  |  | 45      |  
|                                                                |  |       |    |              |      |      |         |           | 
|Total equity                                                    |  |       |    |              |      |      | 6,758   |           |  |  | 5,231   |  
|                                                                |  |       |    |              |      |      |         |           | 
|Total equity and liabilities                                    |  |       |    |              |      |      | 188,813 |           |  |  | 162,212 |  
|                                                                |  |       |    |              |      |      |         |           | 






|  |                                                                
|- | ---------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26

The notes on pages F-11 to F-135


Form an integral part of these consolidated financial
statements


F-6



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE


|                                                              |  |      |       |      |           |  |       |           |  |  |      |  
|------------------------------------------------------------- |  | ---- | ----- | ---- | --------- |  | ----- | --------- |  |  | ---- | -
|                                                              |  |      |       | 2006 |           |  | 2005  |          
|                                                              |  | 2007 |       |      | Restated* |  |       | Restated* | 
|                                                              |  |      |       |      |           |  |       |           | 
|                                                              |  | m   |       |      | m        |  |       | m        | 
|Net gain on property revaluation/reclassification             |  |      | 18    |      |           |  | 187   |           |  |  | 43   |  
|Net change in cash flow hedge reserve                         |  |      | 135   |      |           |  | (7    | )         |  |  |     |  
|Net change in Available-for-Sale reserve                      |  |      | (49   | )    |           |  | (104  | )         |  |  |     |  
|Net actuarial gains/losses in defined benefit pension schemes |  |      | 190   |      |           |  | 113   |           |  |  | (386 | )
|Foreign exchange translations                                 |  |      | 49    |      |           |  | (17   | )         |  |  | (108 | )
|                                                              |  |      |       |      |           |  |       |           | 
|Income/expense recognised in equity                           |  |      | 343   |      |           |  | 172   |           |  |  | (451 | )
|Profit for the period                                         |  |      | 1,652 |      |           |  | 1,221 |           |  |  | 991  |  
|                                                              |  |      |       |      |           |  |       |           | 
|Total recognised income/expense for the year                  |  |      | 1,995 |      |           |  | 1,393 |           |  |  | 540  |  
|                                                              |  |      |       |      |           |  |       |           | 
|Attributable to:                                              |  |      |       |      |           |  |       |           |  |  |      |  
|Equity holders of the parent                                  |  |      | 1,994 |      |           |  | 1,402 |           |  |  | 541  |  
|Minority interests                                            |  |      | 1     |      |           |  | (9    | )         |  |  | (1   | )
|                                                              |  |      |       |      |           |  |       |           | 
|                                                              |  |      | 1,995 |      |           |  | 1,393 |           |  |  | 540  |  
|                                                              |  |      |       |      |           |  |       |           | 

|                                                                                      |  |      |   |  |      |  |     |      |  |  |     |  
|------------------------------------------------------------------------------------- |  | ---- | - |  | ---- |  | --- | ---- |  |  | --- | -
|                                                                                      |  | 2007 |   |  | 2006 |  |     | 2005 | 
|                                                                                      |  |      |   |  |      |  |     |      | 
|                                                                                      |  | m   |   |  | m   |  |     | m   | 
|Effect of change in accounting policy adjusted against
    opening retained earnings: |  |      |   |  |      |  |     |      |  |  |     |  
|Equity holders of the parent                                                          |  |      |  |  |      |  | (90 | )    |  |  | (48 | )
|Minority interests                                                                    |  |      |  |  |      |  |    |      |  |  |    |  
|                                                                                      |  |      |   |  |      |  |     |      | 
|                                                                                      |  |      |  |  |      |  | (90 | )    |  |  | (48 | )
|                                                                                      |  |      |   |  |      |  |     |      | 






|  |                                                                
|- | ---------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26



The notes on pages F-11 to F-135


Form an integral part of these consolidated financial
statements


F-7



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED CASH FLOW STATEMENT


|                                                                                            |  |           |         |           |           |  |           |           |  |  |         |  
|------------------------------------------------------------------------------------------- |  | --------- | ------- | --------- | --------- |  | --------- | --------- |  |  | ------- | -
|                                                                                            |  |           |         | 31-3-2006 |           |  | 31-3-2005 |          
|                                                                                            |  | 31-3-2007 |         |           | Restated* |  |           | Restated* | 
|                                                                                            |  |           |         |           |           |  |           |           | 
|                                                                                            |  | m        |         |           | m        |  |           | m        | 
|Cash flows from operating activities                                                        |  |           |         |           |           |  |           |           |  |  |         |  
|Profit before taxation                                                                      |  |           | 1,958   |           |           |  | 1,524     |           |  |  | 1,247   |  
|Share of profit of associated undertakings and joint ventures                               |  |           | (44     | )         |           |  | (45       | )         |  |  | (30     | )
|Profit on disposal of business activity                                                     |  |           | (243    | )         |           |  | (176      | )         |  |  | (11     | )
|Profit on disposal of property                                                              |  |           | (87     | )         |           |  | (4        | )         |  |  | (8      | )
|Depreciation and amortisation                                                               |  |           | 151     |           |           |  | 166       |           |  |  | 177     |  
|(Increase)/decrease in prepayments and accrued income                                       |  |           | (292    | )         |           |  | 61        |           |  |  | (188    | )
|Increase in accruals and deferred income                                                    |  |           | 323     |           |           |  | 132       |           |  |  | 160     |  
|Provisions for impairment of loans and advances                                             |  |           | 103     |           |           |  | 103       |           |  |  | (21     | )
|Loans and advances written off net of recoveries                                            |  |           | (34     | )         |           |  | (64       | )         |  |  | (123    | )
|Revaluation of investment property                                                          |  |           | (96     | )         |           |  | (53       | )         |  |  |        |  
|Profit on disposal of investment property                                                   |  |           | (6      | )         |           |  | (49       | )         |  |  |        |  
|Interest expense on subordinated liabilities and other capital
    instruments              |  |           | 381     |           |           |  | 256       |           |  |  | 225     |  
|Profit on disposal of available-for-sale financial instruments                              |  |           | (10     | )         |           |  | (4        | )         |  |  | (2      | )
|Charge for share based payments                                                             |  |           | 12      |           |           |  | 11        |           |  |  | 11      |  
|Amortisation of premiums and discounts                                                      |  |           | (52     | )         |           |  | (98       | )         |  |  | 15      |  
|Amortisation of debt issue expenses                                                         |  |           | 5       |           |           |  | 2         |           |  |  | 2       |  
|                                                                                            |  |           |         |           |           |  |           |           | 
|Cash flows from operating activities before changes in
    operating assets and liabilities |  |           | 2,069   |           |           |  | 1,762     |           |  |  | 1,454   |  
|                                                                                            |  |           |         |           |           |  |           |           | 
|Net (decrease)/increase in deposits by banks                                                |  |           | (11,810 | )         |           |  | 11,484    |           |  |  | 3,135   |  
|Net increase in customer accounts                                                           |  |           | 9,988   |           |           |  | 1,852     |           |  |  | 6,844   |  
|Net increase in loans and advances to customers                                             |  |           | (22,736 | )         |           |  | (21,925   | )         |  |  | (13,471 | )
|Net decrease/(increase) in loans and advances to banks                                      |  |           | 3,035   |           |           |  | (1,574    | )         |  |  | 714     |  
|Net (increase)/decrease in non investment debt & equity
    securities                      |  |           | (68     | )         |           |  | 499       |           |  |  | (1,552  | )
|Net increase/(decrease) in derivative financial instruments                                 |  |           | 621     |           |           |  | (340      | )         |  |  |        |  
|Net increase in assets at fair value through P/ L                                           |  |           | (2,317  | )         |           |  | (2,390    | )         |  |  |        |  
|Net increase/(decrease) in items in course of collection                                    |  |           | 83      |           |           |  | (319      | )         |  |  | 19      |  
|Net increase in debt securities in issue                                                    |  |           | 22,624  |           |           |  | 15,604    |           |  |  | 7,541   |  
|Net decrease/(increase) in other assets                                                     |  |           | 191     |           |           |  | (571      | )         |  |  | (86     | )
|Net increase in other liabilities                                                           |  |           | 1,771   |           |           |  | 2,763     |           |  |  | 475     |  
|Effect of exchange translation and other adjustments                                        |  |           | 1       |           |           |  | (20       | )         |  |  | 306     |  
|                                                                                            |  |           |         |           |           |  |           |           | 
|Net cash inflow from operating assets and liabilities                                       |  |           | 1,383   |           |           |  | 5,063     |           |  |  | 3,925   |  
|                                                                                            |  |           |         |           |           |  |           |           | 
|Net cash inflow from operating activities before taxation                                   |  |           | 3,452   |           |           |  | 6,825     |           |  |  | 5,379   |  
|Taxation paid                                                                               |  |           | (272    | )         |           |  | (230      | )         |  |  | (155    | )
|                                                                                            |  |           |         |           |           |  |           |           | 
|Net cash inflow from operating activities                                                   |  |           | 3,180   |           |           |  | 6,595     |           |  |  | 5,224   |  
|Investing activities (note a)                                                               |  |           | (5,792  | )         |           |  | (7,391    | )         |  |  | (4,037  | )
|Financing activities (note b)                                                               |  |           | 709     |           |           |  | 1,762     |           |  |  | (192    | )
|                                                                                            |  |           |         |           |           |  |           |           | 
|(Decrease)/increase in cash and cash equivalents                                            |  |           | (1,903  | )         |           |  | 966       |           |  |  | 995     |  
|Opening cash and cash equivalents                                                           |  |           | 6,162   |           |           |  | 5,217     |           |  |  | 4,242   |  
|Effect of exchange translation adjustments                                                  |  |           | 38      |           |           |  | (21       | )         |  |  | (20     | )
|                                                                                            |  |           |         |           |           |  |           |           | 
|Closing cash and cash equivalents (note 40)                                                 |  |           | 4,297   |           |           |  | 6,162     |           |  |  | 5,217   |  
|                                                                                            |  |           |         |           |           |  |           |           | 






|  |                                                                
|- | ---------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26



The notes on pages F-11 to F-135


Form an integral part of these consolidated financial
statements


F-8



---



##### Table of Contents



BANK OF IRELAND GROUP


CONSOLIDATED CASH FLOW STATEMENT (Continued)


|                                                              |  |           |        |           |           |  |           |           |  |  |        |  
|------------------------------------------------------------- |  | --------- | ------ | --------- | --------- |  | --------- | --------- |  |  | ------ | -
|                                                              |  |           |        | 31-3-2006 |           |  | 31-3-2005 |          
|                                                              |  | 31-3-2007 |        |           | Restated* |  |           | Restated* | 
|                                                              |  |           |        |           |           |  |           |           | 
|                                                              |  | m        |        |           | m        |  |           | m        | 
|(a)  Investing activities                                     |  |           |        |           |           |  |           |           |  |  |        |  
|Net increase in financial investments                         |  |           | (5,865 | )         |           |  | (7,217    | )         |  |  | (3,992 | )
|Additions to tangible fixed assets                            |  |           | (57    | )         |           |  | (50       | )         |  |  | (187   | )
|Disposal of tangible fixed assets                             |  |           | 257    |           |           |  | 60        |           |  |  | 55     |  
|Additions to intangible fixed assets                          |  |           | (109   | )         |           |  | (106      | )         |  |  |       |  
|Disposal of intangible fixed assets                           |  |           |       |           |           |  | 8         |           |  |  |       |  
|Purchase of investment property                               |  |           | (263   | )         |           |  | (353      | )         |  |  |       |  
|Disposal of investment property                               |  |           | 30     |           |           |  | 151       |           |  |  |       |  
|Purchase of assets held for sale                              |  |           | (10    | )         |           |  |          |           |  |  |       |  
|Disposal of business activities                               |  |           | 323    |           |           |  | 227       |           |  |  | 63     |  
|Cash balances of subsidiary disposed of                       |  |           | (122   | )         |           |  |          |           |  |  | (24    | )
|Acquisition of Group undertaking                              |  |           |       |           |           |  | (120      | )         |  |  | (105   | )
|Dividends received from joint ventures                        |  |           | 68     |           |           |  | 25        |           |  |  | 14     |  
|(Increase)/decrease in investments in associated undertakings |  |           | (4     | )         |           |  | 1         |           |  |  | (3     | )
|Deferred consideration paid                                   |  |           | (19    | )         |           |  | (18       | )         |  |  |       |  
|Net cash balances of Group undertakings acquired              |  |           |       |           |           |  | 1         |           |  |  | 142    |  
|Acquisition of Joint Venture                                  |  |           | (21    | )         |           |  |          |           |  |  |       |  
|                                                              |  |           |        |           |           |  |           |           | 
|Cash flows from investing activities                          |  |           | (5,792 | )         |           |  | (7,391    | )         |  |  | (4,037 | )
|                                                              |  |           |        |           |           |  |           |           | 
|(b)  Financing activities                                     |  |           |        |           |           |  |           |           |  |  |        |  
|Re issue of Treasury stock and issue of ordinary stock        |  |           | 133    |           |           |  | 48        |           |  |  | 17     |  
|Issue of new subordinated liabilities                         |  |           | 1,479  |           |           |  | 2,414     |           |  |  | 587    |  
|Repayment of subordinated liabilities                         |  |           |       |           |           |  |          |           |  |  | (145   | )
|Interest paid on subordinated liabilities                     |  |           | (361   | )         |           |  | (233      | )         |  |  | (223   | )
|Equity dividends paid                                         |  |           | (524   | )         |           |  | (448      | )         |  |  | (406   | )
|Dividends on other equity interests                           |  |           | (15    | )         |           |  | (13       | )         |  |  | (8     | )
|Dividends paid to minority interests                          |  |           | (3     | )         |           |  | (6        | )         |  |  | (14    | )
|                                                              |  |           |        |           |           |  |           |           | 
|Cash flows from financing activities                          |  |           | 709    |           |           |  | 1,762     |           |  |  | (192   | )
|                                                              |  |           |        |           |           |  |           |           | 






|  |                                                                
|- | ---------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26

The notes on pages F-11 to F-135


Form an integral part of these consolidated financial
statements


F-9



---



##### Table of Contents



BANK OF IRELAND GROUP





INDEX TO ACCOUNTING POLICIES


|                                                              |  |      |      | 
|------------------------------------------------------------- |  | ---- | ---- | 
|                                                              |  | Page |     
|                                                              |  |      |     
|Basis of preparation                                          |  |      | F-11 | 
|Comparatives                                                  |  |      | F-12 | 
|Group accounts (including subsidiaries,
    associates, etc.) |  |      | F-12 | 
|Foreign currency translation                                  |  |      | F-13 | 
|Interest income and expense                                   |  |      | F-14 | 
|Fee and commission income                                     |  |      | F-14 | 
|Leases                                                        |  |      | F-15 | 
|Financial assets                                              |  |      | F-15 | 
|Financial liabilities                                         |  |      | F-16 | 
|Sale and repurchase agreements and lending
    of securities  |  |      | F-17 | 
|Issued debt and equity securities                             |  |      | F-17 | 
|Derivative financial instruments and hedge
    accounting     |  |      | F-17 | 
|Impairment of financial assets                                |  |      | F-19 | 
|Property, plant and equipment                                 |  |      | F-20 | 
|Investment properties                                         |  |      | F-21 | 
|Intangible assets                                             |  |      | F-21 | 
|Non-current assets held for sale                              |  |      | F-22 | 
|Provisions                                                    |  |      | F-22 | 
|Employee benefits                                             |  |      | F-22 | 
|Income taxes                                                  |  |      | F-24 | 
|Cash and cash equivalents                                     |  |      | F-24 | 
|Share capital and treasury stock                              |  |      | F-24 | 
|Life assurance operations                                     |  |      | F-25 | 
|Offsetting financial instruments                              |  |      | F-25 | 
|Collateral                                                    |  |      | F-25 | 
|Financial guarantees                                          |  |      | F-26 | 
|Change in method of assessing
    materiality                 |  |      | F-26 | 
|Accounting policies applying to March
    2005                |  |      | F-27 | 
|Impact of new accounting standards                            |  |      | F-29 | 
|Critical accounting estimates and
    judgements              |  |      | F-30 | 

F-10



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES


Accounting Policies







Basis of Preparation






F-29




|                                                            |  |                |       |  
|----------------------------------------------------------- |  | -------------- | ----- | -
|Stockholders equity                                        |  | March 31, 2005 |      
|                                                            |  |                |      
|                                                            |  | m             |      
|IFRS excluding IAS 32, IAS 39 and IFRS 4                    |  |                | 4,277 |  
|Reconciliation adjustments to IAS 32, IAS 39 and IFRS 4:    |  |                |       |  
|Reclassification of financial instruments                   |  |                | 127   |  
|Hedging                                                     |  |                | 15    |  
|Write down of VIF in Life business                          |  |                | (251  | )
|Debt/equity reclassification                                |  |                | 114   |  
|Effective interest rate                                     |  |                | 20    |  
|Treasury shares in BOI Life held on behalf of policyholders |  |                | (90   | )
|Other                                                       |  |                | 3     |  
|                                                            |  |                |      
|                                                            |  |                | 4,215 |  
|                                                            |  |                |      

F-11



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)





Comparatives







Group Accounts




|    |             
|--- | ------------
|(1) | Subsidiaries















|    |                              
|--- | -----------------------------
|(2) | Associates and Joint Ventures









F-12



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)








|    |                   
|--- | ------------------
|(3) | Minority Interests





|    |                
|--- | ---------------
|(4) | Securitisations







| |   |                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Substantially all the risks and rewards associated with the
    financial instruments have been transferred outside the Group,
    in which case the assets are derecognised in full; or                                                                                                                                               
|
| |  | If a significant portion, but not all, of the risks and rewards
    have been transferred outside the Group, the asset is
    derecognised entirely if the transferee has the ability to sell
    the financial asset, otherwise the asset continues to be
    recognised only to the extent of the Groups continuing
    involvement.






Foreign Currency Translation










| |   |                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Assets and liabilities for each balance sheet presented are
    translated at the closing rate at the date of that balance sheet;                                                                                                                                                                                              
|
| |  | Income and expenses for each income statement are translated at
    average exchange rates (unless this average is not a reasonable
    approximation of the cumulative effect of the rates prevailing
    on the transaction dates, in which case income and expenses are
    translated at the date of the transactions); and

F-13



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)




| |   |                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | All resulting exchange difference are categorised as a separate
    component of equity.                                                                                      
|
| |  | The Group availed of the exemption to deem all accumulated
    balances arising from translation of foreign subsidiaries to be
    nil on transition to IFRS on April 1, 2004.







|        |  |                |  |         |                |  |         |  |        |         |  |  |        | 
|------- |  | -------------- |  | ------- | -------------- |  | ------- |  | ------ | ------- |  |  | ------ | 
|        |  | March 31, 2007 |  |         | March 31, 2006 | 
|        |  |                |  |         |                | 
|        |  | Average        |  | Closing |                |  | Average |  |        | Closing | 
|        |  |                |  |         |                |  |         |  |        |         | 
|/U.S.$ |  | 1.2912         |  |         | 1.3318         |  |         |  | 1.2126 |         |  |  | 1.2104 | 
|/Stg£  |  | 0.6783         |  |         | 0.6798         |  |         |  | 0.6826 |         |  |  | 0.6964 | 




Interest Income and Expense











Fees and Commission Income




F-14



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)





Leases




|    |                              
|--- | -----------------------------
|(1) | A group company is the lessee









|    |                              
|--- | -----------------------------
|(2) | A group company is the lessor






Financial Assets






|    |                                                          
|--- | ---------------------------------------------------------
|(a) | Financial assets at fair value through profit or
    loss







| |       |                                                                                                                                                                                                                                                                  
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | it eliminates or significantly reduces a measurement or
    recognition inconsistency, an accounting mismatch,
    that would otherwise arise from measuring assets or liabilities
    or categorised the gains and losses on them on a different
    basis; or
|
| | (ii)  | a group of financial assets, financial liabilities or both is
    managed and its performance is evaluated on a fair value basis
    in accordance with documented risk management or investment
    strategy.                                                   
|
| | (iii) | a contract contains one or more embedded derivatives that either
    significantly change the cash flows of the contract or the
    separation of the embedded derivative(s) is not prohibited.                                                                  



|    |                      
|--- | ---------------------
|(b) | Loans and receivables



F-15



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)




|    |                 
|--- | ----------------
|(c) | Held-to-maturity





|    |                   
|--- | ------------------
|(d) | Available-for-sale











|    |                         
|--- | ------------------------
|(e) | Shares in Group Entities






Financial Liabilities






F-16



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)






| |       |                                                                                                                                                                                                                                                                  
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | it eliminates or significantly reduces a measurement or
    recognition inconsistency, an accounting mismatch,
    that would otherwise arise from measuring assets or liabilities
    or recognising the gains and losses on them on a different
    basis; or
|
| | (ii)  | a group of financial assets, financial liabilities or both is
    managed and its performance is evaluated on a fair value basis
    in accordance with documented risk management or investment
    strategy.                                                   
|
| | (iii) | a contract contains one or more embedded derivatives that either
    significantly change the cash flows of the contract or the
    separation of the embedded derivative(s) is not prohibited.                                                                  




Sale and Repurchase Agreements and Lending of Securities









Issued Debt and Equity Securities









Derivative Financial Instruments and Hedge Accounting








F-17



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)










|    |                 
|--- | ----------------
|(a) | Fair value hedge







|    |                
|--- | ---------------
|(b) | Cash flow hedge









|    |                     
|--- | --------------------
|(c) | Net investment hedge



F-18



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)




|    |                                                         
|--- | --------------------------------------------------------
|(d) | Derivatives that do not qualify for hedge
    accounting






Impairment of Financial Assets


Assets carried at amortised cost








| |        |                                                                                                                                                                                                                                                                                                               
| | ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)    | significant financial difficulty of the issuer or obligor;                                                                                                                                                                                                                                                    
|
| | (ii)   | a breach of contract, such as a default or delinquency in
    interest or principal payments;                                                                                                                                                                                                                 
|
| | (iii)  | the Group granting to the borrower, for economic or legal
    reasons relating to the borrowers financial difficulty, a
    concession that the lender would not otherwise consider;                                                                                                                         
|
| | (iv)   | it becoming probable that the borrower will enter bankruptcy or
    other financial reorganisation;                                                                                                                                                                                                           
|
| | (v)    | the disappearance of an active market for that financial asset
    because of financial difficulties; or                                                                                                                                                                                                      
|
| | (vi)   | observable data indicating that there is a measurable decrease
    in the estimated future cash flows from a group of financial
    assets since the initial recognition of those assets, although
    the decrease cannot yet be identified with the individual
    financial assets in the group, including:
|
| | (vii)  | adverse changes in the payment status of borrowers in the group;
    or                                                                                                                                                                                                                                       
|
| | (viii) | national or local economic conditions that correlate with
    defaults on the assets in the group.                                                                                                                                                                                                            





F-19



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)










Available-for-sale assets







Property, Plant and Equipment






F-20



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)








|                                                  |  |                                               
|------------------------------------------------- |  | ----------------------------------------------
|Adaptation works on freehold & leasehold property |  | 15 years, or the remaining period of the lease
|Computer and other equipment                      |  | Maximum of ten years                          








Investment Properties







Intangible Assets




|    |         
|--- | --------
|(a) | Goodwill









|    |                  
|--- | -----------------
|(b) | Computer software





F-21



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)










|    |                        
|--- | -----------------------
|(c) | Other intangible assets






Non-current assets held for sale






| |   |                                                                                              
| | - | ---------------------------------------------------------------------------------------------
| |  | Its carrying amount will be recovered principally through sale
    rather than continuing use
|
| |  | It is available for immediate sale                                                           
|
| |  | The sale is highly probable within the next twelve months                                    






Provisions









Employee Benefits




|    |                    
|--- | -------------------
|(a) | Pension obligations



F-22



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)












|    |                             
|--- | ----------------------------
|(b) | Equity compensation benefits









(c)  Short term employee benefits






|    |                     
|--- | --------------------
|(d) | Termination payments



F-23



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)







Income Taxes

















Cash and Cash Equivalents







Share Capital and Treasury Stock




|    |                  
|--- | -----------------
|(1) | Share issue costs





|    |                             
|--- | ----------------------------
|(2) | Dividends on ordinary shares



F-24



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)




|    |                
|--- | ---------------
|(3) | Treasury shares






Life Assurance Operations










Premiums and claims






Reinsurance







Offsetting Financial Instruments







Collateral




F-25



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)











Financial Guarantees









Change in method of Assessing Materiality






| |     |                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | the amount of the misstatement originating in the current year
    income statement, and;                                                                                     
|
| | (2) | the effects of correcting the misstatement existing in the
    balance sheet at the end of the current year irrespective of the
    year in which the misstatement originated.





F-26



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)






                 


     





Accounting Policies applying to March 2005




Provisions for impairment of loans and receivables










F-27



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)




Debt Securities and Equity Shares


Investment Securities




Other Securities




Derivatives










| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)  | Adequate evidence of the intention to hedge must be established
    at the outset of the transaction.                                                                                                                                                                                                                                                                                                                              
|
| | (ii) | The transaction must match or eliminate a proportion of the risk
    inherent in the assets, liabilities, positions or cash flows
    being hedged and which results from potential movements in
    interest rates, exchange rates or market prices. Changes in the
    derivatives fair value must be highly correlated with changes in
    the fair value of the underlying hedged item for the entire life
    of the contract.



F-28



---



##### Table of Contents



BANK OF IRELAND GROUP


ACCOUNTING POLICIES  (Continued)









Impact of New Accounting Standards
























F-29



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS





CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS






|    |                                        
|--- | ---------------------------------------
|(a) | Impairment losses on loans and advances





|    |                          
|--- | -------------------------
|(b) | Fair value of derivatives





|    |                    
|--- | -------------------
|(c) | Retirement Benefits





|    |                          
|--- | -------------------------
|(d) | Life Assurance Operations





F-30



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS  (Continued)






|    |         
|--- | --------
|(e) | Taxation





|    |         
|--- | --------
|(f) | Goodwill

 






F-31



---



##### Table of Contents



BANK OF IRELAND GROUP





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS




|   |  |                                                                                |  |     
|-- |  | ------------------------------------------------------------------------------ |  | ----
|   |  |                                                                                |  | Page
|   |  |                                                                                |  |     
|1  |  | Segmental reporting                                                            |  | F-34
|2  |  | Net interest income                                                            |  | F-37
|3  |  | Net trading (expense)/income                                                   |  | F-38
|4  |  | Other operating income                                                         |  | F-38
|5  |  | Profit on disposal of business
    activities                                  |  | F-38
|6  |  | Total operating expenses                                                       |  | F-39
|7  |  | Auditors remuneration (excluding
    vat)                                     |  | F-40
|8  |  | Staff costs                                                                    |  | F-40
|9  |  | Staff numbers                                                                  |  | F-41
|10 |  | Taxation                                                                       |  | F-41
|11 |  | Earnings per share                                                             |  | F-42
|12 |  | Central government and other eligible
    bills                                |  | F-43
|13 |  | Financial assets at fair value through
    profit and loss (including trading) |  | F-44
|14 |  | Derivative financial instruments                                               |  | F-44
|15 |  | Loans and advances to banks                                                    |  | F-55
|16 |  | Loans and advances to customers                                                |  | F-55
|17 |  | Available-for-sale financial assets                                            |  | F-57
|18 |  | Interest in associated undertakings                                            |  | F-57
|19 |  | Interest in joint ventures                                                     |  | F-58
|20 |  | Intangible assets                                                              |  | F-59
|21 |  | Investment property                                                            |  | F-60
|22 |  | Property, plant and equipment                                                  |  | F-61
|23 |  | Other assets                                                                   |  | F-63
|24 |  | Deposits by banks                                                              |  | F-63
|25 |  | Customer accounts                                                              |  | F-64
|26 |  | Debt securities in issue                                                       |  | F-64
|27 |  | Subordinated liabilities                                                       |  | F-65
|28 |  | Other liabilities                                                              |  | F-70
|29 |  | Provisions                                                                     |  | F-70
|30 |  | Deferred tax                                                                   |  | F-71
|31 |  | Interest rate risk                                                             |  | F-72
|32 |  | Liquidity risk                                                                 |  | F-75
|33 |  | Fair values of financial assets and
    liabilities                            |  | F-76
|34 |  | Retirement benefit obligations                                                 |  | F-78
|35 |  | Contingent liabilities and commitments                                         |  | F-83
|36 |  | Minority interests                                                             |  | F-84
|37 |  | Share capital, share premium and treasury
    stock                            |  | F-84
|38 |  | Reserves and retained earnings                                                 |  | F-91
|39 |  | Dividends per share                                                            |  | F-92

F-32



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|   |  |                                                                                     |  |      
|-- |  | ----------------------------------------------------------------------------------- |  | -----
|   |  |                                                                                     |  | Page 
|   |  |                                                                                     |  |      
|40 |  | Cash and cash equivalents                                                           |  | F-92 
|41 |  | General                                                                             |  | F-93 
|42 |  | Related party transactions                                                          |  | F-93 
|43 |  | Acquisitions                                                                        |  | F-95 
|44 |  | Life assurance business                                                             |  | F-95 
|45 |  | Life assurance investment income and
    gains                                      |  | F-98 
|46 |  | Directors information                                                              |  | F-98 
|47 |  | Group financial information for U.S.
    investors                                  |  | F-108
|48 |  | SFAS No. 115 Accounting for
    certain investments in debt and equity securities |  | F-132
|49 |  | Guarantees                                                                          |  | F-134
|50 |  | Consolidation                                                                       |  | F-134
|51 |  | Approval of the 20F by the directors                                                |  | F-135

F-33



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS







|  |                    
|- | -------------------
|1 | SEGMENTAL REPORTING



.


Business Segments


|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       |  |  |          |   |  |  |         |  
|------------------------------------------------------------- |  | ---------- | ------ | - | -------- |  | ------- | ------- | -- | --------- | -------- | - | ----- | ------ | ------ | - | ------------ |  | ------ | ----- |  |  | -------- | - |  |  | ------- | -
|                                                              |  | Retail     |        |   |          |  |         |         | UK |           |          |   |       |        |        |  
|                                                              |  | Republic   |        |   |          |  | Capital |         |    | Financial |          |   | Group |        |        |   |              | 
|Year ended March 31, 2007                                     |  | of Ireland |        |   | BOI Life |  |         | Markets |    |           | Services |   |       | Centre |        |   | Eliminations |  |        | Total | 
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|                                                              |  | m         |        |   | m       |  |         | m      |    |           | m       |   |       | m     |        |   | m           |  |        | m    | 
|Net interest income/expense                                   |  |            | 1,311  |   |          |  | (5      | )       |    |           | 671      |   |       |        | 784    |   |              |  | (4     | )     |  |  |         |   |  |  | 2,757   |  
|Insurance net premium income                                  |  |            |       |   |          |  | 2,155   |         |    |           |         |   |       |        |       |   |              |  | 33     |       |  |  |         |   |  |  | 2,188   |  
|Other income                                                  |  |            | 377    |   |          |  | 326     |         |    |           | 379      |   |       |        | 129    |   |              |  | (93    | )     |  |  |         |   |  |  | 1,118   |  
|Profit on disposal of business activities/property            |  |            | 87     |   |          |  |        |         |    |           |         |   |       |        | 6      |   |              |  | 233    |       |  |  |         |   |  |  | 326     |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total operating income                                        |  |            | 1,775  |   |          |  | 2,476   |         |    |           | 1,050    |   |       |        | 919    |   |              |  | 169    |       |  |  |         |   |  |  | 6,389   |  
|Insurance claims                                              |  |            |       |   |          |  | (2,205  | )       |    |           |         |   |       |        |       |   |              |  | (8     | )     |  |  |         |   |  |  | (2,213  | )
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total operating income, net of insurance claims               |  |            | 1,775  |   |          |  | 271     |         |    |           | 1,050    |   |       |        | 919    |   |              |  | 161    |       |  |  |         |   |  |  | 4,176   |  
|Operating expenses                                            |  |            | (852   | ) |          |  | (100    | )       |    |           | (439     | ) |       |        | (458   | ) |              |  | (159   | )     |  |  |         |   |  |  | (2,008  | )
|Depreciation and amortization                                 |  |            | (75    | ) |          |  | (4      | )       |    |           | (17      | ) |       |        | (39    | ) |              |  | (16    | )     |  |  |         |   |  |  | (151    | )
|Impairment losses                                             |  |            | (63    | ) |          |  |        |         |    |           | (21      | ) |       |        | (20    | ) |              |  | 1      |       |  |  |         |   |  |  | (103    | )
|Share of profit of associated undertakings and joint ventures |  |            |       |   |          |  |        |         |    |           | (1       | ) |       |        | 45     |   |              |  |       |       |  |  |         |   |  |  | 44      |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Profit before taxation                                        |  |            | 785    |   |          |  | 167     |         |    |           | 572      |   |       |        | 447    |   |              |  | (13    | )     |  |  |         |   |  |  | 1,958   |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total assets                                                  |  |            | 98,599 |   |          |  | 14,908  |         |    |           | 167,336  |   |       |        | 73,503 |   |              |  | 30,801 |       |  |  | (196,334 | ) |  |  | 188,813 |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total liabilities                                             |  |            | 96,758 |   |          |  | 14,769  |         |    |           | 165,841  |   |       |        | 71,143 |   |              |  | 29,878 |       |  |  | (196,334 | ) |  |  | 182,055 |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Capital expenditure                                           |  |            | 54     |   |          |  | 7       |         |    |           | 18       |   |       |        | 58     |   |              |  | 29     |       |  |  |         |   |  |  | 166     |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 

 


F-34



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|  |                                 
|- | --------------------------------
|1 | SEGMENTAL REPORTING  (continued)

Business Segments


|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       |  |  |          |   |  |  |         |  
|------------------------------------------------------------- |  | ---------- | ------ | - | -------- |  | ------- | ------- | -- | --------- | -------- | - |  | ------------ | ------ | - | ------------ |  | ------ | ----- |  |  | -------- | - |  |  | ------- | -
|                                                              |  | Retail     |        |   |          |  |         |         | UK |           |          |   |  |              |        |  
|                                                              |  | Republic   |        |   |          |  | Capital |         |    | Financial |          |   |  |              |        |   |             
|Year ended March 31, 2006 Restated*                           |  | of Ireland |        |   | BOI Life |  |         | Markets |    |           | Services |   |  | Group Centre |        |   | Eliminations |  |        | Total | 
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|                                                              |  | m         |        |   | m       |  |         | m      |    |           | m       |   |  | m           |        |   | m           |  |        | m    | 
|Net interest income                                           |  |            | 1,119  |   |          |  | 8       |         |    |           | 461      |   |  |              | 722    |   |              |  | (3     | )     |  |  |         |   |  |  | 2,307   |  
|Insurance net premium income                                  |  |            |       |   |          |  | 1,264   |         |    |           |         |   |  |              |       |   |              |  | 34     |       |  |  |         |   |  |  | 1,298   |  
|Other income                                                  |  |            | 351    |   |          |  | 681     |         |    |           | 458      |   |  |              | 94     |   |              |  | (97    | )     |  |  |         |   |  |  | 1,487   |  
|Profit on disposal of business activities                     |  |            |       |   |          |  |        |         |    |           |         |   |  |              | 176    |   |              |  |       |       |  |  |         |   |  |  | 176     |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|Total operating income                                        |  |            | 1,470  |   |          |  | 1,953   |         |    |           | 919      |   |  |              | 992    |   |              |  | (66    | )     |  |  |         |   |  |  | 5,268   |  
|Insurance claims                                              |  |            |       |   |          |  | (1,655  | )       |    |           |         |   |  |              |       |   |              |  | (11    | )     |  |  |         |   |  |  | (1,666  | )
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|Total operating income, net of insurance claims               |  |            | 1,470  |   |          |  | 298     |         |    |           | 919      |   |  |              | 992    |   |              |  | (77    | )     |  |  |         |   |  |  | 3,602   |  
|Operating expenses                                            |  |            | (790   | ) |          |  | (92     | )       |    |           | (404     | ) |  |              | (448   | ) |              |  | (120   | )     |  |  |         |   |  |  | (1,854  | )
|Depreciation and amortisation                                 |  |            | (81    | ) |          |  | (3      | )       |    |           | (21      | ) |  |              | (33    | ) |              |  | (28    | )     |  |  |         |   |  |  | (166    | )
|Impairment losses                                             |  |            | (54    | ) |          |  |        |         |    |           | (23      | ) |  |              | (26    | ) |              |  |       |       |  |  |         |   |  |  | (103    | )
|Share of profit of associated undertakings and joint ventures |  |            | 5      |   |          |  |        |         |    |           |         |   |  |              | 40     |   |              |  |       |       |  |  |         |   |  |  | 45      |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|Profit before taxation                                        |  |            | 550    |   |          |  | 203     |         |    |           | 471      |   |  |              | 525    |   |              |  | (225   | )     |  |  |         |   |  |  | 1,524   |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|Total assets                                                  |  |            | 77,935 |   |          |  | 12,326  |         |    |           | 139,680  |   |  |              | 54,580 |   |              |  | 19,391 |       |  |  | (141,700 | ) |  |  | 162,212 |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|Total liabilities                                             |  |            | 76,320 |   |          |  | 12,210  |         |    |           | 138,402  |   |  |              | 52,501 |   |              |  | 19,248 |       |  |  | (141,700 | ) |  |  | 156,981 |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 
|Capital expenditure                                           |  |            | 55     |   |          |  |        |         |    |           | 36       |   |  |              | 58     |   |              |  | 30     |       |  |  |         |   |  |  | 179     |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |  |              |        |   |              |  |        |       | 

F-35



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|  |                                 
|- | --------------------------------
|1 | SEGMENTAL REPORTING  (continued)

Business Segments


|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       |  |  |          |   |  |  |         |  
|------------------------------------------------------------- |  | ---------- | ------ | - | -------- |  | ------- | ------- | -- | --------- | -------- | - | ----- | ------ | ------ | - | ------------ |  | ------ | ----- |  |  | -------- | - |  |  | ------- | -
|                                                              |  | Retail     |        |   |          |  |         |         | UK |           |          |   |       |        |        |  
|                                                              |  | Republic   |        |   |          |  | Capital |         |    | Financial |          |   | Group |        |        |   |              | 
|Year ended March 31, 2005 Restated*                           |  | of Ireland |        |   | BOI Life |  |         | Markets |    |           | Services |   |       | Centre |        |   | Eliminations |  |        | Total | 
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|                                                              |  | m         |        |   | m       |  |         | m      |    |           | m       |   |       | m     |        |   | m           |  |        | m    | 
|Net interest income                                           |  |            | 1,019  |   |          |  | 6       |         |    |           | 306      |   |       |        | 617    |   |              |  | (17    | )     |  |  |         |   |  |  | 1,931   |  
|Insurance net premium income                                  |  |            |       |   |          |  | 1,755   |         |    |           |         |   |       |        |       |   |              |  | 36     |       |  |  |         |   |  |  | 1,791   |  
|Other income                                                  |  |            | 318    |   |          |  | 709     |         |    |           | 562      |   |       |        | 246    |   |              |  | (99    | )     |  |  |         |   |  |  | 1,736   |  
|Profit on disposal of business activities                     |  |            |       |   |          |  |        |         |    |           |         |   |       |        | (20    | ) |              |  | 31     |       |  |  |         |   |  |  | 11      |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total operating income                                        |  |            | 1,337  |   |          |  | 2,470   |         |    |           | 868      |   |       |        | 843    |   |              |  | (49    | )     |  |  |         |   |  |  | 5,469   |  
|Insurance claims                                              |  |            |       |   |          |  | (2,216  | )       |    |           |         |   |       |        |       |   |              |  | (6     | )     |  |  |         |   |  |  | (2,222  | )
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total operating income, net of insurance claims               |  |            | 1,337  |   |          |  | 254     |         |    |           | 868      |   |       |        | 843    |   |              |  | (55    | )     |  |  |         |   |  |  | 3,247   |  
|Operating expenses                                            |  |            | (729   | ) |          |  | (89     | )       |    |           | (355     | ) |       |        | (504   | ) |              |  | (197   | )     |  |  |         |   |  |  | (1,874  | )
|Depreciation and amortisation                                 |  |            | (85    | ) |          |  | (4      | )       |    |           | (16      | ) |       |        | (47    | ) |              |  | (25    | )     |  |  |         |   |  |  | (177    | )
|Impairment losses                                             |  |            | (51    | ) |          |  |        |         |    |           | (38      | ) |       |        | 10     |   |              |  | 100    |       |  |  |         |   |  |  | 21      |  
|Share of profit of associated undertakings and joint ventures |  |            | (2     | ) |          |  |        |         |    |           |         |   |       |        | 32     |   |              |  |       |       |  |  |         |   |  |  | 30      |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Profit before taxation                                        |  |            | 470    |   |          |  | 161     |         |    |           | 459      |   |       |        | 334    |   |              |  | (177   | )     |  |  |         |   |  |  | 1,247   |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total assets                                                  |  |            | 57,830 |   |          |  | 8,977   |         |    |           | 104,183  |   |       |        | 42,941 |   |              |  | 18,023 |       |  |  | (104,264 | ) |  |  | 127,690 |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Total liabilities                                             |  |            | 56,427 |   |          |  | 8,876   |         |    |           | 103,073  |   |       |        | 41,221 |   |              |  | 18,035 |       |  |  | (104,264 | ) |  |  | 123,368 |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 
|Capital expenditure                                           |  |            | 59     |   |          |  | 7       |         |    |           | 18       |   |       |        | 88     |   |              |  | 15     |       |  |  |         |   |  |  | 187     |  
|                                                              |  |            |        |   |          |  |         |         |    |           |          |   |       |        |        |   |              |  |        |       | 




*   Restated due to change in accounting
policy  see page F-26




Geographical Segments


|                       |  |                |       |        |         |  |         |       |  |               |         |  |  |       |        |   |  |  |       | 
|---------------------- |  | -------------- | ----- | ------ | ------- |  | ------- | ----- |  | ------------- | ------- |  |  | ----- | ------ | - |  |  | ----- | 
|                       |  | March 31, 2007 |      
|                       |  |                |      
|                       |  |                |       | United |         |  | Rest of |       |  | Inter-segment |         |  | 
|                       |  | Ireland        |       |        | Kingdom |  |         | World |  |               | Revenue |  |  | Total |       
|                       |  |                |       |        |         |  |         |       |  |               |         |  |  |       |       
|                       |  | m             |       |        | m      |  |         | m    |  |               | m      |  |  | m    |       
|Revenue                |  |                | 7,398 |        |         |  | 4,646   |       |  |               | 327     |  |  |       | (2,611 | ) |  |  | 9,760 | 
|                       |  |                |       |        |         |  |         |       |  |               |         |  |  |       |       
|Profit before taxation |  |                | 1,603 |        |         |  | 314     |       |  |               | 41      |  |  |       |       |   |  |  | 1,958 | 
|                       |  |                |       |        |         |  |         |       |  |               |         |  |  |       |       

|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |         |   |  |  |         | 
|------------------- |  | ------- | ------- | ------ | ------- |  | ------- | ----- |  |  | ------------ |  |  | ----- | ------- | - |  |  | ------- | 
|                    |  |         |         | United |         |  | Rest of |       |  |  |              | 
|                    |  | Ireland |         |        | Kingdom |  |         | World |  |  | Eliminations |  |  | Total |        
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        
|                    |  | m      |         |        | m      |  |         | m    |  |  | m           |  |  | m    |        
|Total assets        |  |         | 168,843 |        |         |  | 84,268  |       |  |  | 5,002        |  |  |       | (69,300 | ) |  |  | 188,813 | 
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        
|Capital expenditure |  |         | 99      |        |         |  | 58      |       |  |  | 9            |  |  |       |        |   |  |  | 166     | 
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        

F-36



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|  |                                 
|- | --------------------------------
|1 | SEGMENTAL REPORTING  (continued)

|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |        |   |  |  |       | 
|---------------------- |  | -------------------------- | ----- | ------ | ------- |  | ------- | ----- |  | ------------- | ------- |  |  | ----- | ------ | - |  |  | ----- | 
|                       |  | March 31, 2006 (Restated*) |      
|                       |  |                            |      
|                       |  |                            |       | United |         |  | Rest of |       |  | Inter-segment |         |  | 
|                       |  | Ireland                    |       |        | Kingdom |  |         | World |  |               | Revenue |  |  | Total |       
|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |       
|                       |  | m                         |       |        | m      |  |         | m    |  |               | m      |  |  | m    |       
|Revenue                |  |                            | 5,252 |        |         |  | 3,861   |       |  |               | 234     |  |  |       | (1,883 | ) |  |  | 7,464 | 
|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |       
|Profit before taxation |  |                            | 1,003 |        |         |  | 478     |       |  |               | 43      |  |  |       |       |   |  |  | 1,524 | 
|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |       

|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |         |   |  |  |         | 
|------------------- |  | ------- | ------- | ------ | ------- |  | ------- | ----- |  |  | ------------ |  |  | ----- | ------- | - |  |  | ------- | 
|                    |  |         |         | United |         |  | Rest of |       |  |  |              | 
|                    |  | Ireland |         |        | Kingdom |  |         | World |  |  | Eliminations |  |  | Total |        
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        
|                    |  | m      |         |        | m      |  |         | m    |  |  | m           |  |  | m    |        
|Total assets        |  |         | 143,342 |        |         |  | 63,680  |       |  |  | 3,885        |  |  |       | (48,695 | ) |  |  | 162,212 | 
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        
|Capital expenditure |  |         | 95      |        |         |  | 58      |       |  |  | 26           |  |  |       |        |   |  |  | 179     | 
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        

|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |        |   |  |  |       | 
|---------------------- |  | -------------------------- | ----- | ------ | ------- |  | ------- | ----- |  | ------------- | ------- |  |  | ----- | ------ | - |  |  | ----- | 
|                       |  | March 31, 2005 (Restated*) |      
|                       |  |                            |      
|                       |  |                            |       | United |         |  | Rest of |       |  | Inter-segment |         |  | 
|                       |  | Ireland                    |       |        | Kingdom |  |         | World |  |               | Revenue |  |  | Total |       
|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |       
|                       |  | m                         |       |        | m      |  |         | m    |  |               | m      |  |  | m    |       
|Revenue                |  |                            | 3,531 |        |         |  | 3,170   |       |  |               | 192     |  |  |       | (1,021 | ) |  |  | 5,872 | 
|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |       
|Profit before taxation |  |                            | 928   |        |         |  | 273     |       |  |               | 46      |  |  |       |       |   |  |  | 1,247 | 
|                       |  |                            |       |        |         |  |         |       |  |               |         |  |  |       |       

|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |         |   |  |  |         | 
|------------------- |  | ------- | ------- | ------ | ------- |  | ------- | ----- |  |  | ------------ |  |  | ----- | ------- | - |  |  | ------- | 
|                    |  |         |         | United |         |  | Rest of |       |  |  |              | 
|                    |  | Ireland |         |        | Kingdom |  |         | World |  |  | Eliminations |  |  | Total |        
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        
|                    |  | m      |         |        | m      |  |         | m    |  |  | m           |  |  | m    |        
|Total assets        |  |         | 109,516 |        |         |  | 50,551  |       |  |  | 4,262        |  |  |       | (36,639 | ) |  |  | 127,690 | 
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        
|Capital expenditure |  |         | 95      |        |         |  | 87      |       |  |  | 5            |  |  |       |        |   |  |  | 187     | 
|                    |  |         |         |        |         |  |         |       |  |  |              |  |  |       |        




*   Restated due to change in accounting
policy  see page F-26.







|  |                    
|- | -------------------
|2 | NET INTEREST INCOME

|                                      |  |      |       |  |      |  |       |      |  |  |       | 
|------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                      |  | 2007 |       |  | 2006 |  |       | 2005 | 
|                                      |  |      |       |  |      |  |       |      | 
|                                      |  | m   |       |  | m   |  |       | m   | 
|Interest and similar income           |  |      |       |  |      |  |       |      |  |  |       | 
|Loans and advances to banks           |  |      | 292   |  |      |  | 238   |      |  |  | 215   | 
|Loans and advances to customers       |  |      | 6,272 |  |      |  | 4,576 |      |  |  | 3,353 | 
|Financial assets  available-for-sale |  |      | 1,342 |  |      |  | 934   |      |  |  | 483   | 
|Finance leasing                       |  |      | 222   |  |      |  | 197   |      |  |  | 212   | 
|Other                                 |  |      | 9     |  |      |  | 9     |      |  |  |      | 
|                                      |  |      |       |  |      |  |       |      | 
|Total interest income                 |  |      | 8,137 |  |      |  | 5,954 |      |  |  | 4,263 | 
|                                      |  |      |       |  |      |  |       |      | 
|Interest expense and similar charges  |  |      |       |  |      |  |       |      |  |  |       | 
|Interest on subordinated liabilities  |  |      | 370   |  |      |  | 250   |      |  |  | 225   | 
|Other interest payable                |  |      | 5,010 |  |      |  | 3,397 |      |  |  | 2,107 | 
|                                      |  |      |       |  |      |  |       |      | 
|Total interest expense                |  |      | 5,380 |  |      |  | 3,647 |      |  |  | 2,332 | 
|                                      |  |      |       |  |      |  |       |      | 

F-37



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|  |                             
|- | ----------------------------
|3 | NET TRADING (EXPENSE)/INCOME

|                                         |  |      |     |   |      |  |     |      |  |  |    | 
|---------------------------------------- |  | ---- | --- | - | ---- |  | --- | ---- |  |  | -- | 
|                                         |  | 2007 |     |   | 2006 |  |     | 2005 | 
|                                         |  |      |     |   |      |  |     |      | 
|                                         |  | m   |     |   | m   |  |     | m   | 
|Foreign exchange                         |  |      | 53  |   |      |  | 24  |      |  |  | 26 | 
|Securities and interest rate contracts   |  |      | (80 | ) |      |  | 49  |      |  |  | 40 | 
|Equities and equity derivative contracts |  |      | (37 | ) |      |  | (29 | )    |  |  |   | 
|Hedge ineffectiveness                    |  |      | (6  | ) |      |  | (14 | )    |  |  |   | 
|                                         |  |      |     |   |      |  |     |      | 
|                                         |  |      | (70 | ) |      |  | 30  |      |  |  | 66 | 
|                                         |  |      |     |   |      |  |     |      | 

   









|  |                       
|- | ----------------------
|4 | OTHER OPERATING INCOME

|                                                                                              |  |      |     |      |           |  |      |           |  |  |     |  
|--------------------------------------------------------------------------------------------- |  | ---- | --- | ---- | --------- |  | ---- | --------- |  |  | --- | -
|                                                                                              |  |      |     | 2006 |           |  | 2005 |          
|                                                                                              |  | 2007 |     |      | Restated* |  |      | Restated* | 
|                                                                                              |  |      |     |      |           |  |      |           | 
|                                                                                              |  | m   |     |      | m        |  |      | m        | 
|Profit on disposal of financial assets 
    available-for-sale                               |  |      | 10  |      |           |  | 4    |           |  |  | 2   |  
|Other insurance income                                                                        |  |      | 176 |      |           |  | 151  |           |  |  | 84  |  
|Elimination of investment return on treasury shares held for the
    benefit of policyholders |  |      | (40 | )    |           |  | (49  | )         |  |  | (40 | )
|Gain on sale of Head Office premises                                                          |  |      | 32  |      |           |  |     |           |  |  |    |  
|Other income                                                                                  |  |      | 21  |      |           |  | 10   |           |  |  | 52  |  
|                                                                                              |  |      |     |      |           |  |      |           | 
|                                                                                              |  |      | 199 |      |           |  | 116  |           |  |  | 98  |  
|                                                                                              |  |      |     |      |           |  |      |           | 




*   Restated due to change in accounting
policy  see page F-26.







|  |                                          
|- | -----------------------------------------
|5 | PROFIT ON DISPOSAL OF BUSINESS ACTIVITIES

To March 31, 2007


  




|                                                 |  |    |     | 
|------------------------------------------------ |  | -- | --- | 
|                                                 |  | m |    
|                                                 |  |    |    
|Carrying value of net assets at date of disposal |  |    | 84  | 
|Cost of disposal                                 |  |    | 3   | 
|Gain on disposal                                 |  |    | 229 | 
|                                                 |  |    |    
|Cash consideration received                      |  |    | 316 | 
|                                                 |  |    |    

F-38



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|  |                                                           
|- | ----------------------------------------------------------
|5 | PROFIT ON DISPOSAL OF BUSINESS
    ACTIVITIES  (continued)




To March 31, 2006




|                                                          |  |    |     | 
|--------------------------------------------------------- |  | -- | --- | 
|                                                          |  | m |    
|                                                          |  |    |    
|Carrying value of net tangible assets at date of disposal |  |    | 8   | 
|Cost of disposal                                          |  |    | 43  | 
|Gain on disposal of branch operations                     |  |    | 176 | 
|                                                          |  |    |    
|Cash consideration received                               |  |    | 227 | 
|                                                          |  |    |    

To 31 March, 2005





 







|  |                         
|- | ------------------------
|6 | TOTAL OPERATING EXPENSES

|                                |  |       |    |    |      |  |       |      |  |    |       |  |  |  |       | 
|------------------------------- |  | ----- | -- | -- | ---- |  | ----- | ---- |  | -- | ----- |  |  |  | ----- | 
|                                |  | Notes |    |    | 2007 |  |       | 2006 |  |    | 2005  | 
|                                |  |       |    |    |      |  |       |      |  |    |       | 
|                                |  |       |    | m |      |  | m    |      |  | m |      
|Administrative expenses         |  |       |    |    |      |  |       |      |  |    |       |  |  |  |       | 
| Staff costs                   |  |       | 8  |    |      |  | 1,244 |      |  |    | 1,167 |  |  |  | 1,109 | 
| Other administrative expenses |  |       |    |    |      |  | 764   |      |  |    | 687   |  |  |  | 765   | 
|Depreciation                    |  |       |    |    |      |  |       |      |  |    |       |  |  |  |       | 
| Intangibles                   |  |       | 20 |    |      |  | 97    |      |  |    | 106   |  |  |  | 101   | 
| Property, plant and equipment |  |       | 22 |    |      |  | 54    |      |  |    | 60    |  |  |  | 76    | 
|                                |  |       |    |    |      |  |       |      |  |    |       | 
|                                |  |       |    |    |      |  | 2,159 |      |  |    | 2,020 |  |  |  | 2,051 | 
|                                |  |       |    |    |      |  |       |      |  |    |       | 

F-39



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)





7   AUDITORS REMUNERATION (EXCLUDING
VAT)


|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       |  |     |  |  |  |     | 
|------------------------------------ |  | ----- | ----- | ---- | --- |  | ---- | ----------- |  | ---- | ----- |  | -- | ----- | ---- | -- | ----- |  | --- |  |  |  | --- | 
|                                     |  |       |       | 2007 |     |  | 2006 |             |  | 2005 |      
|                                     |  |       |       |      |     |  |      |             |  |      |      
|                                     |  | Notes |       |      | ROI |  |      | Overseas(i) |  |      | Total |  |    | Total |      |    | Total | 
|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       | 
|                                     |  |       |       | m   |     |  | m   |             |  | m   |       |  | m |       |      | m |      
|Audit and assurance services         |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       |  |     |  |  |  |     | 
|Statutory audit (including expenses) |  |       |       |      |     |  | 3.1  |             |  |      | 1.0   |  |    |       | 4.1  |    |       |  | 4.1 |  |  |  | 3.1 | 
|Other audit and assurance services   |  |       | (ii)  |      |     |  | 5.0  |             |  |      | 1.3   |  |    |       | 6.3  |    |       |  | 2.7 |  |  |  | 0.7 | 
|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       | 
|                                     |  |       |       |      |     |  | 8.1  |             |  |      | 2.3   |  |    |       | 10.4 |    |       |  | 6.8 |  |  |  | 3.8 | 
|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       | 
|Other services                       |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       |  |     |  |  |  |     | 
|Transaction services                 |  |       | (iii) |      |     |  |     |             |  |      |      |  |    |       |     |    |       |  | 0.1 |  |  |  | 0.7 | 
|Taxation services                    |  |       |       |      |     |  | 0.7  |             |  |      | 1.4   |  |    |       | 2.1  |    |       |  | 2.2 |  |  |  | 3.9 | 
|Other services                       |  |       |       |      |     |  |     |             |  |      |      |  |    |       |     |    |       |  | 0.2 |  |  |  | 0.7 | 
|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       | 
|                                     |  |       |       |      |     |  | 0.7  |             |  |      | 1.4   |  |    |       | 2.1  |    |       |  | 2.5 |  |  |  | 5.3 | 
|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       | 
|                                     |  |       |       |      |     |  | 8.8  |             |  |      | 3.7   |  |    |       | 12.5 |    |       |  | 9.3 |  |  |  | 9.1 | 
|                                     |  |       |       |      |     |  |      |             |  |      |       |  |    |       |      |    |       | 





| |       |                                                                                                                                                                                                                                     
| | ----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)   | Fees to overseas auditors principally consist of fees to PwC in
    the United Kingdom.                                                                                                                                             
|
| | (ii)  | Other audit and assurance services consist primarily of fees in
    connection with reporting to regulators, letters of comfort,
    transition to IFRS, reporting on and preparation for Sarbanes
    Oxley and accountancy advice.
|
| | (iii) | Transaction service costs relate primarily to financial due
    diligence and other assignments.                                                                                                                                    






8   STAFF COSTS


|                                                |  |      |       |  |      |  |       |      |  |  |       | 
|----------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                |  | 2007 |       |  | 2006 |  |       | 2005 | 
|                                                |  |      |       |  |      |  |       |      | 
|                                                |  | m   |       |  | m   |  |       | m   | 
|Wages and salaries                              |  |      | 986   |  |      |  | 911   |      |  |  | 895   | 
|Social security costs                           |  |      | 90    |  |      |  | 81    |      |  |  | 80    | 
|Pension costs  defined contribution plans      |  |      | 4     |  |      |  | 5     |      |  |  | 2     | 
|Pension costs  defined benefit plans (Note 34) |  |      | 119   |  |      |  | 139   |      |  |  | 97    | 
|Share based payment schemes (Note 37)           |  |      | 12    |  |      |  | 11    |      |  |  | 11    | 
|Other                                           |  |      | 33    |  |      |  | 20    |      |  |  | 24    | 
|                                                |  |      |       |  |      |  |       |      | 
|                                                |  |      | 1,244 |  |      |  | 1,167 |      |  |  | 1,109 | 
|                                                |  |      |       |  |      |  |       |      | 

F-40



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)





9   STAFF NUMBERS




|                           |  |      |        |  |      |  |        |      |  |  |        | 
|-------------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                           |  | 2007 |        |  | 2006 |  |        | 2005 | 
|                           |  |      |        |  |      |  |        |      | 
|Retail Republic of Ireland |  |      | 8,451  |  |      |  | 7,987  |      |  |  | 7,927  | 
|BOI Life                   |  |      | 1,100  |  |      |  | 1,063  |      |  |  | 1,051  | 
|Capital Markets            |  |      | 1,986  |  |      |  | 2,091  |      |  |  | 1,897  | 
|UK Financial Services      |  |      | 3,415  |  |      |  | 3,930  |      |  |  | 4,963  | 
|Group Centre               |  |      | 1,000  |  |      |  | 1,119  |      |  |  | 1,122  | 
|                           |  |      |        |  |      |  |        |      | 
|                           |  |      | 15,952 |  |      |  | 16,190 |      |  |  | 16,960 | 
|                           |  |      |        |  |      |  |        |      | 






|   |         
|-- | --------
|10 | TAXATION

|                                                |              |      |     |     |      |  |     |      |   |  |     |     | 
|----------------------------------------------- | ------------ | ---- | --- | --- | ---- |  | --- | ---- | - |  | --- | --- | 
|                                                |              | 2007 |     |     | 2006 |  |     | 2005 |  
|                                                |              |      |     |     |      |  |     |      |  
|                                                |              | m   |     |     | m   |  |     | m   |  
|Current Tax                                     |              |      |     |     |      |  |     |      |   |  |     |    
|Irish Corporation Tax                           |              |      |     |     |      |  |     |      |   |  |     |    
|                                                | Current Year |      |     | 244 |      |  |     | 191  |   |  |     | 142 | 
|                                                | Prior Year   |      |     | 12  |      |  |     | 8    |   |  |     | 2   | 
|Double Taxation Relief                          |              |      | (30 | )   |      |  | (20 | )    |   |  | (19 | )  
|Foreign Tax                                     |              |      |     |     |      |  |     |      |   |  |     |    
|                                                | Current Year |      |     | 98  |      |  |     | 86   |   |  |     | 75  | 
|                                                | Prior Year   |      |     | 3   |      |  |     | (3   | ) |  |     | 3   | 
|                                                |              |      |     |     |      |  |     |      |  
|                                                |              |      | 327 |     |      |  | 262 |      |   |  | 203 |    
|Deferred Tax                                    |              |      |     |     |      |  |     |      |   |  |     |    
|Origination & reversal of temporary differences |              |      | (21 | )   |      |  | 41  |      |   |  | 53  |    
|                                                |              |      |     |     |      |  |     |      |  
|Charge for the year                             |              |      | 306 |     |      |  | 303 |      |   |  | 256 |    
|                                                |              |      |     |     |      |  |     |      |  

F-41



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                      
|-- | ---------------------
|10 | TAXATION  (continued)



|                                                                                                                                                      |  |      |     |      |           |  |      |           |  |  |     |  
|----------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | --- | ---- | --------- |  | ---- | --------- |  |  | --- | -
|                                                                                                                                                      |  |      |     | 2006 |           |  | 2005 |          
|                                                                                                                                                      |  | 2007 |     |      | Restated* |  |      | Restated* | 
|                                                                                                                                                      |  |      |     |      |           |  |      |           | 
|                                                                                                                                                      |  | m   |     |      | m        |  |      | m        | 
|Profit on ordinary activities before taxation multiplied by the
    Standard rate of Corporate tax in Ireland of 12.5% (2006: 12.5%,
    2005: 12.5%) |  |      | 245 |      |           |  | 191  |           |  |  | 157 |  
|Effects of:                                                                                                                                           |  |      |     |      |           |  |      |           |  |  |     |  
|Levy on certain financial institutions                                                                                                                |  |      |    |      |           |  | 20   |           |  |  | 26  |  
|Foreign earnings subject to different rates of tax                                                                                                    |  |      | 49  |      |           |  | 78   |           |  |  | 49  |  
|Life Assurance  different basis of taxation                                                                                                          |  |      | 16  |      |           |  | 61   |           |  |  | 31  |  
|Derecognition on consolidation of investment return on treasury
    shares held by BOI Life                                                           |  |      | 8   |      |           |  | 9    |           |  |  | 8   |  
|Tax exempted profits and income at a reduced Irish tax rate                                                                                           |  |      | (26 | )    |           |  | (71  | )         |  |  | (18 | )
|Non-deductible expenses                                                                                                                               |  |      | 11  |      |           |  | 12   |           |  |  | 1   |  
|Prior year adjustments                                                                                                                                |  |      | 6   |      |           |  | 5    |           |  |  | 5   |  
|Share of Associates profits shown post tax in income statement                                                                                        |  |      | (5  | )    |           |  | (6   | )         |  |  | (5  | )
|Other adjustments for tax purposes                                                                                                                    |  |      | 2   |      |           |  | 4    |           |  |  | 2   |  
|                                                                                                                                                      |  |      |     |      |           |  |      |           | 
|Taxation charge                                                                                                                                       |  |      | 306 |      |           |  | 303  |           |  |  | 256 |  
|                                                                                                                                                      |  |      |     |      |           |  |      |           | 




*   Restated due to change in accounting
policy  see page F-26.




 







|   |                   
|-- | ------------------
|11 | EARNINGS PER SHARE




|                                                                                                                                                |  |      |        |      |           |  |        |           |  |  |        |  
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | ---- | --------- |  | ------ | --------- |  |  | ------ | -
|                                                                                                                                                |  |      |        | 2006 |           |  | 2005   |          
|                                                                                                                                                |  | 2007 |        |      | Restated* |  |        | Restated* | 
|                                                                                                                                                |  |      |        |      |           |  |        |           | 
|                                                                                                                                                |  | m   |        |      | m        |  |        | m        | 
|Basic                                                                                                                                           |  |      |        |      |           |  |        |           |  |  |        |  
|Profit attributable to stockholders                                                                                                             |  |      | 1,651  |      |           |  | 1,230  |           |  |  | 992    |  
|Dividends on other equity interests                                                                                                             |  |      | (15    | )    |           |  | (13    | )         |  |  | (8     | )
|                                                                                                                                                |  |      |        |      |           |  |        |           | 
|Profit attributable to Ordinary Stockholders                                                                                                    |  |      | 1,636  |      |           |  | 1,217  |           |  |  | 984    |  
|Weighted average number of shares in issue excluding Treasury
    stock and own shares held for the benefit of life assurance
    policyholders |  |      | 950m   |      |           |  | 947m   |           |  |  | 942m   |  
|Basic earnings per share                                                                                                                        |  |      | 172.2c |      |           |  | 128.5c |           |  |  | 104.4c |  
|                                                                                                                                                |  |      |        |      |           |  |        |           | 

F-42



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                
|-- | -------------------------------
|11 | EARNINGS PER SHARE  (continued)



|                                                                                                                                                |  |      |        |      |           |  |        |           |  |  |        |  
|----------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | ---- | --------- |  | ------ | --------- |  |  | ------ | -
|                                                                                                                                                |  |      |        | 2006 |           |  | 2005   |          
|                                                                                                                                                |  | 2007 |        |      | Restated* |  |        | Restated* | 
|                                                                                                                                                |  |      |        |      |           |  |        |           | 
|                                                                                                                                                |  | m   |        |      | m        |  |        | m        | 
|Diluted                                                                                                                                         |  |      |        |      |           |  |        |           |  |  |        |  
|Profit attributable to stockholders                                                                                                             |  |      | 1,651  |      |           |  | 1,230  |           |  |  | 992    |  
|Dividends on other equity interests                                                                                                             |  |      | (15    | )    |           |  | (13    | )         |  |  | (8     | )
|                                                                                                                                                |  |      |        |      |           |  |        |           | 
|Profit attributable to Ordinary Stockholders                                                                                                    |  |      | 1,636  |      |           |  | 1,217  |           |  |  | 984    |  
|Weighted average number of shares in issue excluding Treasury
    stock and own shares held for the benefit of life assurance
    policyholders |  |      | 950m   |      |           |  | 947m   |           |  |  | 942m   |  
|Effect of all dilutive potential Ordinary Stock                                                                                                 |  |      | 7m     |      |           |  | 7m     |           |  |  | 8m     |  
|                                                                                                                                                |  |      |        |      |           |  |        |           | 
|                                                                                                                                                |  |      | 957m   |      |           |  | 954m   |           |  |  | 950m   |  
|                                                                                                                                                |  |      |        |      |           |  |        |           | 
|Diluted earnings per share                                                                                                                      |  |      | 171.0c |      |           |  | 127.6c |           |  |  | 103.6c |  
|                                                                                                                                                |  |      |        |      |           |  |        |           | 




*   Restated due to change in accounting
policy  see page F-26.







|   |                                            
|-- | -------------------------------------------
|12 | CENTRAL GOVERNMENT AND OTHER ELIGIBLE BILLS

|                   |  |      |    |  |      |  |   | 
|------------------ |  | ---- | -- |  | ---- |  | - | 
|                   |  | 2007 |    |  | 2006 | 
|                   |  |      |    |  |      | 
|                   |  | m   |    |  | m   | 
|Available-for-sale |  |      | 11 |  |      |  | 8 | 
|                   |  |      |    |  |      | 

F-43



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                                                                               
|-- | ------------------------------------------------------------------------------
|13 | FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
    (INCLUDING TRADING)

|                                                                     |  |      |     |      |           |  |     | 
|-------------------------------------------------------------------- |  | ---- | --- | ---- | --------- |  | --- | 
|                                                                     |  |      |     | 2006 |          
|                                                                     |  | 2007 |     |      | Restated* | 
|                                                                     |  |      |     |      |           | 
|                                                                     |  | m   |     |      | m        | 
|Financial Assets at Fair Value through Profit and Loss
    (trading) |  |      |     |      |           |  |     | 
|Government bonds                                                     |  |      |    |      |           |  | 156 | 
|Other debt securities                                                |  |      |     |      |           |  |     | 
| Listed                                                             |  |      | 520 |      |           |  | 440 | 
| Unlisted                                                           |  |      |    |      |           |  |    | 
|Equity securities                                                    |  |      |     |      |           |  |     | 
| Listed                                                             |  |      |    |      |           |  | 23  | 
| Unlisted                                                           |  |      |    |      |           |  | 1   | 
|                                                                     |  |      |     |      |           | 
|Total trading securities                                             |  |      | 520 |      |           |  | 620 | 
|                                                                     |  |      |     |      |           | 

|                                                                                               |  |      |        |      |           |  |        | 
|---------------------------------------------------------------------------------------------- |  | ---- | ------ | ---- | --------- |  | ------ | 
|                                                                                               |  |      |        | 2006 |          
|                                                                                               |  | 2007 |        |      | Restated* | 
|                                                                                               |  |      |        |      |           | 
|                                                                                               |  | m   |        |      | m        | 
|Financial assets at fair value through profit and loss
    (designated at initial recognition) |  |      |        |      |           |  |        | 
|Unit Trusts                                                                                    |  |      | 542    |      |           |  |       | 
|Government bonds                                                                               |  |      | 2,168  |      |           |  | 2,033  | 
|Debt securities                                                                                |  |      | 756    |      |           |  | 725    | 
|Equity securities                                                                              |  |      | 9,241  |      |           |  | 7,680  | 
|                                                                                               |  |      |        |      |           | 
|Total other financial assets at fair value through P/L                                         |  |      | 12,707 |      |           |  | 10,438 | 
|                                                                                               |  |      |        |      |           | 






|  |                                                                                                                                                
|- | -----------------------------------------------------------------------------------------------------------------------------------------------
|* | Restated due to change in accounting policy see page F-26.                                                                                     
| 
|  | 12,403 million,
    (2006:
    10,082 million)
    of the assets classified at fair value through the profit and
    loss relate to BOI Life.






|   |                                 
|-- | --------------------------------
|14 | DERIVATIVE FINANCIAL INSTRUMENTS

RISK MANAGEMENT AND CONTROL






| |                         
| | ------------------------
| | Risk Management Approach



F-44



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)







| |   |                                        
| | - | ---------------------------------------
| |  | Credit (including Group Credit Review),
|
| |  | Market Risk,                           
|
| |  | Operational Risk,                      
|
| |  | Office of the Group Chief Risk Officer,
|
| |  | Regulatory Risk & Compliance.          







| |     |                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------
| | (a) | Emphasising a portfolio approach to risk management in addition
    to a transactional approach,                          
|
| | (b) | Leading the discussion on the setting of risk appetite and,                                                               
|
| | (c) | Providing appropriate risk measurements to influence the
    assessment of business performance and corporate development.
|
| | (d) | Structuring business growth aspirations in a manner consistent
    with the Groups risk appetite.                        









| |   |                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Ensures that management is accountable for the effective
    identification, measurement and control of all key risks and
    that these risks are adequately covered by capital.
|
| |  | Ensures that management cannot materially alter the nature or
    scale of risk assumed by the Group without reference to the
    Court.                                         
|
| |  | Approves the terms of reference, operating parameters and
    membership of GRPC.                                                                                                
|
| |  | Approves the Group Risk Framework and Group Credit Policy and
    all material changes thereto.                                                                                  

F-45



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)



| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | Approves the Groups risk appetite and loss tolerance.                     
|
| |  | Approves other key high-level risk limits as required by risk
    policies.
|
| |  | Reviews regular reports on the size and composition of all key
    risks.  
|
| |  | Reviews the proceedings of Group Risk Policy Committee (GRPC).             







| |   |                                                                                                 
| | - | ------------------------------------------------------------------------------------------------
| |  | Group Credit Committee  approval of all large credit
    transactions.                         
|
| |  | Portfolio Review Committee  composition of the
    Groups loan portfolio.                     
|
| |  | Group Asset and Liability Committee (ALCO)  market,
    liquidity risk and capital.            
|
| |  | Risk Measurement Committee  credit risk measurement
    and risk model validation.             
|
| |  | Group Operational Risk Committee  operational risk.                                            
|
| |  | Group Regulatory Risk and Compliance Committee 
    regulatory risk and compliance.            
|
| |  | Group Debt Underwriting Committee  control and
    oversight of debt underwriting transactions.
|
| |  | Private Equity Governance Committee  approval of
    equity investments.                       
|
| |  | Group Tax Committee  oversight of tax policy.                                                  
|
| |  | Basel II Steering  governance & oversight of
    Basel II Programme.                           



| |                    
| | -------------------
| | Risk Concentrations





| |              
| | -------------
| | Risk Appetite







| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | Ensure Short-Term Financial Stability (e.g. Loss
    Tolerance/Earnings volatility)

F-46



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)



| |   |                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------
| |  | Maintain Capital Levels (e.g. Economic Capital, Target
    Capital Levels)                                     
|
| |  | Protect the Long Term Group Franchise (e.g. Target Debt
    Rating, Use of Risk/Capital in Strategic Decisions)





| |                                 
| | --------------------------------
| | Stress Testing/Scenario Analysis







| |         
| | --------
| | Basel II



CREDIT RISK






| |                    
| | -------------------
| | Lending Authorities





| |              
| | -------------
| | Credit Policy



F-47



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)





| |                    
| | -------------------
| | Country/Bank Limits





| |                     
| | --------------------
| | Rating Methodologies















| |                      
| | ---------------------
| | Impairment Provisions





F-48



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)







MARKET RISK




| |                      
| | ---------------------
| | Policy and Governance











| |                             
| | ----------------------------
| | Risk Measurement and Control





F-49



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)











| |                              
| | -----------------------------
| | Trading and Banking Book Risk

intent to trade




4-year




| |            
| | -----------
| | Derivatives





F-50



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)



| |       
| | ------
| | Policy











| |                      
| | ---------------------
| | Collateral Agreements





STRUCTURAL FOREIGN EXCHANGE




F-51



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)



|                             |  |                |       |  |                |  |       | 
|---------------------------- |  | -------------- | ----- |  | -------------- |  | ----- | 
|                             |  | March 31, 2007 |       |  | March 31, 2006 | 
|                             |  |                |       |  |                | 
|                             |  | m             |       |  | m             | 
|GBP                          |  |                | 3,980 |  |                |  | 3,373 | 
|U.S.D                        |  |                | 256   |  |                |  | 264   | 
|                             |  |                |       |  |                | 
|Total structural FX position |  |                | 4,236 |  |                |  | 3,637 | 
|                             |  |                |       |  |                | 

 


LIQUIDITY RISK








0-8 8-30




F-52



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)



|                                                       |  |           |         |  |             |  |       |             |  |  |       | 
|------------------------------------------------------ |  | --------- | ------- |  | ----------- |  | ----- | ----------- |  |  | ----- | 
|                                                       |  | Contract/ |         |  | Fair values | 
|                                                       |  | notional  |         |  |             | 
|Year ended March 31, 2007                              |  | amount    |         |  | Assets      |  |       | Liabilities | 
|                                                       |  |           |         |  |             |  |       |             | 
|                                                       |  | m        |         |  | m          |  |       | m          | 
|Derivatives held for trading                           |  |           |         |  |             |  |       |             |  |  |       | 
|Foreign exchange derivatives                           |  |           |         |  |             |  |       |             |  |  |       | 
|Currency forwards                                      |  |           | 33,591  |  |             |  | 148   |             |  |  | 266   | 
|Currency swaps                                         |  |           | 952     |  |             |  | 28    |             |  |  | 14    | 
|OTC currency options                                   |  |           | 2,204   |  |             |  | 13    |             |  |  | 12    | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total foreign exchange derivatives held for trading    |  |           | 36,747  |  |             |  | 189   |             |  |  | 292   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Interest rate derivatives                              |  |           |         |  |             |  |       |             |  |  |       | 
|Interest rate swaps                                    |  |           | 200,498 |  |             |  | 571   |             |  |  | 663   | 
|Cross-currency interest rate swaps                     |  |           | 25,959  |  |             |  | 207   |             |  |  | 408   | 
|Forward rate agreements                                |  |           | 16,865  |  |             |  | 1     |             |  |  | 2     | 
|OTC interest rate options                              |  |           | 4,092   |  |             |  | 14    |             |  |  | 14    | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total interest rate derivatives held for trading       |  |           | 247,414 |  |             |  | 793   |             |  |  | 1,087 | 
|                                                       |  |           |         |  |             |  |       |             | 
|Equity and commodity contracts                         |  |           |         |  |             |  |       |             |  |  |       | 
|Equity index linked contracts held                     |  |           | 7,472   |  |             |  | 932   |             |  |  | 871   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total derivative assets / liabilities held for trading |  |           | 291,633 |  |             |  | 1,914 |             |  |  | 2,250 | 
|                                                       |  |           |         |  |             |  |       |             | 
|Derivatives held for hedging                           |  |           |         |  |             |  |       |             |  |  |       | 
|Derivatives designated as fair value hedges            |  |           |         |  |             |  |       |             |  |  |       | 
|Interest rate swaps                                    |  |           | 15,757  |  |             |  | 185   |             |  |  | 228   | 
|Cross currency interest rate swaps                     |  |           | 1,101   |  |             |  | 15    |             |  |  | 8     | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total fair value hedges                                |  |           | 16,858  |  |             |  | 200   |             |  |  | 236   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Derivatives designated as cash flow hedges             |  |           |         |  |             |  |       |             |  |  |       | 
|Interest rate swaps                                    |  |           | 100,257 |  |             |  | 735   |             |  |  | 436   | 
|Currency swaps                                         |  |           | 6,598   |  |             |  |      |             |  |  | 13    | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total cash flow hedges                                 |  |           | 106,855 |  |             |  | 735   |             |  |  | 449   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total derivative assets / liabilities held for hedging |  |           | 123,713 |  |             |  | 935   |             |  |  | 685   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total recognised derivative assets / liabilities       |  |           | 415,346 |  |             |  | 2,849 |             |  |  | 2,935 | 
|                                                       |  |           |         |  |             |  |       |             | 

F-53



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|14 | DERIVATIVE FINANCIAL
    INSTRUMENTS     (Continued)

|                                                       |  |           |         |  |             |  |       |             |  |  |       | 
|------------------------------------------------------ |  | --------- | ------- |  | ----------- |  | ----- | ----------- |  |  | ----- | 
|                                                       |  | Contract/ |         |  | Fair values | 
|                                                       |  | notional  |         |  |             | 
|Year ended March 31, 2006                              |  | amount    |         |  | Assets      |  |       | Liabilities | 
|                                                       |  |           |         |  |             |  |       |             | 
|                                                       |  | m        |         |  | m          |  |       | m          | 
|Derivatives held for trading                           |  |           |         |  |             |  |       |             |  |  |       | 
|Foreign exchange derivatives                           |  |           |         |  |             |  |       |             |  |  |       | 
|Currency forwards                                      |  |           | 18,880  |  |             |  | 113   |             |  |  | 69    | 
|Currency swaps                                         |  |           | 630     |  |             |  | 22    |             |  |  | 37    | 
|OTC currency options                                   |  |           | 1,659   |  |             |  | 3     |             |  |  | 3     | 
|Currency futures                                       |  |           | 31      |  |             |  |      |             |  |  |      | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total foreign exchange derivatives held for trading    |  |           | 21,200  |  |             |  | 138   |             |  |  | 109   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Interest rate derivatives                              |  |           |         |  |             |  |       |             |  |  |       | 
|Interest rate swaps                                    |  |           | 89,830  |  |             |  | 394   |             |  |  | 446   | 
|Cross-currency interest rate swaps                     |  |           | 9,065   |  |             |  | 132   |             |  |  | 48    | 
|Forward rate agreements                                |  |           | 9,402   |  |             |  | 2     |             |  |  | 4     | 
|OTC interest rate options                              |  |           | 2,385   |  |             |  | 6     |             |  |  | 8     | 
|Interest rate futures                                  |  |           | 5,378   |  |             |  |      |             |  |  |      | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total interest rate derivatives held for trading       |  |           | 116,060 |  |             |  | 534   |             |  |  | 506   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Equity and commodity contracts                         |  |           |         |  |             |  |       |             |  |  |       | 
|Equity index linked contracts held                     |  |           | 8,294   |  |             |  | 915   |             |  |  | 615   | 
|                                                       |  |           |         |  |             |  |       |             | 
|                                                       |  |           | 8,294   |  |             |  | 915   |             |  |  | 615   | 
|Credit derivatives                                     |  |           | 60      |  |             |  |      |             |  |  |      | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total derivative assets / liabilities held for trading |  |           | 145,614 |  |             |  | 1,587 |             |  |  | 1,230 | 
|                                                       |  |           |         |  |             |  |       |             | 
|Derivatives held for hedging                           |  |           |         |  |             |  |       |             |  |  |       | 
|Derivatives designated as fair value hedges            |  |           |         |  |             |  |       |             |  |  |       | 
|Interest rate swaps                                    |  |           | 11,917  |  |             |  | 215   |             |  |  | 187   | 
|Cross currency interest rate swaps                     |  |           | 616     |  |             |  | 4     |             |  |  | 14    | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total fair value hedges                                |  |           | 12,533  |  |             |  | 219   |             |  |  | 201   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Derivatives designated as cash flow hedges             |  |           |         |  |             |  |       |             |  |  |       | 
|Interest rate swaps                                    |  |           | 78,021  |  |             |  | 279   |             |  |  | 216   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total derivative assets / liabilities held for hedging |  |           | 90,554  |  |             |  | 498   |             |  |  | 417   | 
|                                                       |  |           |         |  |             |  |       |             | 
|Total recognised derivative assets / liabilities       |  |           | 236,168 |  |             |  | 2,085 |             |  |  | 1,647 | 
|                                                       |  |           |         |  |             |  |       |             | 

F-54



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)





15  LOANS AND ADVANCES TO BANKS


|                                                        |  |      |       |  |      |  |        |  
|------------------------------------------------------- |  | ---- | ----- |  | ---- |  | ------ | -
|                                                        |  | 2007 |       |  | 2006 | 
|                                                        |  |      |       |  |      | 
|                                                        |  | m   |       |  | m   | 
|Funds placed with central banks                         |  |      | 906   |  |      |  | 131    |  
|Mandatory deposit with central banks                    |  |      | 2,124 |  |      |  | 2,482  |  
|Securities purchased with agreement to resell           |  |      | 1,842 |  |      |  | 3,773  |  
|Placements with other banks                             |  |      | 2,338 |  |      |  | 5,803  |  
|                                                        |  |      |       |  |      | 
|                                                        |  |      | 7,210 |  |      |  | 12,189 |  
|Provision for impairment on loans and advances to banks |  |      |      |  |      |  | (1     | )
|                                                        |  |      |       |  |      | 
|                                                        |  |      | 7,210 |  |      |  | 12,188 |  
|                                                        |  |      |       |  |      | 




16  LOANS AND ADVANCES TO CUSTOMERS


(a)  Loans and advances to customers


|                                                |                                                                                    |      |         |       |      |  |         |       | 
|----------------------------------------------- | ---------------------------------------------------------------------------------- | ---- | ------- | ----- | ---- |  | ------- | ----- | 
|                                                |                                                                                    | 2007 |         |       | 2006 | 
|                                                |                                                                                    |      |         |       |      | 
|                                                |                                                                                    | m   |         |       | m   | 
|Loans and advances to customers                 |                                                                                    |      | 121,933 |       |      |  | 98,497  |      
|                                                | Loans and advances to customers  finance leases and
    hire purchase receivables |      |         | 3,543 |      |  |         | 3,108 | 
|                                                |                                                                                    |      |         |       |      | 
|Gross loans and advances                        |                                                                                    |      | 125,476 |       |      |  | 101,605 |      
|Less allowance for losses on loans and advances |                                                                                    |      | (428    | )     |      |  | (359    | )    
|                                                |                                                                                    |      |         |       |      | 
|                                                |                                                                                    |      | 125,048 |       |      |  | 101,246 |      
|                                                |                                                                                    |      |         |       |      | 



|    |                                                                      
|--- | ---------------------------------------------------------------------
|(b) | Allowance for losses on loans and advances to customers and
    banks

|                                                                       |  |      |     |   |      |  |     |      |  |  |      |  
|---------------------------------------------------------------------- |  | ---- | --- | - | ---- |  | --- | ---- |  |  | ---- | -
|                                                                       |  | 2007 |     |   | 2006 |  |     | 2005 | 
|                                                                       |  |      |     |   |      |  |     |      | 
|                                                                       |  | m   |     |   | m   |  |     | m   | 
|Movement in allowance for losses on loans and advances as
    follows: |  |      |     |   |      |  |     |      |  |  |      |  
|Opening balance                                                        |  |      | 360 |   |      |  | 319 |      |  |  | 472  |  
|Exchange adjustments                                                   |  |      | 1   |   |      |  | (1  | )    |  |  | (9   | )
|Charge against profits                                                 |  |      | 104 |   |      |  | 100 |      |  |  | (21  | )
|Amounts written off                                                    |  |      | (53 | ) |      |  | (85 | )    |  |  | (144 | )
|Recoveries                                                             |  |      | 19  |   |      |  | 21  |      |  |  | 21   |  
|Other movements                                                        |  |      | (3  | ) |      |  | 6   |      |  |  |     |  
|                                                                       |  |      |     |   |      |  |     |      | 
|Closing balance                                                        |  |      | 428 |   |      |  | 360 |      |  |  | 319  |  
|                                                                       |  |      |     |   |      |  |     |      | 
|Of which relates to:                                                   |  |      |     |   |      |  |     |      |  |  |      |  
|Loans and advances to customers                                        |  |      | 428 |   |      |  | 359 |      |  |  | 319  |  
|Loans and advances to banks                                            |  |      |    |   |      |  | 1   |      |  |  |     |  
|                                                                       |  |      |     |   |      |  |     |      | 
|                                                                       |  |      | 428 |   |      |  | 360 |      |  |  | 319  |  
|                                                                       |  |      |     |   |      |  |     |      | 



|    |                                         
|--- | ----------------------------------------
|(c) | Concentration of exposure to credit risk



F-55



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




16  LOANS AND ADVANCES TO
CUSTOMERS     (continued)




 




|    |               
|--- | --------------
|(d) | Finance Leases



|                                                                 |  |      |       |   |      |  |       |  
|---------------------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|                                                                 |  | 2007 |       |   | 2006 | 
|                                                                 |  |      |       |   |      | 
|                                                                 |  | m   |       |   | m   | 
|Gross investment in finance leases:                              |  |      |       |   |      |  |       |  
|Not later than 1 year                                            |  |      | 1,409 |   |      |  | 1,513 |  
|Later than 1 year and not later than 5 years                     |  |      | 2,385 |   |      |  | 1,708 |  
|Later than 5 years                                               |  |      | 125   |   |      |  | 212   |  
|                                                                 |  |      |       |   |      | 
|                                                                 |  |      | 3,919 |   |      |  | 3,433 |  
|Unearned future finance income on finance leases                 |  |      | (376  | ) |      |  | (325  | )
|                                                                 |  |      |       |   |      | 
|Net investment in finance leases                                 |  |      | 3,543 |   |      |  | 3,108 |  
|                                                                 |  |      |       |   |      | 
|The net investment in finance leases may be analysed as follows: |  |      |       |   |      |  |       |  
|Not later than 1 year                                            |  |      | 1,273 |   |      |  | 1,373 |  
|Later than 1 year and not later than 5 years                     |  |      | 2,155 |   |      |  | 1,540 |  
|Later than 5 years                                               |  |      | 115   |   |      |  | 195   |  
|                                                                 |  |      |       |   |      | 
|                                                                 |  |      | 3,543 |   |      |  | 3,108 |  
|                                                                 |  |      |       |   |      | 



|    |                                          
|--- | -----------------------------------------
|(e) | Securitisations and other asset transfers



F-56



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)





17  AVAILABLE-FOR-SALE FINANCIAL ASSETS


|                                         |            |      |        |        |      |  |        |        | 
|---------------------------------------- | ---------- | ---- | ------ | ------ | ---- |  | ------ | ------ | 
|                                         |            | 2007 |        |        | 2006 | 
|                                         |            |      |        |        |      | 
|                                         |            | m   |        |        | m   | 
|Investment Securities available-for-sale |            |      |        |        |      |  |        |       
|Government bonds                         |            |      | 6,380  |        |      |  | 5,881  |       
|Other debt securities                    |            |      |        |        |      |  |        |       
|                                         |  Listed   |      |        | 24,885 |      |  |        | 20,062 | 
|                                         |  Unlisted |      |        | 2,135  |      |  |        | 2,237  | 
|Equity securities                        |            |      |        |        |      |  |        |       
|                                         |  Listed   |      |        | 30     |      |  |        | 3      | 
|                                         |  Unlisted |      |        | 19     |      |  |        | 22     | 
|                                         |            |      |        |        |      | 
|Total securities available-for-sale      |            |      | 33,449 |        |      |  | 28,205 |       
|                                         |            |      |        |        |      | 

 




|                                            |  |      |         |   |      |  |         |  
|------------------------------------------- |  | ---- | ------- | - | ---- |  | ------- | -
|                                            |  | 2007 |         |   | 2006 | 
|                                            |  |      |         |   |      | 
|                                            |  | m   |         |   | m   | 
|At April 1, 2006                            |  |      | 28,205  |   |      |  | 20,752  |  
|Revaluation, exchange and other adjustments |  |      | (604    | ) |      |  | 150     |  
|Additions                                   |  |      | 30,465  |   |      |  | 27,784  |  
|Disposals (sale and redemption)             |  |      | (24,589 | ) |      |  | (20,576 | )
|Amortisation                                |  |      | 52      |   |      |  | 98      |  
|Provision for impairment                    |  |      | 1       |   |      |  | (3      | )
|Transfer from subsidiary                    |  |      |        |   |      |  |        |  
|Reclassification                            |  |      | (81     | ) |      |  |        |  
|                                            |  |      |         |   |      | 
|At March 31, 2007                           |  |      | 33,449  |   |      |  | 28,205  |  
|                                            |  |      |         |   |      | 






|   |                                    
|-- | -----------------------------------
|18 | INTEREST IN ASSOCIATED UNDERTAKINGS

|                           |  |      |    |  |      |  |    |  
|-------------------------- |  | ---- | -- |  | ---- |  | -- | -
|                           |  | 2007 |    |  | 2006 | 
|                           |  |      |    |  |      | 
|                           |  | m   |    |  | m   | 
|At April 1, 2006           |  |      | 21 |  |      |  | 17 |  
|Share of results after tax |  |      | 1  |  |      |  | 5  |  
|Increase in investments    |  |      | 4  |  |      |  | 4  |  
|Decrease in investments    |  |      |   |  |      |  | (5 | )
|                           |  |      |    |  |      | 
|At March 31, 2007          |  |      | 26 |  |      |  | 21 |  
|                           |  |      |    |  |      | 



F-57



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                           
|-- | --------------------------
|19 | INTEREST IN JOINT VENTURES

|                           |  |      |     |   |      |  |     |  
|-------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                           |  | 2007 |     |   | 2006 | 
|                           |  |      |     |   |      | 
|                           |  | m   |     |   | m   | 
|At April 1, 2006           |  |      | 75  |   |      |  | 61  |  
|Acquisitions               |  |      | 21  |   |      |  |    |  
|Share of results after tax |  |      | 43  |   |      |  | 40  |  
|Exchange adjustments       |  |      | 2   |   |      |  | (1  | )
|Dividends received         |  |      | (68 | ) |      |  | (25 | )
|                           |  |      |     |   |      | 
|At March 31, 2007          |  |      | 73  |   |      |  | 75  |  
|                           |  |      |     |   |      | 



|                                    |  |      |    |  |        |  |      | 
|----------------------------------- |  | ---- | -- |  | ------ |  | ---- | 
|                                    |  | 2007 |    |  | 2007   | 
|                                    |  |      |    |  |        | 
|                                    |  | m   |    |  | U.S.$m | 
|Acquisition:                        |  |      |    |  |        |  |      | 
|Cash paid on acquisition of JV      |  |      | 19 |  |        |  | 25.0 | 
|Costs incurred on acquisition of JV |  |      | 2  |  |        |  | 2.5  | 
|                                    |  |      |    |  |        | 
|                                    |  |      | 21 |  |        |  | 27.5 | 
|                                    |  |      |    |  |        | 
|Net Assets acquired excluding cash  |  |      | 1  |  |        |  | 1.2  | 
|Goodwill on acquisition             |  |      | 20 |  |        |  | 26.3 | 
|                                    |  |      |    |  |        | 
|                                    |  |      | 21 |  |        |  | 27.5 | 
|                                    |  |      |    |  |        | 



| |                         |                             
| | ----------------------- | ----------------------------
| | The joint ventures are: | First Rate Exchange Services




F-58



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                  
|-- | -----------------
|20 | INTANGIBLE ASSETS

|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |     |   |  |  |       |  
|------------------------------------------------------------ |  | -------- | --- | ---------- | --------- |  | ---------- | --------- |  | ---------- | ----------- | - |  | ----- | --- | - |  |  | ----- | -
|                                                             |  |          |     | Computer   |           |  | Computer   |           |  | Other      |             |   | 
|                                                             |  |          |     | Software   |           |  | Software   |           |  | Externally |             |   | 
|                                                             |  |          |     | Externally |           |  | Internally |           |  | Purchased  |             |   | 
|                                                             |  | Goodwill |     |            | Purchased |  |            | Generated |  |            | Intangibles |   |  | Total |    
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|                                                             |  | m       |     |            | m        |  |            | m        |  |            | m          |   |  | m    |    
|Cost                                                         |  |          |     |            |           |  |            |           |  |            |             |   |  |       |     |   |  |  |       |  
|At April 1, 2006                                             |  |          | 375 |            |           |  | 312        |           |  |            | 658         |   |  |       | 146 |   |  |  | 1,491 |  
|Acquisition/disposal of subsidiary undertaking               |  |          |    |            |           |  | (14        | )         |  |            |            |   |  |       |    |   |  |  | (14   | )
|Goodwill/intangibles arising on acquisitions during the year |  |          | 2   |            |           |  |           |           |  |            |            |   |  |       | 4   |   |  |  | 6     |  
|Exchange adjustments                                         |  |          | (28 | )          |           |  | 3          |           |  |            | 1           |   |  |       | 1   |   |  |  | (23   | )
|Reclassifications                                            |  |          |    |            |           |  | (1         | )         |  |            | (1          | ) |  |       |    |   |  |  | (2    | )
|Additions                                                    |  |          |    |            |           |  | 23         |           |  |            | 82          |   |  |       |    |   |  |  | 105   |  
|Disposals                                                    |  |          |    |            |           |  | (10        | )         |  |            | (14         | ) |  |       |    |   |  |  | (24   | )
|Goodwill written back on disposals                           |  |          | (2  | )          |           |  |           |           |  |            |            |   |  |       |    |   |  |  | (2    | )
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|At March 31, 2007                                            |  |          | 347 |            |           |  | 313        |           |  |            | 726         |   |  |       | 151 |   |  |  | 1,537 |  
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|Accumulated impairment and amortisation                      |  |          |     |            |           |  |            |           |  |            |             |   |  |       |     |   |  |  |       |  
|At April 1, 2006                                             |  |          |    |            |           |  | (210       | )         |  |            | (289        | ) |  |       | (27 | ) |  |  | (526  | )
|Exchange adjustments                                         |  |          |    |            |           |  |           |           |  |            |            |   |  |       |    |   |  |  |      |  
|Acquisition/disposal of subsidiary undertaking               |  |          |    |            |           |  | 10         |           |  |            |            |   |  |       |    |   |  |  | 10    |  
|Disposals                                                    |  |          |    |            |           |  | 6          |           |  |            | 13          |   |  |       |    |   |  |  | 19    |  
|Charge for period                                            |  |          |    |            |           |  | (18        | )         |  |            | (65         | ) |  |       | (14 | ) |  |  | (97   | )
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|At March 31, 2007                                            |  |          |    |            |           |  | (212       | )         |  |            | (341        | ) |  |       | (41 | ) |  |  | (594  | )
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|Net Book Value at March 31, 2007                             |  |          | 347 |            |           |  | 101        |           |  |            | 385         |   |  |       | 110 |   |  |  | 943   |  
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    

|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |     |   |  |  |       |  
|------------------------------------------------------------ |  | -------- | --- | ---------- | --------- |  | ---------- | --------- |  | ---------- | ----------- | - |  | ----- | --- | - |  |  | ----- | -
|                                                             |  |          |     | Computer   |           |  | Computer   |           |  | Other      |             |   | 
|                                                             |  |          |     | Software   |           |  | Software   |           |  | Externally |             |   | 
|                                                             |  |          |     | Externally |           |  | Internally |           |  | Purchased  |             |   | 
|                                                             |  | Goodwill |     |            | Purchased |  |            | Generated |  |            | Intangibles |   |  | Total |    
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|                                                             |  | m       |     |            | m        |  |            | m        |  |            | m          |   |  | m    |    
|Cost                                                         |  |          |     |            |           |  |            |           |  |            |             |   |  |       |     |   |  |  |       |  
|At April 1, 2005                                             |  |          | 272 |            |           |  | 316        |           |  |            | 552         |   |  |       | 124 |   |  |  | 1,264 |  
|Goodwill/intangibles arising on acquisitions during the year |  |          | 92  |            |           |  |           |           |  |            |            |   |  |       | 23  |   |  |  | 115   |  
|Exchange adjustments                                         |  |          | 11  |            |           |  | (1         | )         |  |            | (1          | ) |  |       | (1  | ) |  |  | 8     |  
|Reclassifications                                            |  |          |    |            |           |  | (13        | )         |  |            | 27          |   |  |       |    |   |  |  | 14    |  
|Additions                                                    |  |          |    |            |           |  | 16         |           |  |            | 90          |   |  |       |    |   |  |  | 106   |  
|Disposals                                                    |  |          |    |            |           |  | (6         | )         |  |            | (10         | ) |  |       |    |   |  |  | (16   | )
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|At March 31, 2006                                            |  |          | 375 |            |           |  | 312        |           |  |            | 658         |   |  |       | 146 |   |  |  | 1,491 |  
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|Accumulated impairment and amortisation losses               |  |          |     |            |           |  |            |           |  |            |             |   |  |       |     |   |  |  |       |  
|At April 1, 2005                                             |  |          |    |            |           |  | (188       | )         |  |            | (216        | ) |  |       | (15 | ) |  |  | (419  | )
|Exchange adjustments                                         |  |          |    |            |           |  |           |           |  |            |            |   |  |       | 1   |   |  |  | 1     |  
|Reclassifications                                            |  |          |    |            |           |  |           |           |  |            | (10         | ) |  |       |    |   |  |  | (10   | )
|Disposals                                                    |  |          |    |            |           |  | 5          |           |  |            | 3           |   |  |       |    |   |  |  | 8     |  
|Charge for period                                            |  |          |    |            |           |  | (27        | )         |  |            | (66         | ) |  |       | (13 | ) |  |  | (106  | )
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|At March 31, 2006                                            |  |          |    |            |           |  | (210       | )         |  |            | (289        | ) |  |       | (27 | ) |  |  | (526  | )
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    
|Net Book Value at March 31, 2006                             |  |          | 375 |            |           |  | 102        |           |  |            | 369         |   |  |       | 119 |   |  |  | 965   |  
|                                                             |  |          |     |            |           |  |            |           |  |            |             |   |  |       |    

F-59



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                  
|-- | ---------------------------------
|20 | INTANGIBLE ASSETS     (continued)

Intangible Assets Impairment Review


|                |  |             |  |          |     |  |      |  |     |                    |  |  |                 |  |  |                
|--------------- |  | ----------- |  | -------- | --- |  | ---- |  | --- | ------------------ |  |  | --------------- |  |  | ---------------
|                |  |             |  | Goodwill |     |  |      |  |    
|                |  |             |  |          |     |  |      |  |    
|Division        |  | Acquisition |  | 2007     |     |  | 2006 |  |     | Basis of Valuation |  |  | Key Assumptions
|                |  |             |  |          |     |  |      |  |     |                    |  |  |                
|                |  |             |  | m       |     |  | m   |  |     |                    |  | 
|Capital Markets |  | Iridian     |  |          | 199 |  |      |  | 219 |                    |  |  | Earnings        |  |  | Constant growth
|Capital Markets |  | Guggenheim  |  |          | 86  |  |      |  | 92  |                    |  |  | Earnings        |  |  | rate after     
|Capital Markets |  | Burdale     |  |          | 56  |  |      |  | 54  |                    |  |  | Earnings        |  |  | year 5         










|   |                    
|-- | -------------------
|21 | INVESTMENT PROPERTY

|                |  |      |       |   |      |  |      |  
|--------------- |  | ---- | ----- | - | ---- |  | ---- | -
|                |  | 2007 |       |   | 2006 | 
|                |  |      |       |   |      | 
|                |  | m   |       |   | m   | 
|Opening Balance |  |      | 807   |   |      |  | 503  |  
|Revaluation     |  |      | 96    |   |      |  | 53   |  
|Additions       |  |      | 263   |   |      |  | 353  |  
|Disposals       |  |      | (24   | ) |      |  | (102 | )
|                |  |      |       |   |      | 
|Closing Balance |  |      | 1,142 |   |      |  | 807  |  
|                |  |      |       |   |      | 



F-60



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                              
|-- | -----------------------------
|22 | PROPERTY, PLANT AND EQUIPMENT

|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       |  |     |   |  |  |       |  
|---------------------------------------------- |  | ------------------ | ---- | - | ----------- |  | --------- | --------- |  | ----------- | --------- | - | ------------- | ------------ | -- | - | ----- |  | --- | - |  |  | ----- | -
|                                               |  |                    |      |   |             |  |           |           |  | Payments on |           |   |              
|                                               |  |                    |      |   |             |  |           |           |  | account and |           |   |              
|                                               |  | Freehold land and  |      |   |             |  | Computer  |           |  | Finance     |           |   | assets in the |              |    |  
|                                               |  | buildings and long |      |   |             |  | and other |           |  | lease       |           |   | course of     |              |    |  
|                                               |  | leaseholds         |      |   | Adaptations |  |           | equipment |  |             | assets    |   |               | construction |    |   |      
|                                               |  | (at valuation)     |      |   | (at cost)   |  |           | (at cost) |  |             | (at cost) |   |               | (at cost)    |    |   | Total | 
|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|                                               |  | m                 |      |   | m          |  |           | m        |  |             | m        |   |               | m           |    |   | m    | 
|Cost or valuation                              |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       |  |     |   |  |  |       |  
|At April 1, 2006                               |  |                    | 627  |   |             |  | 124       |           |  |             | 676       |   |               |              | 10 |   |       |  | 6   |   |  |  | 1,443 |  
|Acquisition/disposal of subsidiary undertaking |  |                    |     |   |             |  | (8        | )         |  |             | (19       | ) |               |              |   |   |       |  |    |   |  |  | (27   | )
|Exchange adjustments                           |  |                    | 2    |   |             |  |          |           |  |             | 3         |   |               |              |   |   |       |  |    |   |  |  | 5     |  
|Additions                                      |  |                    | 3    |   |             |  | 4         |           |  |             | 37        |   |               |              |   |   |       |  | 13  |   |  |  | 57    |  
|Disposals                                      |  |                    | (151 | ) |             |  | (1        | )         |  |             | (18       | ) |               |              | (2 | ) |       |  |    |   |  |  | (172  | )
|Revaluation                                    |  |                    | 34   |   |             |  |          |           |  |             |          |   |               |              |   |   |       |  |    |   |  |  | 34    |  
|Reclassifications                              |  |                    | (73  | ) |             |  | 8         |           |  |             | 4         |   |               |              |   |   |       |  | (12 | ) |  |  | (73   | )
|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|At March 31, 2007                              |  |                    | 442  |   |             |  | 127       |           |  |             | 683       |   |               |              | 8  |   |       |  | 7   |   |  |  | 1,267 |  
|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|Accumulated depreciation and amortisation      |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       |  |     |   |  |  |       |  
|At April 1, 2006                               |  |                    |     |   |             |  | (33       | )         |  |             | (542      | ) |               |              | (8 | ) |       |  |    |   |  |  | (583  | )
|Exchange adjustments                           |  |                    |     |   |             |  |          |           |  |             | (2        | ) |               |              |   |   |       |  |    |   |  |  | (2    | )
|Disposals                                      |  |                    |     |   |             |  |          |           |  |             | 14        |   |               |              | 1  |   |       |  |    |   |  |  | 15    |  
|Charge for year                                |  |                    |     |   |             |  | (14       | )         |  |             | (40       | ) |               |              |   |   |       |  |    |   |  |  | (54   | )
|Acquisition/disposal of subsidiary undertaking |  |                    |     |   |             |  | 5         |           |  |             | 17        |   |               |              |   |   |       |  |    |   |  |  | 22    |  
|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|At March 31, 2007                              |  |                    |     |   |             |  | (42       | )         |  |             | (553      | ) |               |              | (7 | ) |       |  |    |   |  |  | (602  | )
|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|Net book value at
    March 31, 2007           |  |                    | 442  |   |             |  | 85        |           |  |             | 130       |   |               |              | 1  |   |       |  | 7   |   |  |  | 665   |  
|                                               |  |                    |      |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 

F-61



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                  
|-- | -------------------------------------------------
|22 | PROPERTY, PLANT AND
    EQUIPMENT     (continued)

|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       |  |     |   |  |  |       |  
|----------------------------------------- |  | ------------------ | --- | - | ----------- |  | --------- | --------- |  | ----------- | --------- | - | ------------- | ------------ | -- | - | ----- |  | --- | - |  |  | ----- | -
|                                          |  |                    |     |   |             |  |           |           |  | Payments on |           |   |              
|                                          |  |                    |     |   |             |  |           |           |  | account and |           |   |              
|                                          |  | Freehold land and  |     |   |             |  | Computer  |           |  | Finance     |           |   | assets in the |              |    |  
|                                          |  | buildings and long |     |   |             |  | and other |           |  | lease       |           |   | course of     |              |    |  
|                                          |  | leaseholds         |     |   | Adaptations |  |           | equipment |  |             | assets    |   |               | construction |    |   |      
|                                          |  | (at valuation)     |     |   | (at cost)   |  |           | (at cost) |  |             | (at cost) |   |               | (at cost)    |    |   | Total | 
|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|                                          |  | m                 |     |   | m          |  |           | m        |  |             | m        |   |               | m           |    |   | m    | 
|Cost or valuation                         |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       |  |     |   |  |  |       |  
|At April 1, 2005                          |  |                    | 440 |   |             |  | 120       |           |  |             | 682       |   |               |              | 10 |   |       |  | 28  |   |  |  | 1,280 |  
|Exchange adjustments                      |  |                    | (1  | ) |             |  |          |           |  |             | (2        | ) |               |              |   |   |       |  |    |   |  |  | (3    | )
|Additions                                 |  |                    | 16  |   |             |  | 4         |           |  |             | 24        |   |               |              |   |   |       |  | 6   |   |  |  | 50    |  
|Disposals                                 |  |                    | (39 | ) |             |  | (7        | )         |  |             | (51       | ) |               |              |   |   |       |  |    |   |  |  | (97   | )
|Revaluation                               |  |                    | 212 |   |             |  |          |           |  |             |          |   |               |              |   |   |       |  |    |   |  |  | 212   |  
|Reclassifications                         |  |                    | (1  | ) |             |  | 7         |           |  |             | 23        |   |               |              |   |   |       |  | (28 | ) |  |  | 1     |  
|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|At March 31, 2006                         |  |                    | 627 |   |             |  | 124       |           |  |             | 676       |   |               |              | 10 |   |       |  | 6   |   |  |  | 1,443 |  
|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|Accumulated depreciation and amortisation |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       |  |     |   |  |  |       |  
|At April 1, 2005                          |  |                    |    |   |             |  | (22       | )         |  |             | (531      | ) |               |              | (7 | ) |       |  |    |   |  |  | (560  | )
|Exchange adjustments                      |  |                    |    |   |             |  |          |           |  |             | 2         |   |               |              |   |   |       |  |    |   |  |  | 2     |  
|Disposals                                 |  |                    |    |   |             |  | 3         |           |  |             | 42        |   |               |              |   |   |       |  |    |   |  |  | 45    |  
|Charge for year                           |  |                    |    |   |             |  | (15       | )         |  |             | (44       | ) |               |              | (1 | ) |       |  |    |   |  |  | (60   | )
|Reclassifications                         |  |                    |    |   |             |  | 1         |           |  |             | (11       | ) |               |              |   |   |       |  |    |   |  |  | (10   | )
|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|At March 31, 2006                         |  |                    |    |   |             |  | (33       | )         |  |             | (542      | ) |               |              | (8 | ) |       |  |    |   |  |  | (583  | )
|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 
|Net book value at
    March 31, 2006      |  |                    | 627 |   |             |  | 91        |           |  |             | 134       |   |               |              | 2  |   |       |  | 6   |   |  |  | 860   |  
|                                          |  |                    |     |   |             |  |           |           |  |             |           |   |               |              |    |   |       | 

Property and Equipment




Sale and Leaseback


   


|                           |                                                  |      |  |    |      |  |  |    | 
|-------------------------- | ------------------------------------------------ | ---- |  | -- | ---- |  |  | -- | 
|                           |                                                  | 2007 |  |    | 2006 | 
|                           |                                                  |      |  |    |      | 
|                           |                                                  | m   |  |    | m   | 
|Future capital expenditure |                                                  |      |  |    |      |  |  |   
|                           |  contracted but not provided in the accounts    |      |  | 3  |      |  |  | 17 | 
|                           |  authorised by the Directors but not contracted |      |  | 14 |      |  |  | 28 | 

F-62



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                  
|-- | -------------------------------------------------
|22 | PROPERTY, PLANT AND
    EQUIPMENT     (continued)



|                                             |  |         |     |  |            |  |   | 
|-------------------------------------------- |  | ------- | --- |  | ---------- |  | - | 
|                                             |  | Payable |     |  | Receivable | 
|                                             |  |         |     |  |            | 
|                                             |  | m      |     |  | m         | 
|Year ended March 31, 2007                    |  |         |     |  |            |  |   | 
|Not later than 1 year                        |  |         | 62  |  |            |  | 2 | 
|Later than 1 year and not later than 5 years |  |         | 217 |  |            |  | 7 | 
|Later than 5 years                           |  |         | 405 |  |            |  | 3 | 






|   |             
|-- | ------------
|23 | OTHER ASSETS

|                                                    |  |      |       |  |      |  |       | 
|--------------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | 
|                                                    |  | 2007 |       |  | 2006 | 
|                                                    |  |      |       |  |      | 
|                                                    |  | m   |       |  | m   | 
|Sundry debtors & other                              |  |      | 1,130 |  |      |  | 2,045 | 
|Value of life assurance business in-force (Note 44) |  |      | 580   |  |      |  | 513   | 
|Accounts receivable and prepayments                 |  |      | 1,179 |  |      |  | 889   | 
|                                                    |  |      |       |  |      | 
|                                                    |  |      | 2,889 |  |      |  | 3,447 | 
|                                                    |  |      |       |  |      | 






|   |                  
|-- | -----------------
|24 | DEPOSITS BY BANKS

|                                              |  |      |        |  |      |  |        | 
|--------------------------------------------- |  | ---- | ------ |  | ---- |  | ------ | 
|                                              |  | 2007 |        |  | 2006 | 
|                                              |  |      |        |  |      | 
|                                              |  | m   |        |  | m   | 
|Securities sold under agreement to repurchase |  |      | 6,147  |  |      |  | 9,927  | 
|Deposits from other banks                     |  |      | 14,258 |  |      |  | 21,896 | 
|Other bank borrowings                         |  |      |       |  |      |  | 489    | 
|                                              |  |      |        |  |      | 
|                                              |  |      | 20,405 |  |      |  | 32,312 | 
|                                              |  |      |        |  |      | 
|Of which                                      |  |      |        |  |      |  |        | 
|Domestic                                      |  |      | 18,108 |  |      |  | 29,944 | 
|Foreign                                       |  |      | 2,297  |  |      |  | 2,368  | 
|                                              |  |      |        |  |      | 
|                                              |  |      | 20,405 |  |      |  | 32,312 | 
|                                              |  |      |        |  |      | 

F-63



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                  
|-- | -----------------
|25 | CUSTOMER ACCOUNTS

|                                                             |  |      |        |  |      |  |        | 
|------------------------------------------------------------ |  | ---- | ------ |  | ---- |  | ------ | 
|                                                             |  | 2007 |        |  | 2006 | 
|                                                             |  |      |        |  |      | 
|                                                             |  | m   |        |  | m   | 
|Current accounts                                             |  |      | 16,932 |  |      |  | 15,876 | 
|Demand deposits                                              |  |      | 25,393 |  |      |  | 18,344 | 
|Term deposits and other products                             |  |      | 27,333 |  |      |  | 25,877 | 
|Other short term borrowings                                  |  |      | 2,619  |  |      |  | 1,373  | 
|Securities sold under agreement to repurchase                |  |      |       |  |      |  | 240    | 
|                                                             |  |      |        |  |      | 
|                                                             |  |      | 72,277 |  |      |  | 61,710 | 
|                                                             |  |      |        |  |      | 
|Of which:                                                    |  |      |        |  |      |  |        | 
|Non Interest bearing current accounts                        |  |      |        |  |      |  |        | 
|Domestic                                                     |  |      | 11,371 |  |      |  | 11,065 | 
|Foreign                                                      |  |      | 1,239  |  |      |  | 1,057  | 
|                                                             |  |      |        |  |      | 
|                                                             |  |      | 12,610 |  |      |  | 12,122 | 
|                                                             |  |      |        |  |      | 
|Interest bearing current accounts and short term borrowings: |  |      |        |  |      |  |        | 
|Domestic                                                     |  |      | 32,826 |  |      |  | 30,066 | 
|Foreign                                                      |  |      | 26,841 |  |      |  | 19,522 | 
|                                                             |  |      |        |  |      | 
|                                                             |  |      | 59,667 |  |      |  | 49,588 | 
|                                                             |  |      |        |  |      | 






|   |                         
|-- | ------------------------
|26 | DEBT SECURITIES IN ISSUE

|                               |  |      |        |  |      |  |        | 
|------------------------------ |  | ---- | ------ |  | ---- |  | ------ | 
|                               |  | 2007 |        |  | 2006 | 
|                               |  |      |        |  |      | 
|                               |  | m   |        |  | m   | 
|Bonds & medium term notes      |  |      | 29,837 |  |      |  | 20,249 | 
|Other debt securities in issue |  |      | 29,686 |  |      |  | 16,565 | 
|                               |  |      |        |  |      | 
|                               |  |      | 59,523 |  |      |  | 36,814 | 
|                               |  |      |        |  |      | 

F-64



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                         
|-- | ------------------------
|27 | SUBORDINATED LIABILITIES

|                                |                                                                                                             |      |       |     |      |  |       |     | 
|------------------------------- | ----------------------------------------------------------------------------------------------------------- | ---- | ----- | --- | ---- |  | ----- | --- | 
|                                |                                                                                                             | 2007 |       |     | 2006 | 
|                                |                                                                                                             |      |       |     |      | 
|                                |                                                                                                             | m   |       |     | m   | 
|Undated Loan Capital            |                                                                                                             |      |       |     |      |  |       |    
|Bank of Ireland UK Holdings plc |                                                                                                             |      |       |     |      |  |       |    
|                                | 600m 7.40%
    Guaranteed Step-up Callable Perpetual Preferred Securities                                  |      |       | 618 |      |  |       | 636 | 
|                                | Stg£350m 6.25% Guaranteed Callable Perpetual Preferred
    Securities                                       |      |       | 448 |      |  |       | 461 | 
|BOI Capital Funding (No 1) LP   |                                                                                                             |      |       |     |      |  |       |    
|                                | 600m Fixed Rate/
    Variable Rate Guaranteed Non-voting Non Cumulative Perpetual
    Preferred Securities |      |       | 588 |      |  |       | 588 | 
|BOI Capital Funding (No 2) LP   |                                                                                                             |      |       |     |      |  |       |    
|                                | U.S.$800m Fixed Rate/ Variable Rate Guaranteed Non-voting
    Non-Cumulative Perpetual Preferred Securities |      |       | 583 |      |  |       | 627 | 
|BOI Capital Funding (No 3) LP   |                                                                                                             |      |       |     |      |  |       |    
|                                | U.S.$400m Fixed Rate/ Variable Rate Guaranteed Non-voting
    Non-Cumulative Perpetual Preferred Securities |      |       | 294 |      |  |       | 318 | 
|BOI Capital Funding (No 4) LP   |                                                                                                             |      |       |     |      |  |       |    
|                                | Stg£500m Fixed Rate/ Variable Rate Guaranteed Non-voting
    Non-Cumulative Perpetual Preferred Securities  |      |       | 707 |      |  |       |    | 
|Bristol & West                  |                                                                                                             |      |       |     |      |  |       |    
|                                | Stg£75m
    133/8%
    Perpetual Subordinated Bonds                                                         |      |       | 182 |      |  |       | 178 | 
|                                | Stg£50.4m
    81/8%
    Non-Cumulative Preference Shares                                                    |      |       | 74  |      |  |       | 72  | 
|                                |                                                                                                             |      |       |     |      | 
|                                |                                                                                                             |      | 3,494 |     |      |  | 2,880 |    
|                                |                                                                                                             |      |       |     |      | 
|Dated loan capital              |                                                                                                             |      |       |     |      |  |       |    
|Bank of Ireland                 |                                                                                                             |      |       |     |      |  |       |    
|                                | 750m 6.45%
    Subordinated Bonds 2010                                                                     |      |       | 775 |      |  |       | 798 | 
|                                | 600m
    Subordinated Floating Rate Notes 2013                                                             |      |       | 600 |      |  |       | 595 | 
|                                | 650m Fixed/
    Floating Rate Subordinated Notes 2019                                                      |      |       | 642 |      |  |       | 662 | 
|                                | 600m
    Subordinated Floating Rate Notes due 2017                                                         |      |       | 599 |      |  |       | 598 | 
|                                | Can$400m Fixed/ Floating Rate Subordinated Notes 2015                                                       |      |       | 255 |      |  |       | 275 | 
|                                | Stg£400m Fixed/ Floating Rate Subordinated Notes 2018                                                       |      |       | 584 |      |  |       | 570 | 
|                                | 750m Floating
    Rate Subordinated Notes 2017                                                             |      |       | 748 |      |  |       |    | 
|                                | Stg£500m Fixed Rate/ Variable Rate Subordinated Loan due
    2036                                           |      |       |    |      |  |       |    | 
|Bristol & West                  |                                                                                                             |      |       |     |      |  |       |    
|                                | Stg£75m
    103/4%
    Subordinated Bonds 2018                                                              |      |       | 111 |      |  |       | 115 | 
|                                |                                                                                                             |      |       |     |      | 
|                                |                                                                                                             |      | 4,314 |     |      |  | 3,613 |    
|                                |                                                                                                             |      |       |     |      | 
|                                |                                                                                                             |      | 7,808 |     |      |  | 6,493 |    
|                                |                                                                                                             |      |       |     |      | 






F-65



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|27 | SUBORDINATED
    LIABILITIES     (continued)






















F-66



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|27 | SUBORDINATED
    LIABILITIES     (continued)



















F-67



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|27 | SUBORDINATED
    LIABILITIES     (continued)



















F-68



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|27 | SUBORDINATED
    LIABILITIES     (continued)







3 8


1 8






   


     


F-69



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|27 | SUBORDINATED
    LIABILITIES     (continued)

 





  











|   |                  
|-- | -----------------
|28 | OTHER LIABILITIES

|                             |  |      |       |  |      |  |       | 
|---------------------------- |  | ---- | ----- |  | ---- |  | ----- | 
|                             |  | 2007 |       |  | 2006 | 
|                             |  |      |       |  |      | 
|                             |  | m   |       |  | m   | 
|Current taxation             |  |      | 105   |  |      |  | 75    | 
|Notes in circulation         |  |      | 839   |  |      |  | 791   | 
|Sundry creditors             |  |      | 558   |  |      |  | 1,792 | 
|Other                        |  |      | 1,214 |  |      |  | 1,131 | 
|Accruals and deferred income |  |      | 1,267 |  |      |  | 922   | 
|                             |  |      |       |  |      | 
|                             |  |      | 3,983 |  |      |  | 4,711 | 
|                             |  |      |       |  |      | 








|   |           
|-- | ----------
|29 | PROVISIONS

|                                                  |  |      |     |   |      |  |     |  
|------------------------------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                                                  |  | 2007 |     |   | 2006 | 
|                                                  |  |      |     |   |      | 
|                                                  |  | m   |     |   | m   | 
|At April 1, 2006                                  |  |      | 153 |   |      |  | 179 |  
|Exchange differences                              |  |      | 1   |   |      |  | (1  | )
|Additional provisions charged to income statement |  |      | 23  |   |      |  | 47  |  
|Utilised during year                              |  |      | (70 | ) |      |  | (64 | )
|Unused amounts reversed during the period         |  |      | (20 | ) |      |  |    |  
|Other movements                                   |  |      |    |   |      |  | (8  | )
|                                                  |  |      |     |   |      | 
|At March 31, 2007                                 |  |      | 87  |   |      |  | 153 |  
|                                                  |  |      |     |   |      | 

 


F-70



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |             
|-- | ------------
|30 | DEFERRED TAX

|                                                                                     |  |      |     |   |      |  |     |  
|------------------------------------------------------------------------------------ |  | ---- | --- | - | ---- |  | --- | -
|                                                                                     |  | 2007 |     |   | 2006 | 
|                                                                                     |  |      |     |   |      | 
|                                                                                     |  | m   |     |   | m   | 
|The movement on the deferred tax account is as follows:                              |  |      |     |   |      |  |     |  
|Opening balance                                                                      |  |      | 177 |   |      |  | 143 |  
|Income Statement Charge for Year (note 10)                                           |  |      | (21 | ) |      |  | 41  |  
|Available-for-sale Securities  Transferred to Reserves                              |  |      | (8  | ) |      |  | (15 | )
|Cash Flow Hedges  Transferred to Reserves                                           |  |      | 53  |   |      |  | (1  | )
|Revaluation/reclassification of Property during year                                 |  |      | 16  |   |      |  | 25  |  
|Pension                                                                              |  |      | 21  |   |      |  | 18  |  
|Other Movements                                                                      |  |      | 15  |   |      |  | (34 | )
|                                                                                     |  |      |     |   |      | 
|Closing balance                                                                      |  |      | 253 |   |      |  | 177 |  
|                                                                                     |  |      |     |   |      | 
|(See Note 38 for further information on deferred tax
    charged directly to equity) |  |      |     |   |      |  |     |  
|Deferred tax assets and liabilities are attributable to the
    following items:    
|Deferred Tax Liabilities                                                             |  |      |     |   |      |  |     |  
|Accelerated Capital Allowances:                                                      |  |      |     |   |      |  |     |  
| on finance leases                                                                  |  |      | 66  |   |      |  | 62  |  
| on equipment used by the Group                                                     |  |      | 32  |   |      |  | 26  |  
|Available-for-sale Securities                                                        |  |      |    |   |      |  | 3   |  
|Cash Flow Hedges                                                                     |  |      | 64  |   |      |  | 11  |  
|Property Revaluation Surplus                                                         |  |      | 64  |   |      |  | 69  |  
|Life Companies                                                                       |  |      | 148 |   |      |  | 134 |  
|Other temporary differences                                                          |  |      | 17  |   |      |  | 22  |  
|                                                                                     |  |      |     |   |      | 
|Deferred Tax Liabilities                                                             |  |      | 391 |   |      |  | 327 |  
|                                                                                     |  |      |     |   |      | 

|                                             |  |      |     |   |      |  |     |  
|-------------------------------------------- |  | ---- | --- | - | ---- |  | --- | -
|                                             |  | 2007 |     |   | 2006 | 
|                                             |  |      |     |   |      | 
|                                             |  | m   |     |   | m   | 
|Deferred Tax Assets                          |  |      |     |   |      |  |     |  
|Pensions and Other Post Retirement Benefits  |  |      | 95  |   |      |  | 116 |  
|Provision for Loan Impairment                |  |      | 11  |   |      |  | 6   |  
|Other provisions                             |  |      | 6   |   |      |  | 15  |  
|Available-for-sale securities                |  |      | 6   |   |      |  |    |  
|Other temporary differences                  |  |      | 20  |   |      |  | 13  |  
|                                             |  |      |     |   |      | 
|Deferred Tax Assets                          |  |      | 138 |   |      |  | 150 |  
|                                             |  |      |     |   |      | 
|Represented on the balance sheet as follows: |  |      |     |   |      |  |     |  
|Deferred tax assets                          |  |      | (25 | ) |      |  | (30 | )
|Deferred tax liabilities                     |  |      | 278 |   |      |  | 207 |  
|                                             |  |      |     |   |      | 
|                                             |  |      | 253 |   |      |  | 177 |  
|                                             |  |      |     |   |      | 







| |   |                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the deferred tax assets and the deferred tax liabilities relate
    to taxes levied by the same taxation authority on the same
    taxable entity.

F-71



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                          
|-- | -------------------------
|30 | DEFERRED TAX  (continued)

 




|                             |  |      |     |   |      |  |    |  
|---------------------------- |  | ---- | --- | - | ---- |  | -- | -
|                             |  | 2007 |     |   | 2006 | 
|                             |  |      |     |   |      | 
|                             |  | m   |     |   | m   | 
|Accelerated Tax Depreciation |  |      |    |   |      |  | (8 | )
|Provision for Loan Losses    |  |      |    |   |      |  | (1 | )
|Other Provisions             |  |      | 3   |   |      |  | (2 | )
|Property Disposals           |  |      | (21 | ) |      |  |   |  
|Other Temporary Differences  |  |      | (3  | ) |      |  | 52 |  
|                             |  |      |     |   |      | 
|                             |  |      | (21 | ) |      |  | 41 |  
|                             |  |      |     |   |      | 






|   |                   
|-- | ------------------
|31 | INTEREST RATE RISK

Interest sensitivity of assets, liabilities and off balance
sheet items  repricing analysis






F-72



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                
|-- | -------------------------------
|31 | INTEREST RATE RISK  (continued)



Interest Rate Repricing


|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |        |   |  |  |         | 
|----------------------------------------------------- |  | -------------- | ------- | ------------ | ---------- |  | ---------- | --------- |  | -------- | ---------- | - |  | ---------- | ------- | --- | -------- |  | ------ | ------- |  |  | ------- | - |  |  | ------ | - |  |  | ------- | 
|                                                      |  | 31 March, 2007 |        
|                                                      |  |                |        
|                                                      |  |                |         | Over         |            |  | Over       |           |  | Over     |            |   | 
|                                                      |  |                |         | three months |            |  | six months |           |  | one year |            |   | 
|                                                      |  | Not            |         |              | but not    |  |            | but not   |  |          | but not    |   |  |            |         | Non |          |  |       
|                                                      |  | more than      |         |              | more than  |  |            | more than |  |          | more than  |   |  | Over       |         |     | interest |  |        | Trading |  |  |        
|                                                      |  | three months   |         |              | six months |  |            | one year  |  |          | five years |   |  | five years |         |     | bearing  |  |        | Book    |  |  | Total   |  
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|                                                      |  | m             |         |              | m         |  |            | m        |  |          | m         |   |  | m         |         |     | m       |  |        | m      |  |  | m      |  
|Assets                                                |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |        |   |  |  |         | 
|Cash and balances at central banks                    |  |                | 6       |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 356     |   |  |  |       |   |  |  | 362     | 
|Central Government and other eligible bills           |  |                | 11      |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  |        |   |  |  |       |   |  |  | 11      | 
|Trading securities                                    |  |                |        |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  |        |   |  |  | 520    |   |  |  | 520     | 
|Loans and advances to customers                       |  |                | 88,359  |              |            |  | 4,251      |           |  |          | 5,527      |   |  |            | 22,935  |     |          |  | 3,325  |         |  |  | 651     |   |  |  |       |   |  |  | 125,048 | 
|Loans and advances to banks                           |  |                | 6,073   |              |            |  | 404        |           |  |          | 38         |   |  |            | 35      |     |          |  |       |         |  |  | 660     |   |  |  |       |   |  |  | 7,210   | 
|Derivative financial instruments                      |  |                |        |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 935     |   |  |  | 1,914  |   |  |  | 2,849   | 
|Available-for-sale financial assets                   |  |                | 22,483  |              |            |  | 2,000      |           |  |          | 4,345      |   |  |            | 2,152   |     |          |  | 2,432  |         |  |  | 37      |   |  |  |       |   |  |  | 33,449  | 
|Other financial assets at fair value through P/L*     |  |                | 211     |              |            |  | 20         |           |  |          |           |   |  |            | 29      |     |          |  | 35     |         |  |  | 12,412  |   |  |  |       |   |  |  | 12,707  | 
|Other assets                                          |  |                | 19      |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  | 43     |         |  |  | 6,537   |   |  |  | 58     |   |  |  | 6,657   | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Total assets                                          |  |                | 117,162 |              |            |  | 6,675      |           |  |          | 9,910      |   |  |            | 25,151  |     |          |  | 5,835  |         |  |  | 21,588  |   |  |  | 2,492  |   |  |  | 188,813 | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Liabilities                                           |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |        |   |  |  |         | 
|Deposits by banks                                     |  |                | 16,202  |              |            |  | 3,061      |           |  |          | 677        |   |  |            | 2       |     |          |  |       |         |  |  | 126     |   |  |  | 337    |   |  |  | 20,405  | 
|Customer accounts                                     |  |                | 53,806  |              |            |  | 1,549      |           |  |          | 1,310      |   |  |            | 1,360   |     |          |  | 282    |         |  |  | 13,083  |   |  |  | 887    |   |  |  | 72,277  | 
|Derivative financial instruments                      |  |                |        |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 685     |   |  |  | 2,250  |   |  |  | 2,935   | 
|Debt securities in issue                              |  |                | 38,956  |              |            |  | 11,633     |           |  |          | 2,915      |   |  |            | 2,093   |     |          |  | 4,205  |         |  |  | (279    | ) |  |  |       |   |  |  | 59,523  | 
|Subordinated liabilities                              |  |                | 1,925   |              |            |  |           |           |  |          | 600        |   |  |            | 1,605   |     |          |  | 3,794  |         |  |  | (116    | ) |  |  |       |   |  |  | 7,808   | 
|Other liabilities*                                    |  |                | 1       |              |            |  | 1          |           |  |          | 3          |   |  |            | 25      |     |          |  | 33     |         |  |  | 18,993  |   |  |  | 51     |   |  |  | 19,107  | 
|Total equity                                          |  |                | 113     |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 6,645   |   |  |  |       |   |  |  | 6,758   | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Total liabilities                                     |  |                | 111,003 |              |            |  | 16,244     |           |  |          | 5,505      |   |  |            | 5,085   |     |          |  | 8,314  |         |  |  | 39,137  |   |  |  | 3,525  |   |  |  | 188,813 | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Net derivative financial instrument nominal values    |  |                | (3,524  | )            |            |  | 15,608     |           |  |          | (2,319     | ) |  |            | (14,401 | )   |          |  | 4,636  |         |  |  |        |   |  |  |       |   |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Interest rate repricing gap                           |  |                | 2,635   |              |            |  | 6,039      |           |  |          | 2,086      |   |  |            | 5,665   |     |          |  | 2,157  |         |  |  | (17,549 | ) |  |  | (1,033 | ) |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Cumulative interest rate repricing gap                |  |                | 2,635   |              |            |  | 8,674      |           |  |          | 10,760     |   |  |            | 16,425  |     |          |  | 18,582 |         |  |  | 1,033   |   |  |  |       |   |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Euro                                                  |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |        |   |  |  |         | 
|Cumulative interest rate repricing gap March 31, 2007 |  |                | 7,253   |              |            |  | 14,385     |           |  |          | 17,557     |   |  |            | 19,762  |     |          |  | 20,435 |         |  |  | 7,909   |   |  |  | (7,909 | ) |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Sterling                                              |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |        |   |  |  |         | 
|Cumulative interest rate repricing gap March 31, 2007 |  |                | 8,672   |              |            |  | 9,525      |           |  |          | 8,673      |   |  |            | 11,898  |     |          |  | 12,943 |         |  |  | 8,077   |   |  |  | (8,077 | ) |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  

F-73



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                
|-- | -------------------------------
|31 | INTEREST RATE RISK  (continued)

Interest Rate Repricing


|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |       |   |  |  |         | 
|----------------------------------------------------- |  | -------------- | ------- | ------------ | ---------- |  | ---------- | --------- |  | -------- | ---------- | - |  | ---------- | ------- | --- | -------- |  | ------ | ------- |  |  | ------- | - |  |  | ----- | - |  |  | ------- | 
|                                                      |  | 31 March, 2006 |        
|                                                      |  | Restated**     |        
|                                                      |  |                |        
|                                                      |  |                |         | Over         |            |  | Over       |           |  | Over     |            |   | 
|                                                      |  |                |         | three months |            |  | six months |           |  | one year |            |   | 
|                                                      |  | Not            |         |              | but not    |  |            | but not   |  |          | but not    |   |  |            |         | Non |          |  |       
|                                                      |  | more than      |         |              | more than  |  |            | more than |  |          | more than  |   |  | Over       |         |     | interest |  |        | Trading |  |  |        
|                                                      |  | three months   |         |              | six months |  |            | one year  |  |          | five years |   |  | five years |         |     | bearing  |  |        | Book    |  |  | Total   |  
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|                                                      |  | m             |         |              | m         |  |            | m        |  |          | m         |   |  | m         |         |     | m       |  |        | m      |  |  | m      |  
|Assets                                                |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |       |   |  |  |         | 
|Cash and balances at central banks                    |  |                | 3       |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 284     |   |  |  |      |   |  |  | 287     | 
|Central Government and other eligible bills           |  |                | 8       |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  |        |   |  |  |      |   |  |  | 8       | 
|Trading securities                                    |  |                |        |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  |        |   |  |  | 620   |   |  |  | 620     | 
|Loans and advances to customers                       |  |                | 67,640  |              |            |  | 3,874      |           |  |          | 5,382      |   |  |            | 21,153  |     |          |  | 2,966  |         |  |  | 231     |   |  |  |      |   |  |  | 101,246 | 
|Loans and advances to banks                           |  |                | 9,389   |              |            |  | 1,434      |           |  |          | 454        |   |  |            | 51      |     |          |  |       |         |  |  | 860     |   |  |  |      |   |  |  | 12,188  | 
|Derivative financial instruments                      |  |                |        |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 552     |   |  |  | 1,533 |   |  |  | 2,085   | 
|Available-for-sale financial assets                   |  |                | 17,781  |              |            |  | 2,260      |           |  |          | 2,164      |   |  |            | 3,892   |     |          |  | 2,095  |         |  |  | 13      |   |  |  |      |   |  |  | 28,205  | 
|Other financial assets at fair value through P/ L*    |  |                | 265     |              |            |  | 15         |           |  |          |           |   |  |            | 26      |     |          |  | 28     |         |  |  | 10,104  |   |  |  |      |   |  |  | 10,438  | 
|Other assets                                          |  |                | 495     |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 5,465   |   |  |  | 1,145 |   |  |  | 7,105   | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Total assets                                          |  |                | 95,581  |              |            |  | 7,583      |           |  |          | 8,000      |   |  |            | 25,122  |     |          |  | 5,089  |         |  |  | 17,509  |   |  |  | 3,298 |   |  |  | 162,182 | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Liabilities                                           |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |       |   |  |  |         | 
|Deposits by banks                                     |  |                | 27,352  |              |            |  | 2,576      |           |  |          | 1,763      |   |  |            | 79      |     |          |  | 20     |         |  |  | 12      |   |  |  | 510   |   |  |  | 32,312  | 
|Customer accounts                                     |  |                | 44,334  |              |            |  | 1,728      |           |  |          | 1,501      |   |  |            | 3,055   |     |          |  | 1,214  |         |  |  | 9,878   |   |  |  |      |   |  |  | 61,710  | 
|Derivative financial instruments                      |  |                |        |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 456     |   |  |  | 1,191 |   |  |  | 1,647   | 
|Debt securities in issue                              |  |                | 27,609  |              |            |  | 2,835      |           |  |          | 2,044      |   |  |            | 2,115   |     |          |  | 2,211  |         |  |  |        |   |  |  |      |   |  |  | 36,814  | 
|Subordinated liabilities                              |  |                | 599     |              |            |  |           |           |  |          |           |   |  |            | 806     |     |          |  | 5,164  |         |  |  | (76     | ) |  |  |      |   |  |  | 6,493   | 
|Other liabilities*                                    |  |                | 522     |              |            |  | 1          |           |  |          | 3          |   |  |            | 27      |     |          |  | 43     |         |  |  | 16,029  |   |  |  | 1,343 |   |  |  | 17,968  | 
|Total equity                                          |  |                | 122     |              |            |  |           |           |  |          |           |   |  |            |        |     |          |  |       |         |  |  | 5,116   |   |  |  |      |   |  |  | 5,238   | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Total liabilities                                     |  |                | 100,538 |              |            |  | 7,140      |           |  |          | 5,311      |   |  |            | 6,082   |     |          |  | 8,652  |         |  |  | 31,415  |   |  |  | 3,044 |   |  |  | 162,182 | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Net derivative financial instrument nominal values    |  |                | 8,395   |              |            |  | 10,086     |           |  |          | (1,698     | ) |  |            | (16,401 | )   |          |  | (372   | )       |  |  |        |   |  |  | (10   | ) |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Interest rate repricing gap                           |  |                | 3,438   |              |            |  | 10,529     |           |  |          | 991        |   |  |            | 2,639   |     |          |  | (3,935 | )       |  |  | (13,906 | ) |  |  | 244   |   |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Cumulative interest rate repricing gap                |  |                | 3,438   |              |            |  | 13,967     |           |  |          | 14,958     |   |  |            | 17,597  |     |          |  | 13,662 |         |  |  | (244    | ) |  |  |      |   |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Euro                                                  |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |       |   |  |  |         | 
|Cumulative interest rate repricing gap March 31, 2006 |  |                | 382     |              |            |  | 5,032      |           |  |          | 6,230      |   |  |            | 7,057   |     |          |  | 4,684  |         |  |  | (365    | ) |  |  |      |   |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  
|Sterling                                              |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |   |  |  |       |   |  |  |         | 
|Cumulative interest rate repricing gap March 31, 2006 |  |                | 10,783  |              |            |  | 17,834     |           |  |          | 17,629     |   |  |            | 18,518  |     |          |  | 18,968 |         |  |  | 4,490   |   |  |  |      |   |  |  |        | 
|                                                      |  |                |         |              |            |  |            |           |  |          |            |   |  |            |         |     |          |  |        |         |  |  |         |  






|   |                                                                                                                                                                                                                                                                                                                                                                                                                               
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*  | Long term assets and liabilities associated with the BOI Life
    are measured on a different basis and the underlying cashflows
    are not directly subject to interest rate risk. Therefore these
    assets and liabilities have been included in non-interest
    bearing items in the Table above. Details of the sensitivity of
    the impact of these items on the Group income statement are set
    out in Note 44.
|  
|** | Restated due to change in accounting policy  see
    page F-26.                                                                                                                                                                                                                                                                                                                                                              

F-74



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |               
|-- | --------------
|32 | LIQUIDITY RISK



Maturities of financial assets and liabilities


|                                                  |  |                      |        |         |        |  |        |        |  |     |        |  |        |       |        |        |        |  |        |       |  |  |       |  |  |  |         | 
|------------------------------------------------- |  | -------------------- | ------ | ------- | ------ |  | ------ | ------ |  | --- | ------ |  | ------ | ----- | ------ | ------ | ------ |  | ------ | ----- |  |  | ----- |  |  |  | ------- | 
|                                                  |  | As at March 31, 2007 |       
|                                                  |  |                      |       
|                                                  |  |                      |        | Up to 3 |        |  | 3-12   |        |  | 1-5 |        |  | Over 5 |       |        | Equity |        |  |       
|                                                  |  | Demand               |        |         | months |  |        | months |  |     | years  |  |        | years |        |        | Shares |  |        | Total | 
|                                                  |  |                      |        |         |        |  |        |        |  |     |        |  |        |       |        |        |        |  |        |       | 
|                                                  |  | m                   |        |         | m     |  |        | m     |  |     | m     |  |        | m    |        |        | m     |  |        | m    | 
|Assets                                            |  |                      |        |         |        |  |        |        |  |     |        |  |        |       |        |        |        |  |        |       |  |  |       |  |  |  |         | 
|Cash and balances at central banks                |  |                      | 362    |         |        |  |       |        |  |     |       |  |        |       |       |        |        |  |       |       |  |  |      |  |  |  | 362     | 
|Central Government and other eligible bills       |  |                      | 11     |         |        |  |       |        |  |     |       |  |        |       |       |        |        |  |       |       |  |  |      |  |  |  | 11      | 
|Loans and advances to banks                       |  |                      | 2,465  |         |        |  | 4,204  |        |  |     | 438    |  |        |       | 54     |        |        |  | 49     |       |  |  |      |  |  |  | 7,210   | 
|Loans and advances to customers                   |  |                      | 2,918  |         |        |  | 6,612  |        |  |     | 10,249 |  |        |       | 38,273 |        |        |  | 67,424 |       |  |  |      |  |  |  | 125,476 | 
|Trading securities                                |  |                      | 20     |         |        |  | 10     |        |  |     | 37     |  |        |       | 342    |        |        |  | 111    |       |  |  |      |  |  |  | 520     | 
|Derivative financial instruments                  |  |                      | 2,805  |         |        |  |       |        |  |     |       |  |        |       |       |        |        |  | 44     |       |  |  |      |  |  |  | 2,849   | 
|Other financial assets at fair value through P/ L |  |                      | 30     |         |        |  | 1,017  |        |  |     | 116    |  |        |       | 477    |        |        |  | 1,857  |       |  |  | 9,210 |  |  |  | 12,707  | 
|Investment securities  available-for-sale        |  |                      | 106    |         |        |  | 2,965  |        |  |     | 5,655  |  |        |       | 17,334 |        |        |  | 7,340  |       |  |  | 49    |  |  |  | 33,449  | 
|Liabilities                                       |  |                      |        |         |        |  |        |        |  |     |        |  |        |       |        |        |        |  |        |       |  |  |       |  |  |  |         | 
|Deposits by banks                                 |  |                      | 2,785  |         |        |  | 13,669 |        |  |     | 3,389  |  |        |       | 488    |        |        |  | 74     |       |  |  |      |  |  |  | 20,405  | 
|Customer accounts                                 |  |                      | 43,844 |         |        |  | 20,901 |        |  |     | 3,058  |  |        |       | 2,997  |        |        |  | 1,477  |       |  |  |      |  |  |  | 72,277  | 
|Debt securities in issue                          |  |                      | 270    |         |        |  | 15,975 |        |  |     | 8,168  |  |        |       | 18,919 |        |        |  | 16,191 |       |  |  |      |  |  |  | 59,523  | 
|Derivative financial instruments                  |  |                      | 2,882  |         |        |  |       |        |  |     |       |  |        |       |       |        |        |  | 53     |       |  |  |      |  |  |  | 2,935   | 
|Subordinated debt  dated                         |  |                      |       |         |        |  |       |        |  |     |       |  |        |       | 775    |        |        |  | 3,539  |       |  |  |      |  |  |  | 4,314   | 

Maturities of financial assets and liabilities


|                                                  |  |                      |        |         |        |  |        |        |  |     |       |  |        |       |        |        |        |  |        |       |  |  |       |  |  |  |         | 
|------------------------------------------------- |  | -------------------- | ------ | ------- | ------ |  | ------ | ------ |  | --- | ----- |  | ------ | ----- | ------ | ------ | ------ |  | ------ | ----- |  |  | ----- |  |  |  | ------- | 
|                                                  |  | As at March 31, 2006 |       
|                                                  |  | Restated*            |       
|                                                  |  |                      |       
|                                                  |  |                      |        | Up to 3 |        |  | 3-12   |        |  | 1-5 |       |  | Over 5 |       |        | Equity |        |  |       
|                                                  |  | Demand               |        |         | months |  |        | months |  |     | years |  |        | years |        |        | Shares |  |        | Total | 
|                                                  |  |                      |        |         |        |  |        |        |  |     |       |  |        |       |        |        |        |  |        |       | 
|                                                  |  | m                   |        |         | m     |  |        | m     |  |     | m    |  |        | m    |        |        | m     |  |        | m    | 
|Assets                                            |  |                      |        |         |        |  |        |        |  |     |       |  |        |       |        |        |        |  |        |       |  |  |       |  |  |  |         | 
|Cash and balances at central banks                |  |                      | 287    |         |        |  |       |        |  |     |      |  |        |       |       |        |        |  |       |       |  |  |      |  |  |  | 287     | 
|Central Government and other eligible bills       |  |                      |       |         |        |  | 8      |        |  |     |      |  |        |       |       |        |        |  |       |       |  |  |      |  |  |  | 8       | 
|Loans and advances to banks                       |  |                      | 2,937  |         |        |  | 6,933  |        |  |     | 2,225 |  |        |       | 54     |        |        |  | 39     |       |  |  |      |  |  |  | 12,188  | 
|Loans and advances to customers                   |  |                      | 3,999  |         |        |  | 3,597  |        |  |     | 6,577 |  |        |       | 25,052 |        |        |  | 62,021 |       |  |  |      |  |  |  | 101,246 | 
|Trading securities                                |  |                      | 11     |         |        |  | 155    |        |  |     | 22    |  |        |       | 269    |        |        |  | 163    |       |  |  |      |  |  |  | 620     | 
|Derivative financial instruments                  |  |                      | 13     |         |        |  | 185    |        |  |     | 175   |  |        |       | 301    |        |        |  | 1,411  |       |  |  |      |  |  |  | 2,085   | 
|Other financial assets at fair value through P/ L |  |                      | 2      |         |        |  | 314    |        |  |     | 49    |  |        |       | 472    |        |        |  | 1,921  |       |  |  | 7,680 |  |  |  | 10,438  | 
|Investment securities  available-for-sale        |  |                      | 70     |         |        |  | 3,608  |        |  |     | 4,484 |  |        |       | 13,921 |        |        |  | 6,097  |       |  |  |      |  |  |  | 28,180  | 
|Equity shares  available-for-sale                |  |                      |       |         |        |  |       |        |  |     |      |  |        |       |       |        |        |  |       |       |  |  | 25    |  |  |  | 25      | 
|Liabilities                                       |  |                      |        |         |        |  |        |        |  |     |       |  |        |       |        |        |        |  |        |       |  |  |       |  |  |  |         | 
|Deposits by banks                                 |  |                      | 1,699  |         |        |  | 26,195 |        |  |     | 3,608 |  |        |       | 709    |        |        |  | 101    |       |  |  |      |  |  |  | 32,312  | 
|Customer accounts                                 |  |                      | 34,389 |         |        |  | 18,381 |        |  |     | 5,112 |  |        |       | 2,380  |        |        |  | 1,448  |       |  |  |      |  |  |  | 61,710  | 
|Debt securities in issue                          |  |                      | 174    |         |        |  | 17,714 |        |  |     | 4,708 |  |        |       | 11,212 |        |        |  | 3,006  |       |  |  |      |  |  |  | 36,814  | 
|Derivative financial instruments                  |  |                      | 23     |         |        |  | 136    |        |  |     | 159   |  |        |       | 195    |        |        |  | 1,134  |       |  |  |      |  |  |  | 1,647   | 
|Subordinated debt  dated                         |  |                      |       |         |        |  |       |        |  |     |      |  |        |       | 806    |        |        |  | 2,807  |       |  |  |      |  |  |  | 3,613   | 






|  |                                                                 
|- | ----------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26.

F-75



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                                                
|-- | -----------------------------------------------
|33 | FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES







|                                                  |  |          |         |          |        |  |         |           |  |  |           |  |  |  |         | 
|------------------------------------------------- |  | -------- | ------- | -------- | ------ |  | ------- | --------- |  |  | --------- |  |  |  | ------- | 
|                                                  |  | 2007     |         |          | 2006   | 
|                                                  |  |          |         |          |        | 
|                                                  |  |          |         | Carrying |        |  | Fair    |          
|                                                  |  | Carrying |         |          | Fair   |  |         | Amount    |  |  | Values    | 
|                                                  |  | Amount   |         |          | Values |  |         | Restated* |  |  | Restated* | 
|                                                  |  |          |         |          |        |  |         |           |  |  |           | 
|                                                  |  | m       |         |          | m     |  |         | m        |  |  | m        | 
|Financial instruments held for trading            |  |          |         |          |        |  |         |           |  |  |           |  |  |  |         | 
|Debt securities(1)                                |  |          | 520     |          |        |  | 520     |           |  |  | 596       |  |  |  | 596     | 
|Equity shares(1)                                  |  |          |        |          |        |  |        |           |  |  | 24        |  |  |  | 24      | 
|Trading derivative financial instruments         |  |          |         |          |        |  |         |           |  |  |           |  |  |  |         | 
|Interest rate contracts(1)                        |  |          | (294    | )        |        |  | (294    | )         |  |  | 28        |  |  |  | 28      | 
|Foreign exchange contracts(1)                     |  |          | (103    | )        |        |  | (103    | )         |  |  | 29        |  |  |  | 29      | 
|Equity and commodity contracts(1)                 |  |          | 61      |          |        |  | 61      |           |  |  | 300       |  |  |  | 300     | 
|Non trading financial instruments                 |  |          |         |          |        |  |         |           |  |  |           |  |  |  |         | 
|Assets                                            |  |          |         |          |        |  |         |           |  |  |           |  |  |  |         | 
|Cash and balances at central banks(1)             |  |          | 362     |          |        |  | 362     |           |  |  | 287       |  |  |  | 287     | 
|Items in course of collection from other banks(1) |  |          | 811     |          |        |  | 811     |           |  |  | 930       |  |  |  | 930     | 
|Central government and other eligible bills(1)    |  |          | 11      |          |        |  | 11      |           |  |  | 8         |  |  |  | 8       | 
|Loans and advances to banks                       |  |          | 7,210   |          |        |  | 7,219   |           |  |  | 12,188    |  |  |  | 12,188  | 
|Loans and advances to customers                   |  |          | 125,048 |          |        |  | 125,124 |           |  |  | 101,246   |  |  |  | 101,516 | 
|Available-for-sale financial assets               |  |          | 33,449  |          |        |  | 33,449  |           |  |  | 28,205    |  |  |  | 28,205  | 
|Other financial assets at fair value through P/L  |  |          | 12,707  |          |        |  | 12,707  |           |  |  | 10,438    |  |  |  | 10,438  | 

F-76



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|33 | FAIR VALUES OF FINANCIAL ASSETS AND
    LIABILITIES  (continued)

|                                                    |  |          |        |          |        |  |        |           |  |  |           |  |  |  |        | 
|--------------------------------------------------- |  | -------- | ------ | -------- | ------ |  | ------ | --------- |  |  | --------- |  |  |  | ------ | 
|                                                    |  | 2007     |        |          | 2006   | 
|                                                    |  |          |        |          |        | 
|                                                    |  |          |        | Carrying |        |  | Fair   |          
|                                                    |  | Carrying |        |          | Fair   |  |        | Amount    |  |  | Values    | 
|                                                    |  | Amount   |        |          | Values |  |        | Restated* |  |  | Restated* | 
|                                                    |  |          |        |          |        |  |        |           |  |  |           | 
|                                                    |  | m       |        |          | m     |  |        | m        |  |  | m        | 
|Liabilities                                         |  |          |        |          |        |  |        |           |  |  |           |  |  |  |        | 
|Deposits by banks                                   |  |          | 20,405 |          |        |  | 20,482 |           |  |  | 32,312    |  |  |  | 32,315 | 
|Customer accounts                                   |  |          | 72,277 |          |        |  | 72,491 |           |  |  | 61,710    |  |  |  | 61,751 | 
|Debt securities in issue                            |  |          | 59,523 |          |        |  | 59,562 |           |  |  | 36,814    |  |  |  | 36,879 | 
|Items in course of transmission to other banks(1)   |  |          | 243    |          |        |  | 243    |           |  |  | 284       |  |  |  | 284    | 
|Subordinated liabilities                            |  |          | 7,808  |          |        |  | 7,951  |           |  |  | 6,493     |  |  |  | 6,654  | 
|Liabilities to customers under investment contracts |  |          | 6,736  |          |        |  | 6,736  |           |  |  | 6,650     |  |  |  | 6,650  | 
|Derivative financial  instruments 
    Hedging    |  |          |        |          |        |  |        |           |  |  |           |  |  |  |        | 
|Interest rate contracts(1)                          |  |          | 250    |          |        |  | 250    |           |  |  | 81        |  |  |  | 81     | 






|    |                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The fair value of these financial instruments is equal to the
    carrying value. These instruments are either carried at market
    value, or have minimal credit losses and are either short term
    in nature or repriced frequently.



| |   |                                                                 
| | - | ----------------------------------------------------------------
| | * | Restated due to change in accounting policy 
    see page F-26.



Due from other banks






Loans and advances to customers




Deposits and borrowings






Debt securities in issue




F-77



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                               
|-- | ------------------------------
|34 | RETIREMENT BENEFIT OBLIGATIONS









Financial assumptions


|                                        |  |      |      |   |      |  |      |  
|--------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | -
|                                        |  | 2007 |      |   | 2006 | 
|                                        |  |      |      |   |      | 
|                                        |  | % pa |      |   | % pa | 
|Irish Schemes                           |  |      |      |   |      |  |      |  
|Inflation rate                          |  |      | 2.25 |   |      |  | 2.10 |  
|Discount rate                           |  |      | 4.95 |   |      |  | 4.60 |  
|Rate of general increase in salaries    |  |      | 3.38 | * |      |  | 3.26 | *
|Rate of increase in pensions in payment |  |      | 3.08 | * |      |  | 2.93 | *
|Rate of increase to deferred pensions   |  |      | 2.25 |   |      |  | 2.10 |  
|                                        |  |      |      |   |      | 
|UK Schemes                              |  |      |      |   |      |  |      |  
|Inflation rate                          |  |      | 3.00 |   |      |  | 2.75 |  
|Discount rate                           |  |      | 5.30 |   |      |  | 4.95 |  
|Rate of general increase in salaries    |  |      | 4.22 | * |      |  | 3.97 | *
|Rate of increase in pensions in payment |  |      | 3.58 | * |      |  | 3.33 | *
|Rate of increase to deferred pensions   |  |      | 3.00 |   |      |  | 2.75 |  






|  |                                                                                          
|- | -----------------------------------------------------------------------------------------
|* | Allows for additional 0.5% for 5 years beginning
    April 1, 2005 for Staff Pension Fund

F-78



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                            
|-- | -------------------------------------------
|34 | RETIREMENT BENEFIT OBLIGATIONS  (continued)

Mortality assumptions




|                                                    |  |      |      |  |      |  |      | 
|--------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | 
|                                                    |  | 2007 |      |  | 2006 | 
|                                                    |  |      |      |  |      | 
|Post-retirement mortality assumptions (Main Scheme) |  |      |      |  |      |  |      | 
|Longevity at age 60 for current pensioners (years)  |  |      |      |  |      |  |      | 
|Males                                               |  |      | 22.3 |  |      |  | 22.3 | 
|Females                                             |  |      | 25.3 |  |      |  | 25.3 | 
|Longevity at age 60 for future pensioners (years)   |  |      |      |  |      |  |      | 
|Males                                               |  |      | 24.5 |  |      |  | 24.5 | 
|Females                                             |  |      | 27.5 |  |      |  | 27.5 | 



|                                                 |  |                    |      |          |              |  |           |                |  |  |              |  |  |  |        |  
|------------------------------------------------ |  | ------------------ | ---- | -------- | ------------ |  | --------- | -------------- |  |  | ------------ |  |  |  | ------ | -
|                                                 |  | 2007               |      |          | 2006         | 
|                                                 |  |                    |      |          |              | 
|                                                 |  |                    |      | Expected |              |  |          
|                                                 |  | Expected long term |      |          |              |  | long term |                |  | 
|                                                 |  | rate of return     |      |          | Market Value |  |           | rate of return |  |  | Market Value | 
|                                                 |  |                    |      |          |              |  |           |                |  |  |              | 
|                                                 |  | %                  |      |          | m           |  |           | %              |  |  | m           | 
|Equities                                         |  |                    | 7.4  |          |              |  | 3,014     |                |  |  | 7.5          |  |  |  | 2,687  |  
|Bonds                                            |  |                    | 4.35 |          |              |  | 953       |                |  |  | 4.2          |  |  |  | 860    |  
|Property                                         |  |                    | 5.7  |          |              |  | 457       |                |  |  | 6.5          |  |  |  | 487    |  
|Cash                                             |  |                    | 4.1  |          |              |  | 81        |                |  |  | 3.3          |  |  |  | 36     |  
|                                                 |  |                    |      |          |              |  |           |                |  |  |              | 
|Total market value of schemes assets             |  |                    | 6.5  |          |              |  | 4,505     |                |  |  | 6.6          |  |  |  | 4,070  |  
|Actuarial value of liabilities of funded schemes |  |                    |      |          |              |  | (5,082    | )              |  |  |              |  |  |  | (4,866 | )
|                                                 |  |                    |      |          |              |  |           |                |  |  |              | 
|Aggregate deficit in schemes                     |  |                    |      |          |              |  | (577      | )              |  |  |              |  |  |  | (796   | )
|Unfunded schemes                                 |  |                    |      |          |              |  | (10       | )              |  |  |              |  |  |  | (12    | )
|                                                 |  |                    |      |          |              |  |           |                |  |  |              | 
|Net pension deficit                              |  |                    |      |          |              |  | (587      | )              |  |  |              |  |  |  | (808   | )
|                                                 |  |                    |      |          |              |  |           |                |  |  |              | 



    


F-79



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                            
|-- | -------------------------------------------
|34 | RETIREMENT BENEFIT OBLIGATIONS  (continued)



Components of pension expenses


|                                              |  |      |      |   |      |  |      |  
|--------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | -
|                                              |  | 2007 |      |   | 2006 | 
|                                              |  |      |      |   |      | 
|                                              |  | m   |      |   | m   | 
|Current service cost                          |  |      | 162  |   |      |  | 158  |  
|Past service cost                             |  |      | 15   |   |      |  | 14   |  
|Curtailments                                  |  |      | (10  | ) |      |  | (11  | )
|Expected return on pension scheme assets      |  |      | (272 | ) |      |  | (232 | )
|Interest on pension scheme liabilities        |  |      | 224  |   |      |  | 210  |  
|                                              |  |      |      |   |      | 
|Cost of providing defined retirement benefits |  |      | 119  |   |      |  | 139  |  
|                                              |  |      |      |   |      | 

Actual return on scheme assets


|                                 |  |      |     |  |      |  |     | 
|-------------------------------- |  | ---- | --- |  | ---- |  | --- | 
|                                 |  | 2007 |     |  | 2006 | 
|                                 |  |      |     |  |      | 
|                                 |  | m   |     |  | m   | 
|Expected return on scheme assets |  |      | 272 |  |      |  | 232 | 
|Actuarial gain on scheme assets  |  |      | 144 |  |      |  | 401 | 
|                                 |  |      |     |  |      | 
|Actual return on scheme assets   |  |      | 416 |  |      |  | 633 | 
|                                 |  |      |     |  |      | 

Reconciliation of defined benefit obligations during the
year


|                                                |  |      |       |   |      |  |       |  
|----------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|                                                |  | 2007 |       |   | 2006 | 
|                                                |  |      |       |   |      | 
|                                                |  | m   |       |   | m   | 
|Defined benefit obligation at beginning of year |  |      | 4,878 |   |      |  | 4,341 |  
|Current service cost                            |  |      | 162   |   |      |  | 158   |  
|Actual member contributions                     |  |      | 14    |   |      |  | 13    |  
|Past service cost                               |  |      | 15    |   |      |  | 14    |  
|Interest cost                                   |  |      | 224   |   |      |  | 210   |  
|Actuarial (gains)/losses                        |  |      | (85   | ) |      |  | 270   |  
|Benefits paid                                   |  |      | (127  | ) |      |  | (120  | )
|Curtailments                                    |  |      | (10   | ) |      |  | (11   | )
|Settlements                                     |  |      |      |   |      |  | 6     |  
|Currency loss/(gain)                            |  |      | 21    |   |      |  | (3    | )
|                                                |  |      |       |   |      | 
|Defined benefit obligation at end of year       |  |      | 5,092 |   |      |  | 4,878 |  
|                                                |  |      |       |   |      | 

F-80



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                            
|-- | -------------------------------------------
|34 | RETIREMENT BENEFIT OBLIGATIONS  (continued)

Reconciliation of the fair value of scheme assets during the
year


|                                                 |  |      |       |   |      |  |       |  
|------------------------------------------------ |  | ---- | ----- | - | ---- |  | ----- | -
|                                                 |  | 2007 |       |   | 2006 | 
|                                                 |  |      |       |   |      | 
|                                                 |  | m   |       |   | m   | 
|Fair value of scheme assets at beginning of year |  |      | 4,070 |   |      |  | 3,417 |  
|Expected return                                  |  |      | 272   |   |      |  | 232   |  
|Actual member contributions                      |  |      | 14    |   |      |  | 13    |  
|Actuarial gains                                  |  |      | 144   |   |      |  | 401   |  
|Contributions by employer                        |  |      | 127   |   |      |  | 124   |  
|Benefits paid                                    |  |      | (127  | ) |      |  | (120  | )
|Settlements                                      |  |      |      |   |      |  | 6     |  
|Currency gain/(loss)                             |  |      | 5     |   |      |  | (3    | )
|                                                 |  |      |       |   |      | 
|Fair value of scheme assets at end of year       |  |      | 4,505 |   |      |  | 4,070 |  
|                                                 |  |      |       |   |      | 

Analysis of the amount recognised in Statement of Recognised
Income and Expense (SORIE)


|                                                                                 |  |      |      |   |      |  |      |  
|-------------------------------------------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | -
|                                                                                 |  | 2007 |      |   | 2006 | 
|                                                                                 |  |      |      |   |      | 
|                                                                                 |  | m   |      |   | m   | 
|Actuarial gain on scheme assets                                                  |  |      | 144  |   |      |  | 401  |  
|Experience loss on liabilities                                                   |  |      | (126 | ) |      |  | (46  | )
|Gain/(loss) on change of assumptions (financial and demographic)                 |  |      | 211  |   |      |  | (224 | )
|Currency loss                                                                    |  |      | (16  | ) |      |  |     |  
|                                                                                 |  |      |      |   |      | 
|Total gains recognised in the SORIE during the year before
    adjustment of tax |  |      | 213  |   |      |  | 131  |  
|                                                                                 |  |      |      |   |      | 
|Cumulative amount of losses recognised in SORIE to end of year                   |  |      | (118 | ) |      |  | (331 | )
|                                                                                 |  |      |      |   |      | 

History of experience gains and losses


|                                                 |  |      |      |   |      |  |     |      |  |  |      |  
|------------------------------------------------ |  | ---- | ---- | - | ---- |  | --- | ---- |  |  | ---- | -
|                                                 |  | 2007 |      |   | 2006 |  |     | 2005 | 
|                                                 |  |      |      |   |      |  |     |      | 
|                                                 |  | m   |      |   | m   |  |     | m   | 
|Actuarial gain on scheme assets:                 |  |      |      |   |      |  |     |      |  |  |      |  
|Amount                                           |  |      | 144  |   |      |  | 401 |      |  |  | 114  |  
|Percentage of scheme assets                      |  |      | 3.2  | % |      |  | 9.9 | %    |  |  | 3.3  | %
|Experience (losses)/gain on scheme liabilities:  |  |      |      |   |      |  |     |      |  |  |      |  
|Amount                                           |  |      | (126 | ) |      |  | (46 | )    |  |  | 43   |  
|Percentage of scheme liabilities                 |  |      | 2.5  | % |      |  | 0.9 | %    |  |  | 1.0  | %
|Total actuarial gain/(loss) recognised in SORIE: |  |      |      |   |      |  |     |      |  |  |      |  
|Amount                                           |  |      | 213  |   |      |  | 131 |      |  |  | (462 | )
|Percentage of scheme liabilities                 |  |      | 4.2  | % |      |  | 2.7 | %    |  |  | 10.6 | %

Defined benefit pension plans


|                             |  |      |       |  |      |  |       |      |  |  |       | 
|---------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                             |  | 2007 |       |  | 2006 |  |       | 2005 | 
|                             |  |      |       |  |      |  |       |      | 
|                             |  | m   |       |  | m   |  |       | m   | 
|Present value of obligations |  |      | 5,092 |  |      |  | 4,878 |      |  |  | 4,341 | 
|Scheme assets                |  |      | 4,505 |  |      |  | 4,070 |      |  |  | 3,417 | 
|                             |  |      |       |  |      |  |       |      | 
|Deficit within schemes       |  |      | 587   |  |      |  | 808   |      |  |  | 924   | 
|                             |  |      |       |  |      |  |       |      | 

F-81



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                            
|-- | -------------------------------------------
|34 | RETIREMENT BENEFIT OBLIGATIONS  (continued)

Additional information


|                                |  |                |     | 
|------------------------------- |  | -------------- | --- | 
|For year ending:                |  | March 31, 2008 |    
|                                |  |                |    
|                                |  | m             |    
|Expected employer contributions |  |                | 111 | 
|Expected employee contribution  |  |                | 14  | 



|                      |  |                      |                    |                                 |  |  |               | 
|--------------------- |  | -------------------- | ------------------ | ------------------------------- |  |  | ------------- | 
|                      |  |                      |                    | BOI Staff Pension Fund         
|Factor                |  | Change in assumption |                    | Impact in actuarial liabilities
|                      |  |                      |                    |                                
|Discount rate         |  |                      | Decrease 0.1%      |                                 |  |  | Increase 2.2% | 
|Rate of Inflation     |  |                      | Increase 0.1%      |                                 |  |  | Increase 2.2% | 
|Rate of salary growth |  |                      | Increase 0.1%      |                                 |  |  | Increase 0.8% | 
|Life expectancy       |  |                      | Increase by 1 year |                                 |  |  | Increase 2.9% | 



F-82



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                                       
|-- | --------------------------------------
|35 | CONTINGENT LIABILITIES AND COMMITMENTS



|                                                     |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |       |        |  |       |       |       | 
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ------ | ----- | -------- |  | ----- | -------- | ----- |  | -------- | ----- | ------ |  | ----- | ----- | ----- | 
|                                                     |                                                                                                   | 2007                                                                         |        |       | 2006     | 
|                                                     |                                                                                                   |                                                                              |        |       |          | 
|                                                     |                                                                                                   |                                                                              |        | Risk  |          |  |       |          | Risk  | 
|                                                     |                                                                                                   | Contract                                                                     |        |       | Weighted |  |       | Contract |       |  | Weighted |      
|                                                     |                                                                                                   | Amount                                                                       |        |       | Amount   |  |       | Amount   |       |  | Amount   |      
|                                                     |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |      
|                                                     |                                                                                                   | m                                                                           |        |       | m       |  |       | m       |       |  | m       |      
|The Group  Contingent Liabilities                   |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |       |        |  |       |      
|Acceptances and endorsements                         |                                                                                                   |                                                                              | 39     |       |          |  | 24    |          |       |  | 37       |       |        |  | 21    |      
|Guarantees and assets pledged as collateral security |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |       |        |  |       |      
|                                                     |  Assets pledged                                                                                  |                                                                              |        |      |          |  |       |         |       |  |          |      |        |  |       |      |      
|                                                     |  Guarantees and irrevocable letters of credit                                                    |                                                                              |        | 1,719 |          |  |       | 1,540    |       |  |          | 1,354 |        |  |       | 1,321 |      
|Other contingent liabilities                         |                                                                                                   |                                                                              | 745    |       |          |  | 302   |          |       |  | 675      |       |        |  | 327   |      
|                                                     |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |      
|                                                     |                                                                                                   |                                                                              | 2,503  |       |          |  | 1,866 |          |       |  | 2,066    |       |        |  | 1,669 |      
|                                                     |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |      
|The Group  Commitments                              |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |       |        |  |       |      
|Sale and option to resell transactions               |                                                                                                   |                                                                              |       |       |          |  |      |          |       |  |         |       |        |  |      |      
|Other commitments                                    |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |       |        |  |       |      
|                                                     |  Documentary credits and short-term trade-related
    transactions                               |                                                                              |        | 176   |          |  |       | 34       |       |  |          | 160   |        |  |       | 36    |      
|                                                     |  Forward asset purchases, forward deposits placed and
    forward sale and repurchase agreements |                                                                              |        |      |          |  |       |         |       |  |          |      |        |  |       |      |      
|                                                     |  Undrawn note issuance and revolving underwriting
    facilities                                 |                                                                              |        | 758   |          |  |       | 163      |       |  |          | 409   |        |  |       |      |      
|                                                     |  Undrawn formal standby facilities, credit lines and
    other commitments to lend               |                                                                              |        |       |          |  |       |          |       |  |          |       |        |  |       |       |      
|                                                     |                                                                                                   |  irrevocable with original maturity of over
    1 year                      |        |       | 10,847   |  |       |          | 5,208 |  |          |       | 8,006  |  |       |       | 3,790 | 
|                                                     |                                                                                                   |  revocable or irrevocable with original maturity of
    1 year or less (ii) |        |       | 24,232   |  |       |          |      |  |          |       | 22,362 |  |       |       |      | 
|                                                     |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |      
|                                                     |                                                                                                   |                                                                              | 36,013 |       |          |  | 5,405 |          |       |  | 30,937   |       |        |  | 3,826 |      
|                                                     |                                                                                                   |                                                                              |        |       |          |  |       |          |       |  |          |      






|     |                                                                                                                                                                                               
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)  | Under the Basel agreement, a credit conversion factor is applied
    to the contract amount to obtain the credit equivalent amount,
    which is then risk weighted according to counterparty.
|    
|(ii) | Undrawn loan commitments which are unconditionally cancelable at
    any time or which have a maturity of less than one year have a
    risk weighting of zero.                               

F-83



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                   
|-- | ------------------
|36 | MINORITY INTERESTS

|                                     |  |      |    |   |      |  |    |  
|------------------------------------ |  | ---- | -- | - | ---- |  | -- | -
|                                     |  | 2007 |    |   | 2006 | 
|                                     |  |      |    |   |      | 
|                                     |  | m   |    |   | m   | 
|At April 1, 2006                     |  |      | 45 |   |      |  | 59 |  
|Exchange adjustments                 |  |      |   |   |      |  | (1 | )
|Share of net profit/(losses)         |  |      | 1  |   |      |  | (9 | )
|Dividends paid to minority interest  |  |      | (3 | ) |      |  | (6 | )
|Acquisition of minority interest     |  |      |   |   |      |  | 2  |  
|Disposal of minority interest (Davy) |  |      | (9 | ) |      |  |   |  
|                                     |  |      |    |   |      | 
|At March 31, 2007                    |  |      | 34 |   |      |  | 45 |  
|                                     |  |      |    |   |      | 






|   |                                                
|-- | -----------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY STOCK

Capital Stock


The Bank


Authorised


|                                                |                                                                 |      |       |     |      |  |       |     | 
|----------------------------------------------- | --------------------------------------------------------------- | ---- | ----- | --- | ---- |  | ----- | --- | 
|                                                |                                                                 | 2007 |       |     | 2006 | 
|                                                |                                                                 |      |       |     |      | 
|                                                |                                                                 | m   |       |     | m   | 
|1,500m units of
    0.64 of Ordinary
    Stock |                                                                 |      | 960   |     |      |  | 960   |    
|                                                | 8m units of Non-Cumulative Preference Stock of U.S.$25 each     |      |       | 150 |      |  |       | 165 | 
|                                                | 100m units of Non-Cumulative Preference Stock of Stg£1 each     |      |       | 147 |      |  |       | 144 | 
|                                                | 100m units of Non-Cumulative Preference Stock of
    1.27 each |      |       | 127 |      |  |       | 127 | 
|                                                | 100m units of Undesignated Preference Stock of U.S.$0.25 each   |      |       | 19  |      |  |       | 21  | 
|                                                | 100m units of Undesignated Preference Stock of Stg£0.25 each    |      |       | 37  |      |  |       | 36  | 
|                                                | 100m units of Undesignated Preference Stock of
    0.25 each   |      |       | 25  |      |  |       | 25  | 
|                                                |                                                                 |      |       |     |      | 
|                                                |                                                                 |      | 1,465 |     |      |  | 1,478 |    
|                                                |                                                                 |      |       |     |      | 

Allotted and fully paid


|                                                                |  |      |     |  |      |  |     | 
|--------------------------------------------------------------- |  | ---- | --- |  | ---- |  | --- | 
|                                                                |  | 2007 |     |  | 2006 | 
|                                                                |  |      |     |  |      | 
|                                                                |  | m   |     |  | m   | 
|955.4m units of
    0.64 of Ordinary
    Stock                 |  |      | 611 |  |      |  | 607 | 
|70.2m units of
    0.64 of Treasury
    Stock                  |  |      | 45  |  |      |  | 49  | 
|1.9m units of Non-Cumulative Preference Stock of Stg£1 each     |  |      | 3   |  |      |  | 3   | 
|3.0m units of Non-Cumulative Preference Stock of
    1.27 each |  |      | 4   |  |      |  | 4   | 
|                                                                |  |      |     |  |      | 
|                                                                |  |      | 663 |  |      |  | 663 | 
|                                                                |  |      |     |  |      | 



F-84



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY
    STOCK  (continued)

Movements in issued Ordinary Stock


|                                                                             |  |          |             |   |          |  |            |  
|---------------------------------------------------------------------------- |  | -------- | ----------- | - | -------- |  | ---------- | -
|                                                                             |  | Ordinary |             |   | Treasury | 
|                                                                             |  |          |             |   |          | 
|At April 1, 2006                                                             |  |          | 947,903,170 |   |          |  | 77,212,319 |  
|Stock Option Schemes                                                         |  |          | 988,540     |   |          |  | (682,400   | )
|Sharesave Scheme                                                             |  |          | 3,753,075   |   |          |  | (3,625,478 | )
|Long Term Incentive Plan                                                     |  |          | 16,082      |   |          |  | (16,082    | )
|Employee Stock Issue                                                         |  |          | 2,610,538   |   |          |  | (2,610,538 | )
|Stock Alternative Scheme                                                     |  |          | 2,139,653   |   |          |  | (2,139,653 | )
|Stock purchased and held for the benefit of life assurance
    policyholders |  |          | (2,054,453  | ) |          |  | 2,054,453  |  
|                                                                             |  |          |             |   |          | 
|At March 31, 2007                                                            |  |          | 955,356,605 |   |          |  | 70,192,621 |  
|                                                                             |  |          |             |   |          | 




 


  re-issue


   re-issue


 re-issue


 re-issue


 re-issue








Preference Stock





F-85



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY
    STOCK  (continued)









Use of Ordinary Stock in employee schemes




|    |                            
|--- | ---------------------------
|(a) | Employee Stock Issue Scheme









(b)             Sharesave
Scheme (SAYE Scheme)


 


F-86



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY
    STOCK  (continued)

  






|                                   |  |          |           |  |          |  |           |          |  |  |           |  |  |          |         |  |          |  |         |          |  |  |          |  |  |       |           |  |  |  |         |  |  |  |            | 
|---------------------------------- |  | -------- | --------- |  | -------- |  | --------- | -------- |  |  | --------- |  |  | -------- | ------- |  | -------- |  | ------- | -------- |  |  | -------- |  |  | ----- | --------- |  |  |  | ------- |  |  |  | ---------- | 
|                                   |  | ROI      |           |  | UK       |  |           | RoI      |  |  | UK        |  |  |         
|                                   |  |          |           |  |          |  |           |          |  |  |           |  |  |         
|March 2007                         |  | 2000 7yr |           |  | 2003 3yr |  |           | 2003 5yr |  |  | 2000 7yr  |  |  | 2003 3yr |         |  | 2003 5yr |  |         | 2007 3yr |  |  | 2007 3yr |  |  | Total |          
|                                   |  |          |           |  |          |  |           |          |  |  |           |  |  |          |         |  |          |  |         |          |  |  |          |  |  |       |          
|Outstanding at beginning of period |  |          | 2,528,936 |  |          |  | 3,430,835 |          |  |  | 2,209,257 |  |  |          | 595,580 |  |          |  | 826,851 |          |  |  | 450,931  |  |  |       |          |  |  |  |        |  |  |  | 10,042,390 | 
|Granted                            |  |          |          |  |          |  |          |          |  |  |          |  |  |          |        |  |          |  |        |          |  |  |         |  |  |       | 2,310,960 |  |  |  | 513,615 |  |  |  | 2,824,575  | 
|Exercised                          |  |          | 21,620    |  |          |  | 2,922,057 |          |  |  | 10,300    |  |  |          | 48,379  |  |          |  | 737,477 |          |  |  | 26,261   |  |  |       |          |  |  |  |        |  |  |  | 3,766,094  | 
|Lapsed                             |  |          | 117,885   |  |          |  | 80,008    |          |  |  | 82,339    |  |  |          | 15,285  |  |          |  | 18,780  |          |  |  | 32,331   |  |  |       |          |  |  |  |        |  |  |  | 346,628    | 
|Outstanding at end of period       |  |          | 2,389,431 |  |          |  | 428,770   |          |  |  | 2,116,618 |  |  |          | 531,916 |  |          |  | 70,594  |          |  |  | 392,339  |  |  |       | 2,310,960 |  |  |  | 513,615 |  |  |  | 8,754,243  | 
|                                   |  |          |           |  |          |  |           |          |  |  |           |  |  |          |         |  |          |  |         |          |  |  |          |  |  |       |          
|Exercisable at end of period       |  |          | 2,389,431 |  |          |  | 428,770   |          |  |  |          |  |  |          | 531,916 |  |          |  | 70,594  |          |  |  |         |  |  |       |          |  |  |  |        |  |  |  | 3,420,711  | 
|                                   |  |          |           |  |          |  |           |          |  |  |           |  |  |          |         |  |          |  |         |          |  |  |          |  |  |       |          
|Weighted average exercise price    |  |          | 5.40     |  |          |  | 7.84     |          |  |  | 7.84     |  |  |          | 5.40   |  |          |  | 8.37   |          |  |  | 8.37    |  |  |       | 12.28    |  |  |  | 13.09  |  |  |  | 8.49      | 
|                                   |  |          |           |  |          |  |           |          |  |  |           |  |  |          |         |  |          |  |         |          |  |  |          |  |  |       |          




(c)  Stock Option Scheme




F-87



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY
    STOCK  (continued)

|                                   |  |                   |           |                  |                    |  |          |                   |                  |  |                    |  |  |  |         | 
|---------------------------------- |  | ----------------- | --------- | ---------------- | ------------------ |  | -------- | ----------------- | ---------------- |  | ------------------ |  |  |  | ------- | 
|                                   |  | March 2007        |           |                  | March 2006         | 
|                                   |  |                   |           |                  |                    | 
|                                   |  |                   |           | Weighted average |                    |  |          |                   | Weighted average | 
|                                   |  | Number of options |           |                  | exercise price () |  |          | Number of options |                  |  | exercise price () | 
|                                   |  |                   |           |                  |                    |  |          |                   |                  |  |                    | 
|Outstanding at beginning of period |  |                   | 6,732,803 |                  |                    |  | 10.658   |                   |                  |  | 6,611,900          |  |  |  | 9.6809  | 
|Granted during the period          |  |                   | 1,416,190 |                  |                    |  | 13.1371  |                   |                  |  | 1,267,514          |  |  |  | 12.8811 | 
|Exercised during period            |  |                   | 988,540   |                  |                    |  | 9.2323   |                   |                  |  | 1,014,111          |  |  |  | 7.1695  | 
|Expired during period              |  |                   | 144,144   |                  |                    |  | 11.7503  |                   |                  |  | 132,500            |  |  |  | 9.8688  | 
|Outstanding at end of period       |  |                   | 7,016,309 |                  |                    |  | 11.5503  |                   |                  |  | 6,732,803          |  |  |  | 10.658  | 
|Exercisable at end of period       |  |                   | 2,957,605 |                  |                    |  | 10.14798 |                   |                  |  | 2,407,289          |  |  |  | 9.3693  | 

|                         |  |                   |           | 
|------------------------ |  | ----------------- | --------- | 
|Exercise Price Range () |  | Number of options |          
|                         |  |                   |          
|4.529-9.15              |  |                   | 899,650   | 
|10.54-10.77             |  |                   | 2,572,000 | 
|11.05-12.85             |  |                   | 2,093,955 | 
|13.68-17.16             |  |                   | 1,450,704 | 
|                         |  |                   |          
|Total                    |  |                   | 7,016,309 | 
|                         |  |                   |          




(d) Long Term Incentive Plan






F-88



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY
    STOCK  (continued)



|                                                                    |  |                                                                                                                            
|------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------
|                                                                   
|The Banks total shareholder return performance                     |  | % of Units of Stock subject to an Award                                                                                    
|relative to the Comparator Companies                                |  | which may be issued or transferred                                                                                         
|                                                                   
|Equal to or better than the company ranked second                   |  | 100%                                                                                                                       
|                                                                   
|Between the company ranked median and
    the company ranked second |  | Greater than 35% and less than 100%
    (Pro rata based on the Banks performance
    relative to the Comparator Companies)
|                                                                   
|Equal to the median                                                 |  | 35%                                                                                                                        
|                                                                   
|Below median                                                        |  | Nil                                                                                                                        
|                                                                   





|                                   |  |                   |           |  |                  |  |       |                   |  |  |                  |  |  |  |       | 
|---------------------------------- |  | ----------------- | --------- |  | ---------------- |  | ----- | ----------------- |  |  | ---------------- |  |  |  | ----- | 
|                                   |  | March 2007        |           |  | March 2006       | 
|                                   |  |                   |           |  |                  | 
|                                   |  | Number of         |           |  | Weighted average |  |       | Number of         |  |  | Weighted average | 
|                                   |  | conditional units |           |  | grant price     |  |       | conditional units |  |  | grant price     | 
|                                   |  |                   |           |  |                  |  |       |                   |  |  |                  | 
|Outstanding at beginning of period |  |                   | 1,661,432 |  |                  |  | 11.64 |                   |  |  | 1,229,805        |  |  |  | 11.06 | 
|Granted during the period          |  |                   | 853,072   |  |                  |  | 14.27 |                   |  |  | 698,682          |  |  |  | 12.92 | 
|Vested during period               |  |                   |          |  |                  |  |       |                   |  |  | 98,101           |  |  |  | 12.73 | 
|Expired during period              |  |                   | 475,750   |  |                  |  | 11.28 |                   |  |  | 168,953          |  |  |  | 12.05 | 
|Outstanding at end of period       |  |                   | 2,038,754 |  |                  |  | 12.82 |                   |  |  | 1,661,432        |  |  |  | 11.64 | 

 




|    |                      
|--- | ---------------------
|(e) | Options Pricing Model



|                   |  |                     |           |  |            |  |         |            |  |  |            |  |  |  |         | 
|------------------ |  | ------------------- | --------- |  | ---------- |  | ------- | ---------- |  |  | ---------- |  |  |  | ------- | 
|                   |  | Stock Option Scheme |           |  | LTPSP      | 
|                   |  |                     |           |  |            | 
|                   |  | March 2007          |           |  | March 2006 |  |         | March 2007 |  |  | March 2006 | 
|                   |  |                     |           |  |            |  |         |            |  |  |            | 
|Volatility         |  |                     | 25%       |  |            |  | 30%     |            |  |  | 25%        |  |  |  | 30%     | 
|Dividend Yield     |  |                     | 3.4%      |  |            |  | 3.60%   |            |  |  | 3.4%       |  |  |  | 3.60%   | 
|Risk free rate     |  |                     | 4%        |  |            |  | 3.1%    |            |  |  | N/A        |  |  |  | N/A     | 
|Implied term       |  |                     | 8.5 years |  |            |  | 8 years |            |  |  | 3 years    |  |  |  | 3 years | 
|Fair value         |  |                     | 3.17     |  |            |  | 2.65   |            |  |  | 5.10      |  |  |  | 5.2    | 
|Exercise price     |  |                     | 14       |  |            |  | 12.85  |            |  |  | 14        |  |  |  | 12.85  | 
|No of options(000) |  |                     | 1,416.2   |  |            |  | 1,259.5 |            |  |  | 853.1      |  |  |  | 689.2   | 
|Vesting period     |  |                     | 3 years   |  |            |  | 3 years |            |  |  | 3 years    |  |  |  | 3 years | 

F-89



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                 
|-- | ----------------------------------------------------------------
|37 | SHARE CAPITAL, SHARE PREMIUM AND TREASURY
    STOCK  (continued)

|                   |  |            |         |  |           |  |         |      |  |  |         |  |  |  |         | 
|------------------ |  | ---------- | ------- |  | --------- |  | ------- | ---- |  |  | ------- |  |  |  | ------- | 
|                   |  | SAYE (ROI) |         |  | SAYE (UK) | 
|                   |  | 3 Year     |         |  | 3 Year    | 
|                   |  |            |         |  |           | 
|                   |  | 2007       |         |  | 2006      |  |         | 2007 |  |  | 2006    | 
|                   |  |            |         |  |           |  |         |      |  |  |         | 
|Volatility         |  |            | 20%     |  |           |  | 30%     |      |  |  | 20%     |  |  |  | 30%     | 
|Dividend Yield     |  |            | 3.3%    |  |           |  | 3.3%    |      |  |  | 3.3%    |  |  |  | 3.3%    | 
|Risk free rate     |  |            | 3.8%    |  |           |  | 3.0%    |      |  |  | 3.8%    |  |  |  | 3.0%    | 
|Implied term       |  |            | 3 years |  |           |  | 3 years |      |  |  | 3 years |  |  |  | 3 years | 
|Fair value         |  |            | 5.10   |  |           |  | 3.28   |      |  |  | 4.55   |  |  |  | 3.00   | 
|Exercise price     |  |            | 12.28  |  |           |  | 7.84   |      |  |  | 13.09  |  |  |  | 8.37   | 
|No of options(000) |  |            | 2,311.0 |  |           |  | 3,430.8 |      |  |  | 513.6   |  |  |  | 826.8   | 
|Vesting period     |  |            | 3 years |  |           |  | 3 years |      |  |  | 3 years |  |  |  | 3 years | 

|                   |  |            |         |  |           |  |         | 
|------------------ |  | ---------- | ------- |  | --------- |  | ------- | 
|                   |  | SAYE (ROI) |         |  | SAYE (UK) | 
|                   |  | 5 Year     |         |  | 5 Year    | 
|                   |  | 2006       |         |  | 2006      | 
|                   |  |            |         |  |           | 
|Volatility         |  |            | 30%     |  |           |  | 30%     | 
|Dividend Yield     |  |            | 3.3%    |  |           |  | 3.3%    | 
|Risk free rate     |  |            | 3.6%    |  |           |  | 3.6%    | 
|Implied term       |  |            | 5 years |  |           |  | 5 years | 
|Fair value         |  |            | 3.54   |  |           |  | 3.31   | 
|Exercise price     |  |            | 7.84   |  |           |  | 8.37   | 
|No of options(000) |  |            | 2,209.2 |  |           |  | 450.9   | 
|Vesting period     |  |            | 5 years |  |           |  | 5 years | 



|    |                                                                 
|--- | ----------------------------------------------------------------
|(f) | Limitations on Employee Stock Issue and Stock Option
    Schemes



F-90



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                               
|-- | ------------------------------
|38 | RESERVES AND RETAINED EARNINGS

|                                               |  |      |       |      |           |  |       |  
|---------------------------------------------- |  | ---- | ----- | ---- | --------- |  | ----- | -
|                                               |  |      |       | 2006 |          
|                                               |  | 2007 |       |      | Restated* | 
|                                               |  |      |       |      |           | 
|                                               |  | m   |       |      | m        | 
|Stock premium account                          |  |      |       |      |           |  |       |  
|Opening balance                                |  |      | 767   |      |           |  | 767   |  
|Premium on issue of stock                      |  |      | 4     |      |           |  |      |  
|                                               |  |      |       |      |           | 
|Closing balance                                |  |      | 771   |      |           |  | 767   |  
|                                               |  |      |       |      |           | 
|Capital reserve                                |  |      |       |      |           |  |       |  
|Opening balance                                |  |      | 359   |      |           |  | 311   |  
|Transfer from retained profit                  |  |      | 70    |      |           |  | 48    |  
|                                               |  |      |       |      |           | 
|Closing balance                                |  |      | 429   |      |           |  | 359   |  
|                                               |  |      |       |      |           | 
|Retained profit                                |  |      |       |      |           |  |       |  
|Opening balance previously reported            |  |      | 3,330 |      |           |  | 2,392 |  
|Impact of change in accounting policy*         |  |      | (142  | )    |           |  | (90   | )
|                                               |  |      |       |      |           | 
|Revised opening balance                        |  |      | 3,188 |      |           |  | 2,302 |  
|Profit for period attributable to stockholders |  |      | 1,651 |      |           |  | 1,230 |  
|Equity dividends                               |  |      | (524  | )    |           |  | (448  | )
|Dividends on other equity interests            |  |      | (15   | )    |           |  | (13   | )
|Transfer to capital reserves                   |  |      | (70   | )    |           |  | (48   | )
|                                               |  |      |       |      |           | 
|Profit retained                                |  |      | 1,042 |      |           |  | 721   |  
|Reissue of treasury stock                      |  |      | 129   |      |           |  | 48    |  
|Transfer from revaluation reserve              |  |      | 108   |      |           |  | 4     |  
|Transfer from share based payments reserve     |  |      | 15    |      |           |  |      |  
|Actuarial gains on pension funds               |  |      | 190   |      |           |  | 113   |  
|                                               |  |      |       |      |           | 
|Closing balance                                |  |      | 4,672 |      |           |  | 3,188 |  
|                                               |  |      |       |      |           | 
|Share based payments reserve                   |  |      |       |      |           |  |       |  
|Opening balance                                |  |      | 27    |      |           |  | 16    |  
|Charge to the income statement                 |  |      | 12    |      |           |  | 11    |  
|Transfer to retained profit                    |  |      | (15   | )    |           |  |      |  
|                                               |  |      |       |      |           | 
|Closing balance                                |  |      | 24    |      |           |  | 27    |  
|                                               |  |      |       |      |           | 
|Foreign exchange reserve                       |  |      |       |      |           |  |       |  
|Opening balance                                |  |      | (125  | )    |           |  | (108  | )
|Exchange adjustments during year               |  |      | 49    |      |           |  | (17   | )
|                                               |  |      |       |      |           | 
|Closing balance                                |  |      | (76   | )    |           |  | (125  | )
|                                               |  |      |       |      |           | 






|  |                                                                 
|- | ----------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26.

F-91



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                            
|-- | -------------------------------------------
|38 | RESERVES AND RETAINED EARNINGS  (continued)

|                                                         |  |      |      |   |      |  |      |  
|-------------------------------------------------------- |  | ---- | ---- | - | ---- |  | ---- | -
|                                                         |  | 2007 |      |   | 2006 | 
|                                                         |  |      |      |   |      | 
|                                                         |  | m   |      |   | m   | 
|Revaluation reserve                                      |  |      |      |   |      |  |      |  
|Opening balance                                          |  |      | 342  |   |      |  | 159  |  
|Transfer to revenue reserve on sale of property          |  |      | (108 | ) |      |  | (4   | )
|Revaluation of property                                  |  |      | 34   |   |      |  | 212  |  
|Deferred tax on revaluation/reclassification of property |  |      | (16  | ) |      |  | (25  | )
|                                                         |  |      |      |   |      | 
|Closing balance                                          |  |      | 252  |   |      |  | 342  |  
|                                                         |  |      |      |   |      | 
|Available for sale reserve                               |  |      |      |   |      |  |      |  
|Opening balance                                          |  |      | 26   |   |      |  | 130  |  
|Net changes in fair value                                |  |      | (57  | ) |      |  | (115 | )
|Deferred tax on fair value changes                       |  |      | 8    |   |      |  | 15   |  
|Profit on disposal                                       |  |      | (10  | ) |      |  | (4   | )
|                                                         |  |      |      |   |      | 
|Closing balance                                          |  |      | (33  | ) |      |  | 26   |  
|                                                         |  |      |      |   |      | 
|Cash flow hedge reserve                                  |  |      |      |   |      |  |      |  
|Opening balance                                          |  |      | 60   |   |      |  | 67   |  
|Net changes in fair value                                |  |      | 188  |   |      |  | (8   | )
|Deferred tax of fair value changes                       |  |      | (53  | ) |      |  | 1    |  
|                                                         |  |      |      |   |      | 
|Closing balance                                          |  |      | 195  |   |      |  | 60   |  
|                                                         |  |      |      |   |      | 
|Other equity reserve                                     |  |      |      |   |      |  |      |  
|Opening balance                                          |  |      | 114  |   |      |  | 114  |  
|Movement during period                                   |  |      |     |   |      |  |     |  
|                                                         |  |      |      |   |      | 
|Closing balance                                          |  |      | 114  |   |      |  | 114  |  
|                                                         |  |      |      |   |      | 






|   |                    
|-- | -------------------
|39 | DIVIDENDS PER SHARE

  







|   |                          
|-- | -------------------------
|40 | CASH AND CASH EQUIVALENTS



|                                     |                                                                                   |       |  |    |      |  |       |       |  |  |       |       | 
|------------------------------------ | --------------------------------------------------------------------------------- | ----- |  | -- | ---- |  | ----- | ----- |  |  | ----- | ----- | 
|                                     |                                                                                   | Notes |  |    | 2007 |  |       | 2006  | 
|                                     |                                                                                   |       |  |    |      |  |       |       | 
|                                     |                                                                                   |       |  | m |      |  | m    |      
|Cash and balances with central banks |                                                                                   |       |  |    |      |  | 362   |       |  |  | 287   |      
|                                     | Loans and advances to banks (with an original maturity of less
    than 3 months) |       |  | 15 |      |  |       | 3,924 |  |  |       | 5,867 | 
|                                     | Central government and other eligible bills                                       |       |  | 12 |      |  |       | 11    |  |  |       | 8     | 
|                                     |                                                                                   |       |  |    |      |  |       |       | 
|                                     |                                                                                   |       |  |    |      |  | 4,297 |       |  |  | 6,162 |      
|                                     |                                                                                   |       |  |    |      |  |       |       | 

F-92



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |        
|-- | -------
|41 | GENERAL



| |     |                                                                                                                                                                                                                                                                                    
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Bank has given letters of comfort in respect of certain of
    its subsidiaries to the relevant regulatory authorities for the
    protection of the depositors of certain of its banking
    subsidiaries in the various jurisdictions in which such
    subsidiaries operate.



| |     |                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------
| | (b) | The Bank has provided a guarantee under Section 17 of the
    Companies (Amendment) Act, 1986 for the following companies:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Addano Limited, Bank of Ireland Asset Management (U.S)
    Limited, Bank of Ireland Asset Management Limited, Bank of
    Ireland Car Loans Limited, Bank of Ireland Commercial Finance
    Limited, Bank of Ireland Insurance Services Limited, Bank of
    Ireland International Finance Limited, Bank of Ireland
    Outsourcing Services Limited, Bank of Ireland Unit Trust
    Managers Limited, Bushfield Leasing Limited, Clonvern Limited,
    Davy Corporate Finance Limited, Davy Holdings (International)
    Limited, Davy International, Davy International Financial
    Services Limited, Davy Nominees Limited, Davy Pensioneer
    Trustees Limited, Davycrest Nominees Limited, Davy Property
    Holdings Limited, Davy Property Investments Limited, Davy
    Securities Limited, DKM Economic Consultants Limited,Edendork Leasing Limited, First Rate Enterprises Limited,
    Florenville Limited, Focus Investments Limited,
    Glenswilly Leasing Limited, IBI Corporate Finance Limited, J
    & E Davy, J & E Davy Holdings Limited,Nerling
    Limited, Nestland Limited, Premier  Direct Management
    Limited, Premier  Direct Insurance Services Limited,
    Tustin Limited.
|
| | Note: the guarantees provided under Section 17 of
    the Companies (Amendment) Act, 1986 in respect of the companies
    identified in bold print  all members of the J &
    E Davy group of companies  expired on March 31,
    2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       






|   |                           
|-- | --------------------------
|42 | RELATED PARTY TRANSACTIONS



(a)  Associated Undertakings and Joint Ventures




| |                                                                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Group provides and receives from its associated undertakings
    and joint ventures certain banking and financial services.                                                                                                                               
|
| | Mike Hodgkinson, a former Director of the Bank (retired
    July 21, 2006) continues as Chairman of Post Office
    Limited, with which the Group has an arrangement to distribute
    financial services products through Post Office branches in the
    UK.

(b)  Pension Funds




| |                                                                                                                                                                                                                                                                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Group provides a number of normal banking and financial
    services for various pension funds operated by the Group for the
    benefit of its employees (principally for the Bank Staff Pension
    Fund), which are conducted on similar terms to third party
    transactions and are not material to the Group. Further details
    on pensions are set out in Note 34.
|
| | During the year the Group received
    32 million
    arising from the sale of the Groups head office in Baggot
    Street. In addition the Group occupies a number of premises
    owned by the Groups various pension schemes, the total
    value of these properties is
    50 million.                                                                                 

F-93



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                        
|-- | ---------------------------------------
|42 | RELATED PARTY TRANSACTIONS  (continued)

(c)  Transactions with key management personnel




| |                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | For the purposes of IAS 24 Related Party Disclosures,  key
    management personnel comprises the Directors of the Court,
    the members of the Group Executive Committee (GEC), the Group
    Secretary and the Group Legal Advisor.
|
| | Directors emoluments are set out in the Remuneration
    Report on pages F-98 to F-107 and details of compensation paid
    to key management personnel are provided below.                                                            





|                                    |  |                              |        |  |                   |  |        |                |  |  |                |  |  |  |      | 
|----------------------------------- |  | ---------------------------- | ------ |  | ----------------- |  | ------ | -------------- |  |  | -------------- |  |  |  | ---- | 
|                                    |  | Aggregate Amount Outstanding |        |  | Number of Persons | 
|                                    |  |                              |        |  |                   | 
|Key Management Personnel            |  | March 31, 2007               |        |  | March 31, 2006    |  |        | March 31, 2007 |  |  | March 31, 2006 | 
|                                    |  |                              |        |  |                   |  |        |                |  |  |                | 
|                                    |  | 000                        |        |  | 000             |  |        |                |  | 
|Directors                           |  |                              |        |  |                   |  |        |                |  |  |                |  |  |  |      | 
|Loans                               |  |                              | 73,989 |  |                   |  | 39,796 |                |  |  | 13             |  |  |  | 12   | 
|Quasi-loans and credit transactions |  |                              |       |  |                   |  |       |                |  |  | None           |  |  |  | None | 
|Executive Officers                  |  |                              |        |  |                   |  |        |                |  |  |                |  |  |  |      | 
|Loans                               |  |                              | 4,368  |  |                   |  | 6,968  |                |  |  | 5              |  |  |  | 7    | 
|Quasi-loans and credit transactions |  |                              |       |  |                   |  |       |                |  |  | None           |  |  |  | None | 
|                                    |  |                              |        |  |                   |  |        |                |  |  |                | 
|Total                               |  |                              | 78,357 |  |                   |  | 46,764 |                |  |  | 18             |  |  |  | 19   | 
|                                    |  |                              |        |  |                   |  |        |                |  |  |                | 

 


 




|    |                                                          
|--- | ---------------------------------------------------------
|(d) | Compensation of key management personnel (2006: GEC only)

|                                                    |  |       |        |  |       |  |        | 
|--------------------------------------------------- |  | ----- | ------ |  | ----- |  | ------ | 
|                                                    |  | 2007  |        |  | 2006  | 
|                                                    |  | 000 |        |  | 000 | 
|                                                    |  |       |        |  |       | 
|Remuneration                                        |  |       |        |  |       |  |        | 
|Salaries and other short term employee benefits (1) |  |       | 22,179 |  |       |  | 12,551 | 
|Post employment benefits (2)                        |  |       | 690    |  |       |  | 2,433  | 
|Termination benefits                                |  |       | 750    |  |       |  | 1,465  | 
|Equity compensation benefits (3)                    |  |       | 3,761  |  |       |  | 2,370  | 
|                                                    |  |       |        |  |       | 
|Total remuneration                                  |  |       | 27,380 |  |       |  | 18,819 | 
|                                                    |  |       |        |  |       | 






|    |                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Comprises salary, bonus, car allowance, profit share schemes and
    other short-term benefits paid in the year.                                              
|(2) | Employer contributions to pension funds.                                                                                                                      
|(3) | Value of awards made under the Groups executive share
    option scheme, SAYE schemes, LTIP, SSI in Ireland and SIP in UK
    which are described in note 37.

F-94



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)





43  ACQUISITIONS


Paul Capital Investments:




Guggenheim Advisors:











|   |                        
|-- | -----------------------
|44 | LIFE ASSURANCE BUSINESS

Value of In-force Life Assurance Business


|                                              |  |                |     |  |                |  |     | 
|--------------------------------------------- |  | -------------- | --- |  | -------------- |  | --- | 
|                                              |  | March 31, 2007 |     |  | March 31, 2006 | 
|                                              |  |                |     |  |                | 
|                                              |  | m             |     |  | m             | 
|Opening                                       |  |                | 513 |  |                |  | 428 | 
|Profit and Loss movement in value of in-force |  |                | 67  |  |                |  | 73  | 
|Asset Reallocation                            |  |                |    |  |                |  | 12  | 
|                                              |  |                |     |  |                | 
|Closing (note 23)                             |  |                | 580 |  |                |  | 513 | 
|                                              |  |                |     |  |                | 





|                     |  |                |       |  |                |  |       | 
|-------------------- |  | -------------- | ----- |  | -------------- |  | ----- | 
|                     |  | March 31, 2007 |       |  | March 31, 2006 | 
|                     |  |                |       |  |                | 
|Risk Discount Rate   |  |                | 7.5%  |  |                |  | 7.5%  | 
|Unit Growth Rate     |  |                | 5.5%  |  |                |  | 5.5%  | 
|Shareholder Tax Rate |  |                | 12.5% |  |                |  | 12.5% | 

F-95



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|44 | LIFE ASSURANCE BUSINESS  (continued)





|                         |  |                                                                                                                                                                                                                                                 
|------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Risk Discount Rate:      |  | The risk discount rate is the rate used to discount the
    surpluses that will arise on insurance business in the long-term
    fund. The rate reflects the yield available on government bonds
    of appropriate duration plus a risk margin.
|                        
|Unit Growth Rate:        |  | The unit growth rate is the assumed rate of return on the
    Companys unit-linked assets before taxation and management
    fees in future years. The growth rate reflects the mix of assets
    held.                                        
|                        
|Shareholder Tax Rate:    |  | The current rate of corporation tax is assumed to be maintained
    over the term of the business. Deferred tax is allowed for on
    the release of retained surplus in the life business.                                                     
|                        
|Mortality and Morbidity: |  | Mortality and morbidity assumptions, which include allowances
    for improvements in longevity for annuitants, are set by
    reference to the Groups actual experience and/or relevant
    industry data.                                    
|                        
|Persistency:             |  | Persistency rates refer to the rate of policy termination for
    insurance policies. These rates are based on historical
    experience and managements views on future experience.                                                           
|                        
|Maintenance expenses:    |  | Allowance is made for future policy costs by reference to
    current and expected future costs. Explicit allowance is made
    for future expense inflation.                                                                                   

Sensitivities




|                                   |  |  |       |  
|---------------------------------- |  |  | ----- | -
|1% increase in Risk Discount Rate  |  |  | (28m | )
|1% decrease in Risk Discount Rate  |  |  | 30m  |  
|10% improvement in Mortality       |  |  | 11m  |  
|10% deterioration in Persistency   |  |  | (18m | )
|5% improvement in Renewal Expenses |  |  | 5m   |  
|1% increase in Equity Markets      |  |  | 2m   |  



Insurance Contract Liabilities




|                           |  |                |       |  |                |  |       | 
|-------------------------- |  | -------------- | ----- |  | -------------- |  | ----- | 
|                           |  | Year ended     |       |  | Year ended     | 
|                           |  | March 31, 2007 |       |  | March 31, 2006 | 
|                           |  |                |       |  |                | 
|                           |  | m             |       |  | m             | 
|Opening Balance            |  |                | 5,192 |  |                |  | 3,785 | 
|Movement during the period |  |                | 1,998 |  |                |  | 1,407 | 
|                           |  |                |       |  |                | 
|Closing Balance            |  |                | 7,190 |  |                |  | 5,192 | 
|                           |  |                |       |  |                | 



F-96



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|44 | LIFE ASSURANCE BUSINESS  (continued)

Non-Linked Life Assurance Contracts




Non-Linked Annuity Contracts




Linked Insurance Contracts








|                         |  |                                                                                                                                                                                                                  
|------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Interest Rate:           |  | The interest rates are derived in accordance with the guidelines
    in the Insurance Regulations. Margins for risk are allowed for
    in the derived interest rates.                                           
|                        
|Mortality and morbidity: |  | The mortality and morbidity assumptions, which include an
    allowance for improvements in longevity for annuitants, are set
    with regard to the Groups actual experience and/or
    relevant industry data.
|                        
|Maintenance expenses:    |  | Allowance is made for future policy costs and expense inflation
    explicitly.                                                                                                                                  

Options & Guarantees




Uncertainties associated with insurance contract cash flows
and risk management activities




Credit risk




Capital Management & Available Resources




F-97



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|44 | LIFE ASSURANCE BUSINESS  (continued)



|                                          |  |                   |  |                  
|----------------------------------------- |  | ----------------- |  | -----------------
|                                          |  | December 31, 2006 |  | December 31, 2005
|                                          |  |                   |  |                  
|                                          |  | m                |  | m               
|Minimum regulator solvency margin         |  | 161               |  | 145              
|Shareholder equity held for life business |  | 422               |  | 318              






|   |                                           
|-- | ------------------------------------------
|45 | LIFE ASSURANCE INVESTMENT INCOME AND GAINS

|                                                                                              |  |      |     |    |           |  |     |           |  |  |     |  
|--------------------------------------------------------------------------------------------- |  | ---- | --- | -- | --------- |  | --- | --------- |  |  | --- | -
|                                                                                              |  | 2007 |     |    | 2006      |  |     | 2005      | 
|                                                                                              |  |      |     |    |           |  |     |           | 
|                                                                                              |  |      |     | m |           |  | m  |          
|                                                                                              |  | m   |     |    | Restated* |  |     | Restated* | 
|Life assurance investment income and gains                                                    |  |      | 275 |    |           |  | 625 |           |  |  | 695 |  
|Elimination of investment return of treasury shares held for the
    benefit of policyholders |  |      | (28 | )  |           |  | (26 | )         |  |  | (23 | )
|                                                                                              |  |      |     |    |           |  |     |           | 
|                                                                                              |  |      | 247 |    |           |  | 599 |           |  |  | 672 |  
|                                                                                              |  |      |     |    |           |  |     |           | 






|  |                                                           
|- | ----------------------------------------------------------
|* | Restated due to change in accounting policy see page F-26.






|   |                       
|-- | ----------------------
|46 | DIRECTORS INFORMATION









Remuneration policy


F-98



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)

The Remuneration package for executive Directors






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Salary  Is payable monthly and is set at a
    level to recognise an individuals market worth. Salaries
    are reviewed annually by the Group Remuneration Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Performance-related bonus scheme  The level
    earned by each executive Director is based on the Remuneration
    Committees assessment of that Directors performance
    against pre-determined goals, required leadership behaviours,
    the Groups actual year-on-year Underlying Profit Before
    Tax growth and the achievement of cost savings under the
    Strategic Transformation Programme. Bonus potential of executive
    Directors is currently uncapped with 25% of the actual bonus
    awarded being deferred until the successful completion of the
    Strategic Transformation Programme in March 2009 or earlier.                                                                                                                                                                                                                                                                               
|
| |  | Long Term Incentive Plan  Since 2004 the Group
    has operated a Long Term Incentive Plan (LTIP), with
    stockholder approval, for key senior executives. Under the LTIP,
    which is described in more detail in Note 37 on page F-84,
    conditional awards have been made to the executive Directors as
    set out in the table on page F-104.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Stock Options  In 2004, the Group updated the
    Executive Stock Option Scheme, with stockholder approval. It is
    policy to grant stock options under the terms of the Stock
    Option Scheme to executive Directors and senior executives
    across the Group to align their interests with the interests of
    stockholders in general. The exercise of all options granted
    since 2004 is conditional upon underlying earnings per share
    achieving a cumulative growth of at least 5% per annum compound
    above the increase in the Consumer Price Index over the
    three-year performance period. If this performance condition is
    not achieved, the options lapse. (See also Note 37 on
    page F-84).                                                                                                                                                                                         
|
| |  | Employee Stock Issue Scheme  The Bank operates
    an Employee Stock Issue Scheme under which the Court of
    Directors may set aside an element of Group profit before
    taxation for allocation to the trustees of the scheme to enable
    them to acquire units of Ordinary Stock on behalf of the scheme
    participants. The amount set aside is related to overall Group
    performance (see also Note 37 on
    page F-84).
    Executive Directors participate on the same basis as staff
    generally.                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Sharesave Scheme  In 1999 the Group
    established a Sharesave Scheme (SAYE scheme) for all
    eligible employees. Under the SAYE scheme the executive
    Directors who participated were granted options over units of
    Ordinary Stock as set out in the table on pages F-103 and F-104.
    (see Note 37 on pages F-84).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Retirement Benefits  The executive Directors,
    with the exception of Denis Donovan, are members of the Bank
    Staff Pension Fund, which is a contributory scheme at the rate
    of 2.5% of salary. Denis Donovan is a member of the Bank of
    Ireland Asset Management Pension Scheme, which is a
    non-contributory scheme. Both the Bank Staff Pension Fund and
    the Bank of Ireland Asset Management Pension Scheme are defined
    benefit plans, based on an accrual rate of 1/60th of pensionable
    salary for each year of pensionable service with a maximum of
    40/60ths payable on normal retirement, at age 60. Brian
    Goggins contract provides for an option, exercisable by
    the Group or by him, allowing him to retire at age 58 on a
    pension without actuarial reduction. Of the executive
    Directors total remuneration package, only their salaries
    are pensionable.

F-99



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Finance Act 2006 effectively established a cap on pension
    provision by introducing a substantial tax charge on pension
    assets in excess of the higher of
    5 million
    or the value of individual prospective pension entitlements as
    at December 7, 2005 (each to be indexed annually). The
    Group Remuneration Committee assessed the approaches of other
    companies affected and took actuarial advice. As a consequence,
    the Committee agreed that executive Directors be offered an
    option (a) to continue with unchanged pension funding
    arrangements or (b) to elect for a revised arrangement
    whereby their prospective pension fund would be limited to the
    value of the pension cap, together with a taxable,
    non-pensionable, cash allowance in lieu of the pension benefit
    foregone. All the executive Directors have opted for the revised
    arrangement, the P&L impact of which is similar to that of
    continuing to fund their pensions under the earlier arrangement.



| |   |                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Service contracts  No service contract exists
    between the Group and any Director which provides for a notice
    period from the Group of greater than one year.

Directors remuneration 2006/2007 (all figures in
000s)


|                                                        |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  |       |        |  |  |       |       | 
|------------------------------------------------------- | ------ | ------ | ----- | ----- | ---- | ----- | --- | ----- |  |  | ------- | ----- |  | --------- | ----- | ----- | ------------ |  | ---- | ------------ | - |  | ----- | ------ |  |  | ----- | ----- | 
|                                                        |        |        |       |       |      | Perf. |     |       |  |  | Pension |       |  |           |       |      
|                                                        |        | Salary |       |       | Fees |       |     | bonus |  |  | Other   |       |  | contribs. |       |       | Total remun. |  |      | Total remun. |  
|                                                        |        | (1)    |       |       | (2)  |       |     | (3)   |  |  | (4)     |       |  | (5)       |       |       | 2006/2007    |  |      | 2005/2006    |  
|                                                        |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |  
|Governor                                                |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  |       |        |  |  |       |      
|R Burrows                                               |        |        | 483   |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 483   |        |  |  | 336   |      
|Deputy Governor                                         |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  |       |        |  |  |       |      
|D OBrien (resigned September 12, 2006)                 |        |        | 72    |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 72    |        |  |  | 124   |      
|G M Magan (apt. on October 10, .2006)                   |        |        | 76    |       |      |       | 52  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 128   |        |  |  | 80    |      
|Executive Directors                                     |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  |       |        |  |  |       |      
|R Boucher*                                              |        |        | 242   |       |      |       |     |       |  |  | 615     |       |  |           | 109   |       |              |  | 49   |              |   |  | 1,015 |        |  |  |       |      
|D Crowley*                                              |        |        | 286   |       |      |       |     |       |  |  | 696     |       |  |           | 200   |       |              |  | (49  | )            |   |  | 1,133 |        |  |  |       |      
|D Donovan*                                              |        |        | 279   |       |      |       |     |       |  |  | 810     |       |  |           | 210   |       |              |  | (53  | )            |   |  | 1,246 |        |  |  |       |      
|B J Goggin                                              |        |        | 1,100 |       |      |       |     |       |  |  | 2,025   |       |  |           | 1,227 |       |              |  | (354 | )            |   |  | 3,998 |        |  |  | 2,525 |      
|J ODonovan                                             |        |        | 500   |       |      |       |     |       |  |  | 593     |       |  |           | 471   |       |              |  | 17   |              |   |  | 1,581 |        |  |  | 1,115 |      
|Non  Executive Directors                               |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  |       |        |  |  |       |      
|R E Bailie (retired July 21, 2006)                      |        |        |       |       |      |       | 37  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 37    |        |  |  | 112   |      
|D J Dilger                                              |        |        |       |       |      |       | 94  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 94    |        |  |  | 80    |      
|P Haran                                                 |        |        |       |       |      |       | 104 |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 104   |        |  |  | 80    |      
|D Holt (apt. October 6, 2006)                           |        |        |       |       |      |       | 48  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 48    |        |  |  |       |      
|M Hodgkinson (retired July 21, 2006) (6)                |        |        |       |       |      |       |    |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  |      |        |  |  |      |      
|D McCourt                                               |        |        |       |       |      |       | 115 |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 115   |        |  |  | 80    |      
|C A Marland                                             |        |        |       |       |      |       | 98  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 98    |        |  |  | 80    |      
|T Moran                                                 |        |        |       |       |      |       | 94  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 94    |        |  |  | 80    |      
|T V Neill                                               |        |        |       |       |      |       | 100 |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 100   |        |  |  | 80    |      
|M Redmond (retired July 21, 2006)                       |        |        |       |       |      |       | 27  |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 27    |        |  |  | 80    |      
|                                                        |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |  
|                                                        | Totals |        |       | 3,038 |      |       |     | 769   |  |  |         | 4,739 |  |           |       | 2,217 |              |  |      | (390         | ) |  |       | 10,373 |  |  |       | 4,852 | 
|                                                        |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |  
|Ex-gratia payments paid to former Directors/ Dependants |        |        |       |       |      |       |     |       |  |  |         |       |  |           |       |       |              |  |      |              |   |  | 424   |        |  |  | 474   |      








|    |                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Governor and Deputy Governor, as non-executive Officers of
    the Bank, are not paid Court fees but are remunerated by way of
    non-pensionable salary.

F-100



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Fees are paid only to non-executive Directors; a basic fee of
    80,000 p.a.
    applies, subject to review annually. Additional fees are paid to
    Committee chairmen, the Senior Independent Director and for
    Committee membership.                                                                                                                                                                                                                 
|   
|(3) | Payments under the performance bonus scheme, are linked to
    individual performance and overall Group performance versus
    pre-determined targets over the financial year. Under the rules
    of the performance bonus scheme, 25% of any bonus awarded is
    deferred until successful completion of the Strategic
    Transformation Programme in March 2009 or earlier. For the year
    2006/2007, the deferred elements of bonuses are as follows:-



| |                                                                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | R Boucher
    205,000; D
    Crowley 232,027;
    D Donovan
    270,000; BJ
    Goggin 500,000;
    J ODonovan
    197,500.                                                                                                         
|
| | In the case of B J Goggin, the bonus figure includes the
    maturity value of Bank of Ireland Asset Management Deferred Cash
    Incentive Scheme
    (175,366) and
    Long Term Incentive Plan
    (350,000) awards
    made in 2004.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Executives whose contractual pension promise would exceed the
    pensions cap introduced in Finance Act 2006 have the
    option of electing for a taxable cash allowance in lieu of
    pension foregone (see page F-94). The figures for BJ Goggin and
    J ODonovan include amounts of
    250k and
    90k respectively
    in cash allowances in respect of the period from
    December 7, 2005 (the effective date of pensions
    cap) to March 31, 2006. The figures shown also
    include car allowance, the benefit on any loans at staff rates
    and the value of awards under the Employee Stock Issue Scheme.
|   
|(5) | Contributions to defined benefit pension schemes: In the case of
    D Crowley, D Donovan and B J Goggin their pension accrual is now
    capped at the increase in thresholds set out in the
    Finance Act each year and as a result, a claw back of previously
    funded benefits arises.                                                                                                                                                                                                                                                                                                                                       



| |                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | All pension amounts at (4) and (5) have been
    determined by Watson Wyatt, the Groups actuary, and
    approved by the Group Remuneration Committee.



|    |                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | Mike Hodgkinson did not receive any emoluments from the Bank of
    Ireland Group in line with the agreement with Post Office
    Limited.          
|   
|*   | From date of appointment as a Director (October 6, 2006),
    except in the case of the performance bonus, the full amount of
    which is included.

F-101



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)

Stock options held by Directors and Secretary




|    |                        
|--- | -----------------------
|(a) | Executive stock options



|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  |         | 
|------------ |  | ------------ |  | ------------- |  | ------------ |  | -------- | ----- | ------------- | ----------- |  | ------- | ---------- |  |  | --------- |  |  | ---------- |  |  | --------- |  |  |  |  |  | ------- | 
|             |  |              |  |               |  |              |  |          |       | Options at    |             |  |         |            |  |  |           |  | 
|             |  |              |  |               |  |              |  |          |       | April 1, 2006 |             |  |         |            |  |  | Market    |  |  |           
|             |  |              |  |               |  |              |  |          |       | or date of    |             |  |         |            |  |  | price at  |  |  | Options at | 
|             |  | Date of      |  | Earliest      |  |              |  | Exercise |       |               | appointment |  |         | Granted in |  |  | Exercised |  |  | exercise   |  |  | March 31, | 
|             |  | grant        |  | exercise date |  | Expiry date  |  | price    |       |               | if later    |  |         | year       |  |  | in year   |  |  | date       |  |  | 2007      | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |         |       |               |             |  |         |            |  |  |          |  |  |           
|R Boucher    |  | Dec 8, 2003  |  | Dec 8, 2006   |  | Dec 8, 2013  |  |          | 10.54 |               |             |  | 20,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 20,000  | 
|             |  | Jul 26, 2004 |  | Jul 26, 2007  |  | Jul 26, 2014 |  |          | 10.76 |               |             |  | 26,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 26,000  | 
|             |  | Jun 21, 2005 |  | Jun 21, 2008  |  | Jun 21, 2015 |  |          | 12.85 |               |             |  | 23,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 23,000  | 
|             |  | Jul 4, 2006  |  | Jul 4, 2009   |  | Jul 4, 2016  |  |          | 14.00 |               |             |  |         |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 30,500  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |          |       |               |             |  | 69,000  |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 99,500  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|D Crowley    |  | Jul 13, 1999 |  | Jul 13, 2002  |  | Jul 13, 2009 |  |          | 8.93  |               |             |  | 20,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 20,000  | 
|             |  | May 21, 2001 |  | May 21, 2004  |  | May 21, 2011 |  |          | 11.05 |               |             |  | 25,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 25,000  | 
|             |  | Jun 24, 2002 |  | Jun 24, 2005  |  | Jun 24, 2012 |  |          | 12.50 |               |             |  | 25,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 25,000  | 
|             |  | Jun 18, 2003 |  | Jun 18, 2006  |  | Jun 18, 2013 |  |          | 10.77 |               |             |  | 50,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 50,000  | 
|             |  | Jul 26, 2004 |  | Jul 26, 2007  |  | Jul 26, 2014 |  |          | 10.76 |               |             |  | 35,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 35,000  | 
|             |  | Jun 21, 2005 |  | Jun 21, 2008  |  | Jun 21, 2015 |  |          | 12.85 |               |             |  | 32,500  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 32,500  | 
|             |  | Jul 4, 2006  |  | Jul 4, 2009   |  | Jul 4, 2016  |  |          | 14.00 |               |             |  |         |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 30,500  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |          |       |               |             |  | 187,500 |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 218,000 | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|D Donovan    |  | Jun 24, 2002 |  | Jun 24, 2005  |  | Jun 24, 2012 |  |          | 12.50 |               |             |  | 30,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 30,000  | 
|             |  | Jun 18, 2003 |  | Jun 18, 2006  |  | Jun 18, 2013 |  |          | 10.77 |               |             |  | 50,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 50,000  | 
|             |  | Jul 26, 2004 |  | Jul 26, 2007  |  | Jul 26, 2014 |  |          | 10.76 |               |             |  | 35,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 35,000  | 
|             |  | Jun 21, 2005 |  | Jun 21, 2008  |  | Jun 21, 2015 |  |          | 12.85 |               |             |  | 32,500  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 32,500  | 
|             |  | Jul 4, 2006  |  | Jul 4, 2009   |  | Jul 4, 2016  |  |          | 14.00 |               |             |  |         |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 30,500  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |          |       |               |             |  | 147,500 |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 178,000 | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|B J Goggin   |  | Jul 13, 1999 |  | Jul 13, 2002  |  | Jul 13, 2009 |  |          | 8.93  |               |             |  | 20,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 20,000  | 
|             |  | May 21, 2001 |  | May 21, 2004  |  | May 21, 2011 |  |          | 11.05 |               |             |  | 25,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 25,000  | 
|             |  | Jun 24, 2002 |  | Jun 24, 2005  |  | Jun 24, 2012 |  |          | 12.50 |               |             |  | 25,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 25,000  | 
|             |  | Jun 18, 2003 |  | Jun 18, 2006  |  | Jun 18, 2013 |  |          | 10.77 |               |             |  | 50,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 50,000  | 
|             |  | Jul 26, 2004 |  | Jul 26, 2007  |  | Jul 26, 2014 |  |          | 10.76 |               |             |  | 92,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 92,000  | 
|             |  | Jun 21, 2005 |  | Jun 21, 2008  |  | Jun 21, 2015 |  |          | 12.85 |               |             |  | 77,500  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 77,500  | 
|             |  | Jul 4, 2006  |  | Jul 4, 2009   |  | Jul 4, 2016  |  |          | 14.00 |               |             |  |         |            |  |  | 78,500    |  |  |            |  |  |           |  |  |  |  |  | 78,500  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |          |       |               |             |  | 289,500 |            |  |  | 78,500    |  |  |            |  |  |           |  |  |  |  |  | 368,000 | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|J ODonovan  |  | Jun 24, 2002 |  | Jun 24, 2005  |  | Jun 24, 2012 |  |          | 12.50 |               |             |  | 25,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 25,000  | 
|             |  | Jun 18, 2003 |  | Jun 18, 2006  |  | Jun 18, 2013 |  |          | 10.77 |               |             |  | 50,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 50,000  | 
|             |  | Jul 26, 2004 |  | Jul 26, 2007  |  | Jul 26, 2014 |  |          | 10.76 |               |             |  | 35,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 35,000  | 
|             |  | Jun 21, 2005 |  | Jun 21, 2008  |  | Jun 21, 2015 |  |          | 12.85 |               |             |  | 32,500  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 32,500  | 
|             |  | Jul 4, 2006  |  | Jul 4, 2009   |  | Jul 4, 2016  |  |          | 14.00 |               |             |  |         |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 30,500  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |          |       |               |             |  | 142,500 |            |  |  | 30,500    |  |  |            |  |  |           |  |  |  |  |  | 173,000 | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|Secretary    |  | Jun 24, 2002 |  | Jun 24, 2005  |  | Jun 24, 2012 |  |          | 12.50 |               |             |  | 10,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 10,000  | 
|J B Clifford |  | Jun 18, 2003 |  | Jun 18, 2006  |  | Jun 18, 2013 |  |          | 10.77 |               |             |  | 20,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 20,000  | 
|             |  | Jul 26, 2004 |  | Jul 26, 2007  |  | Jul 26, 2014 |  |          | 10.76 |               |             |  | 21,500  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 21,500  | 
|             |  | Jun 21, 2005 |  | Jun 21, 2008  |  | Jun 21, 2015 |  |          | 12.85 |               |             |  | 13,000  |            |  |  |           |  |  |            |  |  |           |  |  |  |  |  | 13,000  | 
|             |  | Jul 4, 2006  |  | Jul 4, 2009   |  | Jul 4, 2016  |  |          | 14.00 |               |             |  |         |            |  |  | 18,700    |  |  |            |  |  |           |  |  |  |  |  | 18,700  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 
|             |  |              |  |               |  |              |  |          |       |               |             |  | 64,500  |            |  |  | 18,700    |  |  |            |  |  |           |  |  |  |  |  | 83,200  | 
|             |  |              |  |               |  |              |  |          |       |               |             |  |         |            |  |  |           |  |  |            |  |  |           | 

F-102



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)



 




|    |                              
|--- | -----------------------------
|(b) | Sharesave Scheme options 2000




|           |  |                    |       |  |                  |  |       |           |  |  |              |  |  |            |  |  |                 |  |  |  |  |  |       | 
|---------- |  | ------------------ | ----- |  | ---------------- |  | ----- | --------- |  |  | ------------ |  |  | ---------- |  |  | --------------- |  |  |  |  |  | ----- | 
|           |  | Sharesave          |       |  |                  |  |       |           |  |  | Market value |  |  | Sharesave  | 
|           |  | options granted at |       |  | Market value     |  |       | Options   |  |  | Date of      |  |  | at date of |  |  | options held at | 
|Name       |  | February 28, 2000  |       |  | at date of Grant |  |       | Exercised |  |  | Exercise     |  |  | exercise   |  |  | March 31, 2007  | 
|           |  |                    |       |  |                  |  |       |           |  |  |              |  |  |            |  |  |                 | 
|Directors: |  |                    |       |  |                  |  |       |           |  |  |              |  |  |            |  |  |                 |  |  |  |  |  |       | 
|B J Goggin |  |                    | 4,261 |  |                  |  | 6.07 |           |  |  |              |  |  |            |  |  |                 |  |  |  |  |  | 4,261 | 



|    |                              
|--- | -----------------------------
|(c) | Sharesave Scheme options 2003

 


|             |  |                    |       |  |                  |  |        |           |  |  |              |  |  |             |                |  |                 |  |        |  |  |  |       | 
|------------ |  | ------------------ | ----- |  | ---------------- |  | ------ | --------- |  |  | ------------ |  |  | ----------- | -------------- |  | --------------- |  | ------ |  |  |  | ----- | 
|             |  | Sharesave          |       |  |                  |  |        |           |  |  |              |  | 
|             |  | options granted at |       |  |                  |  |        |           |  |  | Market value |  |  | Sharesave   |               
|             |  | December 15,       |       |  | Market value     |  |        | Options   |  |  | Date of      |  |  | at date     |                |  | options held at | 
|Name         |  | 2003               |       |  | at date of Grant |  |        | Exercised |  |  | Exercise     |  |  | of exercise |                |  | March 31, 2007  | 
|             |  |                    |       |  |                  |  |        |           |  |  |              |  |  |             |                |  |                 | 
|Directors:   |  |                    |       |  |                  |  |        |           |  |  |              |  |  |             |                |  |                 |  |        |  |  |  |       | 
|J ODonovan  |  |                    | 2,653 |  |                  |  | 10.60 |           |  |  |              |  |  |             |                |  |                 |  |        |  |  |  | 2,653 | 
|Secretary:   |  |                    |       |  |                  |  |        |           |  |  |              |  |  |             |                |  |                 |  |        |  |  |  |       | 
|J B Clifford |  |                    | 1,522 |  |                  |  | 10.60 |           |  |  | 1,522        |  |  |             | March 16, 2007 |  |                 |  | 17.25 |  |  |  |      | 

F-103



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)



|    |                              
|--- | -----------------------------
|(d) | Sharesave Scheme options 2006

 


|             |  |                    |     |  |                  |  |           |                 |  |  |     | 
|------------ |  | ------------------ | --- |  | ---------------- |  | --------- | --------------- |  |  | --- | 
|             |  | Sharesave          |     |  |                  |  | Sharesave |                
|             |  | options granted at |     |  | Market value     |  |           | options held at | 
|Name         |  | December 22, 2006  |     |  | at date of Grant |  |           | March 31, 2007  | 
|             |  |                    |     |  |                  |  |           |                 | 
|Directors:   |  |                    |     |  |                  |  |           |                 |  |  |     | 
|B J Goggin   |  |                    | 301 |  |                  |  | 17.33    |                 |  |  | 301 | 
|R Boucher    |  |                    | 301 |  |                  |  | 17.33    |                 |  |  | 301 | 
|Secretary:   |  |                    |     |  |                  |  |           |                 |  |  |     | 
|J B Clifford |  |                    | 301 |  |                  |  | 17.33    |                 |  |  | 301 | 



|    |                                  
|--- | ---------------------------------
|(e) | Long Term Incentive Plan (LTIP)

F-84).


|          |  |         |              |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |         |  |  |  |              |  |  |  |              | 
|--------- |  | ------- | ------------ | ------------- | ------------- |  | ------------- | ---------- |  | ------ | ------ |  |  | ----------- | --------- |  | ----------- |  | ------ | -------------- |  |  | ------------- |  |  | -------- | ------- |  |  |  | ------------ |  |  |  | ------------ | 
|          |  |         |              | No. of shares |               |  |               |            |  |        |        |  |  |             | Potential |  |             |  |        |               
|          |  |         |              | conditionally |               |  | Conditionally |            |  | Vested |        |  |  |             |           |  | interest in |  |        |                |  | 
|          |  | Date of |              |               | held at       |  |               | awarded in |  |        | in the |  |  | Retained in |           |  | Lapsed in   |  |        | shares at      |  |  | Original      |  |  | Maturity |        
|          |  | Award   |              |               | April 1, 2006 |  |               | the year*  |  |        | year   |  |  | Scheme**    |           |  | the year    |  |        | March 31, 2007 |  |  | Maturity Date |  |  | Date**   |        
|          |  |         |              |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|R Boucher |  |         | Dec 18, 2003 |               |               |  | 10,368        |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  | 10,368        |  |  |          |        |  |  |  | Dec 18, 2006 |  |  |  |              | 
|          |  |         | Jul 26, 2004 |               |               |  | 18,500        |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 18,500  |  |  |  | Jul 26, 2007 |  |  |  |              | 
|          |  |         | Jun 21, 2005 |               |               |  | 16,000        |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 16,000  |  |  |  | Jun 21, 2008 |  |  |  |              | 
|          |  |         | Jul 4, 2006  |               |               |  |               |            |  |        | 30,500 |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 30,500  |  |  |  | Jul 4, 2009  |  |  |  |              | 
|          |  |         |              |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|          |  |         |              |               |               |  | 44,868        |            |  |        | 30,500 |  |  |             |           |  |             |  |        |                |  |  | 10,368        |  |  |          | 65,000  |  |  |  |              |  |  |  |              | 
|          |  |         |              |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|D Crowley |  |         | Jul 13, 1999 |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  | 6,158  |                |  |  |               |  |  |          | 7,697   |  |  |  | Jul 13, 2002 |  |  |  | Jul 13, 2009 | 
|          |  |         | May 25, 2000 |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  | 13,079 |                |  |  |               |  |  |          | 16,348  |  |  |  | May 25, 2003 |  |  |  | May 25, 2010 | 
|          |  |         | May 21, 2001 |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  | 9,496  |                |  |  |               |  |  |          | 11,869  |  |  |  | May 21, 2004 |  |  |  | May 21, 2011 | 
|          |  |         | Jun 24, 2002 |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  | 5,892  |                |  |  |               |  |  |          | 7,070   |  |  |  | Jun 24, 2005 |  |  |  | Jun 24, 2007 | 
|          |  |         | Jun 18, 2003 |               |               |  | 17,245        |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  | 17,245        |  |  |          |        |  |  |  | Jun 18, 2006 |  |  |  |              | 
|          |  |         | Jul 26, 2004 |               |               |  | 35,000        |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 35,000  |  |  |  | Jul 26, 2007 |  |  |  |              | 
|          |  |         | Jun 21, 2005 |               |               |  | 32,500        |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 32,500  |  |  |  | Jun 21, 2008 |  |  |  |              | 
|          |  |         | Jul 4, 2006  |               |               |  |               |            |  |        | 30,500 |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 30,500  |  |  |  | Jul 4, 2009  |  |  |  |              | 
|          |  |         |              |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|          |  |         |              |               |               |  | 84,745        |            |  |        | 30,500 |  |  |             |           |  |             |  | 34,625 |                |  |  | 17,245        |  |  |          | 140,984 |  |  |  |              |  |  |  |              | 
|          |  |         |              |               |               |  |               |            |  |        |        |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        

F-104



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)

|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |         |  |  |  |              |  |  |  |              | 
|------------ |  | ------- | ------------ | ------------- | ------------- |  | ------------- | ---------- |  | ------ | ------- |  |  | ----------- | --------- |  | ----------- |  | ------ | -------------- |  |  | ------------- |  |  | -------- | ------- |  |  |  | ------------ |  |  |  | ------------ | 
|             |  |         |              | No. of shares |               |  |               |            |  |        |         |  |  |             | Potential |  |             |  |        |               
|             |  |         |              | conditionally |               |  | Conditionally |            |  | Vested |         |  |  |             |           |  | interest in |  |        |                |  | 
|             |  | Date of |              |               | held at       |  |               | awarded in |  |        | in the  |  |  | Retained in |           |  | Lapsed in   |  |        | shares at      |  |  | Original      |  |  | Maturity |        
|             |  | Award   |              |               | April 1, 2006 |  |               | the year*  |  |        | year    |  |  | Scheme**    |           |  | the year    |  |        | March 31, 2007 |  |  | Maturity Date |  |  | Date**   |        
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|D Donovan    |  |         | Jul 13, 1999 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 7,544  |                |  |  |               |  |  |          | 9,430   |  |  |  | Jul 13, 2002 |  |  |  | Jul 13, 2009 | 
|             |  |         | May 25, 2000 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 11,494 |                |  |  |               |  |  |          | 14,367  |  |  |  | May 25, 2003 |  |  |  | May 25, 2010 | 
|             |  |         | May 21, 2001 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 7,067  |                |  |  |               |  |  |          | 8,833   |  |  |  | May 21, 2004 |  |  |  | May 21, 2011 | 
|             |  |         | Jun 24, 2002 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 3,928  |                |  |  |               |  |  |          | 4,713   |  |  |  | Jun 24, 2005 |  |  |  | Jun 24, 2007 | 
|             |  |         | Jun 18, 2003 |               |               |  | 14,995        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  | 14,995        |  |  |          |        |  |  |  | Jun 18, 2006 |  |  |  |              | 
|             |  |         | Jul 26, 2004 |               |               |  | 35,000        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 35,000  |  |  |  | Jul 26, 2007 |  |  |  |              | 
|             |  |         | Jun 21, 2005 |               |               |  | 32,500        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 32,500  |  |  |  | Jun 21, 2008 |  |  |  |              | 
|             |  |         | Jul 4, 2006  |               |               |  |               |            |  |        | 30,500  |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 30,500  |  |  |  | Jul 4, 2009  |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|             |  |         |              |               |               |  | 82,495        |            |  |        | 30,500  |  |  |             |           |  |             |  | 30,033 |                |  |  | 14,995        |  |  |          | 135,343 |  |  |  |              |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|B J Goggin   |  |         | Jul 13, 1999 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 9,221  |                |  |  |               |  |  |          | 11,526  |  |  |  | Jul 13, 2002 |  |  |  | Jul 13, 2009 | 
|             |  |         | May 25, 2000 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 16,249 |                |  |  |               |  |  |          | 20,311  |  |  |  | May 25, 2003 |  |  |  | May 25, 2010 | 
|             |  |         | May 21, 2001 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 10,379 |                |  |  |               |  |  |          | 12,973  |  |  |  | May 21, 2004 |  |  |  | May 21, 2011 | 
|             |  |         | Jun 24, 2002 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 6,882  |                |  |  |               |  |  |          | 8,258   |  |  |  | Jun 24, 2005 |  |  |  | Jun 24, 2007 | 
|             |  |         | Jul 26, 2004 |               |               |  | 139,000       |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 139,000 |  |  |  | Jul 26, 2007 |  |  |  |              | 
|             |  |         | Jun 21, 2005 |               |               |  | 116,500       |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 116,500 |  |  |  | Jun 21, 2008 |  |  |  |              | 
|             |  |         | Jul 4, 2006  |               |               |  |               |            |  |        | 117,850 |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 117,850 |  |  |  | Jul 4, 2009  |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|             |  |         |              |               |               |  | 255,500       |            |  |        | 117,850 |  |  |             |           |  |             |  | 42,731 |                |  |  |               |  |  |          | 426,418 |  |  |  |              |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|J ODonovan  |  |         | Jun 24, 2002 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 5,028  |                |  |  |               |  |  |          | 6,034   |  |  |  | Jun 24, 2005 |  |  |  | Jun 24, 2007 | 
|             |  |         | Jun 18, 2003 |               |               |  | 14,058        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  | 14,058        |  |  |          |        |  |  |  | Jun 18, 2006 |  |  |  |              | 
|             |  |         | Jul 26, 2004 |               |               |  | 35,000        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 35,000  |  |  |  | Jul 26, 2007 |  |  |  |              | 
|             |  |         | Jun 21, 2005 |               |               |  | 32,500        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 32,500  |  |  |  | Jun 21, 2008 |  |  |  |              | 
|             |  |         | Jul 4, 2006  |               |               |  |               |            |  |        | 30,500  |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 30,500  |  |  |  | Jul 4, 2009  |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|             |  |         |              |               |               |  | 81,558        |            |  |        | 30,500  |  |  |             |           |  |             |  | 5,028  |                |  |  | 14,058        |  |  |          | 104,034 |  |  |  |              |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|Secretary    |  |         | Jul 13, 1999 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 7,648  |                |  |  |               |  |  |          | 9,559   |  |  |  | Jul 13, 2002 |  |  |  | Jul 13, 2009 | 
|J B Clifford |  |         | May 25, 2000 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 12,271 |                |  |  |               |  |  |          | 15,339  |  |  |  | May 25, 2003 |  |  |  | May 25, 2010 | 
|             |  |         | May 21, 2001 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 5,764  |                |  |  |               |  |  |          | 7,204   |  |  |  | May 21, 2004 |  |  |  | May 21, 2011 | 
|             |  |         | Jun 24, 2002 |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  | 2,852  |                |  |  |               |  |  |          | 3,422   |  |  |  | Jun 24, 2005 |  |  |  | Jun 24, 2007 | 
|             |  |         | Jun 18, 2003 |               |               |  | 8,330         |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  | 8,330         |  |  |          |        |  |  |  | Jun 18, 2006 |  |  |  |              | 
|             |  |         | Jul 26, 2004 |               |               |  | 15,000        |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 15,000  |  |  |  | Jul 26, 2007 |  |  |  |              | 
|             |  |         | Jun 21, 2005 |               |               |  | 9,500         |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 9,500   |  |  |  | Jun 21, 2008 |  |  |  |              | 
|             |  |         | Jul 4, 2006  |               |               |  |               |            |  |        | 18,700  |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          | 18,700  |  |  |  | Jul 4, 2009  |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        
|             |  |         |              |               |               |  | 32,830        |            |  |        | 18,700  |  |  |             |           |  |             |  | 28,535 |                |  |  | 8,330         |  |  |          | 78,724  |  |  |  |              |  |  |  |              | 
|             |  |         |              |               |               |  |               |            |  |        |         |  |  |             |           |  |             |  |        |                |  |  |               |  |  |          |        






|   |                                                                                                                                                                                                                                                                                                                    
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*  | Market price at date of award
    14.00                                                                                                                                                                                                                                                                           
|  
|** | Only applies to awards made under the LTPSP. Minimum of 80% of
    the vested stock must be retained for two years from maturity of
    award. After the two year retention period, an additional award
    of 20% is made. If the award is retained for an additional
    5 years, a further award of 30% is made.

F-105



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)

Changes in the directorate during the period


|                                           |  |                     |             |          |                                      |  |             |  |  |  |                |  |  |  |                       | 
|------------------------------------------ |  | ------------------- | ----------- | -------- | ------------------------------------ |  | ----------- |  |  |  | -------------- |  |  |  | --------------------- | 
|                                           |  | Executive Directors |             |          | Non-executive Directors and Officers | 
|                                           |  |                     |             |          |                                      | 
|Number at March 31, 2006                   |  | 2                   |             | 12      
|                                           |  |                     |             |          |                                      |  |             |  |  |  | - RE Bailie    |  |  |  | (21.07. 2006) Retired | 
|Changes during year                        |  |                     | + R Boucher |          |                                      |  | (6.10.2006) |  |  |  | - M Hodgkinson |  |  |  | (21.07.2006) Retired  | 
|                                           |  |                     | + D Crowley |          |                                      |  | (6.10.2006) |  |  |  | - M Redmond    |  |  |  | (21.07.2006) Retired  | 
|                                           |  |                     | + D Donovan |          |                                      |  | (6.10.2006) |  |  |  | - D OBrien    |  |  |  | (12.09.2006) Resigned | 
|                                           |  |                     |             |          |                                      |  |             |  |  |  | + D Holt       |  |  |  | (6.10.2006) Appointed | 
|Number at March 31, 2007                   |  | 5                   |             | 9       
|Average number during 2006/2007(2005/2006) |  | 3.5 (2)             |             | 9.9 (13)

Directors pension entitlements




|                    |  |                    |      |   |                      |     |        |                 |  |  |       | 
|------------------- |  | ------------------ | ---- | - | -------------------- | --- | ------ | --------------- |  |  | ----- | 
|                    |  |                    |      |   |                      | (c) |       
|                    |  | (a)                |      |   | (b)                  |     |        | Accrued pension | 
|                    |  | Additional pension |      |   | Increase/decrease in |     |        | entitlement at  | 
|                    |  | earned in the year |      |   | transfer value       |     |        | March 31, 2007  | 
|                    |  |                    |      |   |                      |     |        |                 | 
|                    |  | 000               |      |   | 000                 |     |        | 000            | 
|Executive Directors |  |                    |      |   |                      |     |        |                 |  |  |       | 
|R Boucher*          |  |                    | 2.9  |   |                      |     | 23.3   |                 |  |  | 131.7 | 
|D Crowley*~         |  |                    | (0.5 | ) |                      |     | (14.2  | )               |  |  | 260.8 | 
|D Donovan*~         |  |                    | (0.4 | ) |                      |     | (8.2   | )               |  |  | 258.5 | 
|B J Goggin~         |  |                    | (5.2 | ) |                      |     | (125.7 | )               |  |  | 626.0 | 
|J ODonovan         |  |                    | 12.1 |   |                      |     | 182.2  |                 |  |  | 202.5 | 






|  |                                                                                                   
|- | --------------------------------------------------------------------------------------------------
|* | Calculations are in respect of the period from appointment
    (October 6, 2006) to March 31, 2007









|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|~ | Pension entitlements increase annually in line with the increase
    in fund thresholds announced in the Finance Act each year. In
    the case of these individuals, pensions earned in 2006/2007 are
    negative as their pension entitlements at March 31, 2006,
    adjusted for CPI, are greater than the increase in their pension
    cap and therefore, these reductions in accrued pensions, in real
    terms, are also reflected in a reduction in the transfer value
    of pension entitlements at March 31, 2007.

F-106



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|46 | DIRECTORS INFORMATION  (continued)

Directors interests in stock




|             |  |                                  |         |  |                     |  |         |  
|------------ |  | -------------------------------- | ------- |  | ------------------- |  | ------- | -
|             |  | UNITS OF 0.64 OF ORDINARY STOCK |        
|             |  |                                  |        
|             |  | As at March 31, 2007             |         |  | As at April 1, 2006 | 
|             |  | Beneficial                       |         |  | Beneficial          | 
|             |  |                                  |         |  |                     | 
|DIRECTORS    |  |                                  |         |  |                     |  |         |  
|R Boucher    |  |                                  | 1,923   |  |                     |  | 1,904   | *
|R Burrows    |  |                                  | 100,443 |  |                     |  | 99,598  |  
|D Crowley    |  |                                  | 93,187  |  |                     |  | 93,187  | *
|D J Dilger   |  |                                  | 2,998   |  |                     |  | 2,850   |  
|D Donovan    |  |                                  | 99,721  |  |                     |  | 98,711  | *
|B J Goggin   |  |                                  | 427,327 |  |                     |  | 424,676 |  
|P M Haran    |  |                                  | 2,407   |  |                     |  | 2,259   |  
|D Holt       |  |                                  | 3,031   |  |                     |  |        | *
|J D McCourt  |  |                                  | 25,674  |  |                     |  | 25,527  |  
|G M Magan    |  |                                  | 1,898   |  |                     |  | 1,750   |  
|C A Marland  |  |                                  | 2,201   |  |                     |  | 2,031   |  
|T J Moran    |  |                                  | 2,194   |  |                     |  | 2,046   |  
|T V Neill    |  |                                  | 94,300  |  |                     |  | 94,153  |  
|J ODonovan  |  |                                  | 76,044  |  |                     |  | 74,351  |  
|SECRETARY    |  |                                  |         |  |                     |  |         |  
|J B Clifford |  |                                  | 127,945 |  |                     |  | 124,541 |  






|  |                          
|- | -------------------------
|* | as at date of appointment





F-107



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                                               
|-- | ----------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S. INVESTORS

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles




|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(a)  Revaluation of property                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Tangible fixed assets may be held at depreciated historical cost
    or fair value. However, these revaluations must be on the basis
    of open market value.                                                                                                                                                                                                                                                                                                                       |  | Revaluation of property is not permitted in the financial
    statements. Assets that have been revalued under IFRS are
    restated to cost and depreciated over 50 years.                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(b) Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|Goodwill is no longer amortised. It is tested annually for
    impairment and carried at cost less accumulated impairment
    losses.
    The Group elected not to revisit goodwill on acquisitions prior
    to transition to IFRS and as a result, the goodwill recognised
    in the Irish GAAP balance sheet at April 1, 2004 has been
    carried forward without adjustment as its deemed cost. Goodwill
    previously written off against reserves has not been re-instated. |  | Prior to March 31, 2002 goodwill arising on acquisitions of
    subsidiary undertakings was capitalised and amortised to income
    over the period estimated to benefit. In the Groups case a
    period of 20 years was used. Goodwill is written off when judged
    to be irrecoverable.
    Post April 1, 2002 goodwill is capitalised on the balance sheet
    and is subject to an annual review for impairment. It is not
    subject to annual amortisation.
    Goodwill previously written off to reserves pre transition to
    IFRS is recognised on the balance sheet under U.S. GAAP.

F-108



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|(c) Stock Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|When shares are awarded, the fair value of the employee services
    received in exchange for the grant of the options or shares is
    recognised as an expense and is charged to the income statement
    over the vesting period.
    The charge is determined by reference to the fair value of the
    options or shares granted, which is calculated excluding the
    impact of any non-market vesting conditions. Non-market
    conditions are reflected through the assumptions about the
    number of options or shares that are expected to vest. These
    assumptions are revisited at each balance sheet date.
    The Group availed of the exemption available on transition to
    IFRS not to account for grants made prior to November 7,
    2002, and consequently the IFRS income statement includes no
    charge for such grants. |  | In the year to March 31, 2007, the Group adopted FAS 123R.
    Previously the Group applied the provisions of APB
    25  Accounting for stock issued to employees.
    FAS 123R requires the cost of employee services received in
    exchange for a grant of equity options to be measured as the
    fair value of the equity instrument at the date of grant. This
    cost will be recognised over the period during which an employee
    is required to provide service in exchange for the award
    (usually the vesting period). This is similar to IFRS, however
    FAS 123R does not give the Group an exemption for
    accounting for grants made prior to November 7, 2002, hence
    the U.S. GAAP income statement includes a charge for these
    grants.

F-109



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|(d) Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Under IFRS, financial instruments are classified as either(a) Financial assets at fair value through profit or
    lossA financial asset is classified in this category if acquired
    principally for the purpose of selling in the short term or if
    so designated by management.
    Financial assets and financial liabilities may be designated at
    fair value through profit or loss (the fair value
    option) where they contain substantive embedded
    derivatives, where doing so significantly reduces measurement
    inconsistencies or where they are managed and evaluated on a
    fair value basis with a documented risk management or investment
    strategy.(b) Loans and receivablesThis category includes non-derivative financial assets with
    fixed or determinable payments that are not quoted in an active
    market.(c) Held-to-maturityHeld-to-maturity investments are non-derivative financial
    assets with fixed or determinable payments and fixed maturities
    that the Groups management has the positive intention and
    ability to hold to maturity.(d) Available-for-saleAvailable-for-sale investments are those intended to be held
    for an indefinite period of time, which may be sold in response
    to needs for liquidity or changes in interest rates, exchange
    rates or equity prices. Reversal of impairments are permitted
    under IFRS.
    Financial assets are initially recognised at fair value plus
    transaction costs. Available-for-sale and financial assets at
    fair value through profit or loss are subsequently carried at
    fair value whereas loans and receivables and held-to-maturity
    investments are subsequently carried at amortised cost using the
    effective interest method. |  | Securities may be classified as (i) trading, which are
    carried at fair value with unrealised gains and losses included
    in earnings, (ii) held for sale, which are carried at fair
    value with unrealised gains and losses reported in a separate
    component of shareholders equity or (iii) held to
    maturity, which are carried at amortised cost.
    U.S. GAAP does not permit an entity to apply the fair
    value option with the exception of financial assets or
    liabilities that contain an embedded derivative that otherwise
    are required to be separated from their host contract. This is
    permissible under FAS 155, which has been adopted by the
    Group for this years financial statements.
    Other instruments to which FAS 155 does not apply have been
    measured in accordance with the appropriate U.S. GAAP
    accounting treatment.
    Trading securities are those securities held in the short term
    to earn a profit by trading or selling such securities.
    Securities held for sale are those securities which are neither
    classified as held to maturity nor trading. They are intended
    for use as part of an asset/liability strategy, or that may be
    sold in response to changes in interest rates, changes in
    prepayment risks, the need to increase regulatory capital or
    other similar factors. Reversal of impairments are not permitted
    under U.S. GAAP.
    Securities held to maturity are only those securities for which
    management has both the intent and ability to hold until
    maturity.
    EITF 96-15 Accounting for the Effects of Changes in
    Foreign Currency Exchange Rates on Foreign Currency Denominated
    Available for Sale Debt Securities, states that the change
    in value of debt securities attributable to foreign exchange
    fluctuations is taken directly to reserves and transferred to
    the income statement on disposal of the instrument.

F-110



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|IFRS states that change in the value of debt securities
    attributable to foreign exchange fluctuations are taken to net
    income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|(e) Employee benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|An asset or liability is recognised in the balance sheet in
    respect of defined benefit pension plans. It is the present
    value of the defined benefit obligation at the balance sheet
    date minus the fair value of plan assets, together with
    adjustments for unrecognised past service cost.
    The defined benefit obligation is calculated annually by
    independent actuaries using the projected unit credit method.
    Actuarial gains and losses arising from experience adjustments
    and changes in actuarial assumptions are charged or credited
    directly to reserves through the statement of recognised income
    and expense.
    Past service costs are recognised immediately in income, unless
    the changes to the pension plan are conditional on the employees
    remaining in service for a specified period of time (the vesting
    period). In this case, the past service costs are amortised on a
    straight-line basis over the vesting period.
    As there is an overall deficit on the Groups pension
    schemes when calculated under IFRS, this has been recognised on
    the balance sheet, net of deferred tax. |  | For defined benefit schemes the same basic actuarial method is
    used as under IFRS. An asset or liability is recognised in the
    balance sheet consistent with that recognised under IFRS.
    However, under U.S. GAAP, the Group elects to use the
    Corridor method, whereby actuarial gains and losses
    outside a certain range are recognised in the income statement,
    in equal amounts over the remaining service lives of the current
    employees.
    Under FAS 158 any unrecognised actuarial losses, and past
    service costs are recognised on the balance sheet through an
    adjustment to other comprehensive income.
    The impact of these pronouncements has been included in the GAAP
    reconciliation in respect of the main Bank of Ireland,
    Bristol & West and New Ireland pension plans.

F-111



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|(f) Life Assurance                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|IFRS requires line by line consolidation for all items of income
    and expenditure, assets and liabilities. Consequently, the group
    is no longer permitted to report the results and balances of the
    life assurance business as one line item. Instead, these amounts
    are broken down and allocated to lines which reflect their
    nature, whether attributable to stockholders or
    policyholders.
    In accordance with IFRS 4, life assurance products are
    classified as either investment contracts, which are accounted
    for in accordance with IAS 39 or insurance contracts, which are
    accounted for under IFRS 4. The principal effects of this change
    on the accounting for investment contracts is the removal of
    that portion of the embedded value which represents the value of
    in-force business relating to those contracts, the recognition
    of an asset for deferred acquisition costs, and the deferral of
    up-front fees received for investment management services;
    deferred acquisition costs and deferred up-front fees are
    amortised over the period of the provision of investment
    management services. The accounting for insurance contracts
    under IFRS 4 is unchanged. |  | The present value of anticipated surplus transfers which are
    projected to arise from the long term fund in future years, and
    which are attributable to the business in force at the year end
    on a going concern basis are not recognised by the Group under
    U.S. GAAP. Unearned revenues and acquisition costs related
    to unit linked products are deferred and amortised in proportion
    to total estimated gross profits over the expected life of
    policyholders contracts. Unearned revenues are amounts
    assessed from policyholders that represent compensation for
    services to be provided in future periods. Acquisition costs
    consist of commissions and other costs which vary with and are
    primarily related to the production of revenues.
    Unrealised gains and losses on properties held to meet unit
    linked policy holder liabilities are not recognised under
    U.S. GAAP in line with SOP 03/01. Such properties are
    held at depreciated historical cost.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|IFRS requires that the income statement and the value of
    in-force asset in the balance sheet be grossed up based on total
    tax payable by the Group, comprising both policyholder and
    stockholder tax.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

F-112



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                            |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|(g)  Acceptances                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                               
|Acceptances are bills that the drawee has agreed to pay. They
    are not recognised on the balance sheet.                                                                                                                                                                                                                                                                                                      |  | Acceptances and related customer liabilities are recorded on the
    balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                               
|(h) Special Purpose Entities                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                               
|All entities controlled by the group, as well as legally
    independent bodies (Special Purpose Entities) where the
    substance of the relationship indicates that they are controlled
    by the group, are consolidated. This results in the
    consolidation of a number of funding related special purpose
    entities on the balance sheet and increases the assets and
    liabilities of the group. |  | Under SFAS No.140, transfers and servicing of financial assets
    are required to be recognised using a financial components
    approach that focuses on control. Under that approach after a
    transfer of financial assets, an entity recognises the financial
    and servicing assets it controls and the liabilities it has
    incurred and derecognises financial assets when control has been
    surrendered.                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                |  | Under FIN 46-R, a controlling financial interest in a variable
    interest entity is present where an enterprise has a variable
    interest, or a combination of variable interests, that will
    absorb the majority of the entitys expected losses,
    receive a majority of the entitys expected residual
    returns, or both. The enterprise with a controlling financial
    interest is the primary beneficiary and is required to
    consolidate the variable interest entity.

F-113



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|(i) Derivatives                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Derivatives are initially recognised at fair value on the date
    on which a derivative contract is entered into and are
    subsequently re-measured at their fair value on the balance
    sheet.
    The method of recognising the resulting fair value gain or loss
    depends on whether the derivative is designated as a hedging
    instrument, and if so, the nature of the item being hedged. The
    Group designates certain derivatives as either: (1) hedges
    of the fair value of recognised assets or liabilities or firm
    commitments (fair value hedge); or, (2) hedges of
    highly probable future cash flows attributable to a recognised
    asset or liability, or a forecasted transaction (cash flow
    hedge). |  | FAS 133 requires all derivatives to be recorded at fair
    value.
    FAS 133 states that a derivative may only be classified as a
    hedge providing an entity meets stringent qualifying criteria in
    respect of documentation and hedge effectiveness. The Group has
    chosen not to designate any of its derivatives as hedging
    instruments for U.S. GAAP purposes. As a consequence all
    hedge accounting adjustments arising under IFRS have been
    reversed.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Changes in the fair value of derivatives that are designated and
    qualify as fair value hedges are recorded in the income
    statement, together with any changes in the fair value of the
    hedged asset or liability that are attributable to the hedged
    risk.                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|The effective portion of changes in the fair value of
    derivatives that are designated and qualify as cash-flow hedges
    are recognised in equity. The gain or loss relating to the
    ineffective portion is recognised immediately in the income
    statement. Amounts accumulated in equity are recycled to the
    income statement in the periods in which the hedged item will
    affect profit or loss.                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Certain derivative instruments do not qualify for hedge
    accounting. Changes in their fair value are recognised
    immediately in the income statement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|The Group has primarily applied macro cash-flow hedging to
    derivatives hedging its funding base together with the use of a
    limited number of micro fair value hedges for large ticket
    transactions. The fair value of these derivatives is now
    reflected on the balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

F-114



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|As a result of the strict hedge accounting rules in IAS 39,
    hedge accounting is likely to introduce volatility into the
    income statement to the extent that hedging relationships prove
    ineffective.                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(j) Income Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Interest income and expense are recognised in the income
    statement using the effective interest method. This rate
    includes all fees and points paid or received between parties to
    the contract, transaction costs and all other premiums or
    discounts.
    Fees earned on the execution of a significant act are recognised
    immediately.
    The application of IFRS has resulted in certain upfront fees and
    expenses being included in interest income and spread over the
    expected life of the underlying asset, rather than being taken
    upfront. |  | Interest income and expense are recognised in the income
    statement using the effective interest method. This is
    calculated similarly to IFRS, with the following exceptions:    Internal loan origination
    costs are deferred and recognised as an adjustment to the yield
    on the related loan or facility. IFRS does not include such
    costs in the EIR method.    Certain discounted rate
    adjustments and prepayment penalties recognised under IFRS as
    part of the effective interest rate are not permissible under
    U.S. GAAP.
    These adjustments are included within the other
    classification in the U.S. GAAP income reconciliation.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|(k) Restructuring                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|A provision for restructuring costs is recognised only when the
    general recognition criteria below are met.  (a)  an entity has a present
    obligation as a result of a past
    event  (b)  it is probable that an
    outflow of economic benefits will be required to settle the
    obligation  (c)  a reliable estimate can
    be made of the amount of the obligation                                                                                                                                                                                                    |  | Costs of restructuring are recognised when incurred. Costs of
    involuntary severance are recognised as incurred, save where the
    individuals in question are required to remain with the Group
    for periods in excess of their statutory notice period, in which
    case the costs are spread over this period.                                                                                                                                                                                                                                                                                                                                                          

F-115



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                 |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|(l) Debt/Equity                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                    
|From April 1, 2005, certain subordinate instruments issued
    by the Group are treated as equity under IFRS where they contain
    no present obligation to deliver cash or another financial asset
    to the holders.                                                             |  | The subordinate instruments issued by the Group which are
    treated as equity under IFRS are treated as debt instruments
    under U.S. GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                    
|(m) Netting                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                    
|Financial assets and liabilities are offset and reported net in
    the balance sheet if and only if there is a legally enforceable
    right of set off and there is an intention to settle on a net
    basis or to realise the asset and settle the liability
    simultaneously. |  | U.S. GAAP only permits netting in respect of long and short
    positions securities and derivative assets and liabilities
    subject to a master netting agreement between two counterparties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|                                                                                                                                                                                                                                                                                    
|(n) Sale and leaseback                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                                                                                    
|If a sale and leaseback transaction results in an operating
    lease and it is clear that the transaction is established at
    fair value, the seller recognises any profit on disposal
    immediately.                                                                           |  | If a sale and leaseback transaction results in an operating
    lease the seller recognises any profit on the sale in proportion
    to the related gross rental charged to expense over the lease
    term unless:  (a)  the seller relinquishes the right
    to substantially all the remaining use of the property sold in
    which case the sale and leaseback are accounted for as two
    separate transactions; or  (b)  the
    seller retains more than a minor part but less than
    substantially all of the use of the property through the
    leaseback in which case the profit on sale in excess of the
    minimum lease payments is recognised at the disposal date.

F-116



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|IFRS                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | U.S. GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                         
|(o) Discontinued Operations                                                                                                                                                                                                                                                                                                                                                                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                         
|In accordance with IFRS the Group classifies a discontinued
    operation as a component that has:  (a)  been disposed of or has been
    reclassified as held for sale,
    and  (b)  represents a major line of
    business or geographical area of operations.
    A component is defined as an operation that can be clearly
    distinguished, operationally and for financial reporting
    purposes, from the rest of the entity. |  | SFAS 144 - Accounting for the Impairment or Disposal of
    Long-lived Assets requires a component of an entity that
    either has been disposed of or is classified as held for sale to
    be reported as discontinued operations if:  (a)  The operations and cash flows of
    the component have been (or will be) eliminated from the ongoing
    operations of the entity as a result of the disposal
    transaction, and  (b)  The entity will not have any
    significant continuing involvement in the operations of the
    component after the disposal transaction.
    A component of an entity comprises operations and cash flows
    that can be clearly distinguished, operationally and for
    financial reporting purposes, from the rest of the entity.
    The disposal of Davy has been treated as a discontinued
    operation under U.S. GAAP

F-11) F-27 F-29.


F-117



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


Consolidated Net Income


|                                                                  |  |     |  |      |        |      |             |  |       |             |  |  |       |  
|----------------------------------------------------------------- |  | --- |  | ---- | ------ | ---- | ----------- |  | ----- | ----------- |  |  | ----- | -
|                                                                  |  |     |  |      |        | 2006 |             |  | 2005  |            
|                                                                  |  |     |  | 2007 |        |      | (Restated)* |  |       | (Restated)* | 
|                                                                  |  |     |  |      |        |      |             |  |       |             | 
|                                                                  |  |     |  | m   |        |      | m          |  |       | m          | 
|Net income under IFRS                                             |  |     |  |      | 1,651  |      |             |  | 1,230 |             |  |  | 992   |  
|Pension costs                                                     |  | (e) |  |      | (6     | )    |             |  | (25   | )           |  |  | (4    | )
|Property less related depreciation                                |  | (a) |  |      | 136    |      |             |  |      |             |  |  |      |  
|Sale & Leaseback                                                  |  | (n) |  |      | (124   | )    |             |  |      |             |  |  |      |  
|Long-term assurance policies                                      |  | (f) |  |      | (222   | )    |             |  | (168  | )           |  |  | (329  | )
|Strategic Transformation Programme                                |  | (k) |  |      | (44    | )    |             |  | (41   | )           |  |  | 117   |  
|Stock based compensation                                          |  | (c) |  |      | (1     | )    |             |  | 6     |             |  |  | 2     |  
|Derivatives                                                       |  |     |  |      |       |      |             |  |      |             |  |  | (4    | )
|Hedging and financial instruments                                 |  | (d) |  |      | 41     |      |             |  | (234  | )           |  |  |      |  
|Special purpose entities                                          |  |     |  |      |       |      |             |  |      |             |  |  | (63   | )
|Foreign exchange gains/losses on available for sale securities    |  | (d) |  |      | 297    |      |             |  | (91   | )           |  |  | (21   | )
|Fair value option adjustment                                      |  | (d) |  |      | (10    | )    |             |  | (3    | )           |  |  |      |  
|Dividends on other equity interests                               |  |     |  |      | (15    | )    |             |  | (13   | )           |  |  | (8    | )
|Other                                                             |  |     |  |      | 4      |      |             |  | 15    |             |  |  | 24    |  
|Deferred tax on U.S. GAAP adjustments                             |  |     |  |      | (52    | )    |             |  | 67    |             |  |  | 52    |  
|                                                                  |  |     |  |      |        |      |             |  |       |             | 
|Net income under U.S. GAAP                                        |  |     |  |      | 1,655  |      |             |  | 743   |             |  |  | 758   |  
|                                                                  |  |     |  |      |        |      |             |  |       |             | 
|Split as:                                                         |  |     |  |      |        |      |             |  |       |             |  |  |       |  
|Net Income under U.S. GAAP from Continuing Operations             |  |     |  |      | 1,414  |      |             |  | 707   |             |  |  | 725   |  
|Net Income under U.S. GAAP from Discontinued Operations           |  | (o) |  |      | 241    |      |             |  | 36    |             |  |  | 33    |  
|Earnings per unit of
    0.64 Ordinary
    Stock under U.S. GAAP |  |     |  |      |        |      |             |  |       |             |  |  |       |  
| Basic earnings per share from Continuing Operations             |  |     |  |      | 148.8c |      |             |  | 74.7c |             |  |  | 77.0c |  
| Basic earnings per share from Discontinued Operations           |  | (o) |  |      | 25.4c  |      |             |  | 3.8c  |             |  |  | 3.5c  |  
| Diluted earnings per share from Continuing Operations           |  |     |  |      | 147.8c |      |             |  | 74.1c |             |  |  | 76.3c |  
| Diluted earnings per share from Discontinued Operations         |  | (o) |  |      | 25.1c  |      |             |  | 3.8c  |             |  |  | 3.5c  |  




*   Restated due to change in accounting
policy see footnote (1) below.


F-118



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


Consolidated Total Stockholders equity


|                                           |  |     |  |      |       |      |             |  |       |  
|------------------------------------------ |  | --- |  | ---- | ----- | ---- | ----------- |  | ----- | -
|                                           |  |     |  |      |       | 2006 |            
|                                           |  |     |  | 2007 |       |      | (Restated*) | 
|                                           |  |     |  |      |       |      |             | 
|                                           |  |     |  | m   |       |      | m          | 
|Total stockholders equity under IFRS      |  |     |  |      | 6,724 |      |             |  | 5,186 |  
|Property less related depreciation         |  | (a) |  |      | (446  | )    |             |  | (544  | )
|Sale & Leaseback                           |  | (n) |  |      | (124  | )    |             |  |      |  
|Goodwill                                   |  | (b) |  |      | 454   |      |             |  | 431   |  
|Pension costs                              |  | (e) |  |      |      |      |             |  | 565   |  
|Long-term assurance policies               |  | (f) |  |      | (825  | )    |             |  | (604  | )
|Strategic Transformation Programme         |  | (k) |  |      | 32    |      |             |  | 76    |  
|Fair value option adjustment               |  | (d) |  |      | (27   | )    |             |  | (220  | )
|Hedging and financial instruments          |  | (i) |  |      | (250  | )    |             |  | (101  | )
|Debt/equity adjustment                     |  | (l) |  |      | (113  | )    |             |  | (114  | )
|Other                                      |  |     |  |      | 2     |      |             |  | (9    | )
|Deferred tax on U.S. GAAP adjustments      |  |     |  |      | 252   |      |             |  | 156   |  
|                                           |  |     |  |      |       |      |             | 
|Total stockholders equity under U.S. GAAP |  |     |  |      | 5,679 |      |             |  | 4,822 |  
|                                           |  |     |  |      |       |      |             | 

Consolidated Total Assets


|                                      |  |     |  |      |         |      |             |  |         |  
|------------------------------------- |  | --- |  | ---- | ------- | ---- | ----------- |  | ------- | -
|                                      |  |     |  |      |         | 2006 |            
|                                      |  |     |  | 2007 |         |      | (Restated*) | 
|                                      |  |     |  |      |         |      |             | 
|                                      |  |     |  | m   |         |      | m          | 
|Total assets under IFRS               |  |     |  |      | 188,813 |      |             |  | 162,212 |  
|Netting                               |  | (m) |  |      | 11,250  |      |             |  |        |  
|Property less related depreciation    |  | (a) |  |      | (446    | )    |             |  | (544    | )
|Goodwill                              |  | (b) |  |      | 454     |      |             |  | 465     |  
|Pension costs                         |  | (e) |  |      |        |      |             |  | 26      |  
|Acceptances                           |  | (g) |  |      | 39      |      |             |  | 37      |  
|Long-term assurance policies          |  | (f) |  |      | (744    | )    |             |  | (604    | )
|Fair value option adjustment          |  | (d) |  |      | (8      | )    |             |  |        |  
|Hedging and financial instruments     |  | (i) |  |      | 1       |      |             |  |        |  
|Other                                 |  |     |  |      | (13     | )    |             |  | (13     | )
|Deferred tax on U.S. GAAP adjustments |  |     |  |      | 64      |      |             |  | (31     | )
|                                      |  |     |  |      |         |      |             | 
|Total assets under U.S. GAAP          |  |     |  |      | 199,410 |      |             |  | 161,548 |  
|                                      |  |     |  |      |         |      |             | 




*   Restated due to change in accounting
policy see footnote (1) below.


F-119



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


Consolidated Total Liabilities and Stockholders
equity


|                                                           |  |     |  |      |         |      |             |  |         |  
|---------------------------------------------------------- |  | --- |  | ---- | ------- | ---- | ----------- |  | ------- | -
|                                                           |  |     |  |      |         | 2006 |            
|                                                           |  |     |  | 2007 |         |      | (Restated*) | 
|                                                           |  |     |  |      |         |      |             | 
|                                                           |  |     |  | m   |         |      | m          | 
|Total liabilities and stockholders equity under IFRS      |  |     |  |      | 188,813 |      |             |  | 162,212 |  
|Stockholders funds (U.S. GAAP adjustment)                 |  |     |  |      | (1,045  | )    |             |  | (364    | )
|Netting                                                    |  | (m) |  |      | 11,250  |      |             |  |        |  
|Acceptances                                                |  | (g) |  |      | 39      |      |             |  | 37      |  
|Strategic Transformation Programme                         |  | (k) |  |      | (32     | )    |             |  | (76     | )
|Pension                                                    |  | (e) |  |      |        |      |             |  | (543    | )
|Long term assurance policies                               |  | (f) |  |      | 81      |      |             |  |        |  
|Fair value option adjustment                               |  | (d) |  |      | 19      |      |             |  | 220     |  
|Hedging and financial instruments                          |  | (i) |  |      | 251     |      |             |  | 101     |  
|Debt/equity adjustment                                     |  | (l) |  |      | 113     |      |             |  | 114     |  
|Sale & Leaseback                                           |  | (n) |  |      | 124     |      |             |  |        |  
|Other                                                      |  |     |  |      | (15     | )    |             |  | 55      |  
|Deferred tax on U.S. GAAP adjustments                      |  |     |  |      | (188    | )    |             |  | (208    | )
|                                                           |  |     |  |      |         |      |             | 
|Total liabilities and stockholders equity under U.S. GAAP |  |     |  |      | 199,410 |      |             |  | 161,548 |  
|                                                           |  |     |  |      |         |      |             | 




*   Restated due to change in accounting
policy see note 1 below


F-120



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


(1)  Adoption of New Accounting Standards














F-122.


|                                                                                         |  |               |       |  
|---------------------------------------------------------------------------------------- |  | ------------- | ----- | -
|                                                                                         |  | Impact on     |      
|                                                                                         |  | stockholders |      
|                                                                                         |  | equity        |      
|                                                                                         |  |               |      
|                                                                                         |  | m            |      
|Total stockholders equity at March 31, 2006 under
    U.S. GAAP, as previously reported |  |               | 4,976 |  
|Impact of SAB 108 (net of tax of
    17m)                                               |  |               | (154  | )
|                                                                                         |  |               |      
|Adjusted stockholders equity at March 31, 2006 under
    U.S. GAAP                      |  |               | 4,822 |  
|Impact of SFAS 155 (net of tax of
    64m)                                              |  |               | 206   |  
|Impact of SFAS 123R (net of tax of zero)                                                 |  |               | 16    |  
|                                                                                         |  |               |      
|Adjusted stockholders equity at April 1, 2006 under
    U.S. GAAP                       |  |               | 5,044 |  
|                                                                                         |  |               |      




F-121



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles













| |     |                                                                                                                                                                               
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | the amount of the misstatement originating in the current year
    income statement; and                                                                                      
|
| | (2) | the effects of correcting the misstatement existing in the
    balance sheet at the end of the current year irrespective of the
    year in which the misstatement originated.



|                                                                      |  |    |      |  
|--------------------------------------------------------------------- |  | -- | ---- | -
|Impact on stockholders equity as at March 31, 2006                   |  | m |     
|                                                                      |  |    |     
|(a) Treasury shares held by BOI Life (net of tax of zero)             |  |    | (142 | )
|(b) Impact of Effective interest rate (net of tax of
    17 million) |  |    | (37  | )
|(c) Property (net of tax of zero)                                     |  |    | 25   |  
|                                                                      |  |    |     
|Total SAB 108 adjustment                                              |  |    | (154 | )
|                                                                      |  |    |     

|                                                                                                    |  |      |     |   |      |  |     |  
|--------------------------------------------------------------------------------------------------- |  | ---- | --- | - | ---- |  | --- | -
|Impact on Net Income under U.S. GAAP                                                                |  | 2006 |     |   | 2005 | 
|                                                                                                    |  |      |     |   |      | 
|                                                                                                    |  | m   |     |   | m   | 
|Net income under U.S. GAAP as previously reported                                                   |  |      | 803 |   |      |  | 814 |  
|(a) Treasury shares held by BOI Life (net of tax of zero)                                           |  |      | (75 | ) |      |  | (63 | )
|(b) Impact of Effective interest rate (net of tax of
    2006:4 million,
    2005:
    1 million) |  |      | (21 | ) |      |  | 7   |  
|(d) Fair Value Option (net of tax of
    6 million)                                                |  |      | 36  |   |      |  |    |  
|                                                                                                    |  |      |     |   |      | 
|Net income under U.S. GAAP as adjusted                                                              |  |      | 743 |   |      |  | 758 |  
|                                                                                                    |  |      |     |   |      | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | As described on
    page F-26 IFRS
    requires that Bank of Ireland shares held by the Group,
    including those held by BoI Life are reclassified as
    treasury shares and accounted for as a deduction from equity.
    Any changes in the value of treasury shares held are recognised
    in equity at the time of disposal and dividends are not
    recognised as income or distributions. In prior years, the Group
    did not apply this treatment to the

F-122



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles




|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | investment return on shares in Bank of Ireland held by
    BoI Life. Rather it recognised investment return on Bank of
    Ireland shares held in BoI Life on the grounds that such
    investment return legally accrues to the unit-linked
    policyholders and accordingly is matched by an increase in
    liabilities in the income statement. The Group believes that
    application of the requirements of IFRS for treasury shares held
    by BoI Life for the benefit of policyholders results in a
    loss which is solely due to an accounting mismatch. However the
    Group accepts that this accounting is the basis which is
    currently required under IFRS and consistent with the adoption
    of a materiality policy that considers the effect of correcting
    a cumulative balance sheet misstatement on the current year
    income statement, that it is now appropriate to adjust for this
    requirement under IFRS.
|   
|(b) | Certain fees relating to Customer Loans which are earned on a
    level yield basis under IFRS are recognised as incurred under
    U.S. GAAP. As part of a detailed review of such fees across
    the Group it was determined that the adjustment in the IFRS to
    U.S. GAAP equity reconciliation relating to prior years was
    misstated by
    37 million
    (net of tax). In addition net income was overstated by
    21 million
    (net of tax) in the year to March 31, 2006 and understated
    by
    7 million
    (net of tax) in the year ended March 31, 2005.                                                                                                                                                                                                                                                                                                                                                                 
|   
|(c) | Following a review of the Groups property portfolio it was
    determined that the adjustment to reverse the revaluation
    reserve to arrive at U.S. GAAP was overstated by
    25 million
    (net of tax) prior to the year ended March 31, 2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(d) | Prior to FAS 155, the Fair Value Option as applied under
    IFRS was not available under U.S. GAAP. It has been determined
    that the adjustment to reverse the FVO treatment for net income
    for the year to March 31, 2006 was overstated by
    36 million
    (net of tax).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

(2)  Goodwill




|                           |  |          |     |  |           |  |     |           |  |  |            |  |           |          |   |  |      |  |     |   |  |  |     | 
|-------------------------- |  | -------- | --- |  | --------- |  | --- | --------- |  |  | ---------- |  | --------- | -------- | - |  | ---- |  | --- | - |  |  | --- | 
|                           |  | April 1, |     |  |           |  |     |           |  |  |            |  | March 31, |         
|                           |  | 2006     |     |  | Disposals |  |     | Additions |  |  | Impairment |  |           | Exchange |   |  | 2007 | 
|                           |  |          |     |  |           |  |     |           |  |  |            |  |           |          |   |  |      | 
|                           |  | m       |     |  | m        |  |     | m        |  |  | m         |  |           | m       |   |  | m   | 
|Retail Republic of Ireland |  |          | 4   |  |           |  |    |           |  |  |           |  |           |          |  |  |      |  |    |   |  |  | 4   | 
|BOI Life                   |  |          | 94  |  |           |  |    |           |  |  |           |  |           |          |  |  |      |  |    |   |  |  | 94  | 
|Capital Markets            |  |          | 402 |  |           |  | (13 | )         |  |  | 2          |  |           |          |  |  |      |  | (36 | ) |  |  | 355 | 
|UK Financial Services      |  |          | 340 |  |           |  |    |           |  |  |           |  |           |          |  |  |      |  | 8   |   |  |  | 348 | 
|                           |  |          |     |  |           |  |     |           |  |  |            |  |           |          |   |  |      | 
|                           |  |          | 840 |  |           |  | (13 | )         |  |  | 2          |  |           |          |  |  |      |  | (28 | ) |  |  | 801 | 
|                           |  |          |     |  |           |  |     |           |  |  |            |  |           |          |   |  |      | 

(3)  Pensions






F-123



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles




Component of Net Periodic Benefit Cost for fiscal year ending
March 31,


|                          |                                   |      |      |    |      |  |      |      |   |  |      |    |  
|------------------------- | --------------------------------- | ---- | ---- | -- | ---- |  | ---- | ---- | - |  | ---- | -- | -
|                          |                                   | 2007 |      |    | 2006 |  |      | 2005 |  
|                          |                                   |      |      |    |      |  |      |      |  
|                          |                                   | m   |      |    | m   |  |      | m   |  
|Company Service Cost      |                                   |      | 136  |    |      |  | 134  |      |   |  | 95   |   
|Interest Cost             |                                   |      | 201  |    |      |  | 189  |      |   |  | 165  |   
|Expected Return on Assets |                                   |      | (246 | )  |      |  | (210 | )    |   |  | (178 | ) 
|                          |                                   |      |      |    |      |  |      |      |  
|                          |                                   |      | 91   |    |      |  | 113  |      |   |  | 82   |   
|Amortization of:          |                                   |      |      |    |      |  |      |      |   |  |      |   
|                          | Net Transition Obligation/(Asset) |      |      | (1 | )    |  |      | (1   | ) |  |      | (1 | )
|                          | Net Prior Service Cost/(Credit)   |      |      |   |      |  |      |     |   |  |      |   |  
|                          | Net Losses/(Gains)                |      |      | 7  |      |  |      | 18   |   |  |      | 3  |  
|                          |                                   |      |      |    |      |  |      |      |  
|Total Amortization        |                                   |      | 6    |    |      |  | 17   |      |   |  | 2    |   
|                          |                                   |      |      |    |      |  |      |      |  
|Net Periodic Benefit Cost |                                   |      | 97   |    |      |  | 130  |      |   |  | 84   |   
|Cost of SFAS 88 Events    |                                   |      | 4    |    |      |  | 9    |      |   |  | 1    |   
|                          |                                   |      |      |    |      |  |      |      |  
|Total Expense for Year    |                                   |      | 101  |    |      |  | 139  |      |   |  | 85   |   
|                          |                                   |      |      |    |      |  |      |      |  

Reconciliation of year end Balance Sheet Liability


|                                                                            |  |    |      |  
|--------------------------------------------------------------------------- |  | -- | ---- | -
|                                                                            |  | m |     
|                                                                            |  |    |     
|(Accrued)/Prepaid Benefit Cost (before Adjustment) at beginning
    of year |  |    | (170 | )
|Net Periodic Benefit (Cost)/Income for Fiscal Year                          |  |    | (97  | )
|Costs of SFAS 88 Events                                                     |  |    | (4   | )
|Employer Contributions                                                      |  |    | 106  |  
|Amount Recognised in Accumulated Other Comprehensive Income                 |  |    | (323 | )
|                                                                            |  |    |     
|Net Balance Sheet Liability at end of year                                  |  |    | (488 | )
|                                                                            |  |    |     

F-124



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


Development of Funded Status as of March 31, 2007 and
Net Amount Recognised in the Consolidated Balance Sheet


Development of Funded Status


Actuarial Value of Benefit Obligations


|                                                                                 |  |           |        |  
|-------------------------------------------------------------------------------- |  | --------- | ------ | -
|                                                                                 |  | March 31, |       
|                                                                                 |  | 2007      |       
|                                                                                 |  |           |       
|                                                                                 |  | m        |       
|Measurement Date                                                                 |  |           |        |  
|Accumulated Benefit Obligation                                                   |  |           | (3,190 | )
|Projected Benefit Obligation / Accumulated Postretirement
    Benefit Obligation |  |           | (4,590 | )
|                                                                                
|Funded Status                                                                    |  |           |        |  
|Projected Benefit Obligation / Accumulated Postretirement
    Benefit Obligation |  |           | (4,590 | )
|Plan Assets at Fair Value                                                        |  |           | 4,102  |  
|Employer Contribution after Measurement Date, Before End of Year                 |  |           |       |  
|Directly Paid Benefits after Measurement Date, Before End of Year                |  |           |       |  
|                                                                                 |  |           |       
|Net balance Sheet liability                                                      |  |           | (488   | )
|                                                                                 |  |           |       

Net Amounts Recognised in the Consolidated Balance Sheet at
March 31, 2007


Accumulated Other Comprehensive Income at March 31,
2007


|                            |  |    |     |  
|--------------------------- |  | -- | --- | -
|                            |  | m |    
|                            |  |    |    
|Net Actuarial Loss          |  |    | 333 |  
|Net Prior Service Credit    |  |    | (4  | )
|Net Transition Asset        |  |    | (6  | )
|                            |  |    |    
|Total at March 31, 2007     |  |    | 323 |  
|                            |  |    |    
|                           
|Post-tax AOCI               |  |    |     |  
|Adjustment to Post-tax AOCI |  |    | 270 |  

Information for Plans with ABO / APBO in Excess of Plan
Assets


|                                                                                   |  |    |      |  
|---------------------------------------------------------------------------------- |  | -- | ---- | -
|                                                                                   |  | m |     
|                                                                                   |  |    |     
|Projected Benefit Obligation / Accumulated Postretirement
    Benefit Obligation   |  |    | (343 | )
|Accumulated Benefit Obligation / Accumulated Postretirement
    Benefit Obligation |  |    | (336 | )
|Fair Value of Plan Assets                                                          |  |    | 311  |  

Information for Plans with PBO / APBO in Excess of Plan
Assets


|                                                                                   |  |    |        |  
|---------------------------------------------------------------------------------- |  | -- | ------ | -
|                                                                                   |  | m |       
|                                                                                   |  |    |       
|Projected Benefit Obligation / Accumulated Postretirement
    Benefit Obligation   |  |    | (4,590 | )
|Accumulated Benefit Obligation / Accumulated Postretirement
    Benefit Obligation |  |    | (3,190 | )
|Fair Value of Plan Assets                                                          |  |    | 4,102  |  

F-125



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


Change in Projected Benefit Obligation and Change in Fair
Value of Assets


Change in Projected Benefit Obligation at March 31,


|                                                                              |  |      |       |   |      |  |       |  
|----------------------------------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|                                                                              |  | 2007 |       |   | 2006 | 
|                                                                              |  |      |       |   |      | 
|                                                                              |  | m   |       |   | m   | 
|Benefit Obligation at Beginning of Year                                       |  |      | 4,385 |   |      |  | 3,742 |  
|Exchange adjustments                                                          |  |      | 4     |   |      |  | (4    | )
|Company Service Cost                                                          |  |      | 136   |   |      |  | 137   |  
|Interest Cost                                                                 |  |      | 201   |   |      |  | 198   |  
|Plan Participants Contributions                                              |  |      | 13    |   |      |  | 13    |  
|Net Actuarial (Gain) / Loss                                                   |  |      | (43   | ) |      |  | 241   |  
|Benefit Payments from Fund                                                    |  |      | (116  | ) |      |  | (117  | )
|Curtailment (Gain) / Loss                                                     |  |      | (10   | ) |      |  |      |  
|Special Termination Benefit Cost                                              |  |      | 14    |   |      |  | 11    |  
|Other                                                                         |  |      | 6     |   |      |  | 164   |  
|                                                                              |  |      |       |   |      | 
|Benefit Obligation at End of Year                                             |  |      | 4,590 |   |      |  | 4385  |  
|                                                                              |  |      |       |   |      | 
|                                                                             
|Change in Plan Assets at March 31,                                            |  |      |       |   |      |  |       |  
|Fair Value of Plan Assets at Beginning of Year                                |  |      | 3,698 |   |      |  | 2,971 |  
|Exchange adjustments                                                          |  |      | 1     |   |      |  | (2    | )
|Company Contributions                                                         |  |      | 106   |   |      |  | 103   |  
|Plan Participants Contributions                                              |  |      | 13    |   |      |  | 13    |  
|Benefit Payments from Fund                                                    |  |      | (116  | ) |      |  | (117  | )
|Benefit Payments Directly by Company                                          |  |      |      |   |      |  |      |  
|Actual Return on Assets                                                       |  |      | 395   |   |      |  | 586   |  
|Other                                                                         |  |      | 5     |   |      |  | 144   |  
|                                                                              |  |      |       |   |      | 
|Fair Value of Plan Assets at End of Year                                      |  |      | 4,102 |   |      |  | 3,698 |  
|                                                                              |  |      |       |   |      | 
|                                                                             
|Reconciliation of the funded status                                           |  |      |       |   |      |  |       |  
|Funded status at March 31                                                     |  |      | n/a   |   |      |  | (687  | )
|Unamortised net loss/(gain)                                                   |  |      | n/a   |   |      |  | 531   |  
|Minimum Liability Obligation                                                  |  |      | n/a   |   |      |  | (68   | )
|Unamortised net asset at transition                                           |  |      | n/a   |   |      |  | (11   | )
|                                                                              |  |      |       |   |      | 
|(Accrued) prepaid pension cost recognised in balance sheet at
    end of year |  |      | n/a   |   |      |  | (235  | )
|                                                                              |  |      |       |   |      | 

Change in Net Actuarial Loss / (Gain), AOCI and Additional
Information


Amortizations Expected to be Recognised During Next Fiscal
Year


|                                                    |  |    |    |  
|--------------------------------------------------- |  | -- | -- | -
|                                                    |  | m |   
|                                                    |  |    |   
|Amortization of Net Transition Obligation / (Asset) |  |    | (1 | )
|Amortization of Prior Service Cost / (Credit)       |  |    |   |  
|Amortization of Net Losses / (Gains)                |  |    | 4  |  

F-126



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                                      |  |     |       |  |    |  |       | 
|------------------------------------------------------------------------------------- |  | --- | ----- |  | -- |  | ----- | 
|                                                                                      |  | ROI |       |  | UK | 
|                                                                                      |  |     |       |  |    | 
|                                                                                     
|Actuarial Assumptions                                                                 |  |     |       |  |    |  |       | 
|Weighted-Average Assumptions Used to Determine Benefit
    Obligations at end of year |  |     |       |  |    |  |       | 
|Discount Rate                                                                         |  |     | 4.95% |  |    |  | 5.30% | 
|Rate of Compensation Increase                                                         |  |     | 3.25% |  |    |  | 4.50% | 
|Social Security Increase                                                              |  |     | 2.25% |  |    |  | 3.00% | 
|Pension Increases for Participants In-Payment Status                                  |  |     | 3.25% |  |    |  | 3.00% | 
|                                                                                     
|Weighted-Average Assumptions Used to Determine Net Periodic
    Benefit Cost for Year |  |     |       |  |    |  |       | 
|Discount Rate                                                                         |  |     | 4.60% |  |    |  | 4.95% | 
|Expected Long-term Return on Plan Assets                                              |  |     | 6.64% |  |    |  | 7.00% | 
|Rate of Compensation Increase                                                         |  |     | 3.10% |  |    |  | 3.25% | 
|Social Security Increase                                                              |  |     | 2.10% |  |    |  | 2.75% | 
|Pension Increases for Participants In-Payment Status                                  |  |     | 3.10% |  |    |  | 3.25% | 





| |   |                 
| | - | ----------------
| |  | Equities  60%  
|
| |  | Bonds  27.5%   
|
| |  | Property  12.5%



Plan Assets


|                                    |  |      |        |  |      |  |       | 
|----------------------------------- |  | ---- | ------ |  | ---- |  | ----- | 
|                                    |  | 2007 |        |  | 2006 | 
|                                    |  |      |        |  |      | 
|                                    |  | %    |        |  | %    | 
|Allocation of Assets at end of year |  |      |        |  |      |  |       | 
|Equity Securities                   |  |      | 65.1   |  |      |  | 64.6  | 
|Debt Securities                     |  |      | 21.2   |  |      |  | 21.1  | 
|Real Estate                         |  |      | 11.6   |  |      |  | 13.8  | 
|Other                               |  |      | 2.1    |  |      |  | 0.5   | 
|                                    |  |      |        |  |      | 
|Total                               |  |      | 100.0  |  |      |  | 100.0 | 
|                                    |  |      |        |  |      | 
|                                   
|Target Allocation of Assets         |  |      |        |  |      |  |       | 
|Equity Securities                   |  |      | 60.0   |  |      |  | 60.0  | 
|Debt Securities                     |  |      | 27.5   |  |      |  | 27.5  | 
|Real Estate                         |  |      | 12.5   |  |      |  | 12.5  | 
|Other                               |  |      | 0.0    |  |      |  | 0.0   | 
|                                    |  |      |        |  |      | 
|Total                               |  |      | 100.00 |  |      |  | 100.0 | 
|                                    |  |      |        |  |      | 

F-127



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles










  


Estimated Future Contributions and Benefit Payments


Company Contributions


|                                           |  |    |     | 
|------------------------------------------ |  | -- | --- | 
|                                           |  | m |    
|                                           |  |    |    
|Company Contributions for the Year Ending: |  |    |     | 
|March 31, 2006                             |  |    | 103 | 
|March 31, 2007                             |  |    | 106 | 
|March 31, 2008 (Estimated)                 |  |    | 92  | 

Plan Participants Contributions:


|                                                      |  |    |    | 
|----------------------------------------------------- |  | -- | -- | 
|                                                      |  | m |   
|                                                      |  |    |   
|Plan Participants Contributions for the Year Ending: |  |    |    | 
|March 31, 2006                                        |  |    | 13 | 
|March 31, 2007                                        |  |    | 13 | 
|March 31, 2008 (Estimated)                            |  |    | 13 | 

F-128



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


Benefit Payments (Total)


|                                               |  |    |     | 
|---------------------------------------------- |  | -- | --- | 
|                                               |  | m |    
|                                               |  |    |    
|Actual Benefit Payments for the Year Ending:   |  |    |     | 
|March 31, 2006                                 |  |    | 117 | 
|March 31, 2007                                 |  |    | 116 | 
|                                              
|Expected Benefit Payments for the Year Ending: |  |    |     | 
|March 31, 2008                                 |  |    | 120 | 
|March 31, 2009                                 |  |    | 126 | 
|March 31, 2010                                 |  |    | 132 | 
|March 31, 2011                                 |  |    | 139 | 
|March 31, 2012                                 |  |    | 145 | 
|March 31, 2013 to March 31, 2017 (combined)    |  |    | 842 | 

Additional information under SFAS 158


Additional Information  Balance Sheet Entries
Under Prior Rules


|                                                                       |  |    |      |  
|---------------------------------------------------------------------- |  | -- | ---- | -
|                                                                       |  | m |     
|                                                                       |  |    |     
|Statement of Financial Position Prior to Deferred Tax
    Adjustments: |  |    |      |  
|(Accrued) / Prepaid as of end of year                                  |  |    | (164 | )
|Additional Minimum Liability                                           |  |    | 63   |  
|Intangible Asset                                                       |  |    |     |  
|Accumulated Other Comprehensive Income using prior rules               |  |    | 63   |  
|Accumulated Other Comprehensive Income using new rules                 |  |    | 323  |  

Additional Information  Impact of SFAS 158
Pre Tax


|                                     |                                |    |  |     |  
|------------------------------------ | ------------------------------ | -- |  | --- | -
|                                     |                                | m | 
|                                     |                                |    | 
|Before Application of Statement 158  |                                |    |  |    
|Assets                               |                                |    |  |    
|                                     | Prepaid Cost                   |    |  | 38  |  
|                                     | Intangible Assets              |    |  |    |  
|Liabilities and Stockholders Equity |                                |    |  |    
|                                     | Liability for Pension Benefits |    |  | 265 |  
|                                     | AOCI                           |    |  | 63  |  
|                                    
|Adjustments                          |                                |    |  |    
|Assets                               |                                |    |  |    
|                                     | Prepaid Cost                   |    |  | (38 | )
|                                     | Intangible Assets              |    |  |    |  
|Liabilities and Stockholders Equity |                                |    |  |    
|                                     | Liability for Pension Benefits |    |  | 223 |  
|                                     | AOCI                           |    |  | 260 |  

F-129



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)



Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                     |                                |    |  |     | 
|------------------------------------ | ------------------------------ | -- |  | --- | 
|                                     |                                | m | 
|                                     |                                |    | 
|                                    
|After Application of Statement 158   |                                |    |  |    
|Assets                               |                                |    |  |    
|                                     | Prepaid Cost                   |    |  |    | 
|                                     | Intangible Assets              |    |  |    | 
|Liabilities and Stockholders Equity |                                |    |  |    
|                                     | Liability for Pension Benefits |    |  | 488 | 
|                                     | AOCI                           |    |  | 323 | 

(4)  Stock Compensation Plan




  




|    |                   
|--- | ------------------
|(5) | Earnings per share



|                                                                          |  |        |       |           |               |  |        |        |  |  |             |           |  |               |     |  |        |  |     |  |  |  |       | 
|------------------------------------------------------------------------- |  | ------ | ----- | --------- | ------------- |  | ------ | ------ |  |  | ----------- | --------- |  | ------------- | --- |  | ------ |  | --- |  |  |  | ----- | 
|                                                                          |  | 2007   |       |           | 2006          | 
|                                                                          |  |        |       |           |               | 
|                                                                          |  |        |       | Per-share |               |  | Income |        |  |  |             | Per-share | 
|                                                                          |  | Income |       |           | Share No      |  |        | Amount |  |  | (Restated*) |           |  | Share No      |     |  | Amount | 
|                                                                          |  |        |       |           |               |  |        |        |  |  |             |           |  |               |     |  |        | 
|                                                                          |  | m     |       |           | (in millions) |  |        | Cent   |  |  | m          |           |  | (in millions) |     |  | Cent   | 
|Basic EPS                                                                 |  |        |       |           |               |  |        |        |  |  |             |           |  |               |     |  |        |  |     |  |  |  |       | 
|Approximate net income (U.S. GAAP) available to ordinary
    stockholders |  |        | 1,655 |           |               |  | 950    |        |  |  | 174.2c      |           |  |               | 743 |  |        |  | 947 |  |  |  | 78.5c | 
|Effect of dilutive securities employee share options                      |  |        |       |           |               |  | 7      |        |  |  |             |           |  |               |     |  |        |  | 7   |  |  |  |       | 
|                                                                          |  |        |       |           |               |  |        |        |  |  |             |           |  |               |     |  |        | 
|Diluted EPS                                                               |  |        | 1,655 |           |               |  | 957    |        |  |  | 172.9c      |           |  |               | 743 |  |        |  | 954 |  |  |  | 77.9c | 
|                                                                          |  |        |       |           |               |  |        |        |  |  |             |           |  |               |     |  |        | 

F-130



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|47 | GROUP FINANCIAL INFORMATION FOR U.S.
    INVESTORS  (continued)

Summary of Significant Differences between IFRS and U.S.
Generally Accepted Accounting Principles


|                                                                          |  |             |     |  |               |  |           |        |  |  |       | 
|------------------------------------------------------------------------- |  | ----------- | --- |  | ------------- |  | --------- | ------ |  |  | ----- | 
|                                                                          |  | 2005        |    
|                                                                          |  |             |    
|                                                                          |  | Income      |     |  |               |  | Per-share |       
|                                                                          |  | (Restated*) |     |  | Share No      |  |           | Amount | 
|                                                                          |  |             |     |  |               |  |           |        | 
|                                                                          |  | m          |     |  | (in millions) |  |           | Cent   | 
|Basic EPS                                                                 |  |             |     |  |               |  |           |        |  |  |       | 
|Approximate net income (U.S. GAAP) available to ordinary
    stockholders |  |             | 758 |  |               |  | 942       |        |  |  | 80.5c | 
|Effect of dilutive securities employee share options                      |  |             |     |  |               |  | 8         |        |  |  |       | 
|                                                                          |  |             |     |  |               |  |           |        | 
|Diluted EPS                                                               |  |             | 758 |  |               |  | 950       |        |  |  | 79.8c | 
|                                                                          |  |             |     |  |               |  |           |        | 






|  |                                                                       
|- | ----------------------------------------------------------------------
|* | Restated due to change in accounting policy see footnote (1)
    above





|    |             
|--- | ------------
|(6) | Deferred tax



|                                                     |  |      |      |           |      |  |      |  
|---------------------------------------------------- |  | ---- | ---- | --------- | ---- |  | ---- | -
|                                                     |  | 2007 |      |           | 2006 | 
|                                                     |  |      |      |           |      | 
|                                                     |  | m   |      |           | m   | 
|                                                     |  |      |      | Restated* |     
|Deferred tax liabilities:                            |  |      |      |           |      |  |      |  
|Deferred tax liabilities under IFRS (see Note 30)    |  |      | 391  |           |      |  | 327  |  
|In respect of IFRS/ U.S. GAAP reconciling items      |  |      | (188 | )         |      |  | (208 | )
|                                                     |  |      |      |           |      | 
|Total deferred tax liabilities                       |  |      | 203  |           |      |  | 119  |  
|                                                     |  |      |      |           |      | 
|Deferred tax assets:                                 |  |      |      |           |      |  |      |  
|Deferred tax assets under IFRS (see Note 30)         |  |      | 138  |           |      |  | 150  |  
|Add: valuation allowance                             |  |      | 13   |           |      |  | 1    |  
|In respect of IFRS/ U.S. GAAP reconciling items      |  |      | 64   |           |      |  | (31  | )
|                                                     |  |      |      |           |      | 
|Total deferred tax assets before valuation allowance |  |      | 215  |           |      |  | 120  |  
|Less: valuation allowance                            |  |      | (13  | )         |      |  | (1   | )
|                                                     |  |      |      |           |      | 
|Deferred tax assets less valuation allowance         |  |      | 202  |           |      |  | 119  |  
|                                                     |  |      |      |           |      | 






|  |                                                                       
|- | ----------------------------------------------------------------------
|* | Restated due to change in accounting policy see footnote (1)
    above

F-71.




F-131



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |                                                                                    
|-- | -----------------------------------------------------------------------------------
|48 | SFAS NO. 115 ACCOUNTING FOR CERTAIN
    INVESTMENTS IN DEBT AND EQUITY SECURITIES





|                                                    |  |              |        |      |           |  |        | 
|--------------------------------------------------- |  | ------------ | ------ | ---- | --------- |  | ------ | 
|                                                    |  | At March 31, |       
|                                                    |  |              |       
|                                                    |  |              |        | 2006 |          
|                                                    |  | 2007         |        |      |           | 
|                                                    |  |              |        |      | Book /    | 
|                                                    |  | Book /       |        |      | Market    | 
|                                                    |  | Market       |        |      | Value     | 
|                                                    |  | Value        |        |      | IFRS      | 
|                                                    |  | IFRS         |        |      | Restated* | 
|                                                    |  |              |        |      |           | 
|                                                    |  | m           |        |      | m        | 
|Available for sale                                  |  |              | 33,449 |      |           |  | 28,205 | 
|Trading                                             |  |              | 520    |      |           |  | 620    | 
|Financial instruments at fair value through the P&L |  |              | 12,707 |      |           |  | 10,438 | 
|                                                    |  |              |        |      |           | 
|Total                                               |  |              | 46,676 |      |           |  | 39,263 | 
|                                                    |  |              |        |      |           | 






|  |                                                                
|- | ---------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26



|                                           |  |                      |        |      |           |  |        | 
|------------------------------------------ |  | -------------------- | ------ | ---- | --------- |  | ------ | 
|                                           |  | Available for Sale   |       
|                                           |  | Investment Portfolio |       
|                                           |  | At March 31,         |       
|                                           |  |                      |       
|                                           |  |                      |        | 2006 |          
|                                           |  | 2007                 |        |      |           | 
|                                           |  |                      |        |      | Book /    | 
|                                           |  | Book /               |        |      | Market    | 
|                                           |  | Market               |        |      | Value     | 
|                                           |  | Value                |        |      | IFRS      | 
|                                           |  | IFRS                 |        |      | Restated* | 
|                                           |  |                      |        |      |           | 
|                                           |  | m                   |        |      | m        | 
|Irish government                           |  |                      | 1,972  |      |           |  | 2,399  | 
|Other European government                  |  |                      | 4,184  |      |           |  | 2,942  | 
|U.S. Treasury and U.S. Government agencies |  |                      | 224    |      |           |  | 520    | 
|Collateralised Mortgage Obligations        |  |                      | 2,242  |      |           |  | 2,659  | 
|Corporate bonds                            |  |                      | 23,148 |      |           |  | 13,234 | 
|Equities                                   |  |                      | 49     |      |           |  | 25     | 
|Other securities                           |  |                      | 1,630  |      |           |  | 6,426  | 
|                                           |  |                      |        |      |           | 
|Total                                      |  |                      | 33,449 |      |           |  | 28,205 | 
|                                           |  |                      |        |      |           | 






|  |                                                                
|- | ---------------------------------------------------------------
|* | Restated due to change in accounting policy  see
    page F-26

   


F-132



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                                                        
|-- | -------------------------------------------------------------------------------------------------------
|48 | SFAS NO. 115 ACCOUNTING FOR CERTAIN
    INVESTMENTS IN DEBT AND EQUITY
    SECURITIES     (continued)






|                                           |  |                                         |       |           |            |  |            |          |  |  |          |  |  |          |     |  |       |  |    |  |  |  |        | 
|------------------------------------------ |  | --------------------------------------- | ----- | --------- | ---------- |  | ---------- | -------- |  |  | -------- |  |  | -------- | --- |  | ----- |  | -- |  |  |  | ------ | 
|                                           |  | Maturity Distribution of                |      
|                                           |  | Available For Sale Investment Portfolio |      
|                                           |  | At March 31, 2007                       |      
|                                           |  |                                         |      
|                                           |  |                                         |       | IFRS      |            |  |           
|                                           |  |                                         |       | After One |            |  | After Five |          |  | 
|                                           |  | In One                                  |       |           | Year       |  |            | Years    |  |  |         
|                                           |  | Year or                                 |       |           | Through    |  |            | Through  |  |  | After 10 |  |  |         
|                                           |  | Less                                    |       |           | Five Years |  |            | 10 Years |  |  | Years    |  |  | Equities |     |  | Total | 
|                                           |  |                                         |       |           |            |  |            |          |  |  |          |  |  |          |     |  |       | 
|                                           |  | m                                      |       |           | m         |  |            | m       |  |  | m       |  |  | m       |     |  | m    | 
|Irish government                           |  |                                         | 1,572 |           |            |  | 83         |          |  |  | 317      |  |  |          |    |  |       |  |   |  |  |  | 1,972  | 
|Other European government                  |  |                                         | 240   |           |            |  | 1,873      |          |  |  | 2,071    |  |  |          |    |  |       |  |   |  |  |  | 4,184  | 
|U.S. Treasury and U.S. Government agencies |  |                                         | 224   |           |            |  |           |          |  |  |         |  |  |          |    |  |       |  |   |  |  |  | 224    | 
|Collateralised Mortgage Obligations        |  |                                         | 47    |           |            |  | 1,083      |          |  |  | 910      |  |  |          | 202 |  |       |  |   |  |  |  | 2,242  | 
|Corporate bonds                            |  |                                         | 6,212 |           |            |  | 13,611     |          |  |  | 2,945    |  |  |          | 380 |  |       |  |   |  |  |  | 23,148 | 
|Other securities                           |  |                                         | 430   |           |            |  | 684        |          |  |  | 401      |  |  |          | 115 |  |       |  |   |  |  |  | 1,630  | 
|Equities                                   |  |                                         |      |           |            |  |           |          |  |  |         |  |  |          |    |  |       |  | 49 |  |  |  | 49     | 
|                                           |  |                                         |       |           |            |  |            |          |  |  |          |  |  |          |     |  |       | 
|Total                                      |  |                                         | 8,725 |           |            |  | 17,334     |          |  |  | 6,644    |  |  |          | 697 |  |       |  | 49 |  |  |  | 33,449 | 
|                                           |  |                                         |       |           |            |  |            |          |  |  |          |  |  |          |     |  |       | 



|                                           |  |            |        |            |      |  |            |        |  |            |              |   |  |  |      |  
|------------------------------------------ |  | ---------- | ------ | ---------- | ---- |  | ---------- | ------ |  | ---------- | ------------ | - |  |  | ---- | -
|                                           |  |            |        | Gross      |      |  |            |        | 
|                                           |  |            |        | unrealised |      |  | Gross      |        |  | Net        |             
|                                           |  |            |        | gains      |      |  | unrealised |        |  | unrealised |             
|                                           |  | Fair value |        |            | IFRS |  |            | losses |  |            | gains/losses |  
|                                           |  |            |        |            |      |  |            |        |  |            |              |  
|                                           |  | m         |        |            | m   |  |            | m     |  |            | m           |  
|Irish government                           |  |            | 1,972  |            |      |  | 7          |        |  |            | (1           | ) |  |  | 6    |  
|Other European government                  |  |            | 4,184  |            |      |  |           |        |  |            | (74          | ) |  |  | (74  | )
|U.S. Treasury and U.S. Government agencies |  |            | 224    |            |      |  |           |        |  |            | (1           | ) |  |  | (1   | )
|Collateralised Mortgage Obligations        |  |            | 2,242  |            |      |  | 3          |        |  |            | (1           | ) |  |  | 2    |  
|Corporate bonds                            |  |            | 23,148 |            |      |  | 20         |        |  |            | (80          | ) |  |  | (60  | )
|Other securities                           |  |            | 1,630  |            |      |  | 3          |        |  |            | (5           | ) |  |  | (2   | )
|Equities                                   |  |            | 49     |            |      |  | 11         |        |  |            |             |   |  |  | 11   |  
|                                           |  |            |        |            |      |  |            |        |  |            |              |  
|Total                                      |  |            | 33,449 |            |      |  | 44         |        |  |            | (162         | ) |  |  | (118 | )
|                                           |  |            |        |            |      |  |            |        |  |            |              |  

F-133



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|   |           
|-- | ----------
|49 | GUARANTEES



Financial Guarantees






Standby letters of credit




Other guarantees









|   |              
|-- | -------------
|50 | CONSOLIDATION











| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Bank of Ireland provides investment advisory services and a
    liquidity facility to a company involved in a commercial paper
    conduit program. The company purchases publicly rated marketable
    investment securities with initial minimum ratings of Aa3/ AA-
    by Moodys/ S&P. The company funds the purchase of the
    securities by way of an uncommitted loan from a Delaware
    incorporated company (known as a multi-seller conduit) which in
    turn issues commercial paper to investors in the U.S. and
    European commercial paper markets. A U.S. bank administers the
    day-to-day operations of the company and the multi-seller
    conduit. The U.S. bank is also responsible for arranging the
    issuance of the commercial paper by the multi-seller conduit.
    The Bank does not sell its own assets to this company. As of
    June 29, 2007, the commercial paper issued by the
    multi-seller conduit is currently rated
    P-1/A-1 by
    Moodys/S&P.

F-134



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                           
|-- | --------------------------
|50 | CONSOLIDATION  (continued)



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As of March 31, 2007, the Group had an outstanding undrawn
    liquidity facility to the company amounting to
    U.S.$581.4 million. Based on the company acquiring further
    high quality publicly rated marketable investment securities
    (with initial minimum ratings of Aa3/ AA- by Moodys/
    S&P), the liquidity facility provided by the Group to the
    company could increase to a current maximum of
    U.S.$1.03 billion. The Groups maximum exposure to
    loss, in the highly unlikely event of non-performance of the
    entire portfolio of assets in the company, is represented by the
    contractual amount of the facility.



|   |          
|-- | ---------
|B) | Partholon



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Group has sold a pool of leveraged acquisition finance loan
    assets to Partholon CDO 1 plc (Partholon), which is
    incorporated under the Irish Companies Acts, 1963 to 2006 and is
    registered and operates in the Republic of Ireland. Partholon
    has issued a series of loan notes to finance this purchase. The
    Group holds 25% of the subordinated loan notes but does not own,
    directly or indirectly, any of the share capital of Partholon,
    which is owned by a charitable trust. The Group also holds
    5 million
    of AAA-rated loan notes in Partholon, which it intends to hold
    until maturity.
|
| | Under the terms of separate agreements the Group manages the
    assets of Partholon, including identification of additional
    assets for acquisition, for which it receives fees.                                                                                                                                                                                                                                                                                                                                                                                                                                                             



|   |                   
|-- | ------------------
|C) | Kildare Securities



| |                                                                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Kildare Securities Limited is a special purpose company which
    was established for the purpose of acquiring mortgage loans or
    other financial assets and issuing asset backed securities.
    Aggregate balances of the mortgages at issue is
    3 billion,
    equal to the value of asset backed securities.
|
| | These mortgages, which are included on the consolidated balance
    sheet at March 31, 2007, are collateral for the obligations
    of Kildare Securities Limited. The creditors of Kildare
    Securities Limited have no recourse to the general credit of the
    Group.                                            



|   |                                                                    
|-- | -------------------------------------------------------------------
|D) | Brunel Residential Mortgage Securitisation No. 1 plc
    (Brunel)



| |                                                                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Brunel is a special purpose company which was established for
    the purpose of acquiring mortgage loans or other financial
    assets and issuing asset backed securities. Aggregate balances
    of the mortgages at issue were Stg£5.5 billion
    (8 billion),
    equal to the value of asset backed securities.
|
| | These mortgages, which are included on the consolidated balance
    sheet at March 31, 2007, are collateral for the obligations
    of Brunel. The creditors of Brunel have no recourse to the
    general credit of the Group.                                                                                        






|   |                                                               
|-- | --------------------------------------------------------------
|51 | THE COURT OF DIRECTORS APPROVED THE 20-F ON JULY 16,
    2007.

F-135



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##### Table of Contents



BANK OF IRELAND GROUP


SIGNATURES


20-F




| |                                                                                       
| | --------------------------------------------------------------------------------------
| | The Governor and Company of the Bank of Ireland 
     (Registrant) Date: July 24, 2007



| |     |                     
| | --- | --------------------
| | By: | /s/ Brian
    Goggin

| |                              
| | -----------------------------
| |                              
| | Name: Brian Goggin           
| | Title:  Group Chief Executive



| |     |                       
| | --- | ----------------------
| | By: | /s/ John
    ODonovan

| |                                      
| | -------------------------------------
| |                                      
| | Name: John ODonovan                 
| | Title:  Group Chief Financial Officer

F-136