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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, 2005
|OR                                      
|                                         |  | o |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934                                                                             
|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                                                                                                                        
|                                        
|                                         |  |   |  | If this is an annual report, indicate by check mark whether the
    registrant is a shell company (as defined in Rule 12b-2 of
    the Exchange
    Act).  Yes o     No o
|                                        
|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]










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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  | 
|     |  | Summary Information                                                      |  |      | 7  | 
|     |  | Part I                                                                   |  |      |    | 
|1    |  | Identity of Directors, Senior
    Management & Advisors (not applicable) |  |      | 10 | 
|2    |  | Offer Statistics & Expected
    Timetable (not applicable)               |  |      | 10 | 
|3    |  | Key Information                                                          |  |      | 10 | 
|     |  | Selected Financial Data                                                  |  |      | 10 | 
|     |  | Risk Factors                                                             |  |      | 15 | 
|4    |  | Information on the Company                                               |  |      | 16 | 
|     |  | General                                                                  |  |      | 16 | 
|     |  | Principal Capital Expenditures and
    Divestitures                      |  |      | 16 | 
|     |  | Recent Developments                                                      |  |      | 17 | 
|     |  | Business Overview                                                        |  |      | 18 | 
|     |  | Strategy                                                                 |  |      | 18 | 
|     |  | Corporate Structure                                                      |  |      | 19 | 
|     |  | Description of Property                                                  |  |      | 23 | 
|     |  | Competition                                                              |  |      | 24 | 
|     |  | Supervision and Regulation                                               |  |      | 25 | 
|     |  | The Irish Economy                                                        |  |      | 29 | 
|5    |  | Operating & Financial Review
    and Prospects                           |  |      | 29 | 
|     |  | Critical Accounting Policies                                             |  |      | 29 | 
|     |  | Liquidity and Capital Resources                                          |  |      | 32 | 
|     |  | Analysis of Results of Operations                                        |  |      | 34 | 
|     |  | Average Balance Sheet and Interest Rates                                 |  |      | 47 | 
|     |  | Description of Assets and
    Liabilities                                |  |      | 50 | 
|6    |  | Directors, Senior Management and
    Employees                           |  |      | 68 | 
|     |  | Directors and Senior Management                                          |  |      | 68 | 
|     |  | Remuneration of Directors and Officers                                   |  |      | 71 | 
|     |  | Corporate Governance Statement                                           |  |      | 74 | 
|     |  | Court of Directors                                                       |  |      | 74 | 
|     |  | Court Committees                                                         |  |      | 79 | 
|     |  | Employees                                                                |  |      | 80 | 
|     |  | Stock options                                                            |  |      | 81 | 
|7    |  | Major Stockholders and Related Party
    Transactions                    |  |      | 82 | 
|     |  | Control of Registrant                                                    |  |      | 82 | 
|     |  | Related Party Transactions                                               |  |      | 83 | 
|     |  | Description of US stockholders                                           |  |      | 83 | 
|     |  | Relations with Stockholders                                              |  |      | 83 | 

3



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|             |  |                                                                                                     |  |      |     | 
|------------ |  | --------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|             |  |                                                                                                     |  | Page |    
|             |  |                                                                                                     |  |      |    
|8            |  | Financial Information                                                                               |  |      | 84  | 
|             |  | Dividend Policy                                                                                     |  |      | 84  | 
|             |  | Legal Proceedings                                                                                   |  |      | 84  | 
|             |  | Prospective Accounting Changes                                                                      |  |      | 84  | 
|9            |  | The Offer and Listing                                                                               |  |      | 87  | 
|             |  | Nature of Trading Market                                                                            |  |      | 87  | 
|10           |  | Additional Information                                                                              |  |      | 88  | 
|             |  | Charter and Bye-Laws                                                                                |  |      | 88  | 
|             |  | Exchange controls and other limitations
    affecting security holders                              |  |      | 92  | 
|             |  | Taxation                                                                                            |  |      | 93  | 
|             |  | Documents available through the SEC                                                                 |  |      | 95  | 
|11           |  | Quantitative and Qualitative Disclosures
    about Market Risk                                      |  |      | 96  | 
|             |  | Analysis of Financial Condition                                                                     |  |      | 96  | 
|             |  | Risk Management and Control                                                                         |  |      | 98  | 
|12           |  | Description of Securities other than
    Equity Securities (not applicable)                         |  |      | 106 | 
|             |  | Part II                                                                                             |  |      |     | 
|13           |  | Defaults, Dividend Arrearages &
    Delinquencies (not applicable)                                  |  |      | 107 | 
|14           |  | Material Modifications to the Rights of
    Security Holders & Use of Proceeds (not
    applicable) |  |      | 107 | 
|15           |  | Controls and Procedures                                                                             |  |      | 107 | 
|16           |  | A. Audit Committee Financial
    Expert                                                             |  |      | 107 | 
|             |  | B. Code of Ethics                                                                                   |  |      | 107 | 
|             |  | C. Principal Accountant Fees and
    Services                                                       |  |      | 107 | 
|             |  | D. Exemptions from the Listing Standards
    for Audit Committees                                   |  |      | 108 | 
|             |  | E. Purchases of Equity Securities by the
    Issuer and Affiliated Purchasers                       |  |      | 108 | 
|             |  | Part III                                                                                            |  |      |     | 
|17           |  | Financial Statements                                                                                |  |      | 109 | 
|18           |  | Financial Statements                                                                                |  |      | 109 | 
|19           |  | Exhibits                                                                                            |  |      | 109 | 
|EX-1.2      
|EXhibit-4.3 
|EX-4.4      
|Exhibit-12.1
|Exhibit-12.2
|Exhibit-13.1
|Exhibit 13.2



4



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PRESENTATION OF INFORMATION












FORWARD-LOOKING INFORMATION







DEFINITIONS











REPORTING CURRENCY







5



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EXCHANGE RATES







|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|---------------------------------- |  | -------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                                   |  | Year ended March 31, |       
|                                   |  |                      |       
|                                   |  | 2005                 |        |  | 2004 |  |        | 2003 |  |  | 2002   |  |  | 2001 |       
|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |       
|                                   |  | (dollars per )      |       
|Euro/dollar rates:                 |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|March 31                           |  |                      | 1.2969 |  |      |  | 1.2292 |      |  |  | 1.0900 |  |  |      | 0.8717 |  |  |  | 0.8794 | 
|Average(1)                         |  |                      | 1.2653 |  |      |  | 1.1808 |      |  |  | 1.0033 |  |  |      | 0.8803 |  |  |  | 0.9069 | 
|High                               |  |                      | 1.3625 |  |      |  | 1.2848 |      |  |  | 1.1062 |  |  |      | 0.9535 |  |  |  | 0.9648 | 
|Low                                |  |                      | 1.1801 |  |      |  | 1.0621 |      |  |  | 0.8750 |  |  |      | 0.8370 |  |  |  | 0.8270 | 
|March 31 rate used by the Group(2) |  |                      | 1.2964 |  |      |  | 1.2224 |      |  |  | 1.0895 |  |  |      | 0.8724 |  |  |  | 0.8832 | 
|Average rate used by the Group(2)  |  |                      | 1.2647 |  |      |  | 1.1796 |      |  |  | 1.0051 |  |  |      | 0.8804 |  |  |  | 0.9053 | 





|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|---------------------------------- |  | -------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                                   |  | Year ended March 31, |       
|                                   |  |                      |       
|                                   |  | 2005                 |        |  | 2004 |  |        | 2003 |  |  | 2002   |  |  | 2001 |       
|                                   |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |       
|                                   |  | (STG£ per )         |       
|Euro/sterling rates:               |  |                      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|March 31 rate used by the Group(2) |  |                      | 0.6885 |  |      |  | 0.6659 |      |  |  | 0.6896 |  |  |      | 0.6130 |  |  |  | 0.6192 | 
|Average rate used by the Group(2)  |  |                      | 0.6834 |  |      |  | 0.6926 |      |  |  | 0.6460 |  |  |      | 0.6145 |  |  |  | 0.6145 | 






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

6



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SUMMARY INFORMATION


Bank of Ireland Group















|                                               |  |                                      |         |  |      |  |         |      |  |  |        | 
|---------------------------------------------- |  | ------------------------------------ | ------- |  | ---- |  | ------- | ---- |  |  | ------ | 
|                                               |  | At and for the Year Ended March 31,  |        
|                                               |  |                                      |        
|                                               |  | 2005                                 |         |  | 2004 |  |         | 2003 | 
|                                               |  |                                      |         |  |      |  |         |      | 
|                                               |  | ( millions, except per unit amounts |        
|                                               |  | and percentages)                     |        
|Profit on Ordinary Activities before taxation: |  |                                      |         |  |      |  |         |      |  |  |        | 
|Before exceptional items(1)                    |  |                                      | 1,333   |  |      |  | 1,267   |      |  |  | 1,177  | 
|After exceptional items(1)                     |  |                                      | 1,321   |  |      |  | 1,170   |      |  |  | 1,013  | 
|Profit after taxation                          |  |                                      | 1,080   |  |      |  | 962     |      |  |  | 850    | 
|Balance Sheet:                                 |  |                                      |         |  |      |  |         |      |  |  |        | 
|Total stockholders funds                      |  |                                      | 4,789   |  |      |  | 4,281   |      |  |  | 4,034  | 
|Total assets                                   |  |                                      | 126,464 |  |      |  | 106,431 |      |  |  | 89,303 | 
|Per unit of
    0.64 Ordinary
    Stock:      |  |                                      |         |  |      |  |         |      |  |  |        | 
|Earnings                                       |  |                                      | 113.9c  |  |      |  | 97.2c   |      |  |  | 83.4c  | 
|Diluted earnings                               |  |                                      | 112.9c  |  |      |  | 96.6c   |      |  |  | 82.6c  | 
|Alternative earnings(2)                        |  |                                      | 114.2c  |  |      |  | 106.7c  |      |  |  | 99.2c  | 
|Dividends                                      |  |                                      | 45.6c   |  |      |  | 41.4c   |      |  |  | 37.0c  | 
|Ratios (excluding exceptional items)           |  |                                      |         |  |      |  |         |      |  |  |        | 
|Return on average total assets(1)(3)           |  |                                      | 1.0%    |  |      |  | 1.1%    |      |  |  | 1.1%   | 
|Return on average stockholders funds(1)(4)    |  |                                      | 22.4%   |  |      |  | 23.7%   |      |  |  | 22.4%  | 
|Capital Ratios:                                |  |                                      |         |  |      |  |         |      |  |  |        | 
|Tier 1 Capital ratio                           |  |                                      | 7.6%    |  |      |  | 7.2%    |      |  |  | 8.0%   | 
|Total Capital ratio                            |  |                                      | 10.6%   |  |      |  | 11.3%   |      |  |  | 11.1%  | 

7



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|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(1) | In the year to March 31, 2005, the exceptional items
    represent the following:



| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Profit of 31m on
    the sale of the Groups 50% shareholding in EuroConex
    Technologies Limited to Nova EuroConex Holdings BV, a subsidiary
    of US Bancorp, on June 29, 2004.
|
| |  | Implementation costs of
    10m associated
    with the UKFS Business Improvement Programme.                                                                                        
|
| |  | Restructuring of the UK IFA Businesses                                                                                                                                               



| |   |                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 18, 2005, the Group completed the sale of Chase de
    Vere Financial Solutions plc and Moneyextra Mortgages Limited to
    AWD plc, part of AWD Holdings AG. The sale proceeds were
    28.4m
    (£19.4m), which after charging for certain costs and
    provisions associated with the disposal, has resulted in a net
    loss on disposal of
    20.0m
    (£13.7m).
|
| |  | Provisions released following the exit from
    leases 8m.                                                                                                                                                                                                                                                                                                                          



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The write off of goodwill associated with Venson for the
    impairment of certain assets amounted
    to 4m.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | The provision of
    117m relating to
    the Groups Strategic Transformation Progamme includes
    severance related expenditure together with other implementation
    costs, which has been provided for in accordance with Financial
    Reporting Standard 12 Provisions, Contingent Liabilities
    and Assets. Of the provided amount, in excess of
    80m is expected
    to be expended in the 2005/06 financial year although actual
    expenditure timing is uncertain. Further expenditure, in
    addition to the current provision, is expected to be incurred in
    2005/06 and in future years.
|
| |  | A special release of
    100 million
    of loan loss provisions has been made following a review of the
    loan loss provision in light of the favourable economic
    conditions and the strong quality of assets.                                                                                                                                                                                                                                                                                                                                                                                                 



| |                                                                                      
| | -------------------------------------------------------------------------------------
| | In the year ending March 31, 2004, the exceptional items
    represent the following:



| |   |                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the net proceeds of
    36 million
    on the sale of our share in the alliance between Bank of Ireland
    Securities Services and State Street Bank,                                                               
|
| |  | the write-off of the remainder of the goodwill associated with
    Chase de Vere of
    93 million
    together with some provisions of
    22 million
    for the impairment of certain assets in the IFA business,
|
| |  | additional costs of
    4 million
    incurred in relation to restructuring undertaken in previous
    years, and                                                                                                    
|
| |  | implementation costs of
    14 million
    associated with the UKFS Business Improvement Programme.                                                                                                                  



| |                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The exceptional items in the year to March 31, 2003
    represents the losses relating to the exit from two businesses,
    Active Business Services and PS Information Resource
    (IRL) Ltd and the costs associated with the rationalisation
    of the UK advice-based businesses.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Alternative earnings are included herein as in the opinion of
    the Directors it provides a more meaningful representation of
    the ongoing performance of the Group and is in accordance with
    generally accepted accounting principles in Ireland. The
    alternative earnings per share is calculated based on the profit
    attributable to the ordinary stockholders before exceptional
    items (net of tax) and goodwill amortisation (net of tax) and is
    not adjusted for the effect of all dilutive Ordinary Stock that
    potentially could be issued.



| |                                                                                                                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The calculation of basic earnings per unit is included in
    Note 12 to our Consolidated Financial Statements. Basic
    earnings per unit is calculated by dividing profit attributable
    to ordinary stockholders by the weighted average number of
    shares in issue excluding own shares held for the benefit of
    life assurance policyholders.

8



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| |                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The following table shows a reconciliation of the profit
    attributable to ordinary stockholders and to the alternative
    earnings and shows the calculation of alternative earnings per
    unit.

|                                                                                                                   |  |      |        |  |      |  |        |      |  |  |        | 
|------------------------------------------------------------------------------------------------------------------ |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                                                                                                   |  | 2005 |        |  | 2004 |  |        | 2003 | 
|                                                                                                                   |  |      |        |  |      |  |        |      | 
|Profit attributable to ordinary stockholders                                                                       |  |      | 1,073  |  |      |  | 935    |      |  |  | 826    | 
|Exceptional items (see Note 7, 9 and 16)                                                                           |  |      | 10     |  |      |  | 96     |      |  |  | 153    | 
|Goodwill amortisation (see Note 21)                                                                                |  |      | 20     |  |      |  | 15     |      |  |  | 20     | 
|                                                                                                                   |  |      |        |  |      |  |        |      | 
|Alternative earnings                                                                                               |  |      | 1,103  |  |      |  | 1,046  |      |  |  | 999    | 
|                                                                                                                   |  |      |        |  |      |  |        |      | 
|Weighted average number of shares in issue excluding own shares
    held for the benefit                           |  |      |        |  |      |  |        |      |  |  |        | 
|of life assurance policyholders                                                                                    |  |      | 942m   |  |      |  | 961m   |      |  |  | 991m   | 
|Weighted average ordinary shares held for                                                                          |  |      |        |  |      |  |        |      |  |  |        | 
|the benefit of life assurance policyholders                                                                        |  |      | 24m    |  |      |  | 19m    |      |  |  | 17m    | 
|                                                                                                                   |  |      |        |  |      |  |        |      | 
|Weighted average ordinary shares in issue including own shares
    for the benefit of life assurance policyholders |  |      | 966m   |  |      |  | 980m   |      |  |  | 1,008m | 
|                                                                                                                   |  |      |        |  |      |  |        |      | 
|Alternative earnings per unit                                                                                      |  |      | 114.2c |  |      |  | 106.7c |      |  |  | 99.2c  | 
|                                                                                                                   |  |      |        |  |      |  |        |      | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Return on average total assets represents the profit
    attributable to the ordinary stockholders, before exceptional
    items and goodwill in the financial years ended March 31,
    2005, 2004 and 2003, as a percentage of average total assets.
    The Groups management believes that the return on average
    total assets provide valuable information to readers of its
    financial statements because it enables the reader to focus more
    directly on the underlying performance of the Groups
    businesses and this measure also reflects an important way in
    which performance is monitored by the Groups management.
    However, while management believes this measure is useful in the
    evaluation of the Groups performance, it should not be
    viewed as a replacement for, but rather as complementary to, the
    most directly comparable GAAP measure, which is the return on
    average total assets representing the profit attributable to the
    ordinary stockholders after exceptional items and goodwill.

|                                             |  |      |         |  |      |  |        |      |  |  |        | 
|-------------------------------------------- |  | ---- | ------- |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                             |  | 2005 |         |  | 2004 |  |        | 2003 | 
|                                             |  |      |         |  |      |  |        |      | 
|Profit attributable to ordinary stockholders |  |      | 1,073   |  |      |  | 935    |      |  |  | 826    | 
|Exceptional items                            |  |      | 10      |  |      |  | 96     |      |  |  | 153    | 
|Goodwill amortisation                        |  |      | 20      |  |      |  | 15     |      |  |  | 20     | 
|                                             |  |      |         |  |      |  |        |      | 
|                                             |  |      | 1,103   |  |      |  | 1,046  |      |  |  | 999    | 
|                                             |  |      |         |  |      |  |        |      | 
|Average total Assets                         |  |      | 115,964 |  |      |  | 97,623 |      |  |  | 89,054 | 
|                                             |  |      |         |  |      |  |        |      | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Return on average stockholders funds represents profit
    attributable to the ordinary stockholders, before exceptional
    items and goodwill as outlined in Note (3) above, in the
    financial years ended March 31, 2005, 2004 and 2003, as a
    percentage of average stockholders funds, excluding
    non-equity interests (2005:
    65.3 million,
    2004:
    64.9 million,
    2003:
    66.8 million).
    The Groups management believes that the return on average
    stockholders funds provides valuable information to
    readers of its financial statements because it enables the
    reader to focus more directly on the underlying performance of
    the Groups businesses and this measure also reflects an
    important way in which performance is monitored by the
    Groups management. However, while management believes this
    measure is useful in the evaluation of the Groups
    performance, it should not be viewed as a replacement for, but
    rather as complementary to, the most directly comparable GAAP
    measure, which is the return on average stockholders funds
    representing profit attributable to ordinary stockholders, after
    exceptional items and goodwill.

9



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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








10



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SELECTED CONSOLIDATED FINANCIAL DATA


|                                                                       |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|---------------------------------------------------------------------- |  | --------------------------------------------- | ------- | - | -------------------------------------------------------- |  | ------- | ---- |  |  | ------- | - |  | ---- | ------ | - | ---- |  | ------ | - |  |  | ------ | -
|                                                                       |  | At and for the Financial Year Ended March 31, |        
|                                                                       |  |                                               |        
|                                                                       |  | 2005(1)                                       |         |   | 2005                                                     |  |         | 2004 |  |  | 2003    |   |  | 2002 |        |   | 2001 | 
|                                                                       |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      | 
|                                                                       |  | $m                                            |         |   | (in  millions, except per unit amounts and percentages) | 
|Income Statement Data                                                  |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Amounts in accordance with Irish GAAP:                                 |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Interest receivable and similar income                                 |  |                                               | 5,096   |   |                                                          |  | 4,179   |      |  |  | 3,631   |   |  |      | 3,691  |   |      |  | 3,980  |   |  |  | 4,055  |  
|Interest payable and similar charges                                   |  |                                               | 2,782   |   |                                                          |  | 2,281   |      |  |  | 1,887   |   |  |      | 1,962  |   |      |  | 2,402  |   |  |  | 2,633  |  
|Net interest income                                                    |  |                                               | 2,315   |   |                                                          |  | 1,898   |      |  |  | 1,744   |   |  |      | 1,729  |   |      |  | 1,578  |   |  |  | 1,422  |  
|Provision for bad and doubtful debts                                   |  |                                               | 96      |   |                                                          |  | 79      |      |  |  | 86      |   |  |      | 100    |   |      |  | 102    |   |  |  | 72     |  
|Other income                                                           |  |                                               | 1,555   |   |                                                          |  | 1,275   |      |  |  | 1,234   |   |  |      | 1,188  |   |      |  | 1,227  |   |  |  | 1,115  |  
|Operating expenses                                                     |  |                                               | 2,204   |   |                                                          |  | 1,807   |      |  |  | 1,654   |   |  |      | 1,662  |   |      |  | 1,582  |   |  |  | 1,387  |  
|Income from associated undertakings and joint ventures                 |  |                                               | 56      |   |                                                          |  | 46      |      |  |  | 29      |   |  |      | 22     |   |      |  | 1      |   |  |  | 7      |  
|Profit from ordinary activities before exceptional items               |  |                                               | 1,626   |   |                                                          |  | 1,333   |      |  |  | 1,267   |   |  |      | 1,177  |   |      |  | 1,122  |   |  |  | 1,085  |  
|Exceptional items(3)                                                   |  |                                               | (15     | ) |                                                          |  | (12     | )    |  |  | (97     | ) |  |      | (164   | ) |      |  | (37    | ) |  |  | (93    | )
|Profit before taxation                                                 |  |                                               | 1,611   |   |                                                          |  | 1,321   |      |  |  | 1,170   |   |  |      | 1,013  |   |      |  | 1,085  |   |  |  | 992    |  
|Taxation on income from ordinary activities                            |  |                                               | 294     |   |                                                          |  | 241     |      |  |  | 208     |   |  |      | 163    |   |      |  | 165    |   |  |  | 190    |  
|Deposit Interest Retention Tax(3)                                      |  |                                               |        |   |                                                          |  |        |      |  |  |        |   |  |      |       |   |      |  |       |   |  |  | 35     |  
|Minority interests  equity                                            |  |                                               | (9      | ) |                                                          |  | (7      | )    |  |  | 13      |   |  |      | 9      |   |      |  | 2      |   |  |  | 3      |  
|
    non equity                                                       |  |                                               | 7       |   |                                                          |  | 6       |      |  |  | 6       |   |  |      | 6      |   |      |  | 6      |   |  |  | 7      |  
|Non-cumulative preference stock dividend                               |  |                                               | 10      |   |                                                          |  | 8       |      |  |  | 8       |   |  |      | 9      |   |      |  | 17     |   |  |  | 26     |  
|Profit attributable to holders of ordinary stock                       |  |                                               | 1,309   |   |                                                          |  | 1,073   |      |  |  | 935     |   |  |      | 826    |   |      |  | 895    |   |  |  | 731    |  
|Per Unit of Ordinary Stock                                             |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Income attributable to holders of ordinary stock                       |  |                                               | 138.9c  |   |                                                          |  | 113.9c  |      |  |  | 97.2c   |   |  |      | 83.4c  |   |      |  | 90.4c  |   |  |  | 74.6c  |  
|Alternative income attributable to holders of ordinary stock(4)        |  |                                               | 139.3c  |   |                                                          |  | 114.2c  |      |  |  | 106.7c  |   |  |      | 99.2c  |   |      |  | 93.4c  |   |  |  | 84.5c  |  
|Dividends(2)                                                           |  |                                               | 55.6c   |   |                                                          |  | 45.6c   |      |  |  | 41.4c   |   |  |      | 37.0c  |   |      |  | 33.0c  |   |  |  | 29.0c  |  
|Amounts in accordance with U.S. GAAP:                                  |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Net income attributable to holders of ordinary stock:                  |  |                                               | 993     |   |                                                          |  | 814     |      |  |  | 892     |   |  |      | 767    |   |      |  | 667    |   |  |  | 689    |  
|Net income per unit of ordinary stock                                  |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Basic                                                                  |  |                                               | 105.4c  |   |                                                          |  | 86.4c   |      |  |  | 92.8c   |   |  |      | 77.4c  |   |      |  | 67.3c  |   |  |  | 70.3c  |  
|Diluted                                                                |  |                                               | 104.5c  |   |                                                          |  | 85.7c   |      |  |  | 92.2c   |   |  |      | 76.7c  |   |      |  | 66.7c  |   |  |  | 69.7c  |  
|Number of shares used in EPS calculation (in millions)                 |  |                                               | 942     |   |                                                          |  | 942     |      |  |  | 961     |   |  |      | 991    |   |      |  | 990    |   |  |  | 980    |  
|Number of shares used in Alternative EPS calculation
    (in millions) |  |                                               | 966     |   |                                                          |  | 966     |      |  |  | 980     |   |  |      | 1,008  |   |      |  | 1,006  |   |  |  | 997    |  
|Balance Sheet Data                                                     |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Amounts in accordance with Irish GAAP:                                 |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Total assets                                                           |  |                                               | 154,223 |   |                                                          |  | 126,464 |      |  |  | 106,431 |   |  |      | 89,303 |   |      |  | 87,092 |   |  |  | 78,695 |  
|Loans and advances to customers                                        |  |                                               | 97,459  |   |                                                          |  | 79,917  |      |  |  | 67,540  |   |  |      | 56,887 |   |      |  | 56,577 |   |  |  | 51,147 |  
|Loans and advances to banks                                            |  |                                               | 9,491   |   |                                                          |  | 7,783   |      |  |  | 7,753   |   |  |      | 7,480  |   |      |  | 8,385  |   |  |  | 8,115  |  
|Allowance for loan losses                                              |  |                                               | 389     |   |                                                          |  | 319     |      |  |  | 472     |   |  |      | 480    |   |      |  | 500    |   |  |  | 430    |  
|Deposits by Banks                                                      |  |                                               | 24,700  |   |                                                          |  | 20,254  |      |  |  | 17,060  |   |  |      | 12,617 |   |      |  | 12,583 |   |  |  | 11,664 |  
|Customer Accounts                                                      |  |                                               | 73,493  |   |                                                          |  | 60,265  |      |  |  | 54,395  |   |  |      | 48,496 |   |      |  | 51,111 |   |  |  | 45,630 |  
|Debt Securities in issue                                               |  |                                               | 25,047  |   |                                                          |  | 20,539  |      |  |  | 12,917  |   |  |      | 9,652  |   |      |  | 6,374  |   |  |  | 5,016  |  
|Dated capital notes                                                    |  |                                               | 2,568   |   |                                                          |  | 2,106   |      |  |  | 2,259   |   |  |      | 1,290  |   |      |  | 1,559  |   |  |  | 1,549  |  
|Undated capital notes                                                  |  |                                               | 2,415   |   |                                                          |  | 1,980   |      |  |  | 1,423   |   |  |      | 1,413  |   |      |  | 965    |   |  |  | 961    |  
|Minority interests  equity                                            |  |                                               | 76      |   |                                                          |  | 62      |      |  |  | 54      |   |  |      | 54     |   |      |  | 91     |   |  |  | 5      |  
|
    non equity                                                       |  |                                               | 89      |   |                                                          |  | 73      |      |  |  | 76      |   |  |      | 73     |   |      |  | 82     |   |  |  | 81     |  
|Called up capital stock                                                |  |                                               | 809     |   |                                                          |  | 663     |      |  |  | 679     |   |  |      | 679    |   |      |  | 679    |   |  |  | 691    |  
|Reserves                                                               |  |                                               | 5,032   |   |                                                          |  | 4,126   |      |  |  | 3,602   |   |  |      | 3,355  |   |      |  | 3,398  |   |  |  | 3,033  |  
|Total stockholders funds including non-equity interests               |  |                                               | 5,840   |   |                                                          |  | 4,789   |      |  |  | 4,281   |   |  |      | 4,034  |   |      |  | 4,077  |   |  |  | 3,724  |  
|Amounts in accordance with U.S. GAAP:                                  |  |                                               |         |   |                                                          |  |         |      |  |  |         |   |  |      |        |   |      |  |        |   |  |  |        |  
|Stockholders equity                                                   |  |                                               | 5,526   |   |                                                          |  | 4,531   |      |  |  | 4,318   |   |  |      | 4,063  |   |      |  | 4,157  |   |  |  | 4,035  |  
|Total assets                                                           |  |                                               | 155,544 |   |                                                          |  | 127,547 |      |  |  | 108,349 |   |  |      | 91,386 |   |      |  | 88,542 |   |  |  | 79,903 |  

11



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##### Table of Contents



|                                                             |  |                                               |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|------------------------------------------------------------ |  | --------------------------------------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- |  |  | ---- | ---- |  |  |  | ---- | 
|                                                             |  | At and For the Financial Year Ended March 31, |     
|                                                             |  |                                               |     
|                                                             |  | 2005                                          |      |  | 2004 |  |      | 2003 |  |  | 2002 |  |  | 2001 |     
|                                                             |  |                                               |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                                             |  | (in percentages)                              |     
|Other Financial Data                                         |  |                                               |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Return on average total assets(5)                            |  |                                               | 1.0  |  |      |  | 1.1  |      |  |  | 1.1  |  |  |      | 1.1  |  |  |  | 1.1  | 
|Return on average stockholders funds(6)                     |  |                                               | 22.4 |  |      |  | 23.7 |      |  |  | 22.4 |  |  |      | 24.0 |  |  |  | 24.8 | 
|Net interest margin(7)                                       |  |                                               | 2.0  |  |      |  | 2.2  |      |  |  | 2.3  |  |  |      | 2.3  |  |  |  | 2.3  | 
|Net interest margin, tax equivalent basis(8)                 |  |                                               | 2.0  |  |      |  | 2.2  |      |  |  | 2.4  |  |  |      | 2.3  |  |  |  | 2.4  | 
|Cost/income ratio(9)                                         |  |                                               | 55   |  |      |  | 54   |      |  |  | 56   |  |  |      | 56   |  |  |  | 54   | 
|Allowance for loan losses to total loans                     |  |                                               | 0.4  |  |      |  | 0.7  |      |  |  | 0.8  |  |  |      | 0.9  |  |  |  | 0.8  | 
|Provisions for bad and doubtful debts to average total loans |  |                                               | 0.1  |  |      |  | 0.1  |      |  |  | 0.2  |  |  |      | 0.2  |  |  |  | 0.2  | 
|Tier 1 capital ratio(10)                                     |  |                                               | 7.6  |  |      |  | 7.2  |      |  |  | 8.0  |  |  |      | 7.6  |  |  |  | 7.8  | 
|Total capital ratio(10)                                      |  |                                               | 10.6 |  |      |  | 11.3 |      |  |  | 11.1 |  |  |      | 11.5 |  |  |  | 12.4 | 
|Average stockholders equity to average total assets(11)     |  |                                               | 3.7  |  |      |  | 4.0  |      |  |  | 4.3  |  |  |      | 4.4  |  |  |  | 4.2  | 
|Dividend payout ratio                                        |  |                                               | 40   |  |      |  | 39   |      |  |  | 37   |  |  |      | 35   |  |  |  | 34   | 






|    |                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------
|(1) | Translated solely for convenience into dollars at
    1.00 = U.S.$ 1.2195,
    the Noon Buying Rate on August 1, 2005.     
|   
|(2) | See Item 8 Financial Information  Dividend
    Policy for details of dividends per unit of Ordinary Stock
    in dollars.
|   
|(3) | In the year to March 31, 2005, the exceptional items
    represent the following:                                           



| |   |                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Profit of 31m on
    the sale of the Groups 50% shareholding in EuroConex
    Technologies Limited to Nova EuroConex Holdings BV, a subsidiary
    of US Bancorp, on June 29, 2004.
|
| |  | Implementation costs of
    10m associated
    with the UKFS Business Improvement Programme.                                                                                        
|
| |  | Restructuring of the UK IFA Businesses                                                                                                                                               



| |   |                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 18, 2005, the Group completed the sale of Chase de
    Vere Financial Solutions plc and Moneyextra Mortgages Limited to
    AWD plc, part of AWD Holdings AG. The sale proceeds
    were 28.4m
    (£19.4m), which after charging for certain costs and
    provisions associated with the disposal, has resulted in a net
    loss on disposal of
    20.0m
    (£13.7m).
|
| |  | Provisions released following the exit from leases
    8m.                                                                                                                                                                                                                                                                                                                          



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The write off of goodwill associated with Venson for the
    impairment of certain assets amounted
    to 4m.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | The provision of
    117m relating to
    the Groups Strategic Transformation Programme includes
    severance related expenditure together with other implementation
    costs, which has been provided for in accordance with Financial
    Reporting Standard 12 Provisions, Contingent Liabilities
    and Assets. Of the provided amount, in excess of
    80m is expected
    to be expended in the 2005/06 financial year although actual
    expenditure timing is uncertain. Further expenditure, in
    addition to the current provision, is expected to be incurred in
    2005/06 and in future years.
|
| |  | A special release of
    100 million
    of loan loss provisions has been made following a review of the
    loan loss provision in light of the favourable economic
    conditions and the strong quality of assets.                                                                                                                                                                                                                                                                                                                                                                                                  





| |   |                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the net proceeds of
    36 million
    on the sale of our share in the alliance between Bank of Ireland
    Securities Services and State Street Bank,                                                               
|
| |  | the write-off of the remainder of the goodwill associated with
    Chase de Vere of
    93 million
    together with some provisions of
    22 million
    for the impairment of certain assets in the IFA business.
|
| |  | additional costs of
    4 million
    incurred in relation to restructuring undertaken in previous
    years.                                                                                                        
|
| |  | implementation costs of
    14 million
    associated with the UKFS Business Improvement Programme.                                                                                                                  

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##### Table of Contents







|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Alternative earnings is included herein as in the opinion of the
    Directors it provides a more meaningful representation of the
    ongoing performance of the Group and is in accordance with
    generally accepted accounting principles in Ireland. The
    alternative earnings per share is calculated based on the profit
    attributable to the ordinary stockholders before exceptional
    items (2005:
    10 million,
    2004:
    96 million,
    2003:
    153 million,
    2002:
    30 million,
    2001:
    104 million)
    and goodwill amortisation (2005:
    20 million,
    2004:
    15 million,
    2003:
    20 million,
    2002:
    14 million,
    2001:
    7 million)
    and is not adjusted for the effect of all dilutive potential
    Ordinary Stock.  See Note (2) on pages 8
    and 9 for a reconciliation of alternative earnings per
    share to basic earnings per share.
|   
|(5) | Return on average total assets represents profit attributable to
    the ordinary stockholders, before exceptional items and goodwill
    amortisation as outlined in Note (3) in the Summary
    Information section above, 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.                                                                                                                                                                                                                                                                                                       
|   
|(6) | Return on average stockholders funds represents profit
    attributable to the ordinary stockholders, before exceptional
    items as outlined in Note (4) in the Summary Information
    section above as a percentage of average stockholders
    funds, excluding non-equity interests (2005:
    65.3 million,
    2004:
    64.9 million,
    2003:
    66.8 million,
    2002:
    136.5 million
    and 2001:
    212.8 million).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(7) | Net interest margin represents net interest income as a
    percentage of average interest earning assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(8) | Net interest margin on a tax equivalent basis includes an
    adjustment to reflect tax benefits received by the Group in
    return for undertaking certain lending (tax-based
    lending) at rates which differ from normal market rates in
    return for tax relief arising from various incentives and
    reliefs. The net interest margin is reduced as a result of such
    lending activity and this tax-equivalent adjustment reflects the
    tax savings associated with such activity.                                                                                                                                                                                                                                                                                                                                                                                                                                

|                       |  |      |        |  |      |  |        |      |  |  |        |  |  |      |        |  |  |  |        | 
|---------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ |  |  | ---- | ------ |  |  |  | ------ | 
|                       |  | 2005 |        |  | 2004 |  |        | 2003 |  |  | 2002   |  |  | 2001 |       
|                       |  |      |        |  |      |  |        |      |  |  |        |  |  |      |       
|Net Interest Income    |  |      | 1,898  |  |      |  | 1,744  |      |  |  | 1,729  |  |  |      | 1,578  |  |  |  | 1,422  | 
|Grossing up            |  |      | 14     |  |      |  | 35     |      |  |  | 27     |  |  |      | 36     |  |  |  | 36     | 
|                       |  |      |        |  |      |  |        |      |  |  |        |  |  |      |       
|                       |  |      | 1,912  |  |      |  | 1,779  |      |  |  | 1,756  |  |  |      | 1,614  |  |  |  | 1,458  | 
|                       |  |      |        |  |      |  |        |      |  |  |        |  |  |      |       
|Average Earning Assets |  |      | 95,226 |  |      |  | 80,672 |      |  |  | 73,810 |  |  |      | 69,904 |  |  |  | 61,279 | 
|                       |  |      |        |  |      |  |        |      |  |  |        |  |  |      |       





|    |                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(9) | The cost/ income ratio is determined by dividing the total
    expenses before goodwill amortisation of the Group by the total
    income of the Group including income from associates and joint
    ventures.

13



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##### Table of Contents



|                      |  |      |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|--------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- |  |  | ---- | ----- |  |  |  | ----- | 
|                      |  | 2005 |       |  | 2004 |  |       | 2003 |  |  | 2002  |  |  | 2001 |      
|                      |  |      |       |  |      |  |       |      |  |  |       |  |  |      |      
|Total costs           |  |      | 1,924 |  |      |  | 1,654 |      |  |  | 1,662 |  |  |      | 1,582 |  |  |  | 1,387 | 
|Goodwill amortisation |  |      | 25    |  |      |  | 19    |      |  |  | 23    |  |  |      | 15    |  |  |  | 7     | 
|                      |  |      |       |  |      |  |       |      |  |  |       |  |  |      |      
|                      |  |      | 1,899 |  |      |  | 1,635 |      |  |  | 1,639 |  |  |      | 1,567 |  |  |  | 1,380 | 
|                      |  |      |       |  |      |  |       |      |  |  |       |  |  |      |      
|Total Income          |  |      | 3,219 |  |      |  | 3,007 |      |  |  | 2,939 |  |  |      | 2,806 |  |  |  | 2,544 | 
|                      |  |      |       |  |      |  |       |      |  |  |       |  |  |      |      





|     |                                                                                                                                                                                                                                                                  
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | 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.
|    
|(11) | Average stockholders equity includes non-equity interests.                                                                                                                                                                                                      

14



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##### Table of Contents






RISK FACTORS




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




Market risks associated with fluctuations in interest rates,
foreign exchange rates, bond and equity prices and other market
factors 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.




15



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##### Table of Contents



Risks associated with strategic decisions regarding organic
growth, the competitive environment and potential
acquisitions.




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




Burdale Financial Holdings Limited





Iridian Asset Management LLC





16



---



##### Table of Contents



Foreign Currency Exchange Corp.





Iridian Asset Management LLC


 


Divestitures




EuroConex Technologies Limited





Chase de Vere Financial Solutions plc and Moneyextra
Mortgages Limited


 


State Street Bank





Active Business Services





Perot Systems








RECENT DEVELOPMENTS




|  |                                          
|- | -----------------------------------------
| | Transfer of Bristol & West Branch Network



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On May 24, 2005 Bank of Ireland announced that it had
    signed an agreement for the sale of its Bristol & West
    branch network and associated deposit base to Britannia Building
    Society for approximately £150 million (c.
    218 million).
    The consideration may be subject to certain adjustments and is
    payable in cash on completion. The sale will be effected through
    a business transfer scheme under the Financial Services and
    Marketing Act 2000 and is subject to approval by the UK Courts
    and the Financial Services Authority. Completion is expected to
    occur in the autumn. Bank of Ireland will retain the Bristol
    & West brand and all other parts of the Bristol & West
    business.



|  |                                                                              
|- | -----------------------------------------------------------------------------
| | Revised Reporting Lines as part of the Strategic Transformation
    Programme



| |                                                                                                                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On June 15, 2005 a different organisation structure was
    announced based on the implementation of our Strategic
    Transformation Programme. An important area of focus within our
    Group Strategy is the creation of an internationally competitive
    manufacturing and support platform, delivering cost efficiency
    and making

17



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| |                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the organisation scalable and flexible to meet future
    challenges. Some changes to reporting lines are required in
    order to bring together some of the core building blocks of our
    future Manufacturing Organisation and enable future change.
|
| | The provision of professional support services on a Group-wide
    basis is one of the fundamental principles of our Strategic
    Transformation Programme including HR & Learning, and
    Finance, Groupwide.                                         



|  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A 10bn Mortgage
    Covered Securities Programme was established on May 23,
    2005 and on June 22, 2005
    2bn of 10-year
    securities were issued off this programme (it should be noted
    that prior to the establishment of the programme in September
    2004 2bn of
    mortgage covered securities were issued on a stand alone basis).
    On June 29, 2005
    600m
    Subordinated floating rate notes were issued, due 2017.




BUSINESS OVERVIEW













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.



   


18



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CORPORATE STRUCTURE






|                                                         |  |                                        |       |   |   |  |     |      |  |  |       |   |  |      |     |   |   |  |       |   |  |  |     |  
|-------------------------------------------------------- |  | -------------------------------------- | ----- | - | - |  | --- | ---- |  |  | ----- | - |  | ---- | --- | - | - |  | ----- | - |  |  | --- | -
|                                                         |  | For the Financial Year Ended March 31, |      
|                                                         |  |                                        |      
|                                                         |  | 2005                                   |       |   | % |  |     | 2004 |  |  | %     |   |  | 2003 |     |   | % | 
|                                                         |  |                                        |       |   |   |  |     |      |  |  |       |   |  |      |     |   |   | 
|                                                         |  | (in  millions, except percentages)    |      
|Income Before Tax                                        |  |                                        |       |   |   |  |     |      |  |  |       |   |  |      |     |   |   |  |       |   |  |  |     |  
|Retail Republic of Ireland                               |  |                                        | 490   |   |   |  | 37  |      |  |  | 419   |   |  |      | 33  |   |   |  | 390   |   |  |  | 33  |  
|Bank of Ireland Life                                     |  |                                        | 135   |   |   |  | 10  |      |  |  | 147   |   |  |      | 12  |   |   |  | 87    |   |  |  | 7   |  
|Wholesale Financial Services                             |  |                                        | 407   |   |   |  | 30  |      |  |  | 371   |   |  |      | 29  |   |   |  | 367   |   |  |  | 31  |  
|UK Financial Services                                    |  |                                        | 388   |   |   |  | 29  |      |  |  | 373   |   |  |      | 29  |   |   |  | 359   |   |  |  | 31  |  
|Asset Management Services                                |  |                                        | 115   |   |   |  | 9   |      |  |  | 125   |   |  |      | 10  |   |   |  | 113   |   |  |  | 10  |  
|UK Post Office Financial Services                        |  |                                        | (55   | ) |   |  | (4  | )    |  |  | (3    | ) |  |      |    |   |   |  |      |   |  |  |    |  
|Group and Central                                        |  |                                        | (128  | ) |   |  | (10 | )    |  |  | (115  | ) |  |      | (9  | ) |   |  | (85   | ) |  |  | (7  | )
|Tax equivalent adjustment(1)                             |  |                                        | (19   | ) |   |  | (1  | )    |  |  | (50   | ) |  |      | (4  | ) |   |  | (54   | ) |  |  | (5  | )
|                                                         |  |                                        |       |   |   |  |     |      |  |  |       |   |  |      |     |   |   | 
|Income from ordinary activities before exceptional items |  |                                        | 1,333 |   |   |  | 100 |      |  |  | 1,267 |   |  |      | 100 |   |   |  | 1,177 |   |  |  | 100 |  
|Exceptional items                                        |  |                                        | (12   | ) |   |  |    |      |  |  | (97   | ) |  |      |    |   |   |  | (164  | ) |  |  |    |  
|                                                         |  |                                        |       |   |   |  |     |      |  |  |       |   |  |      |     |   |   | 
|Income before taxation                                   |  |                                        | 1,321 |   |   |  | 100 |      |  |  | 1,170 |   |  |      | 100 |   |   |  | 1,013 |   |  |  | 100 |  
|                                                         |  |                                        |       |   |   |  |     |      |  |  |       |   |  |      |     |   |   | 

|                                  |  |                                     |         |  |   |  |     |      |  |  |         |  |  |      |     |  |   |  |         |  |  |  |     | 
|--------------------------------- |  | ----------------------------------- | ------- |  | - |  | --- | ---- |  |  | ------- |  |  | ---- | --- |  | - |  | ------- |  |  |  | --- | 
|                                  |  | At March 31,                        |        
|                                  |  |                                     |        
|                                  |  | 2005                                |         |  | % |  |     | 2004 |  |  | %       |  |  | 2003 |     |  | % | 
|                                  |  |                                     |         |  |   |  |     |      |  |  |         |  |  |      |     |  |   | 
|                                  |  | (in  millions, except percentages) |        
|Assets                            |  |                                     |         |  |   |  |     |      |  |  |         |  |  |      |     |  |   |  |         |  |  |  |     | 
|Retail Republic of Ireland        |  |                                     | 57,609  |  |   |  | 25  |      |  |  | 36,324  |  |  |      | 23  |  |   |  | 29,261  |  |  |  | 23  | 
|Bank of Ireland Life              |  |                                     | 8,977   |  |   |  | 4   |      |  |  | 7,401   |  |  |      | 5   |  |   |  | 5,728   |  |  |  | 4   | 
|Wholesale Financial Services      |  |                                     | 100,369 |  |   |  | 43  |      |  |  | 60,328  |  |  |      | 39  |  |   |  | 50,530  |  |  |  | 40  | 
|UK Financial Services             |  |                                     | 42,836  |  |   |  | 19  |      |  |  | 38,716  |  |  |      | 25  |  |   |  | 32,841  |  |  |  | 26  | 
|Asset Management Services         |  |                                     | 2,980   |  |   |  | 1   |      |  |  | 1,606   |  |  |      | 1   |  |   |  | 1,611   |  |  |  | 1   | 
|UK Post Office Financial Services |  |                                     | 213     |  |   |  |    |      |  |  |        |  |  |      |    |  |   |  |        |  |  |  |    | 
|Group and Central                 |  |                                     | 17,744  |  |   |  | 8   |      |  |  | 10,110  |  |  |      | 7   |  |   |  | 7,416   |  |  |  | 6   | 
|                                  |  |                                     |         |  |   |  |     |      |  |  |         |  |  |      |     |  |   | 
|Total(2)                          |  |                                     | 230,728 |  |   |  | 100 |      |  |  | 154,485 |  |  |      | 100 |  |   |  | 127,387 |  |  |  | 100 | 
|                                  |  |                                     |         |  |   |  |     |      |  |  |         |  |  |      |     |  |   | 

19



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|    |                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Group undertakes tax based transactions at rates which
    differ from normal market rates in return for tax relief arising
    from various incentives and reliefs. To assist in making valid
    comparison of pre-tax performance, the analysis of business unit
    performance is grossed up.
|   
|(2) | Total Assets include intra-group items of 2005:
    104,264m (2004:
    48,054 million,
    2003:
    38,084 million).                                                                                                                                                                             

Retail Republic of Ireland










 








20



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Bank of Ireland Life




Wholesale Financial Services














UK Financial Services






21



---



##### Table of Contents














Asset Management Services












UK Post Office Financial Services


 


22



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Group and Central




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     | 
|J & E Davy Holdings Limited                    |  | Stockbroking                                         |  |               | Ireland |  |           |  | December  31 | 






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






DESCRIPTION OF PROPERTY












23



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COMPETITION




Ireland and Northern Ireland






Britain






Inquiries






24



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##### Table of Contents









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






SUPERVISION AND REGULATION


IRELAND










25



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26



---



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






UNITED KINGDOM








27



---



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THE IRISH ECONOMY


 


28



---



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Item 5     OPERATING &
FINANCIAL REVIEW AND PROSPECTS


Overview





     




  





CRITICAL ACCOUNTING POLICIES






Loan Losses




29



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


 


Pensions




Goodwill


   






30



---



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Life Assurance Operations






Fair Value of Financial Instruments








Debt Securities






Taxation




31



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LIQUIDITY AND CAPITAL RESOURCES














|                         |  |          |        |         |           |  |         |            |  |  |           |  |  |       |       |  |  |  |        | 
|------------------------ |  | -------- | ------ | ------- | --------- |  | ------- | ---------- |  |  | --------- |  |  | ----- | ----- |  |  |  | ------ | 
|                         |  |          |        | Between |           |  | Between |            |  |  |           | 
|                         |  | Within   |        |         | one and   |  |         | two and    |  |  | Over five |  |  |      
|                         |  | one year |        |         | two years |  |         | five years |  |  | years     |  |  | Total |      
|                         |  |          |        |         |           |  |         |            |  |  |           |  |  |       |      
|                         |  | m       |        |         | m        |  |         | m         |  |  | m        |  |  | m    |      
|Longterm debt  dated    |  |          |       |         |           |  |        |            |  |  |          |  |  |       | 2,106 |  |  |  | 2,106  | 
|Debt securities in issue |  |          | 15,974 |         |           |  | 2,127   |            |  |  | 419       |  |  |       | 2,019 |  |  |  | 20,539 | 
|Securitisation vehicles  |  |          | 328    |         |           |  |        |            |  |  |          |  |  |       | 188   |  |  |  | 516    | 
|Operating leases         |  |          | 52     |         |           |  | 97      |            |  |  | 79        |  |  |       | 602   |  |  |  | 830    | 
|Capital commitments      |  |          | 10     |         |           |  |        |            |  |  |          |  |  |       |      |  |  |  | 10     | 



Capital Resources


   


32



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|                  |  |             |     | 
|----------------- |  | ----------- | --- | 
|                  |  | Senior Debt |    
|                  |  |             |    
|Moodys            |  |             | Aa3 | 
|Standard & Poors |  |             | A+  | 
|Fitch             |  |             | AA- | 



Off Balance Sheet Arrangements








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The most common form of SPV in a banking context is a
    securitisation. This involves the acquisition of financial
    assets by the SPV that are funded by the issuance of securities
    to external investors which have cash flows different from those
    of the underlying instruments. The repayment of these securities
    is determined by the performance of the assets acquired. The
    Group has used SPVs to securitise some of its lending portfolio
    and continues to administer the loans for which it receives fees
    and income. Further information relating to the Groups
    securitisation programme is given in Note 15 and
    Note 17 to our Consolidated Financial Statements.                                                                                                                                                                                                                                                    
|
| |  | 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 US and European
    commercial paper markets. A US bank administers the day-to-day
    operations of the company and the multi-seller conduit. The US
    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. The commercial paper issued
    by the multi-seller conduit is rated P-1/ A-1/ F1 by
    Moodys/ S&P/ Fitch.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | As of March 31, 2005, the Group had an outstanding undrawn
    liquidity facility to the company amounting to
    US$817.2 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
    US$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.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As part of its normal lending activities, an SPV may be used to
    fund the purchase or construction of specific assets, typically
    property or equipment. This is common in the banking industry as
    it enables the customer to minimise its funding cost while
    facilitating the bank in minimising its collateral risk. Any
    financing relationships are entered into at arms length prices
    and subject to the Groups normal credit underwriting
    standards. In the case of Bank of Ireland, all of these types of
    entities are fully consolidated and the exposures arising from
    such lending and/or leasing is included in loans and advances to

33



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| |  |                                                                                                                  
| |  | -----------------------------------------------------------------------------------------------------------------
| |  | customers, while exposures in the form of guarantees or undrawn
    credit lines are included within commitments.

|                                             |  |       |        | 
|-------------------------------------------- |  | ----- | ------ | 
|Contingent Liabilities and Commitments       |  | Total |       
|                                             |  |       |       
|                                             |  | m    |       
|Acceptances                                  |  |       | 34     | 
|Guarantees                                   |  |       | 1,268  | 
|Other contingent liabilities                 |  |       | 643    | 
|                                             |  |       |       
|Total contingent liabilities                 |  |       | 1,945  | 
|                                             |  |       |       
|Other commitments                            |  |       | 29,296 | 
|                                             |  |       |       
|Total contingent liabilities and commitments |  |       | 31,241 | 
|                                             |  |       |       






ANALYSIS OF RESULTS OF OPERATIONS


Results of Operations  Group Analysis




Group Income Statement


|                                                |  |                              |       |   |      |  |       |      |  |  |       |  
|----------------------------------------------- |  | ---------------------------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                |  | For the Financial Year Ended |      
|                                                |  | March 31,                    |      
|                                                |  |                              |      
|                                                |  | 2005                         |       |   | 2004 |  |       | 2003 | 
|                                                |  |                              |       |   |      |  |       |      | 
|                                                |  | (in  millions)              |      
|Net interest income                             |  |                              | 1,898 |   |      |  | 1,744 |      |  |  | 1,729 |  
|Other income(1)                                 |  |                              | 1,321 |   |      |  | 1,263 |      |  |  | 1,210 |  
|Operating expenses                              |  |                              | 1,807 |   |      |  | 1,654 |      |  |  | 1,662 |  
|Provision for loan losses                       |  |                              | 79    |   |      |  | 86    |      |  |  | 100   |  
|                                                |  |                              |       |   |      |  |       |      | 
|Income before exceptional items                 |  |                              | 1,333 |   |      |  | 1,267 |      |  |  | 1,177 |  
|Exceptional items(2)                            |  |                              | (12   | ) |      |  | (97   | )    |  |  | (164  | )
|                                                |  |                              |       |   |      |  |       |      | 
|Income from ordinary activities before taxation |  |                              | 1,321 |   |      |  | 1,170 |      |  |  | 1,013 |  
|                                                |  |                              |       |   |      |  |       |      | 






|    |                                                                              
|--- | -----------------------------------------------------------------------------
|(1) | Includes income from associated undertakings.                                
|   
|(2) | Details on the exceptional items are given in Note 7,
    Note 9 and Note 16.

34



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##### Table of Contents



Net Interest Income




|                    |  |                              |       |  |      |  |       |      |  |  |       | 
|------------------- |  | ---------------------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                    |  | For the Financial Year Ended |      
|                    |  | March 31,                    |      
|                    |  |                              |      
|                    |  | 2005                         |       |  | 2004 |  |       | 2003 | 
|                    |  |                              |       |  |      |  |       |      | 
|                    |  | (in  millions)              |      
|Interest receivable |  |                              | 4,179 |  |      |  | 3,631 |      |  |  | 3,691 | 
|Interest payable    |  |                              | 2,281 |  |      |  | 1,887 |      |  |  | 1,962 | 
|                    |  |                              |       |  |      |  |       |      | 
|Net interest income |  |                              | 1,898 |  |      |  | 1,744 |      |  |  | 1,729 | 
|                    |  |                              |       |  |      |  |       |      | 





Financial Year ended March 31, 2005 compared to
financial year ended March 31, 2004


 


 




Financial Year ended March 31, 2004 compared to
financial year ended March 31, 2003


 


 




35



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##### Table of Contents





|                                                      |  |                        |     |  |      |  |     |      |  |  |     | 
|----------------------------------------------------- |  | ---------------------- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                                                      |  | For the Financial Year |    
|                                                      |  | Ended March 31,        |    
|                                                      |  |                        |    
|                                                      |  | 2005                   |     |  | 2004 |  |     | 2003 | 
|                                                      |  |                        |     |  |      |  |     |      | 
|                                                      |  | (percentages)          |    
|Gross yield(1)                                        |  |                        | 4.4 |  |      |  | 4.5 |      |  |  | 5.0 | 
|Interest spread(2)                                    |  |                        | 1.8 |  |      |  | 1.9 |      |  |  | 2.0 | 
|Net interest margin(3)                                |  |                        | 2.0 |  |      |  | 2.2 |      |  |  | 2.3 | 
|Net interest margin, tax equivalent basis(4)          |  |                        | 2.0 |  |      |  | 2.2 |      |  |  | 2.4 | 
|Domestic net interest margin, tax equivalent basis(4) |  |                        | 2.2 |  |      |  | 2.4 |      |  |  | 2.7 | 
|Foreign net interest margin, tax equivalent basis(4)  |  |                        | 1.7 |  |      |  | 1.9 |      |  |  | 2.0 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Gross yield represents the average interest rate earned on
    interest-earning assets.                                                                                                                                                                                                                                                                                                                                         
|   
|(2) | Interest rate spread represents the difference between the
    average interest rate earned on interest-earning assets and the
    average interest rate paid on interest-bearing liabilities.                                                                                                                                                                                                                                  
|   
|(3) | Net interest margin represents net interest income as a
    percentage of average interest-earning assets.                                                                                                                                                                                                                                                                                                                      
|   
|(4) | Net interest margin on a tax equivalent basis includes an
    adjustment to reflect tax benefits received by the Group in
    return for tax-based lending at rates below market rates. The
    net interest margin is reduced as a result of such lending
    activity and this tax equivalent adjustment reflects the tax
    savings associated with such activity. (Further details can be
    seen in Note (8) on page 13).

Average Interest Earning Assets


|         |  |                        |      |  |      |  |      |      |  |  |      | 
|-------- |  | ---------------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|         |  | For the Financial Year |     
|         |  | Ended March 31,        |     
|         |  |                        |     
|         |  | 2005                   |      |  | 2004 |  |      | 2003 | 
|         |  |                        |      |  |      |  |      |      | 
|         |  | (in  billions)        |     
|Group    |  |                        | 95.2 |  |      |  | 80.7 |      |  |  | 73.8 | 
|Domestic |  |                        | 57.5 |  |      |  | 47.9 |      |  |  | 42.8 | 
|Foreign  |  |                        | 37.7 |  |      |  | 32.8 |      |  |  | 31.0 | 

|                                 |                     |                        |      |      |      |  |      |      |  |  |      |      | 
|-------------------------------- | ------------------- | ---------------------- | ---- | ---- | ---- |  | ---- | ---- |  |  | ---- | ---- | 
|                                 |                     | For the Financial Year |     
|                                 |                     | Ended March 31,        |     
|                                 |                     |                        |     
|                                 |                     | 2005                   |      |      | 2004 |  |      | 2003 | 
|                                 |                     |                        |      |      |      |  |      |      | 
|                                 |                     | (percentages)          |     
|Ireland                          |                     |                        |      |      |      |  |      |      |  |  |      |     
|European interbank offered rate: |                     |                        |      |      |      |  |      |      |  |  |      |     
|                                 | One month Euribor   |                        |      | 2.13 |      |  |      | 2.05 |  |  |      | 2.61 | 
|                                 | Three month Euribor |                        |      | 2.18 |      |  |      | 1.99 |  |  |      | 2.56 | 
|United Kingdom                   |                     |                        |      |      |      |  |      |      |  |  |      |     
|London interbank offered rate:   |                     |                        |      |      |      |  |      |      |  |  |      |     
|                                 | One month           |                        |      | 4.87 |      |  |      | 4.19 |  |  |      | 3.71 | 
|                                 | Three month         |                        |      | 4.98 |      |  |      | 4.38 |  |  |      | 3.66 | 
|United States                    |                     |                        |      |      |      |  |      |      |  |  |      |     
|Prime Rate                       |                     |                        | 5.75 |      |      |  | 4.00 |      |  |  | 4.25 |     

36



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##### Table of Contents



Other Income




|                                                       |  |                              |       |  |      |  |       |      |  |  |       | 
|------------------------------------------------------ |  | ---------------------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                       |  | For the Financial Year Ended |      
|                                                       |  | March 31,                    |      
|                                                       |  |                              |      
|                                                       |  | 2005                         |       |  | 2004 |  |       | 2003 | 
|                                                       |  |                              |       |  |      |  |       |      | 
|                                                       |  | (in  millions)              |      
|Dealing profits                                        |  |                              | 66    |  |      |  | 73    |      |  |  | 85    | 
|Contributions from life assurance business             |  |                              | 161   |  |      |  | 177   |      |  |  | 116   | 
|Fees and commissions                                   |  |                              | 1,001 |  |      |  | 934   |      |  |  | 871   | 
|Other operating income                                 |  |                              | 47    |  |      |  | 50    |      |  |  | 116   | 
|                                                       |  |                              |       |  |      |  |       |      | 
|                                                       |  |                              | 1,275 |  |      |  | 1,234 |      |  |  | 1,188 | 
|Income from associated undertakings and joint ventures |  |                              | 46    |  |      |  | 29    |      |  |  | 22    | 
|                                                       |  |                              |       |  |      |  |       |      | 
|Total                                                  |  |                              | 1,321 |  |      |  | 1,263 |      |  |  | 1,210 | 
|                                                       |  |                              |       |  |      |  |       |      | 

Financial year ended March 31, 2005 compared to
March 31, 2004.


  


 


Financial year ended March 31, 2004 compared to
March 31, 2003.


 


 


Operating Expenses




|                                               |  |                              |        |  |      |  |        |      |  |  |        | 
|---------------------------------------------- |  | ---------------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                               |  | For the Financial Year Ended |       
|                                               |  | March 31,                    |       
|                                               |  |                              |       
|                                               |  | 2005                         |        |  | 2004 |  |        | 2003 | 
|                                               |  |                              |        |  |      |  |        |      | 
|                                               |  | (in  millions)              |       
|Staff expenses                                 |  |                              | 1,016  |  |      |  | 965    |      |  |  | 955    | 
|Other administrative expenses                  |  |                              | 605    |  |      |  | 506    |      |  |  | 525    | 
|Depreciation and goodwill amortisation         |  |                              | 186    |  |      |  | 183    |      |  |  | 182    | 
|                                               |  |                              |        |  |      |  |        |      | 
|Total                                          |  |                              | 1,807  |  |      |  | 1,654  |      |  |  | 1,662  | 
|                                               |  |                              |        |  |      |  |        |      | 
|Average staff headcount (full time equivalent) |  |                              | 16,960 |  |      |  | 17,540 |      |  |  | 18,214 | 
|                                               |  |                              |        |  |      |  |        |      | 

37



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##### Table of Contents



Financial year ended March 31, 2005 compared to
financial year ended March 31, 2004.


 


Financial year ended March 31, 2004 compared to
financial year ended March 31, 2003.


 


Provisions for Loan Losses




|                                       |  |                              |       |  |      |  |       |      |  |  |       | 
|-------------------------------------- |  | ---------------------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                       |  | For the Financial Year Ended |      
|                                       |  | March 31,                    |      
|                                       |  |                              |      
|                                       |  | 2005                         |       |  | 2003 |  |       | 2004 | 
|                                       |  |                              |       |  |      |  |       |      | 
|                                       |  | (in  millions)              |      
|Provision for bad and doubtful debts   |  |                              | 79    |  |      |  | 86    |      |  |  | 100   | 
|As a percentage of average total loans |  |                              | 0.11% |  |      |  | 0.14% |      |  |  | 0.18% | 

Financial year ended March 31, 2005 compared to
financial year ended March 31, 2004.


       




Financial year ended March 31, 2004 compared to
financial year ended March 31, 2003.


 




Exceptional Items






| |   |                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Profit of
    31 million
    on the sale of the Groups 50% shareholding in EuroConex
    Technologies Limited to Nova EuroConex Holdings BV, a subsidiary
    of US Bancorp, on June 29, 2004.

38



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##### Table of Contents





| |   |                                                                                              
| | - | ---------------------------------------------------------------------------------------------
| |  | Implementation costs of
    10m associated
    with the UKFS Business Improvement Programme.
|
| |  | Restructuring of the UK IFA Businesses                                                       



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 18, 2005, the Group completed the sale of Chase de
    Vere Financial Solutions plc and Moneyextra Mortgages Limited to
    AWD plc, part of AWD Holdings AG. The sale proceeds were
    28.4 million
    (£19.4 million), which after charging for certain
    costs and provisions associated with the disposal, has resulted
    in a net loss on disposal of
    20.0 million
    (£13.7 million).
|
| |  | Provisions released following the exit from leases
    8m.                                                                                                                                                                                                                                                                                                                                                      



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The write off of goodwill associated with Venson for the
    impairment of certain assets amounted to
    4 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | The provision of
    117m relating to
    the Groups Strategic Transformation Progamme includes
    severance related expenditure together with other implementation
    costs, which has been provided for in accordance with Financial
    Reporting Standard 12 Provisions, Contingent
    Liabilities and Assets. Of the provided amount, in excess
    of 80m is
    expected to be expended in the 2005/ 06 financial year although
    actual expenditure timing is uncertain. Further expenditure, in
    addition to the current provision, is expected to be incurred in
    2005/ 06 and in future years.
|
| |  | A special release of
    100 million
    of loan loss provisions has been made following a review of the
    loan loss provision in light of the favourable economic
    conditions and the strong quality of assets.                                                                                                                                                                                                                                                                                                                                                                                                   





| |   |                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the net proceeds of
    36 million
    on the sale of our share in the alliance between Bank of Ireland
    Securities Services and State Street Bank,                                                               
|
| |  | the write-off of the remainder of the goodwill associated with
    Chase de Vere of
    93 million
    together with some provisions of
    22 million
    for the impairment of certain assets in the IFA business.
|
| |  | additional costs of
    4 million
    incurred in relation to restructuring undertaken in previous
    years.                                                                                                        
|
| |  | implementation costs of
    14 million
    associated with the UKFS Business Improvement Programme.                                                                                                                  

   


39



---



##### Table of Contents



Taxes




|                                                                                                                  |  |                                     |       |   |      |  |       |      |  |  |         |  
|----------------------------------------------------------------------------------------------------------------- |  | ----------------------------------- | ----- | - | ---- |  | ----- | ---- |  |  | ------- | -
|                                                                                                                  |  | For the Financial Year Ended        |      
|                                                                                                                  |  | March 31,                           |      
|                                                                                                                  |  |                                     |      
|                                                                                                                  |  | 2005                                |       |   | 2004 |  |       | 2003 | 
|                                                                                                                  |  |                                     |       |   |      |  |       |      | 
|                                                                                                                  |  | (in  millions, except percentages) |      
|Average statutory corporation tax rate(1)                                                                         |  |                                     | 12.5% |   |      |  | 12.5% |      |  |  | 15.125% |  
|                                                                                                                  |  |                                     |       |   |      |  |       |      | 
|Profit on ordinary activities before tax multiplied by the
    weighted standard rate of Corporate tax in Ireland |  |                                     | 165   |   |      |  | 146   |      |  |  | 153     |  
|Effects of:                                                                                                       |  |                                     |       |   |      |  |       |      |  |  |         |  
|Levy on certain financial institutions                                                                            |  |                                     | 26    |   |      |  | 26    |      |  |  | 7       |  
|Foreign earnings subject to different rates of tax                                                                |  |                                     | 50    |   |      |  | 34    |      |  |  | 11      |  
|Non-deductible goodwill impairment                                                                                |  |                                     | 3     |   |      |  | 30    |      |  |  | 33      |  
|Tax exempted income and income at a reduced Irish tax rate                                                        |  |                                     | (23   | ) |      |  | (44   | )    |  |  | (63     | )
|Capital allowances less than/ (in excess of) depreciation                                                         |  |                                     | 2     |   |      |  | (5    | )    |  |  | (7      | )
|Other deferred tax timing differences                                                                             |  |                                     | (28   | ) |      |  | (8    | )    |  |  | 18      |  
|Prior year adjustments                                                                                            |  |                                     | 5     |   |      |  | (6    | )    |  |  | 4       |  
|Share of associated undertakings and joint ventures                                                               |  |                                     | (6    | ) |      |  | (4    | )    |  |  | (5      | )
|Other adjustments for current tax purposes                                                                        |  |                                     | 5     |   |      |  | 17    |      |  |  | 14      |  
|                                                                                                                  |  |                                     |       |   |      |  |       |      | 
|Current tax charge                                                                                                |  |                                     | 199   |   |      |  | 186   |      |  |  | 165     |  
|                                                                                                                  |  |                                     |       |   |      |  |       |      | 
|Effective Tax Rates(2)                                                                                            |  |                                     | 18.2% |   |      |  | 17.8% |      |  |  | 16.1%   |  






|    |                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For 2003, the average statutory rate reflected the reduction in
    the statutory rate from 16% to 12.5%, effective January 1,
    2003.                                                                                                                                          
|   
|(2) | The tax charge for the year, at an effective rate of 18.2% is
    higher than the standard Irish Corporation Tax rate mainly
    because of higher tax rates in other jurisdictions, and the levy
    on certain financial institutions which was introduced in
    December 2002.

Financial year ended March 31, 2005 compared to
financial year ended March 31, 2004




Financial year ended March 31, 2004 compared to
financial year ended March 31, 2003


 


Results of Operations  Business Analysis




40



---



##### Table of Contents





|                                                         |  |                                     |         |   |      |  |         |      |  |  |         |  
|-------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- |  | ------- | ---- |  |  | ------- | -
|                                                         |  | At and for the Financial Year Ended |        
|                                                         |  | March 31,                           |        
|                                                         |  |                                     |        
|                                                         |  | 2005                                |         |   | 2004 |  |         | 2003 | 
|                                                         |  |                                     |         |   |      |  |         |      | 
|                                                         |  | (in  millions)                     |        
|Income Before Tax                                        |  |                                     |         |   |      |  |         |      |  |  |         |  
|Retail Republic of Ireland                               |  |                                     | 490     |   |      |  | 419     |      |  |  | 390     |  
|Bank of Ireland Life                                     |  |                                     | 135     |   |      |  | 147     |      |  |  | 87      |  
|Wholesale Financial Services                             |  |                                     | 407     |   |      |  | 371     |      |  |  | 367     |  
|UK Financial Services                                    |  |                                     | 388     |   |      |  | 373     |      |  |  | 359     |  
|Asset Management Services                                |  |                                     | 115     |   |      |  | 125     |      |  |  | 113     |  
|UK Post Office Financial Services                        |  |                                     | (55     | ) |      |  | (3      | )    |  |  |        |  
|Group and Central                                        |  |                                     | (128    | ) |      |  | (115    | )    |  |  | (85     | )
|Tax-equivalent adjustment(1)                             |  |                                     | (19     | ) |      |  | (50     | )    |  |  | (54     | )
|                                                         |  |                                     |         |   |      |  |         |      | 
|Income from ordinary activities before exceptional items |  |                                     | 1,333   |   |      |  | 1,267   |      |  |  | 1,177   |  
|Exceptional items                                        |  |                                     | (12     | ) |      |  | (97     | )    |  |  | (164    | )
|                                                         |  |                                     |         |   |      |  |         |      | 
|Income before taxation                                   |  |                                     | 1,321   |   |      |  | 1,170   |      |  |  | 1,013   |  
|                                                         |  |                                     |         |   |      |  |         |      | 
|Assets                                                   |  |                                     |         |   |      |  |         |      |  |  |         |  
|Retail Republic of Ireland                               |  |                                     | 57,609  |   |      |  | 36,324  |      |  |  | 29,261  |  
|Bank of Ireland Life                                     |  |                                     | 8,977   |   |      |  | 7,401   |      |  |  | 5,728   |  
|Wholesale Financial Services                             |  |                                     | 100,369 |   |      |  | 60,328  |      |  |  | 50,530  |  
|UK Financial Services                                    |  |                                     | 42,836  |   |      |  | 38,716  |      |  |  | 32,841  |  
|Asset Management Services                                |  |                                     | 2,980   |   |      |  | 1,606   |      |  |  | 1,611   |  
|UK Post Office Financial Services                        |  |                                     | 213     |   |      |  |        |      |  |  |        |  
|Group and Central                                        |  |                                     | 17,744  |   |      |  | 10,110  |      |  |  | 7,416   |  
|                                                         |  |                                     |         |   |      |  |         |      | 
|Total(2)                                                 |  |                                     | 230,728 |   |      |  | 154,485 |      |  |  | 127,387 |  
|                                                         |  |                                     |         |   |      |  |         |      | 






|    |                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Group undertakes tax based transactions at rates which
    differ from normal market rates in return for tax relief arising
    from various incentives and reliefs. To assist in making valid
    comparison of pre-tax performance, the analysis of business unit
    performance is grossed up.
|   
|(2) | Total Assets include intra-group items of
    104,264m (2004:
    48,054 million,
    2003:
    38,084 million).                                                                                                                                                                                   

Financial year ended March 31, 2005 compared to
financial year ended March 31, 2004.


Retail Republic of Ireland


 








41



---



##### Table of Contents






Bank of Ireland Life






|                                      |                                |           |     |    |           |  |     |    | 
|------------------------------------- | ------------------------------ | --------- | --- | -- | --------- |  | --- | -- | 
|                                      |                                | March 31, |     |    | March 31, | 
|                                      |                                | 2005      |     |    | 2004      | 
|                                      |                                |           |     |    |           | 
|                                      |                                | m        |     |    | m        | 
|New business contribution             |                                |           | 59  |    |           |  | 51  |   
|Profit from existing business         |                                |           |     |    |           |  |     |   
|                                      |  expected return              |           |     | 59 |           |  |     | 54 | 
|                                      |  experience variances         |           |     | 18 |           |  |     | 14 | 
|                                      |  operating assumption changes |           |     | 4  |           |  |     | 5  | 
|Return on shareholder funds           |                                |           | 5   |    |           |  | 8   |   
|Less inter-company payments           |                                |           | (26 | )  |           |  | (30 | ) 
|                                      |                                |           |     |    |           | 
|Operating profit                      |                                |           | 119 |    |           |  | 102 |   
|Investment variance                   |                                |           | 16  |    |           |  | 26  |   
|Effect of economic assumption changes |                                |           |    |    |           |  | 19  |   
|                                      |                                |           |     |    |           | 
|Profit before Tax                     |                                |           | 135 |    |           |  | 147 |   
|                                      |                                |           |     |    |           | 





Wholesale Financial Services











42



---



##### Table of Contents





UK Financial Services


 


(For ease of comparison the numbers below are in local
currency.)












Asset Management Services





  






Group & Central


 






43



---



##### Table of Contents



Financial year ended March 31, 2004 compared to
financial year ended March 31, 2003.


Retail Republic of Ireland


 
















Bank of Ireland Life







|                                      |                                |         |     |    |         |  |     |    |  
|------------------------------------- | ------------------------------ | ------- | --- | -- | ------- |  | --- | -- | -
|                                      |                                | 2003/04 |     |    | 2002/03 | 
|                                      |                                |         |     |    |         | 
|                                      |                                | m      |     |    | m      | 
|New business contribution             |                                |         | 51  |    |         |  | 55  |   
|Profit from existing business         |                                |         |     |    |         |  |     |   
|                                      |  expected return              |         |     | 54 |         |  |     | 56 |  
|                                      |  experience variances         |         |     | 14 |         |  |     | 11 |  
|                                      |  operating assumption changes |         |     | 5  |         |  |     | (2 | )
|Return on shareholder funds           |                                |         | 8   |    |         |  | 10  |   
|Less: intercompany payments           |                                |         | (30 | )  |         |  | (29 | ) 
|                                      |                                |         |     |    |         | 
|Operating profit                      |                                |         | 102 |    |         |  | 101 |   
|Investment variance                   |                                |         | 26  |    |         |  | (49 | ) 
|Effect of economic assumption changes |                                |         | 19  |    |         |  | 35  |   
|                                      |                                |         |     |    |         | 
|Profit before tax                     |                                |         | 147 |    |         |  | 87  |   
|                                      |                                |         |     |    |         | 



44



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##### Table of Contents









Wholesale Financial Services


  


 










UK Financial Services


 


(For ease of comparison the numbers below are in local
currency.)












45



---



##### Table of Contents





Asset Management Services


 




 





Group & Central


 


46



---



##### Table of Contents






AVERAGE BALANCE SHEET AND INTEREST RATES




|                                                      |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|----------------------------------------------------- |  | --------------- | ------- | - | -------- |  | --------------- | ---- | - |  | ------- | --------------- |  | -------- | ------ | - | ---- |  | ----- | ------- |  |  | -------- |  |  | ---- | ------ | - |  |  | ----- |  |  |  | --- | 
|                                                      |  | 2005            |         |   | 2004     |  |                 | 2003 |  
|                                                      |  |                 |         |   |          |  |                 |      |  
|                                                      |  | Average         |         |   |          |  | Average         |      |   |  |         | Average         |  |          |       
|                                                      |  | Balance         |         |   | Interest |  |                 | Rate |   |  | Balance |                 |  | Interest |        |   | Rate |  |       | Balance |  |  | Interest |  |  | Rate |       
|                                                      |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |       
|                                                      |  |                 |         | % |          |  |                 |      | % |  |         |                 |  | %        |       
|                                                      |  | (in  millions) |         |   |          |  | (in  millions) |      |   |  |         | (in  millions) |  |          |       
|ASSETS                                                |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Loans to banks                                        |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 6,834   |   |          |  | 168             |      |   |  | 2.5     |                 |  |          | 7,385  |   |      |  | 171   |         |  |  | 2.3      |  |  |      | 6,835  |   |  |  | 196   |  |  |  | 2.9 | 
|Foreign offices                                       |  |                 | 987     |   |          |  | 36              |      |   |  | 3.6     |                 |  |          | 755    |   |      |  | 26    |         |  |  | 3.4      |  |  |      | 406    |   |  |  | 12    |  |  |  | 2.9 | 
|Loans to customers(1)                                 |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 35,812  |   |          |  | 1,629           |      |   |  | 4.5     |                 |  |          | 28,987 |   |      |  | 1,394 |         |  |  | 4.8      |  |  |      | 25,140 |   |  |  | 1,419 |  |  |  | 5.6 | 
|Foreign offices                                       |  |                 | 34,336  |   |          |  | 1,676           |      |   |  | 4.9     |                 |  |          | 29,533 |   |      |  | 1,494 |         |  |  | 5.0      |  |  |      | 28,533 |   |  |  | 1,503 |  |  |  | 5.3 | 
|Central government and other eligible bills           |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 7       |   |          |  |                |      |   |  |        |                 |  |          | 9      |   |      |  |      |         |  |  |         |  |  |      | 7      |   |  |  |      |  |  |  |    | 
|Foreign offices                                       |  |                 |        |   |          |  |                |      |   |  |        |                 |  |          |       |   |      |  |      |         |  |  |         |  |  |      |       |   |  |  |      |  |  |  |    | 
|Debt Securities                                       |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 11,968  |   |          |  | 361             |      |   |  | 3.0     |                 |  |          | 8,942  |   |      |  | 268   |         |  |  | 3.0      |  |  |      | 8,132  |   |  |  | 279   |  |  |  | 3.4 | 
|Foreign offices                                       |  |                 | 1,125   |   |          |  | 57              |      |   |  | 5.1     |                 |  |          | 1,453  |   |      |  | 63    |         |  |  | 4.3      |  |  |      | 1,285  |   |  |  | 65    |  |  |  | 5.1 | 
|Instalment credit                                     |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 570     |   |          |  | 36              |      |   |  | 6.3     |                 |  |          | 502    |   |      |  | 35    |         |  |  | 7.0      |  |  |      | 451    |   |  |  | 32    |  |  |  | 7.1 | 
|Foreign offices                                       |  |                 | 1,131   |   |          |  | 87              |      |   |  | 7.7     |                 |  |          | 869    |   |      |  | 61    |         |  |  | 7.0      |  |  |      | 708    |   |  |  | 56    |  |  |  | 7.9 | 
|Finance lease receivables                             |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 2,289   |   |          |  | 124             |      |   |  | 5.4     |                 |  |          | 2,043  |   |      |  | 114   |         |  |  | 5.6      |  |  |      | 2,238  |   |  |  | 126   |  |  |  | 5.6 | 
|Foreign offices                                       |  |                 | 167     |   |          |  | 5               |      |   |  | 3.0     |                 |  |          | 194    |   |      |  | 5     |         |  |  | 2.4      |  |  |      | 75     |   |  |  | 3     |  |  |  | 4.0 | 
|Total interest-earning assets                         |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |        |   |  |  |       |  |  |  |     | 
|Domestic offices                                      |  |                 | 57,480  |   |          |  | 2,318           |      |   |  | 4.0     |                 |  |          | 47,868 |   |      |  | 1,982 |         |  |  | 4.1      |  |  |      | 42,803 |   |  |  | 2,052 |  |  |  | 4.8 | 
|Foreign offices                                       |  |                 | 37,746  |   |          |  | 1,861           |      |   |  | 4.9     |                 |  |          | 32,804 |   |      |  | 1,649 |         |  |  | 5.0      |  |  |      | 31,007 |   |  |  | 1,639 |  |  |  | 5.3 | 
|                                                      |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |       
|                                                      |  |                 | 95,226  |   |          |  | 4,179           |      |   |  | 4.4     |                 |  |          | 80,672 |   |      |  | 3,631 |         |  |  | 4.5      |  |  |      | 73,810 |   |  |  | 3,691 |  |  |  | 5.0 | 
|Allowance for loan losses                             |  |                 | (443    | ) |          |  |                 |      |   |  |         |                 |  |          | (496   | ) |      |  |       |         |  |  |          |  |  |      | (485   | ) |  |  |       |  |  |  |     | 
|Non interest earning assets(2)                        |  |                 | 21,181  |   |          |  |                 |      |   |  |         |                 |  |          | 17,447 |   |      |  |       |         |  |  |          |  |  |      | 15,729 |   |  |  |       |  |  |  |     | 
|                                                      |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |       
|Total Assets                                          |  |                 | 115,964 |   |          |  | 4,179           |      |   |  | 3.6     |                 |  |          | 97,623 |   |      |  | 3,631 |         |  |  | 3.7      |  |  |      | 89,054 |   |  |  | 3,691 |  |  |  | 4.1 | 
|                                                      |  |                 |         |   |          |  |                 |      |   |  |         |                 |  |          |        |   |      |  |       |         |  |  |          |  |  |      |       
|Percentage of assets applicable to foreign activities |  |                 | 34.2%   |   |          |  |                 |      |   |  |         |                 |  |          | 35.4%  |   |      |  |       |         |  |  |          |  |  |      | 36.60% |   |  |  |       |  |  |  |     | 

47



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|                                                           |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |     | 
|---------------------------------------------------------- | ---------------- | --------------- | ------- | ------ | -------- |  | --------------- | ---- | - |  | ------- | --------------- |  | -------- | ------ | ------ | ---- |  | ----- | ------- |  |  | -------- | --- |  | ---- | ------ | ------ |  |  | ----- | --- |  |  | --- | --- | 
|                                                           |                  | 2005            |         |        | 2004     |  |                 | 2003 |  
|                                                           |                  |                 |         |        |          |  |                 |      |  
|                                                           |                  | 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                                           |                  |                 | 18,271  |        |          |  | 386             |      |   |  | 2.1     |                 |  |          | 13,946 |        |      |  | 388   |         |  |  | 2.8      |     |  |      | 10,912 |        |  |  | 353   |     |  |  | 3.2 |    
|Foreign offices                                            |                  |                 | 1,245   |        |          |  | 38              |      |   |  | 3.1     |                 |  |          | 1,028  |        |      |  | 34    |         |  |  | 3.3      |     |  |      | 1,144  |        |  |  | 38    |     |  |  | 3.3 |    
|Customer accounts                                          |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|Demand deposits                                            |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|                                                           | Domestic offices |                 |         | 11,488 |          |  |                 | 79   |   |  |         | 0.7             |  |          |        | 10,936 |      |  |       | 124     |  |  |          | 1.1 |  |      |        | 10,919 |  |  |       | 186 |  |  |     | 1.7 | 
|                                                           | Foreign offices  |                 |         | 7,975  |          |  |                 | 316  |   |  |         | 4.0             |  |          |        | 8,449  |      |  |       | 240     |  |  |          | 2.8 |  |      |        | 9,628  |  |  |       | 266 |  |  |     | 2.8 | 
|Term deposits                                              |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|                                                           | Domestic offices |                 |         | 11,035 |          |  |                 | 85   |   |  |         | 0.8             |  |          |        | 9,640  |      |  |       | 73      |  |  |          | 0.8 |  |      |        | 7,559  |  |  |       | 87  |  |  |     | 1.2 | 
|                                                           | Foreign offices  |                 |         | 11,397 |          |  |                 | 512  |   |  |         | 4.5             |  |          |        | 9,893  |      |  |       | 504     |  |  |          | 5.1 |  |      |        | 10,488 |  |  |       | 487 |  |  |     | 4.6 | 
|Other deposits                                             |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|                                                           | Domestic offices |                 |         | 642    |          |  |                 | 44   |   |  |         | 6.8             |  |          |        | 550    |      |  |       | 39      |  |  |          | 7.1 |  |      |        | 1,322  |  |  |       | 54  |  |  |     | 4.1 | 
|                                                           | Foreign offices  |                 |         | 4      |          |  |                 |     |   |  |         |                |  |          |        | 14     |      |  |       | 1       |  |  |          | 5.0 |  |      |        | 24     |  |  |       | 1   |  |  |     | 4.2 | 
|Interest bearing current accounts                          |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|                                                           | Domestic offices |                 |         | 971    |          |  |                 | 11   |   |  |         | 1.1             |  |          |        | 850    |      |  |       | 8       |  |  |          | 1.0 |  |      |        | 750    |  |  |       | 11  |  |  |     | 1.5 | 
|                                                           | Foreign offices  |                 |         | 2,553  |          |  |                 | 90   |   |  |         | 3.5             |  |          |        | 2,312  |      |  |       | 61      |  |  |          | 2.6 |  |      |        | 2,013  |  |  |       | 52  |  |  |     | 2.6 | 
|Debt securities in issue                                   |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|Domestic offices                                           |                  |                 | 13,249  |        |          |  | 327             |      |   |  | 2.5     |                 |  |          | 8,049  |        |      |  | 131   |         |  |  | 1.6      |     |  |      | 6,233  |        |  |  | 168   |     |  |  | 2.7 |    
|Foreign offices                                            |                  |                 | 3,769   |        |          |  | 168             |      |   |  | 4.5     |                 |  |          | 3,037  |        |      |  | 107   |         |  |  | 3.5      |     |  |      | 2,559  |        |  |  | 103   |     |  |  | 4.0 |    
|Subordinated liabilities                                   |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|Domestic offices                                           |                  |                 | 2,248   |        |          |  | 119             |      |   |  | 5.3     |                 |  |          | 1,566  |        |      |  | 75    |         |  |  | 4.8      |     |  |      | 1,431  |        |  |  | 82    |     |  |  | 5.7 |    
|Foreign offices                                            |                  |                 | 1,442   |        |          |  | 106             |      |   |  | 7.3     |                 |  |          | 1,382  |        |      |  | 102   |         |  |  | 7.4      |     |  |      | 928    |        |  |  | 74    |     |  |  | 8.0 |    
|Total interest bearing liabilities                         |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|Domestic offices                                           |                  |                 | 57,904  |        |          |  | 1,051           |      |   |  | 1.8     |                 |  |          | 45,537 |        |      |  | 838   |         |  |  | 1.8      |     |  |      | 39,126 |        |  |  | 941   |     |  |  | 2.4 |    
|Foreign offices                                            |                  |                 | 28,385  |        |          |  | 1,230           |      |   |  | 4.3     |                 |  |          | 26,115 |        |      |  | 1,049 |         |  |  | 4.0      |     |  |      | 26,784 |        |  |  | 1,021 |     |  |  | 3.8 |    
|                                                           |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |       
|                                                           |                  |                 | 86,289  |        |          |  | 2,281           |      |   |  | 2.6     |                 |  |          | 71,652 |        |      |  | 1,887 |         |  |  | 2.6      |     |  |      | 65,910 |        |  |  | 1,962 |     |  |  | 3.0 |    
|Non interest bearing liabilities                           |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |        |        |  |  |       |     |  |  |     |    
|Current accounts                                           |                  |                 | 8,886   |        |          |  |                 |      |   |  |         |                 |  |          | 7,426  |        |      |  |       |         |  |  |          |     |  |      | 6,547  |        |  |  |       |     |  |  |     |    
|Other non interest bearing liabilities(2)                  |                  |                 | 15,951  |        |          |  |                 |      |   |  |         |                 |  |          | 14,153 |        |      |  |       |         |  |  |          |     |  |      | 12,261 |        |  |  |       |     |  |  |     |    
|Stockholders equity including non equity interests         |                  |                 | 4,838   |        |          |  |                 |      |   |  |         |                 |  |          | 4,392  |        |      |  |       |         |  |  |          |     |  |      | 4,336  |        |  |  |       |     |  |  |     |    
|                                                           |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |       
|Total liabilities and stockholders equity                 |                  |                 | 115,964 |        |          |  | 2,281           |      |   |  | 2.0     |                 |  |          | 97,623 |        |      |  | 1,887 |         |  |  | 1.9      |     |  |      | 89,054 |        |  |  | 1,962 |     |  |  | 2.2 |    
|                                                           |                  |                 |         |        |          |  |                 |      |   |  |         |                 |  |          |        |        |      |  |       |         |  |  |          |     |  |      |       
|Percentage of liabilities applicable to foreign activities |                  |                 | 34.2%   |        |          |  |                 |      |   |  |         |                 |  |          | 35.4%  |        |      |  |       |         |  |  |          |     |  |      | 36.60% |        |  |  |       |     |  |  |     |    






|    |                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Loans to customers include non-accrual loans and loans
    classified as problem loans.                                                                                                                                                         
|   
|(2) | In accordance with Financial Reporting Standard 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.

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##### Table of Contents



Change in Net Interest Income  Volume and Rate
Analysis




|                                            |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|------------------------------------------- |  | ------------------------------------ | --- | - | -------------- |  | ---- | ------ |  |  | ------- | - |  | ------- | --- | - | ------ |  | ---- | - |  |  | --- | -
|                                            |  | 2005 over 2004                       |     |   | 2004 over 2003 | 
|                                            |  |                                      |     |   |                | 
|                                            |  | 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                            |  |                                      | (13 | ) |                |  | 10   |        |  |  | (3      | ) |  |         | 15  |   |        |  | (40  | ) |  |  | (25 | )
|Foreign offices                             |  |                                      | 8   |   |                |  | 2    |        |  |  | 10      |   |  |         | 12  |   |        |  | 2    |   |  |  | 14  |  
|Loans to customers                          |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                            |  |                                      | 314 |   |                |  | (79  | )      |  |  | 235     |   |  |         | 201 |   |        |  | (226 | ) |  |  | (25 | )
|Foreign offices                             |  |                                      | 236 |   |                |  | (54  | )      |  |  | 182     |   |  |         | 52  |   |        |  | (61  | ) |  |  | (9  | )
|Central government and other eligible bills |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                            |  |                                      |    |   |                |  |     |        |  |  |        |   |  |         |    |   |        |  |     |   |  |  |    |  
|Foreign offices                             |  |                                      |    |   |                |  |     |        |  |  |        |   |  |         |    |   |        |  |     |   |  |  |    |  
|Debt securities                             |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                            |  |                                      | 91  |   |                |  | 2    |        |  |  | 93      |   |  |         | 26  |   |        |  | (37  | ) |  |  | (11 | )
|Foreign offices                             |  |                                      | (16 | ) |                |  | 10   |        |  |  | (6      | ) |  |         | 8   |   |        |  | (10  | ) |  |  | (2  | )
|Instalment credit                           |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                            |  |                                      | 5   |   |                |  | (4   | )      |  |  | 1       |   |  |         | 4   |   |        |  | (1   | ) |  |  | 3   |  
|Foreign offices                             |  |                                      | 20  |   |                |  | 6    |        |  |  | 26      |   |  |         | 12  |   |        |  | (7   | ) |  |  | 5   |  
|Finance lease receivables                   |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                            |  |                                      | 13  |   |                |  | (3   | )      |  |  | 10      |   |  |         | (11 | ) |        |  | (1   | ) |  |  | (12 | )
|Foreign offices                             |  |                                      | (1  | ) |                |  | 1    |        |  |  |        |   |  |         | 3   |   |        |  | (1   | ) |  |  | 2   |  
|                                            |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        | 
|Total interest income                       |  |                                      | 657 |   |                |  | (109 | )      |  |  | 548     |   |  |         | 322 |   |        |  | (382 | ) |  |  | (60 | )
|                                            |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        | 

49



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##### Table of Contents



|                                  |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|--------------------------------- |  | ------------------------------------ | --- | - | -------------- |  | ---- | ------ |  |  | ------- | - |  | ------- | --- | - | ------ |  | ---- | - |  |  | --- | -
|                                  |  | 2005 over 2004                       |     |   | 2004 over 2003 | 
|                                  |  |                                      |     |   |                | 
|                                  |  | Increase/(Decrease) due to change in |    
|                                  |  |                                      |    
|                                  |  | Average                              |     |   | Average        |  |      | Net    |  |  | Average |   |  | Average |     |   | Net    | 
|                                  |  | Volume                               |     |   | Rate           |  |      | Change |  |  | Volume  |   |  | Rate    |     |   | Change | 
|                                  |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        | 
|                                  |  | (in  millions)                      |    
|INTEREST BEARING LIABILITIES      |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Deposits by Banks                 |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 104 |   |                |  | (106 | )      |  |  | (2      | ) |  |         | 89  |   |        |  | (54  | ) |  |  | 35  |  
|Foreign offices                   |  |                                      | 7   |   |                |  | (3   | )      |  |  | 4       |   |  |         | (4  | ) |        |  |     |   |  |  | (4  | )
|Customer accounts                 |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Demand deposits                   |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 6   |   |                |  | (51  | )      |  |  | (45     | ) |  |         |    |   |        |  | (62  | ) |  |  | (62 | )
|Foreign offices                   |  |                                      | (14 | ) |                |  | 90   |        |  |  | 76      |   |  |         | (33 | ) |        |  | 7    |   |  |  | (26 | )
|Term deposits                     |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 11  |   |                |  | 1    |        |  |  | 12      |   |  |         | 20  |   |        |  | (34  | ) |  |  | (14 | )
|Foreign offices                   |  |                                      | 72  |   |                |  | (64  | )      |  |  | 8       |   |  |         | (29 | ) |        |  | 46   |   |  |  | 17  |  
|Other deposits                    |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 6   |   |                |  | (1   | )      |  |  | 5       |   |  |         | (42 | ) |        |  | 27   |   |  |  | (15 | )
|Foreign offices                   |  |                                      |    |   |                |  | (1   | )      |  |  | (1      | ) |  |         | (1  | ) |        |  | 1    |   |  |  |    |  
|Interest bearing current accounts |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 1   |   |                |  | 2    |        |  |  | 3       |   |  |         | 1   |   |        |  | (4   | ) |  |  | (3  | )
|Foreign offices                   |  |                                      | 7   |   |                |  | 22   |        |  |  | 29      |   |  |         | 8   |   |        |  | 1    |   |  |  | 9   |  
|Debt securities in issue          |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 109 |   |                |  | 87   |        |  |  | 196     |   |  |         | 41  |   |        |  | (78  | ) |  |  | (37 | )
|Foreign offices                   |  |                                      | 29  |   |                |  | 32   |        |  |  | 61      |   |  |         | 18  |   |        |  | (14  | ) |  |  | 4   |  
|Subordinated liabilities          |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        |  |      |   |  |  |     |  
|Domestic offices                  |  |                                      | 35  |   |                |  | 9    |        |  |  | 44      |   |  |         | 7   |   |        |  | (14  | ) |  |  | (7  | )
|Foreign offices                   |  |                                      | 4   |   |                |  |     |        |  |  | 4       |   |  |         | 34  |   |        |  | (6   | ) |  |  | 28  |  
|                                  |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        | 
|Total interest bearing expense    |  |                                      | 377 |   |                |  | 17   |        |  |  | 394     |   |  |         | 109 |   |        |  | (184 | ) |  |  | (75 | )
|                                  |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        | 
|Net interest income               |  |                                      | 280 |   |                |  | (126 | )      |  |  | 154     |   |  |         | 213 |   |        |  | (198 | ) |  |  | 15  |  
|                                  |  |                                      |     |   |                |  |      |        |  |  |         |   |  |         |     |   |        | 




DESCRIPTION OF ASSETS AND LIABILITIES




Assets


Loan Portfolio










50



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|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|------------------------------- |  | --------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | - |  | ---- | ------ | - |  |  | ------ | -
|                                |  | At March 31,    |       
|                                |  |                 |       
|                                |  | 2005            |        |   | 2004 |  |        | 2003 |  |  | 2002   |   |  | 2001 |       
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|                                |  | (in  millions) |       
|Ireland                         |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|Agriculture                     |  |                 | 1,144  |   |      |  | 1,134  |      |  |  | 1,142  |   |  |      | 1,114  |   |  |  | 1,028  |  
|Energy                          |  |                 | 459    |   |      |  | 485    |      |  |  | 650    |   |  |      | 696    |   |  |  | 652    |  
|Manufacturing                   |  |                 | 4,390  |   |      |  | 3,579  |      |  |  | 3,866  |   |  |      | 3,908  |   |  |  | 3,505  |  
|Construction and property       |  |                 | 8,051  |   |      |  | 6,111  |      |  |  | 4,666  |   |  |      | 3,638  |   |  |  | 3,535  |  
|Distribution                    |  |                 | 2,215  |   |      |  | 1,575  |      |  |  | 1,391  |   |  |      | 1,353  |   |  |  | 1,267  |  
|Transport                       |  |                 | 969    |   |      |  | 954    |      |  |  | 486    |   |  |      | 899    |   |  |  | 503    |  
|Financial                       |  |                 | 1,680  |   |      |  | 1,311  |      |  |  | 817    |   |  |      | 1,960  |   |  |  | 2,122  |  
|Business and other services     |  |                 | 4,229  |   |      |  | 3,147  |      |  |  | 2,865  |   |  |      | 2,478  |   |  |  | 2,210  |  
|Personal                        |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
| residential mortgages         |  |                 | 15,461 |   |      |  | 12,360 |      |  |  | 10,005 |   |  |      | 7,944  |   |  |  | 6,341  |  
| other lending                 |  |                 | 4,539  |   |      |  | 3,614  |      |  |  | 3,025  |   |  |      | 2,718  |   |  |  | 2,655  |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|                                |  |                 | 43,137 |   |      |  | 34,270 |      |  |  | 28,913 |   |  |      | 26,708 |   |  |  | 23,818 |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|United Kingdom                  |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|Agriculture                     |  |                 | 67     |   |      |  | 69     |      |  |  | 58     |   |  |      | 55     |   |  |  | 53     |  
|Energy                          |  |                 | 61     |   |      |  | 63     |      |  |  | 158    |   |  |      | 142    |   |  |  | 91     |  
|Manufacturing                   |  |                 | 657    |   |      |  | 1,275  |      |  |  | 721    |   |  |      | 593    |   |  |  | 568    |  
|Construction and property       |  |                 | 4,242  |   |      |  | 2,572  |      |  |  | 1,984  |   |  |      | 2,091  |   |  |  | 1,650  |  
|Distribution                    |  |                 | 186    |   |      |  | 203    |      |  |  | 224    |   |  |      | 226    |   |  |  | 211    |  
|Transport                       |  |                 | 293    |   |      |  | 337    |      |  |  | 249    |   |  |      | 63     |   |  |  | 71     |  
|Financial                       |  |                 | 237    |   |      |  | 173    |      |  |  | 96     |   |  |      | 153    |   |  |  | 171    |  
|Business and other services     |  |                 | 1,746  |   |      |  | 1,375  |      |  |  | 1,250  |   |  |      | 1,094  |   |  |  | 994    |  
|Commercial mortgages            |  |                 | 2,228  |   |      |  | 2,130  |      |  |  | 1,855  |   |  |      | 1,989  |   |  |  | 1,719  |  
|Personal                        |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
| residential mortgages         |  |                 | 25,535 |   |      |  | 24,073 |      |  |  | 20,863 |   |  |      | 22,933 |   |  |  | 21,362 |  
| other lending                 |  |                 | 1,847  |   |      |  | 1,472  |      |  |  | 995    |   |  |      | 1,008  |   |  |  | 841    |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|                                |  |                 | 37,099 |   |      |  | 33,742 |      |  |  | 28,453 |   |  |      | 30,347 |   |  |  | 27,731 |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|United States                   |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |        |   |  |  |        |  
|Commercial loans                |  |                 |       |   |      |  |       |      |  |  | 1      |   |  |      | 22     |   |  |  | 28     |  
|Real estate loans, construction |  |                 |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |  
|Real estate loans, mortgage     |  |                 |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |  
|Consumer loans                  |  |                 |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |  
|Bank card loans                 |  |                 |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |  
|Leasing                         |  |                 |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |  
|Other loans                     |  |                 |       |   |      |  |       |      |  |  |       |   |  |      |       |   |  |  |       |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|                                |  |                 |       |   |      |  |       |      |  |  | 1      |   |  |      | 22     |   |  |  | 28     |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|Group total loan portfolio      |  |                 | 80,236 |   |      |  | 68,012 |      |  |  | 57,367 |   |  |      | 57,077 |   |  |  | 51,577 |  
|Allowance for loan losses       |  |                 | (319   | ) |      |  | (472   | )    |  |  | (480   | ) |  |      | (500   | ) |  |  | (430   | )
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       
|Total                           |  |                 | 79,917 |   |      |  | 67,540 |      |  |  | 56,887 |   |  |      | 56,577 |   |  |  | 51,147 |  
|                                |  |                 |        |   |      |  |        |      |  |  |        |   |  |      |       

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|                            |  |                 |        |   |      |  |        |      |  |  |        |   |  |  |        |  
|--------------------------- |  | --------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | - |  |  | ------ | -
|                            |  | At March 31,    |       
|                            |  |                 |       
|                            |  | 2004            |        |   | 2003 |  |        | 2002 |  |  | 2001   |  
|                            |  |                 |        |   |      |  |        |      |  |  |        |  
|                            |  | (in  millions) |       
|Ireland                     |  |                 |        |   |      |  |        |      |  |  |        |   |  |  |        |  
|Agriculture                 |  |                 | 108    |   |      |  | 179    |      |  |  | 70     |   |  |  | 51     |  
|Energy                      |  |                 | 11     |   |      |  | 11     |      |  |  | 3      |   |  |  | 1      |  
|Manufacturing               |  |                 | 152    |   |      |  | 34     |      |  |  | 71     |   |  |  | 55     |  
|Construction and property   |  |                 | 2,943  |   |      |  | 2,254  |      |  |  | 1,776  |   |  |  | 1,348  |  
|Distribution                |  |                 | 309    |   |      |  | 108    |      |  |  | 189    |   |  |  | 75     |  
|Transport                   |  |                 | 53     |   |      |  | 50     |      |  |  | 28     |   |  |  | 12     |  
|Financial                   |  |                 | (69    | ) |      |  | (17    | )    |  |  | (2     | ) |  |  | (1     | )
|Business and other services |  |                 | (2,466 | ) |      |  | (1,137 | )    |  |  | (1,228 | ) |  |  | (834   | )
|Personal                    |  |                 |        |   |      |  |        |      |  |  |        |   |  |  |        |  
| residential mortgages     |  |                 | 343    |   |      |  | 393    |      |  |  | 413    |   |  |  | 418    |  
| other lending             |  |                 | (1,384 | ) |      |  | (1,875 | )    |  |  | (1,320 | ) |  |  | (1,125 | )
|                            |  |                 |        |   |      |  |        |      |  |  |        |  
|Total                       |  |                 |       |   |      |  |       |      |  |  |       |   |  |  |       |  
|                            |  |                 |        |   |      |  |        |      |  |  |        |  



|                            |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|--------------------------- |  | ------------ | ---- |  | ---- |  | ---- | ---- |  |  | ---- |  |  | ---- | ---- |  |  |  | ---- | 
|                            |  | At March 31, |     
|                            |  |              |     
|                            |  | 2005         |      |  | 2004 |  |      | 2003 |  |  | 2002 |  |  | 2001 |     
|                            |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|                            |  | %            |      |  | %    |  |      | %    |  |  | %    |  |  | %    |     
|Ireland                     |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Agriculture                 |  |              | 1.4  |  |      |  | 1.7  |      |  |  | 2.0  |  |  |      | 2.0  |  |  |  | 2.0  | 
|Energy                      |  |              | 0.6  |  |      |  | 0.7  |      |  |  | 1.1  |  |  |      | 1.2  |  |  |  | 1.3  | 
|Manufacturing               |  |              | 5.5  |  |      |  | 5.3  |      |  |  | 6.7  |  |  |      | 6.8  |  |  |  | 6.8  | 
|Construction and property   |  |              | 9.9  |  |      |  | 9.0  |      |  |  | 8.1  |  |  |      | 6.4  |  |  |  | 6.9  | 
|Distribution                |  |              | 2.8  |  |      |  | 2.3  |      |  |  | 2.4  |  |  |      | 2.4  |  |  |  | 2.5  | 
|Transport                   |  |              | 1.2  |  |      |  | 1.4  |      |  |  | 0.9  |  |  |      | 1.6  |  |  |  | 1.0  | 
|Financial                   |  |              | 2.1  |  |      |  | 1.9  |      |  |  | 1.4  |  |  |      | 3.4  |  |  |  | 4.1  | 
|Business and other services |  |              | 5.3  |  |      |  | 4.6  |      |  |  | 5.0  |  |  |      | 4.3  |  |  |  | 4.2  | 
|Personal                    |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
| residential mortgages     |  |              | 19.3 |  |      |  | 18.2 |      |  |  | 17.5 |  |  |      | 13.9 |  |  |  | 12.3 | 
| other lending             |  |              | 5.7  |  |      |  | 5.3  |      |  |  | 5.3  |  |  |      | 4.8  |  |  |  | 5.1  | 
|                            |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|                            |  |              | 53.8 |  |      |  | 50.4 |      |  |  | 50.4 |  |  |      | 46.8 |  |  |  | 46.2 | 
|                            |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     

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|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|------------------------------- |  | ------------ | ----- |  | ---- |  | ----- | ---- |  |  | ----- |  |  | ---- | ----- |  |  |  | ----- | 
|                                |  | At March 31, |      
|                                |  |              |      
|                                |  | 2005         |       |  | 2004 |  |       | 2003 |  |  | 2002  |  |  | 2001 |      
|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  | %            |       |  | %    |  |       | %    |  |  | %     |  |  | %    |      
|United Kingdom                  |  |              |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|Agriculture                     |  |              | 0.1   |  |      |  | 0.1   |      |  |  | 0.1   |  |  |      | 0.1   |  |  |  | 0.1   | 
|Energy                          |  |              | 0.1   |  |      |  | 0.1   |      |  |  | 0.3   |  |  |      | 0.2   |  |  |  | 0.2   | 
|Manufacturing                   |  |              | 0.8   |  |      |  | 1.9   |      |  |  | 1.3   |  |  |      | 1.0   |  |  |  | 1.1   | 
|Construction and property       |  |              | 5.3   |  |      |  | 3.7   |      |  |  | 3.4   |  |  |      | 3.7   |  |  |  | 3.2   | 
|Distribution                    |  |              | 0.2   |  |      |  | 0.3   |      |  |  | 0.4   |  |  |      | 0.4   |  |  |  | 0.4   | 
|Transport                       |  |              | 0.4   |  |      |  | 0.5   |      |  |  | 0.4   |  |  |      | 0.1   |  |  |  | 0.1   | 
|Financial                       |  |              | 0.3   |  |      |  | 0.3   |      |  |  | 0.2   |  |  |      | 0.3   |  |  |  | 0.3   | 
|Business and other services     |  |              | 2.2   |  |      |  | 2.0   |      |  |  | 2.2   |  |  |      | 1.9   |  |  |  | 1.9   | 
|Commercial mortgages            |  |              | 2.8   |  |      |  | 3.1   |      |  |  | 3.2   |  |  |      | 3.5   |  |  |  | 3.4   | 
|Personal                        |  |              |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
| residential mortgages         |  |              | 31.7  |  |      |  | 35.4  |      |  |  | 36.4  |  |  |      | 40.2  |  |  |  | 41.4  | 
| other lending                 |  |              | 2.3   |  |      |  | 2.2   |      |  |  | 1.7   |  |  |      | 1.8   |  |  |  | 1.6   | 
|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  |              | 46.2  |  |      |  | 49.6  |      |  |  | 49.6  |  |  |      | 53.2  |  |  |  | 53.7  | 
|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |      
|United States                   |  |              |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|Commercial loans                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  | 0.1   | 
|Real estate loans, construction |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Real estate loans, mortgage     |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Consumer loans                  |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Bank card loans                 |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Leasing                         |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Other loans                     |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  | 0.1   | 
|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |      
|Group total loan portfolio      |  |              | 100.0 |  |      |  | 100.0 |      |  |  | 100.0 |  |  |      | 100.0 |  |  |  | 100.0 | 
|                                |  |              |       |  |      |  |       |      |  |  |       |  |  |      |      

Analysis of Loans to Customers by Maturity and Interest
Rate Sensitivity




|                        |  |                      |        |            |         |  |        |         |  |  |        |  |  |  |        | 
|----------------------- |  | -------------------- | ------ | ---------- | ------- |  | ------ | ------- |  |  | ------ |  |  |  | ------ | 
|                        |  | As at March 31, 2005 |       
|                        |  |                      |       
|                        |  |                      |        | After      |         |  |       
|                        |  |                      |        | 1 year but |         |  |       
|                        |  | Within               |        |            | within  |  |        | After   |  |  |       
|                        |  | 1 year               |        |            | 5 years |  |        | 5 years |  |  | Total  | 
|                        |  |                      |        |            |         |  |        |         |  |  |        | 
|                        |  | (in  millions)      |       
|Ireland                 |  |                      | 9,561  |            |         |  | 12,408 |         |  |  | 21,168 |  |  |  | 43,137 | 
|United Kingdom          |  |                      | 3,251  |            |         |  | 5,748  |         |  |  | 28,100 |  |  |  | 37,099 | 
|                        |  |                      |        |            |         |  |        |         |  |  |        | 
|Total loans by maturity |  |                      | 12,812 |            |         |  | 18,156 |         |  |  | 49,268 |  |  |  | 80,236 | 
|                        |  |                      |        |            |         |  |        |         |  |  |        | 
|Fixed rate              |  |                      | 2,494  |            |         |  | 3,414  |         |  |  | 3,001  |  |  |  | 8,909  | 
|Variable rate           |  |                      | 10,318 |            |         |  | 14,742 |         |  |  | 46,267 |  |  |  | 71,327 | 
|                        |  |                      |        |            |         |  |        |         |  |  |        | 
|Total loans by maturity |  |                      | 12,812 |            |         |  | 18,156 |         |  |  | 49,268 |  |  |  | 80,236 | 
|                        |  |                      |        |            |         |  |        |         |  |  |        | 

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|                            |  |                      |        |            |         |  |        |         |  |  |        |  |  |  |        | 
|--------------------------- |  | -------------------- | ------ | ---------- | ------- |  | ------ | ------- |  |  | ------ |  |  |  | ------ | 
|                            |  | As at March 31, 2005 |       
|                            |  |                      |       
|                            |  |                      |        | After      |         |  |       
|                            |  |                      |        | 1 year but |         |  |       
|                            |  | Within               |        |            | within  |  |        | After   |  |  |       
|                            |  | 1 year               |        |            | 5 years |  |        | 5 years |  |  | Total  | 
|                            |  |                      |        |            |         |  |        |         |  |  |        | 
|                            |  | (in  millions)      |       
|Ireland                     |  |                      |        |            |         |  |        |         |  |  |        |  |  |  |        | 
|Agriculture                 |  |                      | 402    |            |         |  | 393    |         |  |  | 349    |  |  |  | 1,144  | 
|Energy                      |  |                      | 54     |            |         |  | 202    |         |  |  | 203    |  |  |  | 459    | 
|Manufacturing               |  |                      | 1,233  |            |         |  | 1,824  |         |  |  | 1,333  |  |  |  | 4,390  | 
|Construction and property   |  |                      | 2,225  |            |         |  | 2,902  |         |  |  | 2,924  |  |  |  | 8,051  | 
|Distribution                |  |                      | 787    |            |         |  | 737    |         |  |  | 691    |  |  |  | 2,215  | 
|Transport                   |  |                      | 268    |            |         |  | 418    |         |  |  | 283    |  |  |  | 969    | 
|Financial                   |  |                      | 859    |            |         |  | 422    |         |  |  | 399    |  |  |  | 1,680  | 
|Business and other services |  |                      | 1,124  |            |         |  | 1,365  |         |  |  | 1,740  |  |  |  | 4,229  | 
|Personal                    |  |                      |        |            |         |  |        |         |  |  |        |  |  |  |        | 
| residential mortgages     |  |                      | 763    |            |         |  | 2,674  |         |  |  | 12,024 |  |  |  | 15,461 | 
| other lending             |  |                      | 1,846  |            |         |  | 1,471  |         |  |  | 1,222  |  |  |  | 4,539  | 
|                            |  |                      |        |            |         |  |        |         |  |  |        | 
|                            |  |                      | 9,561  |            |         |  | 12,408 |         |  |  | 21,168 |  |  |  | 43,137 | 
|                            |  |                      |        |            |         |  |        |         |  |  |        | 
|United Kingdom              |  |                      |        |            |         |  |        |         |  |  |        |  |  |  |        | 
|Agriculture                 |  |                      | 27     |            |         |  | 26     |         |  |  | 14     |  |  |  | 67     | 
|Energy                      |  |                      | 24     |            |         |  | 26     |         |  |  | 11     |  |  |  | 61     | 
|Manufacturing               |  |                      | 268    |            |         |  | 288    |         |  |  | 101    |  |  |  | 657    | 
|Construction and property   |  |                      | 939    |            |         |  | 1,679  |         |  |  | 1,624  |  |  |  | 4,242  | 
|Distribution                |  |                      | 10     |            |         |  | 80     |         |  |  | 96     |  |  |  | 186    | 
|Transport                   |  |                      | 80     |            |         |  | 175    |         |  |  | 38     |  |  |  | 293    | 
|Financial                   |  |                      | 91     |            |         |  | 116    |         |  |  | 30     |  |  |  | 237    | 
|Business and other services |  |                      | 507    |            |         |  | 584    |         |  |  | 655    |  |  |  | 1,746  | 
|Commercial Mortgages        |  |                      | 88     |            |         |  | 666    |         |  |  | 1,474  |  |  |  | 2,228  | 
|Personal                    |  |                      |        |            |         |  |        |         |  |  |        |  |  |  |        | 
| residential mortgages     |  |                      | 251    |            |         |  | 1,522  |         |  |  | 23,762 |  |  |  | 25,535 | 
| other lending             |  |                      | 966    |            |         |  | 586    |         |  |  | 295    |  |  |  | 1,847  | 
|                            |  |                      |        |            |         |  |        |         |  |  |        | 
|                            |  |                      | 3,251  |            |         |  | 5,748  |         |  |  | 28,100 |  |  |  | 37,099 | 
|                            |  |                      |        |            |         |  |        |         |  |  |        | 
|Group total loan portfolio  |  |                      | 12,812 |            |         |  | 18,156 |         |  |  | 49,268 |  |  |  | 80,236 | 
|                            |  |                      |        |            |         |  |        |         |  |  |        | 

Movement in the Allowance for Loan Losses










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  







|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         |  |       |   |  |  |       |  
|------------------------------------------------ |  | ------------------------------ | ------ | ----- | ------- | ----- | ------ | -------- |  |  | ------- | - |  | -------- | ----- | - | ------- |  | ----- | - |  |  | ----- | -
|                                                 |  | Financial year ended March 31, |       
|                                                 |  |                                |       
|                                                 |  | 2005                           |        |       | 2004    |       |        | 2003     | 
|                                                 |  |                                |        |       |         |       |        |          | 
|                                                 |  | Specific                       |        |       | General |       |        | Specific |  |  | General |   |  | Specific |       |   | General | 
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|                                                 |  | (in  millions)                |       
|Allowance at beginning of year                   |  |                                | 190.8  |       |         |       | 281.0  |          |  |  | 169.5   |   |  |          | 310.2 |   |         |  | 158.8 |   |  |  | 341.4 |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Total allowance                                  |  | 471.8                          |        | 479.7 |         | 500.2
|                                                 |  |                                |        |       |         |      
|Exchange adjustments                             |  |                                | (3.2   | )     |         |       | (6.0   | )        |  |  | 1.3     |   |  |          | 5.9   |   |         |  | (7.7  | ) |  |  | (22.4 | )
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Other adjustments:                               |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         |  |       |   |  |  |       |  
|Acquisitions/ Mergers                            |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|Disposals                                        |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|Transfers: general to specific                   |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|                                                 |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Recovery of amounts previously charged off:      |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         |  |       |   |  |  |       |  
|Ireland                                          |  |                                | 19.5   |       |         |       |       |          |  |  | 12.3    |   |  |          |      |   |         |  | 4.1   |   |  |  |      |  
|United Kingdom                                   |  |                                | 1.9    |       |         |       |       |          |  |  | 0.7     |   |  |          |      |   |         |  | 1.5   |   |  |  |      |  
|United States                                    |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Total recovery of amounts previously charged off |  |                                | 21.4   |       |         |       |       |          |  |  | 13.0    |   |  |          |      |   |         |  | 5.6   |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Amounts charged off:                             |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         |  |       |   |  |  |       |  
|Ireland                                          |  |                                | (131.9 | )     |         |       |       |          |  |  | (105.3  | ) |  |          |      |   |         |  | (77.4 | ) |  |  |      |  
|United Kingdom                                   |  |                                | (12.6  | )     |         |       |       |          |  |  | (9.3    | ) |  |          |      |   |         |  | (19.0 | ) |  |  |      |  
|United States                                    |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Total amounts charged off                        |  |                                | (144.5 | )     |         |       |       |          |  |  | (114.6  | ) |  |          |      |   |         |  | (96.4 | ) |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Provision for loan losses charged to income:     |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         |  |       |   |  |  |       |  
|Ireland                                          |  |                                | 103.8  |       |         |       | (17.2  | )        |  |  | 113.0   |   |  |          | (29.7 | ) |         |  | 102.5 |   |  |  | (25.2 | )
|United Kingdom                                   |  |                                | 13.1   |       |         |       | (20.5  | )        |  |  | 8.6     |   |  |          | (5.4  | ) |         |  | 6.7   |   |  |  | 16.4  |  
|United States                                    |  |                                |       |       |         |       |       |          |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|                                                 |  |                                | 116.9  |       |         |       | (37.7  | )        |  |  | 121.6   |   |  |          | (35.1 | ) |         |  | 109.2 |   |  |  | (8.8  | )
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Special release                                  |  |                                |       |       |         |       | (100.0 | )        |  |  |        |   |  |          |      |   |         |  |      |   |  |  |      |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Allowance at end of year                         |  |                                | 181.4  |       |         |       | 137.3  |          |  |  | 190.8   |   |  |          | 281.0 |   |         |  | 169.5 |   |  |  | 310.2 |  
|                                                 |  |                                |        |       |         |       |        |          |  |  |         |   |  |          |       |   |         | 
|Total allowance                                  |  | 318.7                          |        | 471.8 |         | 479.7
|                                                 |  |                                |        |       |         |      

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Movement in the Allowance for Loan Losses


|                                                 |  |                                |       |       |         |  |       |          |  |  |         |   |  |  |       |  
|------------------------------------------------ |  | ------------------------------ | ----- | ----- | ------- |  | ----- | -------- |  |  | ------- | - |  |  | ----- | -
|                                                 |  | Financial year ended March 31, |      
|                                                 |  |                                |      
|                                                 |  | 2002                           |       |       | 2001    | 
|                                                 |  |                                |       |       |         | 
|                                                 |  | Specific                       |       |       | General |  |       | Specific |  |  | General |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|                                                 |  | (in  millions)                |      
|Allowance at beginning of year                   |  |                                | 123.2 |       |         |  | 307.2 |          |  |  | 114.5   |   |  |  | 283.1 |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Total allowance                                  |  | 430.4                          |       | 397.6
|                                                 |  |                                |       |      
|Exchange adjustments                             |  |                                | 1.4   |       |         |  | 2.2   |          |  |  | (1.5    | ) |  |  | (5.5  | )
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Other adjustments:                               |  |                                |       |       |         |  |       |          |  |  |         |   |  |  |       |  
|Acquisitions/ Mergers                            |  |                                |      |       |         |  |      |          |  |  |        |   |  |  | (0.5  | )
|Disposals                                        |  |                                |      |       |         |  |      |          |  |  |        |   |  |  |      |  
|Transfers: general to specific                   |  |                                |      |       |         |  |      |          |  |  |        |   |  |  |      |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|                                                 |  |                                |      |       |         |  |      |          |  |  |        |   |  |  | (0.5  | )
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Recovery of amounts previously charged off:      |  |                                |       |       |         |  |       |          |  |  |         |   |  |  |       |  
|Ireland                                          |  |                                | 14.4  |       |         |  |      |          |  |  | 9.6     |   |  |  |      |  
|United Kingdom                                   |  |                                | 4.7   |       |         |  |      |          |  |  | 7.1     |   |  |  |      |  
|United States                                    |  |                                |      |       |         |  |      |          |  |  |        |   |  |  |      |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Total recovery of amounts previously charged off |  |                                | 19.1  |       |         |  |      |          |  |  | 16.7    |   |  |  |      |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Amounts charged off:                             |  |                                |       |       |         |  |       |          |  |  |         |   |  |  |       |  
|Ireland                                          |  |                                | (39.0 | )     |         |  |      |          |  |  | (29.1   | ) |  |  |      |  
|United Kingdom                                   |  |                                | (16.1 | )     |         |  |      |          |  |  | (19.6   | ) |  |  |      |  
|United States                                    |  |                                |      |       |         |  |      |          |  |  |        |   |  |  |      |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Total amounts charged off                        |  |                                | (55.1 | )     |         |  |      |          |  |  | (48.7   | ) |  |  |      |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Provision for loan losses charged to income:     |  |                                |       |       |         |  |       |          |  |  |         |   |  |  |       |  
|Ireland                                          |  |                                | 62.1  |       |         |  | 9.6   |          |  |  | 28.1    |   |  |  | 30.3  |  
|United Kingdom                                   |  |                                | 8.1   |       |         |  | 22.4  |          |  |  | 14.1    |   |  |  | (0.2  | )
|United States                                    |  |                                |      |       |         |  |      |          |  |  |        |   |  |  |      |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|                                                 |  |                                | 70.2  |       |         |  | 32.0  |          |  |  | 42.2    |   |  |  | 30.1  |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Allowance at end of year                         |  |                                | 158.8 |       |         |  | 341.4 |          |  |  | 123.2   |   |  |  | 307.2 |  
|                                                 |  |                                |       |       |         |  |       |          |  |  |         |  
|Total allowance                                  |  | 500.2                          |       | 430.4
|                                                 |  |                                |       |      

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|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |        |  |  |  |        | 
|------------------------------------------------------------------------------------------------------------- |  | -------------------------------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | - |  | ---- | ------ |  |  |  | ------ | 
|                                                                                                              |  | For the Financial Year Ended March 31, |       
|                                                                                                              |  |                                        |       
|                                                                                                              |  | 2005                                   |        |   | 2004 |  |        | 2003 |  |  | 2002   |   |  | 2001 |       
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|                                                                                                              |  | (in  millions, except percentages)    |       
|                                                                                                              |  | %                                      |        |   | %    |  |        | %    |  |  | %      |   |  | %    |       
|Allowance at end of year as a percentage of total loans to
    customers at end of year:                      |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |        |  |  |  |        | 
|Ireland                                                                                                       |  |                                        | 0.64   |   |      |  | 0.92   |      |  |  | 1.12   |   |  |      | 1.02   |  |  |  | 0.92   | 
|United Kingdom                                                                                                |  |                                        | 0.11   |   |      |  | 0.46   |      |  |  | 0.54   |   |  |      | 0.75   |  |  |  | 0.76   | 
|United States                                                                                                 |  |                                        |       |   |      |  |       |      |  |  |       |   |  |      |       |  |  |  |       | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Total                                                                                                         |  |                                        | 0.40   |   |      |  | 0.69   |      |  |  | 0.84   |   |  |      | 0.88   |  |  |  | 0.83   | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Specific                                                                                                      |  |                                        | 0.23   |   |      |  | 0.28   |      |  |  | 0.30   |   |  |      | 0.28   |  |  |  | 0.23   | 
|General                                                                                                       |  |                                        | 0.17   |   |      |  | 0.41   |      |  |  | 0.54   |   |  |      | 0.60   |  |  |  | 0.60   | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Total                                                                                                         |  |                                        | 0.40   |   |      |  | 0.69   |      |  |  | 0.84   |   |  |      | 0.88   |  |  |  | 0.83   | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Allowance at end of year as a percentage of loans accounted for
    on a non-accrual basis at end of year:(1) |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |        |  |  |  |        | 
|Ireland                                                                                                       |  |                                        | 100.5  |   |      |  | 98.0   |      |  |  | 121.3  |   |  |      | 126.5  |  |  |  | 142.7  | 
|United Kingdom                                                                                                |  |                                        | 70.0   |   |      |  | 293.2  |      |  |  | 300.5  |   |  |      | 197.9  |  |  |  | 131.2  | 
|United States                                                                                                 |  |                                        |       |   |      |  |       |      |  |  |       |   |  |      |       |  |  |  |       | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Total                                                                                                         |  |                                        | 95.1   |   |      |  | 125.7  |      |  |  | 150.1  |   |  |      | 151.3  |  |  |  | 136.7  | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Average loans to customers(2)                                                                                 |  |                                        | 74,304 |   |      |  | 62,129 |      |  |  | 57,145 |   |  |      | 55,197 |  |  |  | 49,049 | 
|Provisions charged to income as a percentage of average loans to
    customers:                               |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |        |  |  |  |        | 
|Specific                                                                                                      |  |                                        | 0.16   |   |      |  | 0.20   |      |  |  | 0.20   |   |  |      | 0.13   |  |  |  | 0.09   | 
|General                                                                                                       |  |                                        | (0.05  | ) |      |  | (0.06  | )    |  |  | (0.02  | ) |  |      | 0.06   |  |  |  | 0.06   | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Total                                                                                                         |  |                                        | 0.11   |   |      |  | 0.14   |      |  |  | 0.18   |   |  |      | 0.19   |  |  |  | 0.15   | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       
|Net loans charged off as a percentage of average loans to
    customers                                       |  |                                        | 0.17   |   |      |  | 0.16   |      |  |  | 0.16   |   |  |      | 0.07   |  |  |  | 0.07   | 
|                                                                                                              |  |                                        |        |   |      |  |        |      |  |  |        |   |  |      |       






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Non-accrual loans include loans in Ireland and the United
    Kingdom against which interest continues to be accrued but
    against which specific provisions have been made. For the
    purposes of this calculation, non-accrual loans do not include
    accruing loans which are contractually past due 90 days or
    more as to principal or interest payments and loans which are
    troubled debt restructurings as defined in
    SFAS No. 15 Accounting by Debtors and Creditors
    for Troubled Debt Restructurings.
|   
|(2) | Average loans include average interest earning and non-interest
    earning loans.                                                                                                                                                                                                                                                                                                                                                                                                                                                     

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|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |      |  |  |  |      | 
|------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | ---- |  |  | ---- |  |  | ---- | ---- |  |  |  | ---- | 
|                                |  | At March 31,    |      
|                                |  |                 |      
|                                |  | 2005            |       |  | 2004 |  |       | 2003 |  |  | 2002 |  |  | 2001 |     
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|                                |  | (in  millions) |      
|Ireland                         |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |      |  |  |  |      | 
|Agriculture                     |  |                 | 3.6   |  |      |  | 3.3   |      |  |  | 2.9  |  |  |      | 1.7  |  |  |  | 2.5  | 
|Energy                          |  |                 | 7.7   |  |      |  | 15.4  |      |  |  | 5.0  |  |  |      |     |  |  |  |     | 
|Manufacturing                   |  |                 | 1.5   |  |      |  | 5.2   |      |  |  | 21.9 |  |  |      | 12.8 |  |  |  | 0.2  | 
|Construction and property       |  |                 | 2.2   |  |      |  | 4.3   |      |  |  | 1.8  |  |  |      | 0.8  |  |  |  | 0.6  | 
|Distribution                    |  |                 | 2.0   |  |      |  | 1.6   |      |  |  | 2.1  |  |  |      | 1.3  |  |  |  | 1.6  | 
|Transport                       |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Financial                       |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Business and Other Services     |  |                 | 47.2  |  |      |  | 22.1  |      |  |  | 14.5 |  |  |      | 5.7  |  |  |  | 5.4  | 
|Personal                        |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |      |  |  |  |      | 
| Residential Mortgages         |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
| Other lending                 |  |                 | 67.7  |  |      |  | 53.4  |      |  |  | 29.2 |  |  |      | 16.7 |  |  |  | 18.8 | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|                                |  |                 | 131.9 |  |      |  | 105.3 |      |  |  | 77.4 |  |  |      | 39.0 |  |  |  | 29.1 | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|United Kingdom                  |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |      |  |  |  |      | 
|Agriculture                     |  |                 | 0.1   |  |      |  | 0.1   |      |  |  | 0.1  |  |  |      | 0.1  |  |  |  | 0.1  | 
|Manufacturing                   |  |                 | 2.8   |  |      |  | 0.6   |      |  |  | 7.6  |  |  |      | 0.9  |  |  |  | 0.8  | 
|Construction and property       |  |                 | 0.1   |  |      |  | 0.5   |      |  |  | 1.1  |  |  |      | 0.4  |  |  |  | 6.1  | 
|Distribution                    |  |                 | 0.1   |  |      |  | 0.5   |      |  |  | 0.3  |  |  |      | 4.5  |  |  |  | 0.2  | 
|Transport                       |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Financial                       |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Business and Other Services     |  |                 | 1.5   |  |      |  | 1.2   |      |  |  | 2.7  |  |  |      | 1.2  |  |  |  | 1.5  | 
|Commercial mortgages            |  |                 | 1.0   |  |      |  | 1.4   |      |  |  | 2.2  |  |  |      |     |  |  |  |     | 
|Personal                        |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |      |  |  |  |      | 
| Residential Mortgages         |  |                 |      |  |      |  | 0.6   |      |  |  | 0.2  |  |  |      | 3.8  |  |  |  | 6.4  | 
| Other lending                 |  |                 | 7.0   |  |      |  | 4.4   |      |  |  | 4.8  |  |  |      | 5.2  |  |  |  | 4.5  | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|                                |  |                 | 12.6  |  |      |  | 9.3   |      |  |  | 19.0 |  |  |      | 16.1 |  |  |  | 19.6 | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|United States                   |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |      |  |  |  |      | 
|Commercial loans                |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Real estate loans, construction |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Real estate loans, mortgage     |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|Leases including consumer loans |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|                                |  |                 |      |  |      |  |      |      |  |  |     |  |  |      |     |  |  |  |     | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     
|Group total                     |  |                 | 144.5 |  |      |  | 114.6 |      |  |  | 96.4 |  |  |      | 55.1 |  |  |  | 48.7 | 
|                                |  |                 |       |  |      |  |       |      |  |  |      |  |  |      |     

59



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##### Table of Contents





|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|------------------------------- |  | --------------- | ---- |  | ---- |  | ---- | ---- |  |  | ---- |  |  | ---- | ---- |  |  |  | ---- | 
|                                |  | At March 31,    |     
|                                |  |                 |     
|                                |  | 2005            |      |  | 2004 |  |      | 2003 |  |  | 2002 |  |  | 2001 |     
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  | (in  millions) |     
|Ireland                         |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Agriculture                     |  |                 | 0.6  |  |      |  | 0.5  |      |  |  | 0.2  |  |  |      | 1.2  |  |  |  | 0.8  | 
|Manufacturing                   |  |                 | 1.0  |  |      |  | 3.5  |      |  |  | 1.3  |  |  |      | 0.1  |  |  |  | 1.0  | 
|Construction and property       |  |                 | 0.8  |  |      |  | 0.3  |      |  |  | 0.1  |  |  |      | 0.3  |  |  |  | 0.2  | 
|Distribution                    |  |                 | 0.3  |  |      |  | 0.3  |      |  |  | 0.1  |  |  |      | 0.8  |  |  |  | 0.5  | 
|Transport                       |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Financial                       |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Business and Other Services     |  |                 | 6.9  |  |      |  | 3.1  |      |  |  | 0.6  |  |  |      | 2.7  |  |  |  | 1.9  | 
|Personal                        |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
| Residential Mortgages         |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
| Other lending                 |  |                 | 9.9  |  |      |  | 4.6  |      |  |  | 1.8  |  |  |      | 9.3  |  |  |  | 5.2  | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  |                 | 19.5 |  |      |  | 12.3 |      |  |  | 4.1  |  |  |      | 14.4 |  |  |  | 9.6  | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|United Kingdom                  |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Manufacturing                   |  |                 | 0.1  |  |      |  | 0.3  |      |  |  | 0.1  |  |  |      | 0.2  |  |  |  | 0.3  | 
|Construction and property       |  |                 | 0.1  |  |      |  |     |      |  |  |     |  |  |      | 1.5  |  |  |  | 1.1  | 
|Distribution                    |  |                 | 0.1  |  |      |  |     |      |  |  | 0.4  |  |  |      | 0.1  |  |  |  | 0.2  | 
|Transport                       |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Financial                       |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Business and Other Services     |  |                 | 0.3  |  |      |  | 0.1  |      |  |  | 0.1  |  |  |      | 1.1  |  |  |  | 0.5  | 
|Commercial mortgages            |  |                 | 0.3  |  |      |  | 0.1  |      |  |  | 0.4  |  |  |      |     |  |  |  |     | 
|Personal                        |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
| Residential Mortgages         |  |                 | 0.1  |  |      |  |     |      |  |  |     |  |  |      | 1.5  |  |  |  | 4.2  | 
| Other lending                 |  |                 | 0.9  |  |      |  | 0.2  |      |  |  | 0.5  |  |  |      | 0.3  |  |  |  | 0.8  | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  |                 | 1.9  |  |      |  | 0.7  |      |  |  | 1.5  |  |  |      | 4.7  |  |  |  | 7.1  | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|United States                   |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Commercial loans                |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Real estate loans, construction |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Real estate loans, mortgage     |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Leases including consumer loans |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  |                 |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     
|Group total                     |  |                 | 21.4 |  |      |  | 13.0 |      |  |  | 5.6  |  |  |      | 19.1 |  |  |  | 16.7 | 
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |     

60



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##### Table of Contents





|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- |  |  | ---- | ----- |  |  |  | ----- | 
|                                |  | At March 31,    |      
|                                |  |                 |      
|                                |  | 2005            |       |  | 2004 |  |       | 2003 |  |  | 2002  |  |  | 2001 |      
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  | (in  millions) |      
|Ireland                         |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|Agriculture                     |  |                 | 11.6  |  |      |  | 13.1  |      |  |  | 11.2  |  |  |      | 10.8  |  |  |  | 10.7  | 
|Energy                          |  |                 | 8.4   |  |      |  | 11.1  |      |  |  | 5.9   |  |  |      | 0.1   |  |  |  |      | 
|Manufacturing                   |  |                 | 8.4   |  |      |  | 6.3   |      |  |  | 9.6   |  |  |      | 20.7  |  |  |  | 11.0  | 
|Construction and property       |  |                 | 5.6   |  |      |  | 8.3   |      |  |  | 12.9  |  |  |      | 4.3   |  |  |  | 2.3   | 
|Distribution                    |  |                 | 6.6   |  |      |  | 8.3   |      |  |  | 7.0   |  |  |      | 7.6   |  |  |  | 4.1   | 
|Transport                       |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Financial                       |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Business and Other Services     |  |                 | 51.5  |  |      |  | 60.7  |      |  |  | 28.9  |  |  |      | 13.6  |  |  |  | 9.0   | 
|Personal                        |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
| Residential Mortgages         |  |                 | 4.0   |  |      |  | 0.9   |      |  |  | 0.6   |  |  |      | 0.5   |  |  |  | 0.4   | 
| Other lending                 |  |                 | 60.4  |  |      |  | 58.7  |      |  |  | 71.2  |  |  |      | 63.4  |  |  |  | 45.5  | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  |                 | 156.5 |  |      |  | 167.4 |      |  |  | 147.3 |  |  |      | 121.0 |  |  |  | 83.0  | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|United Kingdom                  |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|Agriculture                     |  |                 | 0.2   |  |      |  | 0.1   |      |  |  | 0.1   |  |  |      | 0.1   |  |  |  | 0.2   | 
|Manufacturing                   |  |                 | 1.4   |  |      |  | 4.1   |      |  |  | 4.2   |  |  |      | 12.9  |  |  |  | 12.2  | 
|Construction and property       |  |                 | 1.9   |  |      |  | 1.9   |      |  |  | 2.4   |  |  |      | 3.5   |  |  |  | 3.6   | 
|Distribution                    |  |                 | 0.7   |  |      |  | 0.6   |      |  |  | 0.5   |  |  |      | 1.4   |  |  |  | 0.7   | 
|Transport                       |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Financial                       |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Business and Other Services     |  |                 | 4.4   |  |      |  | 5.0   |      |  |  | 4.7   |  |  |      | 7.7   |  |  |  | 8.1   | 
|Commercial mortgages            |  |                 | 3.5   |  |      |  | 1.8   |      |  |  | 1.1   |  |  |      |      |  |  |  |      | 
|Personal                        |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
| Residential Mortgages         |  |                 | 0.7   |  |      |  | 0.2   |      |  |  | 0.3   |  |  |      | 2.9   |  |  |  | 5.0   | 
| Other lending                 |  |                 | 12.1  |  |      |  | 9.7   |      |  |  | 8.9   |  |  |      | 9.3   |  |  |  | 10.4  | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  |                 | 24.9  |  |      |  | 23.4  |      |  |  | 22.2  |  |  |      | 37.8  |  |  |  | 40.2  | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|United States                   |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|Commercial loans                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Real estate loans, construction |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Real estate loans, mortgage     |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Leases (including consumer)     |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  |                 |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|Total specific allowance        |  |                 | 181.4 |  |      |  | 190.8 |      |  |  | 169.5 |  |  |      | 158.8 |  |  |  | 123.2 | 
|Total general allowance         |  |                 | 137.3 |  |      |  | 281.0 |      |  |  | 310.2 |  |  |      | 341.4 |  |  |  | 307.2 | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      
|Total group allowance           |  |                 | 318.7 |  |      |  | 471.8 |      |  |  | 479.7 |  |  |      | 500.2 |  |  |  | 430.4 | 
|                                |  |                 |       |  |      |  |       |      |  |  |       |  |  |      |      

61



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##### Table of Contents





|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|------------------------------- |  | ------------ | ---- |  | ---- |  | ---- | ---- |  |  | ---- |  |  | ---- | ---- |  |  |  | ---- | 
|                                |  | At March 31, |     
|                                |  |              |     
|                                |  | 2005         |      |  | 2004 |  |      | 2003 |  |  | 2002 |  |  | 2001 |     
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  | (%)          |     
|Ireland                         |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Agriculture                     |  |              | 1.01 |  |      |  | 1.16 |      |  |  | 0.98 |  |  |      | 0.97 |  |  |  | 1.04 | 
|Energy                          |  |              | 1.83 |  |      |  | 2.29 |      |  |  | 0.91 |  |  |      | 0.01 |  |  |  |     | 
|Manufacturing                   |  |              | 0.19 |  |      |  | 0.18 |      |  |  | 0.25 |  |  |      | 0.53 |  |  |  | 0.31 | 
|Construction and property       |  |              | 0.07 |  |      |  | 0.14 |      |  |  | 0.28 |  |  |      | 0.12 |  |  |  | 0.07 | 
|Distribution                    |  |              | 0.30 |  |      |  | 0.53 |      |  |  | 0.50 |  |  |      | 0.56 |  |  |  | 0.32 | 
|Transport                       |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Financial                       |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Business and Other Services     |  |              | 1.22 |  |      |  | 1.93 |      |  |  | 1.01 |  |  |      | 0.55 |  |  |  | 0.41 | 
|Personal                        |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
| Residential Mortgages         |  |              | 0.03 |  |      |  | 0.01 |      |  |  | 0.01 |  |  |      | 0.01 |  |  |  | 0.01 | 
| Other lending                 |  |              | 1.33 |  |      |  | 1.62 |      |  |  | 2.35 |  |  |      | 2.33 |  |  |  | 1.71 | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  |              | 0.36 |  |      |  | 0.49 |      |  |  | 0.51 |  |  |      | 0.45 |  |  |  | 0.35 | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|United Kingdom                  |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Agriculture                     |  |              | 0.30 |  |      |  | 0.14 |      |  |  | 0.17 |  |  |      | 0.18 |  |  |  | 0.38 | 
|Manufacturing                   |  |              | 0.21 |  |      |  | 0.32 |      |  |  | 0.58 |  |  |      | 2.18 |  |  |  | 2.15 | 
|Construction and property       |  |              | 0.04 |  |      |  | 0.07 |      |  |  | 0.12 |  |  |      | 0.17 |  |  |  | 0.22 | 
|Distribution                    |  |              | 0.38 |  |      |  | 0.30 |      |  |  | 0.22 |  |  |      | 0.62 |  |  |  | 0.33 | 
|Transport                       |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Financial                       |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Business and Other Services     |  |              | 0.25 |  |      |  | 0.36 |      |  |  | 0.38 |  |  |      | 0.70 |  |  |  | 0.81 | 
|Commercial mortgages            |  |              | 0.16 |  |      |  | 0.08 |      |  |  | 0.06 |  |  |      |     |  |  |  |     | 
|Personal                        |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
| Residential Mortgages         |  |              | 0.00 |  |      |  | 0.00 |      |  |  | 0.00 |  |  |      | 0.01 |  |  |  | 0.02 | 
| Other lending                 |  |              | 0.66 |  |      |  | 0.66 |      |  |  | 0.89 |  |  |      | 0.92 |  |  |  | 1.24 | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  |              | 0.07 |  |      |  | 0.07 |      |  |  | 0.08 |  |  |      | 0.12 |  |  |  | 0.14 | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|United States                   |  |              |      |  |      |  |      |      |  |  |      |  |  |      |      |  |  |  |      | 
|Commercial loans                |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Real estate loans, construction |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Real estate loans, mortgage     |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|Leases (including consumer)     |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|                                |  |              |     |  |      |  |     |      |  |  |     |  |  |      |     |  |  |  |     | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|Total specific allowance        |  |              | 0.23 |  |      |  | 0.28 |      |  |  | 0.30 |  |  |      | 0.28 |  |  |  | 0.24 | 
|Total general allowance         |  |              | 0.17 |  |      |  | 0.41 |      |  |  | 0.54 |  |  |      | 0.60 |  |  |  | 0.60 | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     
|Total group allowance           |  |              | 0.40 |  |      |  | 0.69 |      |  |  | 0.84 |  |  |      | 0.88 |  |  |  | 0.83 | 
|                                |  |              |      |  |      |  |      |      |  |  |      |  |  |      |     

Risk Elements in Lending




62



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##### Table of Contents







|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|----------------------------------------------------------------------------------------------------- |  | --------------- | --- |  | ---- |  | --- | ---- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                                                                                      |  | At March 31,    |    
|                                                                                                      |  |                 |    
|                                                                                                      |  | 2005            |     |  | 2004 |  |     | 2003 |  |  | 2002 |  |  | 2001 |    
|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |    
|                                                                                                      |  | (in  millions) |    
|Loans accounted for on a non-accrual basis                                                            |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Ireland(1)                                                                                            |  |                 | 275 |  |      |  | 322 |      |  |  | 268  |  |  |      | 216 |  |  |  | 154 | 
|United Kingdom(1)                                                                                     |  |                 | 60  |  |      |  | 53  |      |  |  | 51   |  |  |      | 115 |  |  |  | 161 | 
|United States                                                                                         |  |                 |    |  |      |  |    |      |  |  |     |  |  |      |    |  |  |  |    | 
|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |    
|Total                                                                                                 |  |                 | 335 |  |      |  | 375 |      |  |  | 319  |  |  |      | 331 |  |  |  | 315 | 
|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |    
|Accruing loans which are contractually past due 90 days
    or more as to principal or interest(2)(3) |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Ireland                                                                                               |  |                 | 206 |  |      |  | 216 |      |  |  | 228  |  |  |      | 167 |  |  |  | 128 | 
|United Kingdom                                                                                        |  |                 | 169 |  |      |  | 132 |      |  |  | 160  |  |  |      | 200 |  |  |  | 181 | 
|United States                                                                                         |  |                 |    |  |      |  |    |      |  |  |     |  |  |      |    |  |  |  |    | 
|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |    
|Total                                                                                                 |  |                 | 375 |  |      |  | 348 |      |  |  | 388  |  |  |      | 367 |  |  |  | 309 | 
|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |    
|Restructured loans not included above                                                                 |  |                 |    |  |      |  |    |      |  |  |     |  |  |      |    |  |  |  |    | 
|                                                                                                      |  |                 |     |  |      |  |     |      |  |  |      |  |  |      |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 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
    160 million
    (2004:
    179 million)
    and the provisions thereon amounted to
    112 million
    (2004:
    99 million).
    The amount of interest in suspense in 2005 was
    3 million
    (2004:
    5 million).
|   
|(2) | Overdrafts generally have no fixed repayment schedule and are
    not included in this category.                                                                                                                                                                                                                                                                                                          
|   
|(3) | Includes home mortgage loans in Ireland and the United Kingdom
    (March 31, 2005:
    81.1 million
    in Ireland and
    154.5 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.                                                                                 






63



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##### Table of Contents



Cross-Border Outstandings






|                     |  |                                     |       |  |              |  |            |                |  |  |       |  |                  |                 |       |  |  |  |      | 
|-------------------- |  | ----------------------------------- | ----- |  | ------------ |  | ---------- | -------------- |  |  | ----- |  | ---------------- | --------------- | ----- |  |  |  | ---- | 
|                     |  | Banks and                           |       |  |              |  | Commercial |                |  |  |       | 
|                     |  | other                               |       |  | Government   |  |            | and industrial |  |  |       |  |                 
|                     |  | financial                           |       |  | and official |  |            | and other      |  |  |       |  | As percentage of |                
|                     |  | institutions                        |       |  | institutions |  |            | private sector |  |  | Total |  |                  | total assets(1) |      
|                     |  |                                     |       |  |              |  |            |                |  |  |       |  |                  |                 |      
|                     |  | (in  millions, except percentages) |      
|As at March 31, 2005 |  |                                     |       |  |              |  |            |                |  |  |       |  |                  |                 |       |  |  |  |      | 
|United Kingdom       |  |                                     | 2,025 |  |              |  |           |                |  |  | 599   |  |                  |                 | 2,624 |  |  |  | 2.1% | 
|As at March 31, 2004 |  |                                     |       |  |              |  |            |                |  |  |       |  |                  |                 |       |  |  |  |      | 
|United Kingdom       |  |                                     | 1,195 |  |              |  | 7          |                |  |  | 428   |  |                  |                 | 1,630 |  |  |  | 1.5% | 
|As at March 31, 2003 |  |                                     |       |  |              |  |            |                |  |  |       |  |                  |                 |       |  |  |  |      | 
|United Kingdom       |  |                                     | 1,080 |  |              |  |           |                |  |  | 439   |  |                  |                 | 1,519 |  |  |  | 1.7% | 
|Germany              |  |                                     | 864   |  |              |  |           |                |  |  | 54    |  |                  |                 | 918   |  |  |  | 1.0% | 






|    |                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Assets, consisting of total assets as reported in the
    consolidated balance sheet plus acceptances were
    126.5 billion
    at March 31, 2005 (March 31, 2004:
    106.5 billion,
    March 31, 2003:
    89.4 billion).

   




Debt Securities




|                                           |  |                 |        |  |      |  |        |      |  |  |        | 
|------------------------------------------ |  | --------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                                           |  | At March 31,    |       
|                                           |  |                 |       
|                                           |  | 2005            |        |  | 2004 |  |        | 2003 | 
|                                           |  |                 |        |  |      |  |        |      | 
|                                           |  | (in  millions) |       
|Irish Government                           |  |                 | 3,569  |  |      |  | 3,416  |      |  |  | 2,937  | 
|Other European government                  |  |                 | 2,600  |  |      |  | 1,590  |      |  |  | 704    | 
|U.S. Treasury and U.S. government agencies |  |                 |       |  |      |  | 49     |      |  |  |       | 
|Corporate bonds                            |  |                 | 14,224 |  |      |  | 9,446  |      |  |  | 7,428  | 
|Other securities                           |  |                 | 928    |  |      |  | 1,175  |      |  |  | 1,268  | 
|                                           |  |                 |        |  |      |  |        |      | 
|                                           |  |                 | 21,321 |  |      |  | 15,676 |      |  |  | 12,337 | 
|                                           |  |                 |        |  |      |  |        |      | 

  


64



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##### Table of Contents





|                                     |  |                                     |       |                  |                   |  |                   |                    |  |  |                |  |  |       |      |  |         |  |       |       |  |  |         |  |  |  |     |  |  |  |      | 
|------------------------------------ |  | ----------------------------------- | ----- | ---------------- | ----------------- |  | ----------------- | ------------------ |  |  | -------------- |  |  | ----- | ---- |  | ------- |  | ----- | ----- |  |  | ------- |  |  |  | --- |  |  |  | ---- | 
|                                     |  | At March 31, 2005                   |      
|                                     |  |                                     |      
|                                     |  |                                     |       | More than 1 year |                   |  | More than 5 years |                    |  | 
|                                     |  | Less than 1 year                    |       |                  | less than 5 years |  |                   | less than 10 years |  |  | After 10 years | 
|                                     |  |                                     |       |                  |                   |  |                   |                    |  |  |                | 
|                                     |  | Book                                |       |                  | Percent           |  |                   | Book               |  |  | Percent        |  |  | Book  |      |  | Percent |  |       | Book  |  |  | Percent | 
|                                     |  | Value                               |       |                  | Yield             |  |                   | Value              |  |  | Yield          |  |  | Value |      |  | Yield   |  |       | Value |  |  | Yield   | 
|                                     |  |                                     |       |                  |                   |  |                   |                    |  |  |                |  |  |       |      |  |         |  |       |       |  |  |         | 
|                                     |  | (in  millions, except percentages) |      
|Irish government                     |  |                                     |      |                  |                   |  |                  |                    |  |  |               |  |  |       |     |  |         |  |      |       |  |  |        |  |  |  |    |  |  |  |     | 
|Other European government            |  |                                     | 117   |                  |                   |  | 1.55              |                    |  |  | 277            |  |  |       | 1.85 |  |         |  |      |       |  |  |        |  |  |  |    |  |  |  |     | 
|US Treasury & US government agencies |  |                                     |      |                  |                   |  |                  |                    |  |  |               |  |  |       |     |  |         |  |      |       |  |  |        |  |  |  |    |  |  |  |     | 
|Corporate bonds                      |  |                                     | 4,817 |                  |                   |  | 2.95              |                    |  |  | 6,985          |  |  |       | 3.54 |  |         |  | 1,864 |       |  |  | 3.85    |  |  |  | 231 |  |  |  | 2.63 | 
|Other                                |  |                                     | 490   |                  |                   |  | 3.68              |                    |  |  | 214            |  |  |       | 2.14 |  |         |  | 81    |       |  |  | 3.18    |  |  |  |    |  |  |  |     | 
|                                     |  |                                     |       |                  |                   |  |                   |                    |  |  |                |  |  |       |      |  |         |  |       |       |  |  |         | 
|Total book value                     |  |                                     | 5,424 |                  |                   |  |                   |                    |  |  | 7,476          |  |  |       |      |  |         |  | 1,945 |       |  |  |         |  |  |  | 231 |  |  |  |      | 
|                                     |  |                                     |       |                  |                   |  |                   |                    |  |  |                |  |  |       |      |  |         |  |       |       |  |  |         | 



Loans and Advances to Banks








|                                              |  |                 |       |  |      |  |       |      |  |  |       | 
|--------------------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                              |  | At March 31,    |      
|                                              |  |                 |      
|                                              |  | 2005            |       |  | 2004 |  |       | 2003 | 
|                                              |  |                 |       |  |      |  |       |      | 
|                                              |  | (in  millions) |      
|Placings with banks repayable within 30 days: |  |                 |       |  |      |  |       |      |  |  |       | 
|Domestic                                      |  |                 | 2,826 |  |      |  | 1,722 |      |  |  | 3,288 | 
|Foreign                                       |  |                 | 359   |  |      |  | 407   |      |  |  | 253   | 
|                                              |  |                 |       |  |      |  |       |      | 
|Total                                         |  |                 | 3,185 |  |      |  | 2,129 |      |  |  | 3,541 | 
|                                              |  |                 |       |  |      |  |       |      | 
|Placings with banks repayable beyond 30 days: |  |                 |       |  |      |  |       |      |  |  |       | 
|Domestic                                      |  |                 | 4,492 |  |      |  | 4,751 |      |  |  | 3,800 | 
|Foreign                                       |  |                 | 106   |  |      |  | 873   |      |  |  | 139   | 
|                                              |  |                 |       |  |      |  |       |      | 
|Total                                         |  |                 | 4,598 |  |      |  | 5,624 |      |  |  | 3,939 | 
|                                              |  |                 |       |  |      |  |       |      | 
|Total                                         |  |                 | 7,783 |  |      |  | 7,753 |      |  |  | 7,480 | 
|                                              |  |                 |       |  |      |  |       |      | 

65



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##### Table of Contents



LIABILITIES


Deposits




|                         |  |                 |        |  |      |  |        |      |  |  |        | 
|------------------------ |  | --------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                         |  | 2005            |        |  | 2004 |  |        | 2003 | 
|                         |  |                 |        |  |      |  |        |      | 
|                         |  | (in  millions) |       
|Branches in Ireland      |  |                 | 31,500 |  |      |  | 28,082 |      |  |  | 25,022 | 
|Branches outside Ireland |  |                 | 22,805 |  |      |  | 21,424 |      |  |  | 22,882 | 
|                         |  |                 |        |  |      |  |        |      | 
|Total                    |  |                 | 54,305 |  |      |  | 49,506 |      |  |  | 47,904 | 
|                         |  |                 |        |  |      |  |        |      | 

|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|------------------------ |  | ------------- | --- |  | --------------- |  | ------------- | ----------- |  |  | --------------- | ------------- |  | ----------- | ------ |  | --------------- |  | --- |  |  |  | ------ | 
|                         |  | Average       |     |  |                 |  | Average       |             |  |  |                 | Average       |  |             |       
|                         |  | Interest Rate |     |  |                 |  | Interest Rate |             |  |  |                 | Interest Rate |  |             |       
|                         |  | during 2005   |     |  | 2005            |  |               | during 2004 |  |  | 2004            |               |  | during 2003 |        |  | 2003            | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|                         |  | %             |     |  | (in  millions) |  |               | %           |  |  | (in  millions) |               |  | %           |        |  | (in  millions) | 
|Branches in Ireland      |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Current accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Interest bearing         |  |               | 1.1 |  |                 |  | 971           |             |  |  | 1.0             |               |  |             | 850    |  |                 |  | 1.5 |  |  |  | 750    | 
|Non-interest bearing     |  |               |    |  |                 |  | 8,006         |             |  |  |                |               |  |             | 6,656  |  |                 |  |    |  |  |  | 5,794  | 
|Deposit accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Demand                   |  |               | 0.7 |  |                 |  | 11,488        |             |  |  | 1.1             |               |  |             | 10,936 |  |                 |  | 1.7 |  |  |  | 10,919 | 
|Time                     |  |               | 0.8 |  |                 |  | 11,035        |             |  |  | 0.8             |               |  |             | 9,640  |  |                 |  | 1.2 |  |  |  | 7,559  | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|                         |  |               |     |  |                 |  | 31,500        |             |  |  |                 |               |  |             | 28,082 |  |                 |  |     |  |  |  | 25,022 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|Branches outside Ireland |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Current accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Interest bearing         |  |               | 3.5 |  |                 |  | 2,553         |             |  |  | 2.6             |               |  |             | 2,312  |  |                 |  | 2.6 |  |  |  | 2,013  | 
|Non-interest bearing     |  |               |    |  |                 |  | 880           |             |  |  |                |               |  |             | 770    |  |                 |  |    |  |  |  | 753    | 
|Deposit accounts:        |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 |  |     |  |  |  |        | 
|Demand                   |  |               | 4.0 |  |                 |  | 7,975         |             |  |  | 2.8             |               |  |             | 8,449  |  |                 |  | 2.8 |  |  |  | 9,628  | 
|Time                     |  |               | 4.5 |  |                 |  | 11,397        |             |  |  | 5.1             |               |  |             | 9,893  |  |                 |  | 4.6 |  |  |  | 10,488 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|                         |  |               |     |  |                 |  | 22,805        |             |  |  |                 |               |  |             | 21,424 |  |                 |  |     |  |  |  | 22,882 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 
|Total                    |  |               |     |  |                 |  | 54,305        |             |  |  |                 |               |  |             | 49,506 |  |                 |  |     |  |  |  | 47,904 | 
|                         |  |               |     |  |                 |  |               |             |  |  |                 |               |  |             |        |  |                 | 







66



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##### Table of Contents





|                        |  |                   |       |  |        |  |     |        |  |  |         |  |  |  |       | 
|----------------------- |  | ----------------- | ----- |  | ------ |  | --- | ------ |  |  | ------- |  |  |  | ----- | 
|                        |  | At March 31, 2005 |      
|                        |  |                   |      
|                        |  | 0-3               |       |  | 3-6    |  |     | 6-12   |  |  | Over 12 | 
|                        |  | months            |       |  | months |  |     | months |  |  | months  | 
|                        |  |                   |       |  |        |  |     |        |  |  |         | 
|                        |  | (in  millions)   |      
|Time deposits           |  |                   |       |  |        |  |     |        |  |  |         |  |  |  |       | 
|Domestic branches       |  |                   | 4,013 |  |        |  | 456 |        |  |  | 720     |  |  |  | 938   | 
|Foreign branches        |  |                   | 3,400 |  |        |  | 374 |        |  |  | 546     |  |  |  | 408   | 
|Certificates of deposit |  |                   |       |  |        |  |     |        |  |  |         |  |  |  |       | 
|Domestic branches       |  |                   |      |  |        |  |    |        |  |  |        |  |  |  |      | 
|Foreign branches        |  |                   |      |  |        |  |    |        |  |  |        |  |  |  |      | 
|                        |  |                   |       |  |        |  |     |        |  |  |         | 
|                        |  |                   | 7,413 |  |        |  | 830 |        |  |  | 1,266   |  |  |  | 1,346 | 
|                        |  |                   |       |  |        |  |     |        |  |  |         | 



Short-Term Borrowings




|                          |             |                                     |        |      |      |  |        |      |  |  |        |      | 
|------------------------- | ----------- | ----------------------------------- | ------ | ---- | ---- |  | ------ | ---- |  |  | ------ | ---- | 
|                          |             | At March 31,                        |       
|                          |             |                                     |       
|                          |             | 2005                                |        |      | 2004 |  |        | 2003 | 
|                          |             |                                     |        |      |      |  |        |      | 
|                          |             | (in  millions, except percentages) |       
|Debt securities in issue  |             |                                     |        |      |      |  |        |      |  |  |        |     
|End of year outstandings  |             |                                     | 20,539 |      |      |  | 12,917 |      |  |  | 9,652  |     
|Highest month-end balance |             |                                     | 20,539 |      |      |  | 13,022 |      |  |  | 10,411 |     
|Average balance           |             |                                     | 17,018 |      |      |  | 11,086 |      |  |  | 8,792  |     
|Average rate of interest  |             |                                     |        |      |      |  |        |      |  |  |        |     
|                          | At year-end |                                     |        | 2.5% |      |  |        | 1.9% |  |  |        | 2.7% | 
|                          | During year |                                     |        | 2.9% |      |  |        | 2.1% |  |  |        | 3.1% | 
|Deposits by banks         |             |                                     |        |      |      |  |        |      |  |  |        |     
|End of year outstandings  |             |                                     | 16,928 |      |      |  | 14,068 |      |  |  | 10,149 |     
|Highest month-end balance |             |                                     | 18,392 |      |      |  | 14,521 |      |  |  | 13,771 |     
|Average balance           |             |                                     | 19,516 |      |      |  | 14,974 |      |  |  | 12,056 |     
|Average rate of interest  |             |                                     |        |      |      |  |        |      |  |  |        |     
|                          | At year-end |                                     |        | 3.4% |      |  |        | 2.7% |  |  |        | 2.7% | 
|                          | During year |                                     |        | 2.2% |      |  |        | 2.7% |  |  |        | 3.2% | 



67



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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       |  |     | 59 |  |               | Governor                                                  |                           |  | 2000 | 
|Brian J Goggin [2004] |  |     | 53 |  |               | Group Chief Executive                                     |                           |  | 2000 | 
|John ODonovan [2001] |  |     | 53 |  |               | Group Chief Financial Officer                             |                           |  | 2002 | 
|Roy E Bailie          |  |     | 62 |  |               | Non-Executive Director                                    |                           |  | 1999 | 
|David J Dilger        |  |     | 48 |  |               | Non-Executive Director                                    |                           |  | 2003 | 
|Donal J Geaney        |  |     | 54 |  |               | Non-Executive Director                                    |                           |  | 2000 | 
|Paul M Haran          |  |     | 48 |  |               | Non-Executive Director                                    |                           |  | 2005 | 
|Mike Hodgkinson       |  |     | 61 |  |               | Non-Executive Director                                    |                           |  | 2004 | 
|Declan McCourt        |  |     | 59 |  |               | Non-Executive Director                                    |                           |  | 2004 | 
|George M Magan        |  |     | 59 |  |               | Non-Executive Director                                    |                           |  | 2003 | 
|Caroline A Marland    |  |     | 59 |  |               | Non-Executive Director                                    |                           |  | 2001 | 
|Thomas J Moran        |  |     | 52 |  |               | Non-Executive Director                                    |                           |  | 2001 | 
|Terence V Neill       |  |     | 59 |  |               | Non-Executive Director                                    |                           |  | 2004 | 
|Denis OBrien         |  |     | 47 |  |               | Non-Executive Director                                    |                           |  | 2000 | 
|Mary P Redmond        |  |     | 54 |  |               | Non-Executive Director                                    |                           |  | 1994 | 
|Executive Officers    |  |     |    |  |               |                                                           |                           |  |      | 
|Des Crowley           |  |     | 45 |  |               | Chief Executive, Retail Financial Services Ireland        |                           |  |      | 
|Kevin Dolan           |  |     | 51 |  |               | Chief Executive, Asset Management Services                |                           |  |      | 
|Denis Donovan         |  |     | 51 |  |               | Chief Executive, Wholesale Financial Services             |                           |  |      | 
|Roy Keenan            |  |     | 58 |  |               | Chief Executive, UK Financial Services                    |                           |  |      | 
|Cyril Dunne           |  |     | 45 |  |               | Chief Information Officer & Group Transformation Director |                           |  |      | 
|John Clifford         |  |     | 55 |  |               | Group Secretary                                           |                           |  |      | 
|Michael Grealy        |  |     | 45 |  |               | Head of Group HR                                          |                           |  |      | 
|Ronan Murphy          |  |     | 53 |  |               | Group Chief Risk Officer                                  |                           |  |      | 

Non-Executive Officers


Richard Burrows


Governor






68



---



##### 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






Non-Executive Directors


Roy E Bailie, OBE






David Dilger BA,
FCA






Donal J Geaney BBS,
FCA






Paul Haran M Sc, B
Sc






69



---



##### Table of Contents



Mike Hodgkinson






George Magan FCA






Caroline A Marland






Declan McCourt BL MA
MBA  ++






Thomas J Moran B
Sc






Terry Neill MA M Econ
Sc






Denis OBrien BA
MBA,






70



---



##### Table of Contents



Mary P Redmond BCL, LLM, PhD








|   |                                                    
|-- | ---------------------------------------------------
|() | 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  | Trustee of the Bank Staff Pension Fund             

Terms of Office of the Directors







REMUNERATION OF DIRECTORS AND OFFICERS


 


Executive Directors Remuneration Policy




Service contracts




Employees Profit Sharing Plan




71



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##### Table of Contents





|                                   |  |                                   |      | 
|---------------------------------- |  | --------------------------------- | ---- | 
|Real Growth in alternative EPS (%) |  | Employee Stock Issue Scheme Award |     
|                                   |  |                                   |     
|0-1.99%                            |  |                                   | 0-1% | 
|2.00-3.99%                         |  |                                   | 1-2% | 
|4.00-5.99%                         |  |                                   | 2-3% | 
|6.00-7.99%                         |  |                                   | 3-4% | 
|8.00% and above                    |  |                                   | 4%   | 







Limitations on Stock Issue and Stock Option Plans








72



---



##### Table of Contents



Group Sharesave Scheme


  






Group Pension Plans




 


Interest of Management in Certain Transactions




Indebtedness of Directors and Executive Officers


 


73



---



##### Table of Contents






CORPORATE GOVERNANCE STATEMENT







The Court of Directors












Governor and Group Chief Executive










74



---



##### Table of Contents



Board Balance and Independence












Appointments to the Court










75



---



##### Table of Contents





Information and Professional Development






Performance Evaluation








Re-Election








76



---



##### Table of Contents





Remuneration




Accountability and Audit




Internal Controls








| |   |                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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;
|
| |  | appropriate terms of reference for Court committees and
    sub-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. 
|
| |  | monthly reporting by business units which enables progress
    against business objectives to be monitored, trends to be
    evaluated and variances to be acted upon.                                                    







77



---



##### Table of Contents





Audit Committee and Auditors










78



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##### Table of Contents



Attendance at scheduled meetings during the year ended
March 31, 2005


|                   |                                                                                      |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|------------------ | ------------------------------------------------------------------------------------ | ----- | - | ----------- | --------- |  | ---------- | ------------ |  | ------------ | --------- |  |  | - | - |  | - |  | - | - |  |  | - |  |  |  | - |  |  |  | - |  | 
|                   |                                                                                      |       |   |             |           |  |            |              |  | Group        |           |  | 
|                   |                                                                                      |       |   |             |           |  |            | Nomination & |  |              | Group     | 
|                   |                                                                                      |       |   | Group Audit |           |  | Governance |              |  | Remuneration |          
|Name               |                                                                                      | Court |   |             | Committee |  |            | Committee    |  |              | Committee | 
|                   |                                                                                      |       |   |             |           |  |            |              |  |              |           | 
|                   |                                                                                      | A     |   |             | B         |  |            | A            |  |              | B         |  |  | A |   |  | B |  |   | A |  |  | B | 
|                   |                                                                                      |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   | 
|Roy E Bailie       |                                                                                      |       | 9 |             |           |  | 9          |              |  |              | 6         |  |  |   | 6 |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Richard Burrows    |                                                                                      |       | 9 |             |           |  | 7          |              |  |              |          |  |  |   |  |  |   |  | 3 |   |  |  | 3 |  |  |  | 5 |  |  |  | 5 | 
|Laurence G Crowley |                                                                                      |       | 9 |             |           |  | 9          |              |  |              |          |  |  |   |  |  |   |  | 5 |   |  |  | 5 |  |  |  | 5 |  |  |  | 5 | 
|David Dilger       |                                                                                      |       | 9 |             |           |  | 9          |              |  |              | 6         |  |  |   | 5 |  |   |  | 5 |   |  |  | 5 |  |  |  |  |  |  |  |  | 
|Donal Geaney       |                                                                                      |       | 9 |             |           |  | 7          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  | 5 |  |  |  | 3 | 
|Brian J Goggin     |                                                                                      |       | 9 |             |           |  | 9          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Paul Haran         |                                                                                      |       | 2 |             |           |  | 1          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                   | (Appointed to Court 13/1/2005 and to Nomination &
    Governance Committee 8/3/2005) |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Mike Hodgkinson    |                                                                                      |       | 7 |             |           |  | 5          |              |  |              |          |  |  |   |  |  |   |  | 4 |   |  |  | 3 |  |  |  |  |  |  |  |  | 
|                   | (Appointed 11 May 2004)                                                              |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Maurice A Keane    |                                                                                      |       | 8 |             |           |  | 8          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                   | (Retired 28 February 2005)                                                           |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|George Magan       |                                                                                      |       | 9 |             |           |  | 9          |              |  |              | 6         |  |  |   | 5 |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Caroline Marland   |                                                                                      |       | 9 |             |           |  | 9          |              |  |              |          |  |  |   |  |  |   |  | 4 |   |  |  | 3 |  |  |  |  |  |  |  |  | 
|                   | (Appointed to Nomination & Governance Committee
    11 May 2004)                     |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Declan McCourt     |                                                                                      |       | 8 |             |           |  | 7          |              |  |              | 5         |  |  |   | 4 |  |   |  |  |   |  |  |  |  |  |  | 3 |  |  |  | 2 | 
|                   | (Appointed 6 April 2004)                                                             |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Tom Moran          |                                                                                      |       | 9 |             |           |  | 7          |              |  |              | 6         |  |  |   | 4 |  |   |  |  |   |  |  |  |  |  |  | 5 |  |  |  | 5 | 
|Terry Neill        |                                                                                      |       | 8 |             |           |  | 7          |              |  |              | 5         |  |  |   | 5 |  |   |  |  |   |  |  |  |  |  |  | 3 |  |  |  | 3 | 
|                   | (Appointed 6 April 2004)                                                             |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 
|Ray MacSharry      |                                                                                      |       | 9 |             |           |  | 9          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Denis OBrien      |                                                                                      |       | 9 |             |           |  | 7          |              |  |              |          |  |  |   |  |  |   |  | 5 |   |  |  | 5 |  |  |  | 5 |  |  |  | 4 | 
|John ODonovan     |                                                                                      |       | 9 |             |           |  | 9          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|Mary Redmond       |                                                                                      |       | 9 |             |           |  | 8          |              |  |              |          |  |  |   |  |  |   |  | 5 |   |  |  | 5 |  |  |  |  |  |  |  |  | 
|Michael D Soden    |                                                                                      |       | 2 |             |           |  | 2          |              |  |              |          |  |  |   |  |  |   |  |  |   |  |  |  |  |  |  |  |  |  |  |  | 
|                   | (Resigned 29 May 2004)                                                               |       |   |             |           |  |            |              |  |              |           |  |  |   |   |  |   |  |   |   |  |  |   |  |  |  |   |  |  |  |   |  | 






Committees of the Court at August 1, 2005


|                      |  |                              |  |                              
|--------------------- |  | ---------------------------- |  | -----------------------------
|                      |  |                              |  | Group Nomination & Governance
|Group Audit Committee |  | Group Remuneration Committee |  | Committee                    
|                      |  |                              |  |                              
|Roy Bailie (Chairman) |  | Denis OBrien (Chairman)     |  | Richard Burrows (Chairman)   
|David Dilger          |  | Richard Burrows              |  | David Dilger                 
|George Magan          |  | Donal J Geaney               |  | Paul Haran                   
|Declan McCourt        |  | Declan McCourt               |  | Mike Hodgkinson              
|Terry Neill           |  | Terry Neill                  |  | Caroline Marland             
|                      |  |                              |  | Tom Moran                    

Court Sub-Committees


Group Risk Policy Committee


79



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##### Table of Contents



Group Investment Committee




|                                                                                                                                                                                  |  |                                                                                                                                                                                                                 |  | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
|Group Risk Policy Committee                                                                                                                                                       |  | Group Investment Committee                                                                                                                                                                                      |  | 
|                                                                                                                                                                                  |  |                                                                                                                                                                                                                 |  | 
|Ronan Murphy (Chairman)
    John Clifford
    Des Crowley
    Denis Donovan
    Brian J Goggin (Court member)
    Roy Keenan
    Vincent Mulvey
    John ODonovan (Court member) |  | Brian Goggin (Chairman) (Court member)
    John Clifford
    Des Crowley
    Kevin Dolan
    Denis Donovan
    Cyril Dunne
    Michael Grealy
    Roy Keenan
    Ronan Murphy
    John ODonovan (Court member) |  | 

New York Stock Exchange (NYSE) Corporate Governance
Requirements















EMPLOYEES






80



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##### Table of Contents






STOCK OPTIONS








|                        |  |                |           |  |                 |  |                       | 
|----------------------- |  | -------------- | --------- |  | --------------- |  | --------------------- | 
|                        |  | Number         |           |  |                
|                        |  | Outstanding at |           |  |                
|Exercise price ( cent) |  | August 1, 2005 |           |  | Exercise Period | 
|                        |  |                |           |  |                 | 
|2.819                   |  |                | 240,000   |  |                 |  | June 1999  June 2006 | 
|4.529                   |  |                | 300,000   |  |                 |  | June 2000  June 2007 | 
|5.753                   |  |                | 6,000     |  |                 |  | Nov 2000  Nov 2007   | 
|8.264                   |  |                | 192,000   |  |                 |  | May 2001  May 2008   | 
|8.933                   |  |                | 321,000   |  |                 |  | Jul 2002  Jul 2009   | 
|8.43                    |  |                | 60,250    |  |                 |  | Nov 2002  Nov 2009   | 
|6.96                    |  |                | 539,934   |  |                 |  | May 2003  May 2010   | 
|9.15                    |  |                | 123,650   |  |                 |  | Nov 2003  Nov 2010   | 
|11.05                   |  |                | 532,000   |  |                 |  | May 2004  May 2011   | 
|10.54                   |  |                | 30,000    |  |                 |  | Nov 2004  Nov 2011   | 
|12.50                   |  |                | 770,000   |  |                 |  | Jun 2005  Jun 2012   | 
|10.65                   |  |                | 20,000    |  |                 |  | Dec 2005  Dec 2012   | 
|10.77                   |  |                | 1,375,000 |  |                 |  | Jun 2006  Jun 2013   | 
|10.54                   |  |                | 121,000   |  |                 |  | Dec 2006  Dec 2013   | 
|10.76                   |  |                | 1,618,500 |  |                 |  | Jul 2007  Jul 2014   | 
|12.85                   |  |                | 1,220,000 |  |                 |  | Jun 2008  Jun 2015   | 



81



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|               |  |                      |         | 
|-------------- |  | -------------------- | ------- | 
|               |  | UNITS OF 0.64       |        
|               |  | OF ORDINARY STOCK    |        
|               |  | As at August 1, 2005 |        
|               |  | Beneficial           |        
|               |  |                      |        
|DIRECTORS      |  |                      |         | 
|R E Bailie     |  |                      | 4,046   | 
|R Burrows      |  |                      | 46,948  | 
|D J Dilger     |  |                      | 2,692   | 
|D J Geaney     |  |                      | 18,236  | 
|B J Goggin     |  |                      | 424,676 | 
|P M Haran      |  |                      | 2,101   | 
|M S Hodgkinson |  |                      | 2,000   | 
|G M Magan      |  |                      | 1,592   | 
|C A Marland    |  |                      | 1,873   | 
|J D McCourt    |  |                      | 25,369  | 
|T J Moran      |  |                      | 1,888   | 
|T V Neill      |  |                      | 83,995  | 
|D OBrien      |  |                      | 301,873 | 
|J ODonovan    |  |                      | 59,351  | 
|M P Redmond    |  |                      | 3,046   | 
|SECRETARY      |  |                      |         | 
|J B Clifford   |  |                      | 64,541  | 



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* |  |            | 60,585,090 |  |   |  | 6.3 | 






|  |                                                                                                                                                                                                                                
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | This stockholding is not beneficially owned by this company, 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.



82



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RELATED PARTY TRANSACTIONS







DESCRIPTION OF US STOCKHOLDERS







RELATIONS WITH STOCKHOLDERS


Relations with Stockholders










83



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##### 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 cent) |       |  | Ordinary Stock(1) | 
|                                    |  |                |       |  |                   | 
|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 | 
|Financial Year ended March 31, 2002 |  |                |       |  |                   |  |       | 
|July 19, 2002                       |  |                | 21.40 |  |                   |  | 21.73 | 
|January 8, 2002                     |  |                | 11.60 |  |                   |  | 10.35 | 
|Financial Year ended March 31, 2001 |  |                |       |  |                   |  |       | 
|July 13, 2001                       |  |                | 19.60 |  |                   |  | 16.71 | 
|January 16, 2001                    |  |                | 9.40  |  |                   |  | 8.81  | 






|    |                                                            
|--- | -----------------------------------------------------------
|(1) | Translated at the Noon Buying Rate on the dates of payment.






LEGAL PROCEEDINGS







PROSPECTIVE ACCOUNTING CHANGES


International Financial Reporting Standards


Background








84



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##### Table of Contents









IFRS 1  First-time Adoption of International
Financial Reporting Standards








| |   |                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Business combinations: The Group will avail of the exemption and
    will not restate the group accounts for any acquisitions or
    business combinations that took place prior to April 1,
    2004.                                                                                                       
|
| |  | Fair value or revaluation as deemed cost: The Group will avail
    of the exemption to treat fair value as deemed cost at
    transition on April 1, 2004 in respect of adaptations to
    properties existing at that date.                                                                                 
|
| |  | Employee benefits: The Group has elected to recognise all
    cumulative actuarial gains and losses on defined benefit pension
    schemes at April 1, 2004.                                                                                                                                                 
|
| |  | Cumulative translation differences: The Group will avail of the
    exemption to deem all accumulated balances arising from
    translation of foreign subsidiaries to be nil on transition to
    IFRS at April 1, 2004.                                                                                    
|
| |  | Share-based payment transactions: The Group is availing of the
    exemption only to apply IFRS2 to share based payments granted on
    or after November 7, 2002 that have not vested before
    January 1, 2005.                                                                                           
|
| |  | Comparative restatement: The Group intends to avail of the
    option not to apply IAS32 Financial Instruments: Disclosure and
    Presentation, IAS39 Financial Instruments: Recognition and
    Measurement and IFRS4 Insurance Contracts to the comparative
    figures for the year ended March 31, 2005.





Restatement of comparative values for the year ended
March 31, 2005, and for the opening IFRS balance sheet at
April 1, 2004:




| |   |                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------
| |  | Pension accounting: There will be an increase in the annual
    charge, and a reduction in shareholders funds on
    transition.
|
| |  | Share-based Payments: There will be an increase in the annual
    charge.                                                        

85



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##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Goodwill (Business Combinations): There will no longer be an
    annual amortisation charge. Goodwill will be reviewed annually
    for impairment and will only be written down where impairment
    has occurred.                                                                                                       
|
| |  | Computer software (Intangible Assets): Computer software will be
    reclassified from tangible fixed assets to intangible assets on
    transition.                                                                                                                                                                      
|
| |  | Dividend accrual: There will be a once off increase in
    shareholders funds on transition as under IFRS dividends
    are recorded in the period in which they are approved.                                                                                                                                           
|
| |  | Property, Plant and Equipment: Apart from adaptations, which
    will be held at cost or deemed cost, the Group will continue to
    revalue property, but on an Open Market Value basis. Adjustments
    to the asset values and to the deferred tax liability on the
    revaluation reserve will be made on transition.
|
| |  | Special purpose entities (SPEs) (Consolidated and Separate
    Financial Statements): SPEs will be fully consolidated resulting
    in a grossing up of the balance sheet on transition.                                                                                                                                  

Adjustments to the opening IFRS balance sheet at
April 1, 2005, upon adoption of IAS32, IAS39 and IFRS4, and
the profit and loss impact in later years.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Insurance contracts: There will be a reduction in the Value In
    Force asset on transition to reflect the non-application of
    Embedded Value to investment products. In addition, there will
    be a decrease in the operating profit, as investment products
    are accounted for on a cash flow basis under IFRS.                                                                                                                                                                                                                                                                         
|
| |  | Loan loss provisioning: Under IFRS, provisions will only be made
    where objective evidence of impairment exists. This is likely to
    lead to more volatility in the annual loan loss charge.                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Hedge and derivative accounting/ classification of financial
    instruments: The Group will adopt the hedge accounting model set
    out in IAS39. The effect of this is expected to substantially
    minimise the impact on the profit and loss account, but will be
    subject to the effectiveness of the hedging relationships. In
    addition, following a review of the asset portfolios some
    reclassification is expected to occur. As a consequence of both
    of these, the Group will have an available-for-sale and a cash
    flow hedging reserve within shareholders funds.
|
| |  | Effective interest rate: A once off adjustment on transition
    will occur. Many fees, costs and discount rates will now be
    spread over the expected life of the loan. The impact on the
    profit and loss account is not expected to be material.                                                                                                                                                                                                                                                                                                                                          
|
| |  | Debt vs. Equity classification: There will be some
    reclassification of instruments between debt and equity on
    adoption of IAS32. Where an instrument is classified as debt,
    the associated dividends will be included within interest.                                                                                                                                                                                                                                                                                                                                                 

FAS 153  Exchanges of Nonmonetary assets, an
amendment of APB Options No. 29




SOP 03-03: Accounting for Certain Loans or Debt Securities
Acquired in a Transfer




86



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##### Table of Contents



EITF Issue 03-01: The Meaning of Other-Than-Temporary
Impairment and its Application to Certain Investments




SFAS 123 (Revised 2004)  Share-Based
Payment




SFAS 154  Accounting Changes and Error
Correction  a replacement of APB Opinion No. 20
and FASB Statement No. 3







Item 9     THE OFFER AND
LISTING





NATURE OF TRADING MARKET


   







87



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






|                              |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|----------------------------- |  | -------------- | ----- |  | ------------ |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                              |  | Ordinary Stock |       |  | ADSs         | 
|                              |  |                |       |  |              | 
|                              |  | High           |       |  | Low          |  |       | High |  |  | Low   | 
|                              |  |                |       |  |              |  |       |      |  |  |       | 
|                              |  | (in euro)      |       |  | (in dollars) | 
|Financial Year ended March 31 |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|2001                          |  |                | 10.80 |  |              |  | 6.36  |      |  |  | 41.75 |  |  |  | 24.07 | 
|2002                          |  |                | 12.61 |  |              |  | 7.85  |      |  |  | 44.15 |  |  |  | 28.31 | 
|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 | 
|Financial year 2003/2004      |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|First quarter                 |  |                | 11.60 |  |              |  | 9.80  |      |  |  | 53.55 |  |  |  | 42.60 | 
|Second quarter                |  |                | 11.20 |  |              |  | 10.07 |      |  |  | 51.46 |  |  |  | 45.70 | 
|Third quarter                 |  |                | 10.82 |  |              |  | 10.18 |      |  |  | 54.94 |  |  |  | 48.28 | 
|Fourth quarter                |  |                | 11.85 |  |              |  | 10.15 |      |  |  | 60.20 |  |  |  | 49.89 | 
|Financial year 2004/2005      |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|First quarter                 |  |                | 10.98 |  |              |  | 9.70  |      |  |  | 53.84 |  |  |  | 47.12 | 
|Second quarter                |  |                | 11.41 |  |              |  | 10.41 |      |  |  | 56.10 |  |  |  | 51.60 | 
|Third quarter                 |  |                | 12.25 |  |              |  | 10.64 |      |  |  | 66.79 |  |  |  | 53.59 | 
|Fourth quarter                |  |                | 13.24 |  |              |  | 12.01 |      |  |  | 70.60 |  |  |  | 62.95 | 
|Month ended                   |  |                |       |  |              |  |       |      |  |  |       |  |  |  |       | 
|January 2005                  |  |                | 12.50 |  |              |  | 12.01 |      |  |  | 66.18 |  |  |  | 63.37 | 
|February 2005                 |  |                | 12.97 |  |              |  | 12.20 |      |  |  | 68.94 |  |  |  | 62.95 | 
|March 2005                    |  |                | 13.24 |  |              |  | 12.12 |      |  |  | 70.60 |  |  |  | 63.34 | 
|April 2005                    |  |                | 12.71 |  |              |  | 11.65 |      |  |  | 65.57 |  |  |  | 60.63 | 
|May 2005                      |  |                | 12.70 |  |              |  | 11.83 |      |  |  | 64.55 |  |  |  | 61.07 | 
|June 2005                     |  |                | 13.42 |  |              |  | 12.55 |      |  |  | 65.40 |  |  |  | 62.15 | 
|July 2005                     |  |                | 13.89 |  |              |  | 13.30 |      |  |  | 68.59 |  |  |  | 64.54 | 






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.

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| |                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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;                                                                                                                     
|
| | (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

89



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | receive such dividends as may be declared by the stockholders in
    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, orby 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 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 ratato 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
    March 31, 2005 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
    seand 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.
|
| | At the Annual General Court held on July 6, 2005 the
    Stockholders approved a new Bye-Law that will enable the
    Directors to issue and allot new Preference Stock (the
    2005 Preference Stock). 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                                                                                                                                                                                                                                                                                                                    

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | contribute to the capital base of the Bank. In the Offering
    Circular and in the Subordinated Guarantee relating to the
    Preferred Securities the Group undertook to take all reasonable
    steps to ensure that it would have available at all times a
    sufficient number of units of authorised but unissued Preference
    Stock, to permit the substitution of Preference Stock for all of
    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. The new Bye-Law
    satisfies the commitment made in respect of the Preferred
    Securities and will also facilitate further ACI capital issues
    by the Group. Any Preference Stock issued under the new Bye-Law
    will rank equivalently to the existing euro and Sterling
    Preference Stock as regards entitlements to dividends. The new
    Bye-Law will enable the Directors to create redeemable or
    non-redeemable Preference Stock, which can be denominated in
    US Dollars, in euro or in Sterling.



|   |                          
|-- | -------------------------
|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 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 pages 92
    and 93, for restrictions imposed in the context of EU and UN
    sanctions.



|   |                                  
|-- | ---------------------------------
|7. | Limitation on a Change of Control



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



|   |                              
|-- | -----------------------------
|8. | 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                                                                                                                                                                                                                                                                                                                                              

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.



|   |                                                                
|-- | ---------------------------------------------------------------
|9. | Long Term Incentive Plan and Executive Stock Option
    Schemes



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | At the Annual General Court held on July 7, 2004
    stockholders approved the establishment of a new Long Term
    Incentive Plan and a new Executive Stock Option Scheme. The
    adoption of these proposals will not affect conditional awards
    and options already granted under the current schemes, but no
    new awards will be made under the current schemes. The Bank of
    Ireland Group Long Term Incentive Plan  2004 will
    focus on the Groups total shareholder return
    (TSR) relative to a group of 17 leading
    European financial services businesses. TSR takes into account
    both the Groups stock price performance and dividend
    payments to stockholders. The Bank of Ireland Group Executive
    Stock Option Scheme  2004 will focus on alternative
    earnings per share (Alternative EPS) growth. Both
    schemes, which are median based and competitive, but not
    excessive relative to other leading financial services
    businesses in Europe, are intended to provide 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. The schemes are
    also designed to ensure that a substantial proportion of
    executives remuneration is linked to the Groups long
    term performance. In order to achieve these aims the potential
    awards under the new schemes are higher than under the existing
    schemes, but these awards are dependent on the achievement of
    performance targets which are more demanding than under the
    existing schemes. Under the new Executive Stock Option Scheme,
    executives may be granted options to purchase stock up to one
    times salary each year, but these options will only be
    exercisable if the Groups Alternative EPS growth over
    three years exceeds the increase in the Consumer Price Index by
    at least 5% per annum compound. Under the new Long Term
    Incentive Plan, senior executives may receive conditional awards
    of stock worth up to one times salary each year (or up to
    1.5 times salary in the case of a 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 these
    companies or if the average return on equity (ROE)
    is less than 20% per annum.



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



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | At the Annual General Court held on July 7, 2004 the
    stockholders approved a new Bye-Law to enable the Group to
    purchase directors and officers liability insurance.
    Until the enactment of the Companies (Auditing &
    Accounting) Act, 2003, doubts had subsisted as to the authority
    of a company to purchase insurance against the liabilities of
    directors and officers. Section 56 of the Act permits
    companies to purchase and maintain insurance against
    directors and officers liability. The new Bye-Law
    enables the Group to purchase such liability insurance and makes
    it clear 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




92



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TAXATION












Irish Taxation




Gain on Disposition.


93



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Irish Stamp Duty.






United States Federal Income Taxation


Dividends.










94



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Gain on Disposition.


Back-up Withholding and Information Reporting.




United States and Irish Estate and Gift Taxation


inter vivos









DOCUMENTS AVAILABLE THROUGH THE SEC




95



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|        |                                                           
|------- | ----------------------------------------------------------
|Item 11 | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK




ANALYSIS OF FINANCIAL CONDITION


Capital Resources




|                        |  |                 |       |  |      |  |       |      |  |  |       | 
|----------------------- |  | --------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                        |  | At March 31,    |      
|                        |  |                 |      
|                        |  | 2005            |       |  | 2004 |  |       | 2003 | 
|                        |  |                 |       |  |      |  |       |      | 
|                        |  | (in  millions) |      
|Stockholders funds     |  |                 |       |  |      |  |       |      |  |  |       | 
|Equity                  |  |                 | 4,724 |  |      |  | 4,215 |      |  |  | 3,969 | 
|Non-equity              |  |                 | 65    |  |      |  | 66    |      |  |  | 65    | 
|Minority interests      |  |                 |       |  |      |  |       |      |  |  |       | 
| equity                |  |                 | 62    |  |      |  | 54    |      |  |  | 54    | 
| non-equity            |  |                 | 73    |  |      |  | 76    |      |  |  | 73    | 
|Undated capital notes   |  |                 | 1,980 |  |      |  | 1,423 |      |  |  | 1,413 | 
|Dated capital notes     |  |                 | 2,106 |  |      |  | 2,259 |      |  |  | 1,290 | 
|                        |  |                 |       |  |      |  |       |      | 
|Total capital resources |  |                 | 9,010 |  |      |  | 8,093 |      |  |  | 6,864 | 
|                        |  |                 |       |  |      |  |       |      | 

        


          


Capital Adequacy Requirements








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Capital Adequacy Data




|                       |  |                                     |        |  |      |  |        |      |  |  |        | 
|---------------------- |  | ----------------------------------- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                       |  | For the Financial Year Ended        |       
|                       |  | March 31,                           |       
|                       |  |                                     |       
|                       |  | 2005                                |        |  | 2004 |  |        | 2003 | 
|                       |  |                                     |        |  |      |  |        |      | 
|                       |  | (in  millions, except percentages) |       
|Adjusted Capital Base  |  |                                     |        |  |      |  |        |      |  |  |        | 
|Tier 1                 |  |                                     | 5,740  |  |      |  | 4,569  |      |  |  | 4,377  | 
|Tier 2                 |  |                                     | 3,313  |  |      |  | 3,552  |      |  |  | 2,442  | 
|                       |  |                                     |        |  |      |  |        |      | 
|                       |  |                                     | 9,053  |  |      |  | 8,121  |      |  |  | 6,819  | 
|Supervisory Deductions |  |                                     | 994    |  |      |  | 934    |      |  |  | 752    | 
|                       |  |                                     |        |  |      |  |        |      | 
|Total Capital          |  |                                     | 8,059  |  |      |  | 7,187  |      |  |  | 6,067  | 
|                       |  |                                     |        |  |      |  |        |      | 
|Risk Weighted Assets   |  |                                     |        |  |      |  |        |      |  |  |        | 
|Banking book           |  |                                     | 73,257 |  |      |  | 60,634 |      |  |  | 52,546 | 
|Trading book           |  |                                     | 2,635  |  |      |  | 2,727  |      |  |  | 2,046  | 
|                       |  |                                     |        |  |      |  |        |      | 
|Total                  |  |                                     | 75,892 |  |      |  | 63,361 |      |  |  | 54,592 | 
|                       |  |                                     |        |  |      |  |        |      | 
|Capital Ratios         |  |                                     |        |  |      |  |        |      |  |  |        | 
|Tier 1 capital         |  |                                     | 7.6%   |  |      |  | 7.2%   |      |  |  | 8.0%   | 
|                       |  |                                     |        |  |      |  |        |      | 
|Total capital          |  |                                     | 10.6%  |  |      |  | 11.3%  |      |  |  | 11.1%  | 
|                       |  |                                     |        |  |      |  |        |      | 




 








97



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##### Table of Contents






RISK MANAGEMENT AND CONTROL












| |   |                                                                                     
| | - | ------------------------------------------------------------------------------------
| |  | Group Credit Committee  all large credit transactions.                             
|
| |  | Group Asset and Liability Committee
    (ALCO)  market and liquidity risk.       
|
| |  | Group Operational Risk Committee  operational risk.                                
|
| |  | Group Regulatory Risk and Compliance Committee 
    regulatory risk and compliance.
|
| |  | Portfolio Review Group  composition of the
    Groups loan portfolio.             
|
| |  | Risk Measurement Group  credit risk measurement and
    risk model validation.     
|
| |  | Group Tax Committee  significant tax related matters.                              





CREDIT RISK








98



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##### Table of Contents





Discretionary Authorities








Credit Policy








Country/ Bank Limits






Credit Grading/ Assessment




99



---



##### Table of Contents



Review






Provisions and Allowances for Loan Losses
















100



---



##### Table of Contents



MARKET RISK








TRADING BOOK












       


 


BANKING BOOK






101



---



##### Table of Contents







  




DERIVATIVES








Policy














102



---



##### Table of Contents



Collateral Agreements






Nature of Derivatives Instruments


















103



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##### Table of Contents





|                                                                                         |  |                                             |  |                                   
|---------------------------------------------------------------------------------------- |  | ------------------------------------------- |  | ----------------------------------
|Activity                                                                                 |  | Market Risk                                 |  | Type of Derivative                
|                                                                                         |  |                                             |  |                                   
|Fixed rate lending                                                                       |  | Sensitivity to increases in interest rates. |  | Pay fixed interest rate swaps.    
|Capped rate lending                                                                      |  | Sensitivity to increases in interest rates. |  | Buy interest rate caps.           
|Fixed rate funding                                                                       |  | Sensitivity to falls in interest rates.     |  | Receive fixed interest rate swaps.
|Management of the investment of reserves and other non- interest
    bearing liabilities |  | Sensitivity to changes in interest rates.   |  | Receive fixed interest rate swaps.



STRUCTURAL FOREIGN EXCHANGE






|                             |  |           |       |  |           |  |       | 
|---------------------------- |  | --------- | ----- |  | --------- |  | ----- | 
|                             |  | March 31, |       |  | March 31, | 
|                             |  | 2005      |       |  | 2004      | 
|                             |  |           |       |  |           | 
|                             |  | m        |       |  | m        | 
|GBP                          |  |           | 2,908 |  |           |  | 2,582 | 
|USD                          |  |           | 248   |  |           |  | 233   | 
|                             |  |           |       |  |           | 
|Total structural FX position |  |           | 3,156 |  |           |  | 2,815 | 
|                             |  |           |       |  |           | 

 


LIQUIDITY RISK










104



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##### Table of Contents



OPERATIONAL RISK




the risk of loss resulting from inadequate or failed
internal processes, people and systems or from external
events.


all risk other than Market and Credit Risk,













REGULATORY RISK & COMPLIANCE






105



---



##### Table of Contents










Item 12     DESCRIPTION OF
SECURITIES OTHER THAN EQUITY SECURITIES




106



---



##### 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




Item 16





Item 16A     Audit Committee
Financial Expert







Item 16B     Code of Ethics







Item 16C     Principal
Accountant Fees and Services




107



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##### Table of Contents






Item 16D     Exemptions from
the Listing Standards for Audit Committees







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




108



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##### 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 Statement of Income                          |  |      | F-4  | 
|Consolidated Balance Sheet                                |  |      | F-6  | 
|Note of Historical Cost Profit and Loss                   |  |      | F-8  | 
|Reconciliation of Movement in Stockholders Funds         |  |      | F-8  | 
|Statement of Total Recognised Gains and Losses            |  |      | F-8  | 
|Consolidated Statement of Changes in Stockholders Equity |  |      | F-9  | 
|Consolidated Cash Flow Statement                          |  |      | F-11 | 
|Notes on the Financial Statements                         |  |      | F-12 | 




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  1996 (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.                                                                                                                                                                    
|4.4  |  |  |  | Service Contract of Non Executive Directors.                                                                                                                                                                                                                                    
|8    |  |  |  | List of significant subsidiaries  incorporated by
    reference to page 23 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.                                                                                                                                                                      

109



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BANK OF IRELAND GROUP


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


Year Ended March 31, 2005


|                                                              |  |      |      | 
|------------------------------------------------------------- |  | ---- | ---- | 
|                                                              |  | Page |     
|                                                              |  |      |     
|Statement of Directors
    Responsibilities                  |  |      | F-2  | 
|Report of Independent Registered Public
    Accounting Firm   |  |      | F-3  | 
|Consolidated Statement of Income                              |  |      | F-4  | 
|Consolidated Balance Sheet                                    |  |      | F-6  | 
|Note of Historical Cost Profit and Loss                       |  |      | F-8  | 
|Reconciliation of Movement in
    Stockholders Funds         |  |      | F-8  | 
|Statement of Total Recognised Gains and
    Losses            |  |      | F-8  | 
|Consolidated Statement of Changes in
    Stockholders Equity |  |      | F-9  | 
|Consolidated Cash Flow Statement                              |  |      | F-11 | 
|Notes on the Financial Statements                             |  |      | F-12 | 

F-1



---



##### Table of Contents



BANK OF IRELAND GROUP





STATEMENT OF DIRECTORS RESPONSIBILITIES










| |   |                                                                                 
| | - | --------------------------------------------------------------------------------
| |  | suitable accounting policies have been selected and applied
    consistently;   
|
| |  | judgements and estimates that are reasonable and prudent have
    been made; and
|
| |  | applicable accounting standards have been followed.                             



F-2



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##### Table of Contents



BANK OF IRELAND GROUP





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


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










PRICEWATERHOUSECOOPERS










F-3



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##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED STATEMENT OF INCOME


|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       |  |       |   |  |  |       |  
|----------------------------------------------------------------------- |  | ----- | -- | -------------------- | ----- |  | ----------- | ----- |  | ----- | ----- | - | ----- | ----- | ----- | ----- | ----- |  | ----- | - |  |  | ----- | -
|                                                                        |  |       |    | Year ended March 31, |      
|                                                                        |  |       |    |                      |      
|                                                                        |  |       |    | 2005                 |       |  |            
|                                                                        |  |       |    | Continuing           |       |  |            
|                                                                        |  |       |    | Operations           |       |  |            
|                                                                        |  |       |    | before               |       |  | 2005        |       |  | 2005  |       |   | 2004  |       |       | 2003  |      
|                                                                        |  |       |    | Exceptional          |       |  | Exceptional |       |  | Group |       |   | Group |       |       | Group |      
|                                                                        |  | Notes |    |                      | Items |  |             | Items |  |       | Total |   |       | Total |       |       | Total | 
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|                                                                        |  |       |    | (in  millions)      |      
|INTEREST RECEIVABLE                                                     |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       |  |       |   |  |  |       |  
|Interest receivable and similar income arising from debt
    securities |  |       |    |                      |       |  | 418         |       |  |       |      |   |       |       | 418   |       |       |  | 331   |   |  |  | 344   |  
|Other interest receivable and similar income                            |  |       | 4  |                      |       |  | 3,761       |       |  |       |      |   |       |       | 3,761 |       |       |  | 3,300 |   |  |  | 3,347 |  
|INTEREST PAYABLE                                                        |  |       | 5  |                      |       |  | 2,281       |       |  |       |      |   |       |       | 2,281 |       |       |  | 1,887 |   |  |  | 1,962 |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|NET INTEREST INCOME                                                     |  |       |    |                      |       |  | 1,898       |       |  |       |      |   |       |       | 1,898 |       |       |  | 1,744 |   |  |  | 1,729 |  
|Fees and commissions receivable                                         |  |       |    |                      |       |  | 1,200       |       |  |       |      |   |       |       | 1,200 |       |       |  | 1,134 |   |  |  | 1,011 |  
|Fees and commissions payable                                            |  |       |    |                      |       |  | (199        | )     |  |       |      |   |       |       | (199  | )     |       |  | (200  | ) |  |  | (140  | )
|Dealing profits                                                         |  |       | 36 |                      |       |  | 66          |       |  |       |      |   |       |       | 66    |       |       |  | 73    |   |  |  | 85    |  
|Contribution from life assurance business                               |  |       |    |                      |       |  | 161         |       |  |       |      |   |       |       | 161   |       |       |  | 177   |   |  |  | 116   |  
|Other operating income                                                  |  |       | 6  |                      |       |  | 47          |       |  |       |      |   |       |       | 47    |       |       |  | 50    |   |  |  | 116   |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|TOTAL OPERATING INCOME                                                  |  |       |    |                      |       |  | 3,173       |       |  |       |      |   |       |       | 3,173 |       |       |  | 2,978 |   |  |  | 2,917 |  
|Administrative expenses                                                 |  |       | 7  |                      |       |  | 1,621       |       |  |       | 117   |   |       |       | 1,738 |       |       |  | 1,471 |   |  |  | 1,480 |  
|Depreciation and amortisation                                           |  |       | 7  |                      |       |  | 186         |       |  |       |      |   |       |       | 186   |       |       |  | 183   |   |  |  | 182   |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|OPERATING PROFIT BEFORE PROVISIONS                                      |  |       |    |                      |       |  | 1,366       |       |  |       | 117   |   |       |       | 1,249 |       |       |  | 1,324 |   |  |  | 1,255 |  
|Provision for bad and doubtful debts                                    |  |       | 16 |                      |       |  | 79          |       |  |       | (100  | ) |       |       | (21   | )     |       |  | 86    |   |  |  | 100   |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|OPERATING PROFIT                                                        |  |       |    |                      |       |  | 1,287       |       |  |       | (17   | ) |       |       | 1,270 |       |       |  | 1,238 |   |  |  | 1,155 |  
|Income from associated undertakings and joint ventures                  |  |       |    |                      |       |  | 46          |       |  |       |      |   |       |       | 46    |       |       |  | 29    |   |  |  | 22    |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|PROFIT ON ORDINARY ACTIVITIES BEFORE EXCEPTIONAL ITEMS                  |  |       |    |                      |       |  | 1,333       |       |  |       | (17   | ) |       |       | 1,316 |       |       |  | 1,267 |   |  |  | 1,177 |  
|Exceptional items                                                       |  |       | 9  |                      |       |  |            |       |  |       | 5     |   |       |       | 5     |       |       |  | (97   | ) |  |  | (164  | )
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|PROFIT BEFORE TAXATION                                                  |  |       |    |                      |       |  | 1,333       |       |  |       | (12   | ) |       |       | 1,321 |       |       |  | 1,170 |   |  |  | 1,013 |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|Taxation                                                                |  |       | 10 |                      |       |  |             |       |  |       |       |   |       |       | (241  | )     |       |  | (208  | ) |  |  | (163  | )
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 
|PROFIT AFTER TAXATION                                                   |  |       |    |                      |       |  |             |       |  |       |       |   |       |       | 1,080 |       |       |  | 962   |   |  |  | 850   |  
|                                                                        |  |       |    |                      |       |  |             |       |  |       |       |   |       |       |       |       |       | 

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-4



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##### Table of Contents



BANK OF IRELAND GROUP


CONSOLIDATED STATEMENT OF INCOME


|                                                                     |  |       |    |                      |       |  |        |       |  |       |       |  |  |  |       | 
|-------------------------------------------------------------------- |  | ----- | -- | -------------------- | ----- |  | ------ | ----- |  | ----- | ----- |  |  |  | ----- | 
|                                                                     |  |       |    | Year ended March 31, |      
|                                                                     |  |       |    |                      |      
|                                                                     |  |       |    | 2005                 |       |  | 2004   |       |  | 2003  |      
|                                                                     |  |       |    | Group                |       |  | Group  |       |  | Group |      
|                                                                     |  | Notes |    |                      | Total |  |        | Total |  |       | Total | 
|                                                                     |  |       |    |                      |       |  |        |       |  |       |       | 
|                                                                     |  |       |    | (in  millions)      |      
|PROFIT FOR THE FINANCIAL YEAR                                        |  |       |    |                      |       |  | 1,080  |       |  |       | 962   |  |  |  | 850   | 
|Minority interests: equity                                           |  |       |    |                      |       |  | (7     | )     |  |       | 13    |  |  |  | 9     | 
|: non
    equity                                                     |  |       |    |                      |       |  | 6      |       |  |       | 6     |  |  |  | 6     | 
|Non-cumulative preference stock dividends                            |  |       | 11 |                      |       |  | 8      |       |  |       | 8     |  |  |  | 9     | 
|                                                                     |  |       |    |                      |       |  |        |       |  |       |       | 
|PROFIT ATTRIBUTABLE TO THE ORDINARY STOCKHOLDERS                     |  |       |    |                      |       |  | 1,073  |       |  |       | 935   |  |  |  | 826   | 
|Transfer to capital reserve                                          |  |       | 34 |                      |       |  | 48     |       |  |       | 62    |  |  |  | 44    | 
|Ordinary dividends                                                   |  |       | 11 |                      |       |  | 442    |       |  |       | 400   |  |  |  | 371   | 
|                                                                     |  |       |    |                      |       |  |        |       |  |       |       | 
|PROFIT RETAINED FOR THE YEAR                                         |  |       |    |                      |       |  | 583    |       |  |       | 473   |  |  |  | 411   | 
|                                                                     |  |       |    |                      |       |  |        |       |  |       |       | 
|Earnings per unit of
    0.64 Ordinary
    Stock (restated)         |  |       | 12 |                      |       |  | 113.9c |       |  |       | 97.2c |  |  |  | 83.4c | 
|                                                                     |  |       |    |                      |       |  |        |       |  |       |       | 
|Diluted Earnings per unit of
    0.64 Ordinary
    Stock (restated) |  |       | 12 |                      |       |  | 112.9c |       |  |       | 96.6c |  |  |  | 82.6c | 
|                                                                     |  |       |    |                      |       |  |        |       |  |       |       | 

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-5



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED BALANCE SHEET


|                                                               |  |       |    |                 |      |  |         |      |  |  |         |  
|-------------------------------------------------------------- |  | ----- | -- | --------------- | ---- |  | ------- | ---- |  |  | ------- | -
|                                                               |  |       |    | At March 31,    |     
|                                                               |  |       |    |                 |     
|                                                               |  | Notes |    |                 | 2005 |  |         | 2004 | 
|                                                               |  |       |    |                 |      |  |         |      | 
|                                                               |  |       |    | (in  millions) |     
|ASSETS                                                         |  |       |    |                 |      |  |         |      |  |  |         |  
|Cash and balances at central banks                             |  |       |    |                 |      |  | 1,600   |      |  |  | 1,397   |  
|Items in the course of collection from other banks             |  |       |    |                 |      |  | 560     |      |  |  | 584     |  
|Central government and other eligible bills                    |  |       | 13 |                 |      |  | 92      |      |  |  | 211     |  
|Loans and advances to banks                                    |  |       | 14 |                 |      |  | 7,783   |      |  |  | 7,753   |  
|Loans and advances to customers                                |  |       | 15 |                 |      |  | 79,917  |      |  |  | 67,540  |  
|Securitisation and loan transfers                              |  |       |    |                 |      |  | 344     |      |  |  | 593     |  
|Less: non returnable amounts                                   |  |       |    |                 |      |  | (328    | )    |  |  | (504    | )
|                                                               |  |       |    |                 |      |  | 16      |      |  |  | 89      |  
|Debt securities                                                |  |       | 17 |                 |      |  | 21,321  |      |  |  | 15,676  |  
|Securitisation                                                 |  |       |    |                 |      |  | 207     |      |  |  | 243     |  
|Less: non returnable amounts                                   |  |       |    |                 |      |  | (188    | )    |  |  | (224    | )
|                                                               |  |       |    |                 |      |  | 19      |      |  |  | 19      |  
|Equity shares                                                  |  |       | 18 |                 |      |  | 52      |      |  |  | 64      |  
|Interests in associated undertakings                           |  |       | 19 |                 |      |  | 17      |      |  |  | 14      |  
|Interest in joint ventures                                     |  |       |    |                 |      |  |         |      |  |  |         |  
| share of gross assets                                        |  |       |    |                 |      |  | 153     |      |  |  | 190     |  
| share of gross liabilities                                   |  |       |    |                 |      |  | (92     | )    |  |  | (73     | )
| goodwill                                                     |  |       |    |                 |      |  |        |      |  |  | 126     |  
|                                                               |  |       | 20 |                 |      |  | 61      |      |  |  | 243     |  
|Intangible fixed assets                                        |  |       | 21 |                 |      |  | 316     |      |  |  | 147     |  
|Tangible fixed assets                                          |  |       | 22 |                 |      |  | 1,236   |      |  |  | 1,268   |  
|Other assets                                                   |  |       | 23 |                 |      |  | 4,075   |      |  |  | 3,767   |  
|Prepayments and accrued income                                 |  |       |    |                 |      |  | 870     |      |  |  | 690     |  
|                                                               |  |       |    |                 |      |  |         |      | 
|                                                               |  |       |    |                 |      |  | 117,935 |      |  |  | 99,462  |  
|Life assurance assets attributable to policyholders            |  |       | 24 |                 |      |  | 8,529   |      |  |  | 6,969   |  
|                                                               |  |       |    |                 |      |  |         |      | 
|                                                               |  |       |    |                 |      |  | 126,464 |      |  |  | 106,431 |  
|                                                               |  |       |    |                 |      |  |         |      | 
|LIABILITIES                                                    |  |       |    |                 |      |  |         |      |  |  |         |  
|Deposits by banks                                              |  |       | 25 |                 |      |  | 20,254  |      |  |  | 17,060  |  
|Customer accounts                                              |  |       | 26 |                 |      |  | 60,265  |      |  |  | 54,395  |  
|Debt securities in issue                                       |  |       | 27 |                 |      |  | 20,539  |      |  |  | 12,917  |  
|Items in the course of transmission to other banks             |  |       |    |                 |      |  | 230     |      |  |  | 230     |  
|Other liabilities                                              |  |       | 28 |                 |      |  | 6,269   |      |  |  | 5,676   |  
|Accruals and deferred income                                   |  |       |    |                 |      |  | 770     |      |  |  | 621     |  
|Provisions for liabilities and charges                         |  |       |    |                 |      |  |         |      |  |  |         |  
| deferred taxation                                            |  |       | 29 |                 |      |  | 72      |      |  |  | 66      |  
| other                                                        |  |       | 30 |                 |      |  | 321     |      |  |  | 221     |  
|Subordinated liabilities                                       |  |       | 31 |                 |      |  | 4,086   |      |  |  | 3,682   |  
|Minority interests                                             |  |       |    |                 |      |  |         |      |  |  |         |  
| equity                                                       |  |       |    |                 |      |  | 62      |      |  |  | 54      |  
| non equity                                                   |  |       | 32 |                 |      |  | 73      |      |  |  | 76      |  
|Called up capital stock                                        |  |       | 33 |                 |      |  | 663     |      |  |  | 679     |  
|Stock premium account                                          |  |       | 34 |                 |      |  | 765     |      |  |  | 767     |  
|Capital reserve                                                |  |       | 34 |                 |      |  | 561     |      |  |  | 498     |  
|Profit and loss account                                        |  |       | 34 |                 |      |  | 2,772   |      |  |  | 2,281   |  
|Revaluation reserve                                            |  |       | 34 |                 |      |  | 234     |      |  |  | 239     |  
|                                                               |  |       |    |                 |      |  |         |      | 
|Own shares held for the benefit of life assurance policyholder |  |       |    |                 |      |  | 4,995   |      |  |  | 4,464   |  
|Stockholders funds including non equity interests             |  |       |    |                 |      |  | (206    | )    |  |  | (183    | )
|                                                               |  |       |    |                 |      |  | 4,789   |      |  |  | 4,281   |  
|                                                               |  |       |    |                 |      |  |         |      | 
|Life assurance liabilities attributable to policyholders       |  |       | 24 |                 |      |  | 8,734   |      |  |  | 7,152   |  
|                                                               |  |       |    |                 |      |  |         |      | 
|                                                               |  |       |    |                 |      |  | 126,464 |      |  |  | 106,431 |  
|                                                               |  |       |    |                 |      |  |         |      | 

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-6



---



##### Table of Contents



BANK OF IRELAND GROUP


CONSOLIDATED BALANCE SHEET


MEMORANDUM ITEMS


|                                                     |  |       |    |                 |      |  |        |      |  |  |        | 
|---------------------------------------------------- |  | ----- | -- | --------------- | ---- |  | ------ | ---- |  |  | ------ | 
|                                                     |  |       |    | At March 31,    |     
|                                                     |  |       |    |                 |     
|                                                     |  | Notes |    |                 | 2005 |  |        | 2004 | 
|                                                     |  |       |    |                 |      |  |        |      | 
|                                                     |  |       |    | (in  millions) |     
|Contingent liabilities                               |  |       |    |                 |      |  |        |      |  |  |        | 
|Acceptances and endorsements                         |  |       |    |                 |      |  | 34     |      |  |  | 33     | 
|Guarantees and assets pledged as collateral security |  |       |    |                 |      |  | 1,268  |      |  |  | 1,291  | 
|Other contingent liabilities                         |  |       |    |                 |      |  | 643    |      |  |  | 494    | 
|                                                     |  |       |    |                 |      |  |        |      | 
|                                                     |  |       | 39 |                 |      |  | 1,945  |      |  |  | 1,818  | 
|                                                     |  |       |    |                 |      |  |        |      | 
|Commitments                                          |  |       | 39 |                 |      |  | 29,296 |      |  |  | 25,235 | 
|                                                     |  |       |    |                 |      |  |        |      | 

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-7



---



##### Table of Contents



BANK OF IRELAND GROUP


OTHER PRIMARY STATEMENTS





NOTE OF HISTORICAL COST PROFIT AND LOSS







RECONCILIATION OF MOVEMENT IN STOCKHOLDERS FUNDS


|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |   |  |  |       |  
|----------------------------------------------------------------------------------- |  | ----- | ------ | --------------- | ---- |  | ----- | ---- |  |  | ----- | - |  |  | ----- | -
|                                                                                    |  | Notes |        |                 | 2005 |  |       | 2004 |  |  | 2003  |  
|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |  
|                                                                                    |  |       |        | (in  millions) |     
|At April 1                                                                          |  |       |        |                 |      |  | 4,281 |      |  |  | 4,034 |   |  |  | 4,077 |  
|Profit attributable to the ordinary stockholders                                    |  |       |        |                 |      |  | 1,073 |      |  |  | 935   |   |  |  | 826   |  
|Dividends                                                                           |  |       | 11     |                 |      |  | (442  | )    |  |  | (400  | ) |  |  | (371  | )
|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |  
|                                                                                    |  |       |        |                 |      |  | 4,912 |      |  |  | 4,569 |   |  |  | 4,532 |  
|Revaluation of property                                                             |  |       |        |                 |      |  |      |      |  |  | 59    |   |  |  |      |  
|Exchange adjustments                                                                |  |       | 33, 34 |                 |      |  | (108  | )    |  |  | 62    |   |  |  | (346  | )
|Re-issue of treasury stock under employee stock schemes                             |  |       | 33, 34 |                 |      |  | 7     |      |  |  | 25    |   |  |  | 6     |  
|Ordinary stock buyback and held as Treasury stock                                   |  |       | 33, 34 |                 |      |  |      |      |  |  | (377  | ) |  |  | (133  | )
|Goodwill written back on disposal of subsidiary                                     |  |       |        |                 |      |  |      |      |  |  |      |   |  |  | 5     |  
|Movement in cost of own shares held for benefit of Life
    Assurance policyholders |  |       |        |                 |      |  | (23   | )    |  |  | (57   | ) |  |  | (30   | )
|Reissue of treasury stock previously held by subsidiary                             |  |       | 34     |                 |      |  | 1     |      |  |  |      |   |  |  |      |  
|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |  
|At March 31                                                                         |  |       |        |                 |      |  | 4,789 |      |  |  | 4,281 |   |  |  | 4,034 |  
|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |  
|Stockholders funds:                                                                |  |       |        |                 |      |  |       |      |  |  |       |   |  |  |       |  
|Equity                                                                              |  |       |        |                 |      |  | 4,724 |      |  |  | 4,215 |   |  |  | 3,969 |  
|Non equity                                                                          |  |       |        |                 |      |  | 65    |      |  |  | 66    |   |  |  | 65    |  
|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |  
|                                                                                    |  |       |        |                 |      |  | 4,789 |      |  |  | 4,281 |   |  |  | 4,034 |  
|                                                                                    |  |       |        |                 |      |  |       |      |  |  |       |  




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


|                                                 |  |       |        |                 |      |  |       |      |  |  |       |  |  |  |      |  
|------------------------------------------------ |  | ----- | ------ | --------------- | ---- |  | ----- | ---- |  |  | ----- |  |  |  | ---- | -
|                                                 |  | Notes |        |                 | 2005 |  |       | 2004 |  |  | 2003  | 
|                                                 |  |       |        |                 |      |  |       |      |  |  |       | 
|                                                 |  |       |        | (in  millions) |     
|Profit attributable to the ordinary stockholders |  |       |        |                 |      |  | 1,073 |      |  |  | 935   |  |  |  | 826  |  
|Exchange adjustments                             |  |       | 33, 34 |                 |      |  | (108  | )    |  |  | 62    |  |  |  | (346 | )
|Revaluation of property                          |  |       |        |                 |      |  |      |      |  |  | 59    |  |  |  |     |  
|                                                 |  |       |        |                 |      |  |       |      |  |  |       | 
|Total recognised gains since last annual report  |  |       |        |                 |      |  | 965   |      |  |  | 1,056 |  |  |  | 480  |  
|                                                 |  |       |        |                 |      |  |       |      |  |  |       | 

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-8



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY


|                                 |  |       |    |                      |      |  |     |      |  |  |      |  |  |  |     |  
|-------------------------------- |  | ----- | -- | -------------------- | ---- |  | --- | ---- |  |  | ---- |  |  |  | --- | -
|                                 |  |       |    | Year ended March 31, |     
|                                 |  |       |    |                      |     
|                                 |  | Notes |    |                      | 2005 |  |     | 2004 |  |  | 2003 | 
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|                                 |  |       |    | (in  millions)      |     
|Preference stock                 |  |       |    |                      |      |  |     |      |  |  |      |  |  |  |     |  
|At April 1                       |  |       |    |                      |      |  | 7   |      |  |  | 7    |  |  |  | 7   |  
|Exchange adjustments             |  |       |    |                      |      |  |    |      |  |  |     |  |  |  |    |  
|Preference stock buyback         |  |       |    |                      |      |  |    |      |  |  |     |  |  |  |    |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|At March 31                      |  |       | 33 |                      |      |  | 7   |      |  |  | 7    |  |  |  | 7   |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|Ordinary stock                   |  |       |    |                      |      |  |     |      |  |  |      |  |  |  |     |  
|At April 1                       |  |       |    |                      |      |  | 672 |      |  |  | 672  |  |  |  | 672 |  
|Cancellation of stock            |  |       |    |                      |      |  | (16 | )    |  |  |     |  |  |  |    |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|At March 31                      |  |       | 33 |                      |      |  | 656 |      |  |  | 672  |  |  |  | 672 |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|Stock premium                    |  |       |    |                      |      |  |     |      |  |  |      |  |  |  |     |  
|At April 1                       |  |       |    |                      |      |  | 767 |      |  |  | 765  |  |  |  | 773 |  
|Exchange adjustments             |  |       |    |                      |      |  | (2  | )    |  |  | 2    |  |  |  | (8  | )
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|At March 31                      |  |       | 34 |                      |      |  | 765 |      |  |  | 767  |  |  |  | 765 |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|Capital reserve                  |  |       |    |                      |      |  |     |      |  |  |      |  |  |  |     |  
|At April 1                       |  |       |    |                      |      |  | 498 |      |  |  | 436  |  |  |  | 397 |  
|Exchange adjustments             |  |       |    |                      |      |  | (1  | )    |  |  |     |  |  |  | (5  | )
|Transfer from revenue reserves   |  |       |    |                      |      |  | 48  |      |  |  | 62   |  |  |  | 44  |  
|Reserve on cancellation of stock |  |       |    |                      |      |  | 16  |      |  |  |     |  |  |  |    |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 
|At March 31                      |  |       | 34 |                      |      |  | 561 |      |  |  | 498  |  |  |  | 436 |  
|                                 |  |       |    |                      |      |  |     |      |  |  |      | 

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-9



---



##### Table of Contents



BANK OF IRELAND GROUP


CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY  (Continued)


|                                                         |  |       |    |                      |      |  |       |      |  |  |       |   |  |  |       |  
|-------------------------------------------------------- |  | ----- | -- | -------------------- | ---- |  | ----- | ---- |  |  | ----- | - |  |  | ----- | -
|                                                         |  |       |    | Year ended March 31, |     
|                                                         |  |       |    |                      |     
|                                                         |  | Notes |    |                      | 2005 |  |       | 2004 |  |  | 2003  |  
|                                                         |  |       |    |                      |      |  |       |      |  |  |       |  
|                                                         |  |       |    | (in  millions)      |     
|Profit and loss account                                  |  |       |    |                      |      |  |       |      |  |  |       |   |  |  |       |  
|At April 1                                               |  |       |    |                      |      |  | 2,281 |      |  |  | 2,099 |   |  |  | 2,116 |  
|Profit attributable to the ordinary stockholders         |  |       |    |                      |      |  | 1,073 |      |  |  | 935   |   |  |  | 826   |  
|Transfer to Capital Reserve                              |  |       |    |                      |      |  | (48   | )    |  |  | (62   | ) |  |  | (44   | )
|Ordinary dividends                                       |  |       |    |                      |      |  | (442  | )    |  |  | (400  | ) |  |  | (371  | )
|Transfer from capital reserve                            |  |       |    |                      |      |  |      |      |  |  |      |   |  |  |      |  
|Ordinary stock buyback                                   |  |       |    |                      |      |  |      |      |  |  | (377  | ) |  |  | (133  | )
|Exchange adjustments                                     |  |       |    |                      |      |  | (104  | )    |  |  | 60    |   |  |  | (328  | )
|Preference stock buyback                                 |  |       |    |                      |      |  |      |      |  |  |      |   |  |  |      |  
|Transfer from revaluation reserve                        |  |       |    |                      |      |  | 4     |      |  |  | 2     |   |  |  | 22    |  
|Review of treasury stock previously held by subsidiaries |  |       |    |                      |      |  | 1     |      |  |  |      |   |  |  |      |  
|Goodwill written back on disposal of subsidiary          |  |       |    |                      |      |  |      |      |  |  |      |   |  |  | 5     |  
|Reissue of treasury stock under employee stock schemes   |  |       |    |                      |      |  | 7     |      |  |  | 25    |   |  |  | 6     |  
|Purchase of stock by subsidiaries                        |  |       |    |                      |      |  |      |      |  |  | (1    | ) |  |  |      |  
|                                                         |  |       |    |                      |      |  |       |      |  |  |       |  
|At March 31                                              |  |       | 34 |                      |      |  | 2,772 |      |  |  | 2,281 |   |  |  | 2,099 |  
|                                                         |  |       |    |                      |      |  |       |      |  |  |       |  
|Revaluation reserve                                      |  |       |    |                      |      |  |       |      |  |  |       |   |  |  |       |  
|At April 1                                               |  |       |    |                      |      |  | 239   |      |  |  | 181   |   |  |  | 208   |  
|Revaluation of property                                  |  |       |    |                      |      |  |      |      |  |  | 59    |   |  |  |      |  
|Exchange adjustments                                     |  |       |    |                      |      |  | (1    | )    |  |  | 1     |   |  |  | (5    | )
|Transfer to revenue reserve on sale of property          |  |       |    |                      |      |  | (4    | )    |  |  | (2    | ) |  |  | (22   | )
|                                                         |  |       |    |                      |      |  |       |      |  |  |       |  
|At March 31                                              |  |       | 34 |                      |      |  | 234   |      |  |  | 239   |   |  |  | 181   |  
|                                                         |  |       |    |                      |      |  |       |      |  |  |       |  
|                                                         |  |       |    |                      |      |  | 4,995 |      |  |  | 4,464 |   |  |  | 4,160 |  
|                                                         |  |       |    |                      |      |  |       |      |  |  |       |  

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-10



---



##### Table of Contents



BANK OF IRELAND GROUP





CONSOLIDATED CASH FLOW STATEMENT


|                                               |  |       |    |                      |      |  |        |      |  |  |        |   |  |  |        |  
|---------------------------------------------- |  | ----- | -- | -------------------- | ---- |  | ------ | ---- |  |  | ------ | - |  |  | ------ | -
|                                               |  |       |    | Year ended March 31, |     
|                                               |  |       |    |                      |     
|                                               |  | Notes |    |                      | 2005 |  |        | 2004 |  |  | 2003   |  
|                                               |  |       |    |                      |      |  |        |      |  |  |        |  
|                                               |  |       |    | (in  millions)      |     
|Net cash flow from operating activities        |  |       | 42 |                      |      |  | 5,681  |      |  |  | 3,664  |   |  |  | 1,109  |  
|Dividend received from joint venture           |  |       |    |                      |      |  | 14     |      |  |  | 7      |   |  |  |       |  
|Returns on investment and servicing of finance |  |       | 42 |                      |      |  | (258   | )    |  |  | (190   | ) |  |  | (181   | )
|Taxation                                       |  |       |    |                      |      |  | (155   | )    |  |  | (201   | ) |  |  | (180   | )
|Capital expenditure and financial investment   |  |       | 42 |                      |      |  | (4,287 | )    |  |  | (2,875 | ) |  |  | (1,367 | )
|Acquisitions and disposals                     |  |       | 42 |                      |      |  | 73     |      |  |  | (179   | ) |  |  | (172   | )
|Equity dividends paid                          |  |       |    |                      |      |  | (417   | )    |  |  | (381   | ) |  |  | (349   | )
|Financing                                      |  |       | 42 |                      |      |  | 462    |      |  |  | 609    |   |  |  | 205    |  
|                                               |  |       |    |                      |      |  |        |      |  |  |        |  
|(Decrease)/ Increase in cash in the year       |  |       |    |                      |      |  | 1,113  |      |  |  | 454    |   |  |  | (935   | )
|                                               |  |       |    |                      |      |  |        |      |  |  |        |  

The notes on pages F-12 to F-110


form an integral part of these consolidated financial
statements


F-11



---



##### Table of Contents



BANK OF IRELAND GROUP





NOTES ON THE FINANCIAL STATEMENTS




|  |                                            
|- | -------------------------------------------
|1 | BASIS OF ACCOUNTING AND ACCOUNTING POLICIES

1.1 Accounting Convention







1.2 Future Accounting Developments








1.3 Basis of Consolidation








1.4 Foreign Currency Translation




F-12



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


1   BASIS OF ACCOUNTING AND ACCOUNTING
POLICIES  (continued)




|        |  |                |        |  |                |  |        |         |  |  |         |  |  |  |        | 
|------- |  | -------------- | ------ |  | -------------- |  | ------ | ------- |  |  | ------- |  |  |  | ------ | 
|        |  | March 31, 2005 |        |  | March 31, 2004 | 
|        |  |                |        |  |                | 
|        |  | Average        |        |  | Closing        |  |        | Average |  |  | Closing | 
|        |  |                |        |  |                |  |        |         |  |  |         | 
|/ US$  |  |                | 1.2647 |  |                |  | 1.2964 |         |  |  | 1.1796  |  |  |  | 1.2224 | 
|/ Stg£ |  |                | 0.6834 |  |                |  | 0.6885 |         |  |  | 0.6926  |  |  |  | 0.6659 | 

1.5 Income Recognition




1.6 Mortgage Incentives




1.7 Leasing and Instalment Finance




1.8 Debt Securities and Equity Shares


Investment Securities




Other Securities




1.9 Derivatives




F-13



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




1   BASIS OF ACCOUNTING AND ACCOUNTING
POLICIES  (continued)










| |      |                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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.







1.10 Capital Instruments




1.11 Pensions




1.12 Tangible Fixed Assets




F-14



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




1   BASIS OF ACCOUNTING AND ACCOUNTING
POLICIES  (continued)




1.13 Provision for Bad and Doubtful Debts












1.14 Deferred Taxation




1.15 Investments in Associated Undertakings and Joint
Ventures




F-15



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




1   BASIS OF ACCOUNTING AND ACCOUNTING
POLICIES  (continued)


1.16 Securitisation and Loan Transfers




1.17 Goodwill




1.18 Life Assurance Operations








1.19 Stock Based Compensation




F-16



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




1   BASIS OF ACCOUNTING AND ACCOUNTING
POLICIES  (continued)






|  |                   
|- | ------------------
|2 | SEGMENTAL ANALYSIS







|    |                     
|--- | --------------------
|(a) | Geographical segment

|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       |  |     |   |  |  |         |  
|------------------------------------------------------ |  | ----------- | ------- | ---------- | ------- |  | ------ | ------- |  |  | ----------- |  |  | ----------- | ------- |  | ----- |  | --- | - |  |  | ------- | -
|                                                       |  | 2005        |        
|                                                       |  |             |        
|                                                       |  |             |         | Continuing |         |  |       
|                                                       |  |             |         | Operations |         |  |       
|                                                       |  |             |         | before     |         |  |       
|                                                       |  | Republic of |         |            | United  |  |        | Rest of |  |  | Exceptional |  |  | Exceptional |         |  |      
|                                                       |  | Ireland     |         |            | Kingdom |  |        | World   |  |  | Items       |  |  | Items       |         |  | Total | 
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 
|                                                       |  | m          |         |            | m      |  |        | m      |  |  | m          |  |  | m          |         |  | m    | 
|Turnover                                               |  |             | 2,301   |            |         |  | 3,206  |         |  |  | 192         |  |  |             | 5,699   |  |       |  |    |   |  |  | 5,699   |  
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 
|Profit on ordinary activities before exceptional items |  |             | 990     |            |         |  | 326    |         |  |  | 36          |  |  |             | 1,352   |  |       |  | (17 | ) |  |  | 1,335   |  
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 
|Exceptional items                                      |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       |  | 5   |   |  |  | 5       |  
|Grossing up(1)                                         |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       |  |    |   |  |  | (19     | )
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 
|Profit before taxation                                 |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       |  | (12 | ) |  |  | 1,321   |  
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 
|Net assets                                             |  |             | 2,780   |            |         |  | 1,519  |         |  |  | 490         |  |  |             | 4,789   |  |       |  |    |   |  |  | 4,789   |  
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 
|Total assets(2)                                        |  |             | 108,395 |            |         |  | 50,446 |         |  |  | 4,262       |  |  |             | 163,103 |  |       |  |    |   |  |  | 163,103 |  
|                                                       |  |             |         |            |         |  |        |         |  |  |             |  |  |             |         |  |       | 

F-17



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|  |                                
|- | -------------------------------
|2 | SEGMENTAL ANALYSIS  (continued)

|                                |  |             |        |  |         |  |        |         |  |  |       |  |  |  |         |  
|------------------------------- |  | ----------- | ------ |  | ------- |  | ------ | ------- |  |  | ----- |  |  |  | ------- | -
|                                |  | 2004        |       
|                                |  |             |       
|                                |  | Republic of |        |  | United  |  |        | Rest of |  |  |      
|                                |  | Ireland     |        |  | Kingdom |  |        | World   |  |  | Total | 
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|                                |  | m          |        |  | m      |  |        | m      |  |  | m    | 
|Turnover                        |  |             | 2,658  |  |         |  | 2,283  |         |  |  | 153   |  |  |  | 5,094   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Profit before exceptional items |  |             | 936    |  |         |  | 340    |         |  |  | 41    |  |  |  | 1,317   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Exceptional items               |  |             |        |  |         |  |        |         |  |  |       |  |  |  | (97     | )
|Grossing up(1)                  |  |             |        |  |         |  |        |         |  |  |       |  |  |  | (50     | )
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Profit before taxation          |  |             |        |  |         |  |        |         |  |  |       |  |  |  | 1,170   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Net assets                      |  |             | 2,422  |  |         |  | 1,399  |         |  |  | 460   |  |  |  | 4,281   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Total assets(2)                 |  |             | 91,249 |  |         |  | 52,158 |         |  |  | 2,410 |  |  |  | 145,817 |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 

|                                |  |             |        |  |         |  |        |         |  |  |       |  |  |  |         |  
|------------------------------- |  | ----------- | ------ |  | ------- |  | ------ | ------- |  |  | ----- |  |  |  | ------- | -
|                                |  | 2003        |       
|                                |  |             |       
|                                |  | Republic of |        |  | United  |  |        | Rest of |  |  |      
|                                |  | Ireland     |        |  | Kingdom |  |        | World   |  |  | Total | 
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|                                |  | m          |        |  | m      |  |        | m      |  |  | m    | 
|Turnover                        |  |             | 2,621  |  |         |  | 2,272  |         |  |  | 148   |  |  |  | 5,041   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Profit before exceptional items |  |             | 869    |  |         |  | 319    |         |  |  | 43    |  |  |  | 1,231   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Exceptional items               |  |             |        |  |         |  |        |         |  |  |       |  |  |  | (164    | )
|Grossing up(1)                  |  |             |        |  |         |  |        |         |  |  |       |  |  |  | (54     | )
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Profit before taxation          |  |             |        |  |         |  |        |         |  |  |       |  |  |  | 1,013   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Net assets                      |  |             | 2,212  |  |         |  | 1,448  |         |  |  | 374   |  |  |  | 4,034   |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 
|Total assets(2)                 |  |             | 71,035 |  |         |  | 38,941 |         |  |  | 2,224 |  |  |  | 112,200 |  
|                                |  |             |        |  |         |  |        |         |  |  |       | 

F-18



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|  |                                
|- | -------------------------------
|2 | SEGMENTAL ANALYSIS  (continued)

(b) Business class


|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       |  |         |  |  |  |      |   |  |  |         |  
|------------------------------------------------------ |  | ----------- | ------ | ---------- | ---- |  | --------- | --------- | ---------- | -- | --------- |  | ----- | ---------- | ------ | ------ | --------- |  | ----- | ------- |  | ------ | ----------- | - |  | ----------- | ------ | - | ----- |  | ------- |  |  |  | ---- | - |  |  | ------- | -
|                                                       |  | 2005        |       
|                                                       |  |             |       
|                                                       |  |             |        | Continuing |      |  |          
|                                                       |  |             |        | UK Post    |      |  |           |           | Operations |    |           | 
|                                                       |  | Retail      |        |            |      |  | Wholesale |           |            | UK |           |  | Asset |            |        | Office |           |  | Group |         |  | before |             |   | 
|                                                       |  | Republic of |        |            | BOI  |  |           | Financial |            |    | Financial |  |       | Management |        |        | Financial |  |       | and     |  |        | Exceptional |   |  | Exceptional |        |   |      
|                                                       |  | Ireland     |        |            | Life |  |           | Services  |            |    | Services  |  |       | Services   |        |        | Services  |  |       | Central |  |        | Items       |   |  | Items       |        |   | Total | 
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|                                                       |  | m          |        |            | m   |  |           | m        |            |    | m        |  |       | m         |        |        | m        |  |       | m      |  |        | m          |   |  | m          |        |   | m    | 
|Net interest income                                    |  |             | 1,018  |            |      |  |          |           |            |    | 302       |  |       |            | 605    |        |           |  | 4     |         |  |        | 6           |   |  |             | (23    | ) |       |  | 1,912   |  |  |  |     |   |  |  | 1,912   |  
|Other income                                           |  |             | 304    |            |      |  | 135       |           |            |    | 339       |  |       |            | 241    |        |           |  | 252   |         |  |        | 1           |   |  |             | 8      |   |       |  | 1,280   |  |  |  |     |   |  |  | 1,280   |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Total operating income                                 |  |             | 1,322  |            |      |  | 135       |           |            |    | 641       |  |       |            | 846    |        |           |  | 256   |         |  |        | 7           |   |  |             | (15    | ) |       |  | 3,192   |  |  |  |     |   |  |  | 3,192   |  
|Administrative expenses                                |  |             | 778    |            |      |  |          |           |            |    | 249       |  |       |            | 472    |        |           |  | 141   |         |  |        | 54          |   |  |             | 113    |   |       |  | 1,807   |  |  |  | 117  |   |  |  | 1,924   |  
|Provision for bad and doubtful debts                   |  |             | 51     |            |      |  |          |           |            |    | 38        |  |       |            | (14    | )      |           |  |      |         |  |        | 4           |   |  |             |       |   |       |  | 79      |  |  |  | (100 | ) |  |  | (21     | )
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Operating Profit                                       |  |             | 493    |            |      |  | 135       |           |            |    | 354       |  |       |            | 388    |        |           |  | 115   |         |  |        | (51         | ) |  |             | (128   | ) |       |  | 1,306   |  |  |  | (17  | ) |  |  | 1,289   |  
|Income from associated undertakings and joint ventures |  |             | (3     | )          |      |  |          |           |            |    | 53        |  |       |            |       |        |           |  |      |         |  |        | (4          | ) |  |             |       |   |       |  | 46      |  |  |  |     |   |  |  | 46      |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|                                                       |  |             | 490    |            |      |  | 135       |           |            |    | 407       |  |       |            | 388    |        |           |  | 115   |         |  |        | (55         | ) |  |             | (128   | ) |       |  | 1,352   |  |  |  | (17  | ) |  |  | 1,335   |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Exceptional items                                      |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       |  |         |  |  |  | 5    |   |  |  | 5       |  
|Grossing up(1)                                         |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       |  |         |  |  |  |      |   |  |  | (19     | )
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Profit before taxation                                 |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       |  |         |  |  |  | (12  | ) |  |  | 1,321   |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Net assets                                             |  |             | 1,403  |            |      |  | 101       |           |            |    | 722       |  |       |            | 1,622  |        |           |  | 377   |         |  |        | 112         |   |  |             | 452    |   |       |  | 4,789   |  |  |  |     |   |  |  | 4,789   |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Total assets(2)                                        |  |             | 57,609 |            |      |  | 8,977     |           |            |    | 100,369   |  |       |            | 42,836 |        |           |  | 2,980 |         |  |        | 213         |   |  |             | 17,744 |   |       |  | 230,728 |  |  |  |     |   |  |  | 230,728 |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 
|Total Risk Weighted Assets                             |  |             | 21,969 |            |      |  |          |           |            |    | 26,454    |  |       |            | 26,029 |        |           |  | 284   |         |  |        |            |   |  |             | 1,156  |   |       |  | 75,892  |  |  |  |     |   |  |  | 75,892  |  
|                                                       |  |             |        |            |      |  |           |           |            |    |           |  |       |            |        |        |           |  |       |         |  |        |             |   |  |             |        |   |       | 

|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |   |  |  |        |   |  |  |         |  
|------------------------------------------------------ |  | ----------- | ------ | - | ---- |  | --------- | --------- |  | -- | --------- |  | ----- | ---------- | ------ | ------- | ------------ |  | ----- | ------- |  |  | ----- | - |  |  | ------ | - |  |  | ------- | -
|                                                       |  | 2004        |       
|                                                       |  |             |       
|                                                       |  | Retail      |        |   |      |  | Wholesale |           |  | UK |           |  | Asset |            |        | UK Post |              |  | Group |         |  | 
|                                                       |  | Republic of |        |   | BOI  |  |           | Financial |  |    | Financial |  |       | Management |        |         | Office Joint |  |       | and     |  |  |      
|                                                       |  | Ireland     |        |   | Life |  |           | Services  |  |    | Services  |  |       | Services   |        |         | Venture      |  |       | Central |  |  | Total |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|                                                       |  | m          |        |   | m   |  |           | m        |  |    | m        |  |       | m         |        |         | m           |  |       | m      |  |  | m    |  
|Net interest income                                    |  |             | 909    |   |      |  |          |           |  |    | 292       |  |       |            | 601    |         |              |  | 3     |         |  |  |      |   |  |  | (26    | ) |  |  | 1,779   |  
|Other income                                           |  |             | 289    |   |      |  | 147       |           |  |    | 298       |  |       |            | 246    |         |              |  | 258   |         |  |  |      |   |  |  | 11     |   |  |  | 1,249   |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Total operating income                                 |  |             | 1,198  |   |      |  | 147       |           |  |    | 590       |  |       |            | 847    |         |              |  | 261   |         |  |  |      |   |  |  | (15    | ) |  |  | 3,028   |  
|Administrative expenses                                |  |             | 724    |   |      |  |          |           |  |    | 221       |  |       |            | 472    |         |              |  | 136   |         |  |  |      |   |  |  | 101    |   |  |  | 1,654   |  
|Provision for bad and doubtful debts                   |  |             | 53     |   |      |  |          |           |  |    | 31        |  |       |            | 2      |         |              |  |      |         |  |  |      |   |  |  |       |   |  |  | 86      |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Operating Profit                                       |  |             | 421    |   |      |  | 147       |           |  |    | 338       |  |       |            | 373    |         |              |  | 125   |         |  |  |      |   |  |  | (116   | ) |  |  | 1,288   |  
|Income from associated undertakings and joint ventures |  |             | (2     | ) |      |  |          |           |  |    | 33        |  |       |            |       |         |              |  |      |         |  |  | (3    | ) |  |  | 1      |   |  |  | 29      |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Profit before exceptional items                        |  |             | 419    |   |      |  | 147       |           |  |    | 371       |  |       |            | 373    |         |              |  | 125   |         |  |  | (3    | ) |  |  | (115   | ) |  |  | 1,317   |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Exceptional items                                      |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |   |  |  |        |   |  |  | (97     | )
|Grossing up(1)                                         |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |   |  |  |        |   |  |  | (50     | )
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Profit before taxation                                 |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |   |  |  |        |   |  |  | 1,170   |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Net assets                                             |  |             | 1,210  |   |      |  | 95        |           |  |    | 697       |  |       |            | 1,483  |         |              |  | 369   |         |  |  |      |   |  |  | 427    |   |  |  | 4,281   |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Total assets(2)                                        |  |             | 36,324 |   |      |  | 7,401     |           |  |    | 60,328    |  |       |            | 38,716 |         |              |  | 1,606 |         |  |  |      |   |  |  | 10,110 |   |  |  | 154,485 |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  
|Total Risk Weighted Assets                             |  |             | 18,922 |   |      |  |          |           |  |    | 20,893    |  |       |            | 22,828 |         |              |  | 149   |         |  |  |      |   |  |  | 569    |   |  |  | 63,361  |  
|                                                       |  |             |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  

F-19



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|  |                                
|- | -------------------------------
|2 | SEGMENTAL ANALYSIS  (continued)

|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  |  |  |       |   |  |  |         |  
|------------------------------------------------------ |  | ---------- | ------ | - | ---- |  | --------- | --------- |  | -- | --------- |  | ----- | ---------- | ------ | ------- | ------------ |  | ----- | ------- |  |  | ----- |  |  |  | ----- | - |  |  | ------- | -
|                                                       |  | 2003       |       
|                                                       |  |            |       
|                                                       |  | Retail     |        |   |      |  | Wholesale |           |  | UK |           |  | Asset |            |        | UK Post |              |  | Group |         |  | 
|                                                       |  | Republic   |        |   | BOI  |  |           | Financial |  |    | Financial |  |       | Management |        |         | Office Joint |  |       | and     |  |  |      
|                                                       |  | of Ireland |        |   | Life |  |           | Services  |  |    | Services  |  |       | Services   |        |         | Venture      |  |       | Central |  |  | Total | 
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|                                                       |  | m         |        |   | m   |  |           | m        |  |    | m        |  |       | m         |        |         | m           |  |       | m      |  |  | m    | 
|Net interest income                                    |  |            | 861    |   |      |  |          |           |  |    | 261       |  |       |            | 628    |         |              |  | 5     |         |  |  |      |  |  |  | 1     |   |  |  | 1,756   |  
|Other income                                           |  |            | 272    |   |      |  | 87        |           |  |    | 317       |  |       |            | 275    |         |              |  | 233   |         |  |  |      |  |  |  | 31    |   |  |  | 1,215   |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Total operating income                                 |  |            | 1,133  |   |      |  | 87        |           |  |    | 578       |  |       |            | 903    |         |              |  | 238   |         |  |  |      |  |  |  | 32    |   |  |  | 2,971   |  
|Administrative expenses                                |  |            | 687    |   |      |  |          |           |  |    | 213       |  |       |            | 523    |         |              |  | 125   |         |  |  |      |  |  |  | 114   |   |  |  | 1,662   |  
|Provision for bad and doubtful debts                   |  |            | 54     |   |      |  |          |           |  |    | 25        |  |       |            | 21     |         |              |  |      |         |  |  |      |  |  |  |      |   |  |  | 100     |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Operating Profit                                       |  |            | 392    |   |      |  | 87        |           |  |    | 340       |  |       |            | 359    |         |              |  | 113   |         |  |  |      |  |  |  | (82   | ) |  |  | 1,209   |  
|Income from associated undertakings and joint ventures |  |            | (2     | ) |      |  |          |           |  |    | 27        |  |       |            |       |         |              |  |      |         |  |  |      |  |  |  | (3    | ) |  |  | 22      |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Profit before exceptional item                         |  |            | 390    |   |      |  | 87        |           |  |    | 367       |  |       |            | 359    |         |              |  | 113   |         |  |  |      |  |  |  | (85   | ) |  |  | 1,231   |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Exceptional items                                      |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  |  |  |       |   |  |  | (164    | )
|Grossing up(1)                                         |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  |  |  |       |   |  |  | (54     | )
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Profit before taxation                                 |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       |  |  |  |       |   |  |  | 1,013   |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Net assets                                             |  |            | 1,092  |   |      |  | 88        |           |  |    | 562       |  |       |            | 1,481  |         |              |  | 344   |         |  |  |      |  |  |  | 467   |   |  |  | 4,034   |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Total assets(2)                                        |  |            | 29,261 |   |      |  | 5,728     |           |  |    | 50,530    |  |       |            | 32,841 |         |              |  | 1,611 |         |  |  |      |  |  |  | 7,416 |   |  |  | 127,387 |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 
|Total Risk Weighted Assets                             |  |            | 15,564 |   |      |  |          |           |  |    | 18,986    |  |       |            | 19,512 |         |              |  | 143   |         |  |  |      |  |  |  | 422   |   |  |  | 54,627  |  
|                                                       |  |            |        |   |      |  |           |           |  |    |           |  |       |            |        |         |              |  |       |         |  |  |       | 






|    |                                                                                                                                                                                                                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The Group undertakes tax based transactions at rates which
    differ from normal market rates in return for tax relief arising
    from various incentives and reliefs. To assist in making valid
    comparison of pre-tax performance, the analysis of business unit
    performance is grossed up.
|   
|(2) | Total assets include intra-group items of
    36,639m (2004:
    39,386m, 2003:
    22,897m) in
    geographic segments and
    104,264m (2004:
    48,054m, 2003:
    38,084m) in
    business class.                                                                                          



|  |                           
|- | --------------------------
|3 | ACQUISITION  CURRENT YEAR



|    |        
|--- | -------
|(a) | Burdale




F-20



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|  |                                             
|- | --------------------------------------------
|3 | ACQUISITIONS  CURRENT
    YEAR  (continued)




|                              |  |       |      |   |    |  |      |  
|----------------------------- |  | ----- | ---- | - | -- |  | ---- | -
|                              |  | Stg£m |      |   | m | 
|                              |  |       |      |   |    | 
|Debtors                       |  |       | 145  |   |    |  | 206  |  
|Cash at Bank                  |  |       | 5    |   |    |  | 7    |  
|Creditors due within one year |  |       | (131 | ) |    |  | (186 | )
|                              |  |       |      |   |    | 
|Net assets acquired           |  |       | 19   |   |    |  | 27   |  
|Goodwill                      |  |       | 37   |   |    |  | 52   |  
|                              |  |       |      |   |    | 
|                              |  |       | 56   |   |    |  | 79   |  
|                              |  |       |      |   |    | 
|Consideration                 |  |       | 49   |   |    |  | 70   |  
|Cost of Acquisition           |  |       | 1    |   |    |  | 2    |  
|Deferred Consideration        |  |       | 6    |   |    |  | 7    |  
|                              |  |       |      |   |    | 
|                              |  |       | 56   |   |    |  | 79   |  
|                              |  |       |      |   |    | 







|                   |  |       |      |   |    |  |      |  
|------------------ |  | ----- | ---- | - | -- |  | ---- | -
|                   |  | Stg£m |      |   | m | 
|                   |  |       |      |   |    | 
|Income             |  |       | 2.5  |   |    |  | 3.6  |  
|Operating expenses |  |       | (1.0 | ) |    |  | (1.5 | )
|                   |  |       |      |   |    | 
|Operating profit   |  |       | 1.5  |   |    |  | 2.1  |  
|                   |  |       |      |   |    | 



|    |        
|--- | -------
|(b) | Iridian










F-21



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


4   OTHER INTEREST RECEIVABLE AND SIMILAR
INCOME


|                                |  |                      |       |  |      |  |       |      |  |  |       | 
|------------------------------- |  | -------------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                |  | Year ended March 31, |      
|                                |  |                      |      
|                                |  | 2005                 |       |  | 2004 |  |       | 2003 | 
|                                |  |                      |       |  |      |  |       |      | 
|                                |  | (in  millions)      |      
|Loans and advances to banks     |  |                      | 204   |  |      |  | 227   |      |  |  | 208   | 
|Loans and advances to customers |  |                      | 3,305 |  |      |  | 2,858 |      |  |  | 2,922 | 
|Finance leasing                 |  |                      | 129   |  |      |  | 119   |      |  |  | 129   | 
|Instalment credit               |  |                      | 123   |  |      |  | 96    |      |  |  | 88    | 
|                                |  |                      |       |  |      |  |       |      | 
|                                |  |                      | 3,761 |  |      |  | 3,300 |      |  |  | 3,347 | 
|                                |  |                      |       |  |      |  |       |      | 

5   INTEREST PAYABLE


|                                     |  |                      |       |  |      |  |       |      |  |  |       | 
|------------------------------------ |  | -------------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                     |  | Year ended March 31, |      
|                                     |  |                      |      
|                                     |  | 2005                 |       |  | 2004 |  |       | 2003 | 
|                                     |  |                      |       |  |      |  |       |      | 
|                                     |  | (in  millions)      |      
|Interest on subordinated liabilities |  |                      | 225   |  |      |  | 177   |      |  |  | 156   | 
|Other interest payable               |  |                      | 2,056 |  |      |  | 1,710 |      |  |  | 1,806 | 
|                                     |  |                      |       |  |      |  |       |      | 
|                                     |  |                      | 2,281 |  |      |  | 1,887 |      |  |  | 1,962 | 
|                                     |  |                      |       |  |      |  |       |      | 

6   OTHER OPERATING INCOME


|                                                    |  |      |    |                      |      |  |    |      |  |  |      |   |  |  |     | 
|--------------------------------------------------- |  | ---- | -- | -------------------- | ---- |  | -- | ---- |  |  | ---- | - |  |  | --- | 
|                                                    |  |      |    | Year ended March 31, |     
|                                                    |  |      |    |                      |     
|                                                    |  | Note |    |                      | 2005 |  |    | 2004 |  |  | 2003 |  
|                                                    |  |      |    |                      |      |  |    |      |  |  |      |  
|                                                    |  |      |    | (in  millions)      |     
|Profit/ (loss) on disposal of investment securities |  |      |    |                      |      |  | 2  |      |  |  | (2   | ) |  |  | 5   | 
|Profit on disposal of tangible fixed assets         |  |      |    |                      |      |  | 8  |      |  |  | 20   |   |  |  | 37  | 
|Profit on disposal of leases                        |  |      |    |                      |      |  |   |      |  |  |     |   |  |  | 21  | 
|Securitisation servicing fees                       |  |      | 15 |                      |      |  | 4  |      |  |  | 6    |   |  |  | 9   | 
|Other income                                        |  |      |    |                      |      |  | 33 |      |  |  | 26   |   |  |  | 44  | 
|                                                    |  |      |    |                      |      |  |    |      |  |  |      |  
|                                                    |  |      |    |                      |      |  | 47 |      |  |  | 50   |   |  |  | 116 | 
|                                                    |  |      |    |                      |      |  |    |      |  |  |      |  

F-22



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


7   OPERATING EXPENSES


|                                      |  |      |        |                      |      |  |       |      |  |  |       |  |  |  |       | 
|------------------------------------- |  | ---- | ------ | -------------------- | ---- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                                      |  |      |        | Year ended March 31, |     
|                                      |  |      |        |                      |     
|                                      |  | Note |        |                      | 2005 |  |       | 2004 |  |  | 2003  | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|                                      |  |      |        | (in  millions)      |     
|Staff Costs:                          |  |      |        |                      |      |  |       |      |  |  |       |  |  |  |       | 
| wages and salaries                  |  |      |        |                      |      |  | 850   |      |  |  | 817   |  |  |  | 821   | 
| social security costs               |  |      |        |                      |      |  | 76    |      |  |  | 72    |  |  |  | 67    | 
| pension costs                       |  |      |        |                      |      |  | 67    |      |  |  | 60    |  |  |  | 57    | 
| staff stock issue                   |  |      |        |                      |      |  | 23    |      |  |  | 13    |  |  |  | 9     | 
| severance packages                  |  |      |        |                      |      |  |      |      |  |  | 3     |  |  |  | 1     | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|                                      |  |      |        |                      |      |  | 1,016 |      |  |  | 965   |  |  |  | 955   | 
|Operating lease rentals:              |  |      |        |                      |      |  |       |      |  |  |       |  |  |  |       | 
| property                            |  |      |        |                      |      |  | 53    |      |  |  | 46    |  |  |  | 34    | 
| equipment                           |  |      |        |                      |      |  | 1     |      |  |  | 2     |  |  |  | 1     | 
|Other administrative expenses         |  |      |        |                      |      |  | 551   |      |  |  | 458   |  |  |  | 490   | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|Total administrative expenses         |  |      |        |                      |      |  | 1,621 |      |  |  | 1,471 |  |  |  | 1,480 | 
|Strategic Transformation Programme(1) |  |      |        |                      |      |  | 117   |      |  |  |      |  |  |  |      | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|                                      |  |      |        |                      |      |  | 1,738 |      |  |  | 1,471 |  |  |  | 1,480 | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|Depreciation and amortisation:        |  |      |        |                      |      |  |       |      |  |  |       |  |  |  |       | 
| freehold and leasehold property     |  |      | 22     |                      |      |  | 20    |      |  |  | 18    |  |  |  | 18    | 
| computer and other equipment        |  |      | 22     |                      |      |  | 141   |      |  |  | 146   |  |  |  | 141   | 
| amortisation of goodwill            |  |      | 20, 21 |                      |      |  | 25    |      |  |  | 19    |  |  |  | 23    | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|Total depreciation and amortisation   |  |      |        |                      |      |  | 186   |      |  |  | 183   |  |  |  | 182   | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 
|Total operating expenses              |  |      |        |                      |      |  | 1,924 |      |  |  | 1,654 |  |  |  | 1,662 | 
|                                      |  |      |        |                      |      |  |       |      |  |  |       | 



1 2






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The provision of
    117m relating to
    the Groups Strategic Transformation Programme includes
    severance related expenditure together with other implementation
    costs, which has been provided in accordance with Financial
    Reporting Standard 12 Provisions, Contingent
    Liabilities and Assets. Of the provided amount, in excess
    of 80m is
    expected to be incurred in the 2005/06 financial year although
    actual expenditure timing is by necessity uncertain. Further
    expenditure, in addition to the current provision, is expected
    to be incurred in 2005/06 and in future years.

F-23



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




7   OPERATING
EXPENSES     (continued)


Auditors remuneration (excluding VAT)


|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       |  |     |  |  |  |     | 
|-------------------------------------- |  | --------------- |  | ---- | --- |  | ---- | ----------- |  | ---- | ----- |  |  | ----- | --- |  | ----- |  | --- |  |  |  | --- | 
|                                       |  |                 |  | 2005 |     |  | 2004 |             |  | 2005 |      
|                                       |  |                 |  |      |     |  |      |             |  |      |      
|                                       |  | Notes           |  |      | ROI |  |      | Overseas(i) |  |      | Total |  |  | Total |     |  | Total | 
|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       | 
|                                       |  | (in  millions) |  |      |    
|Audit and assurance services           |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       |  |     |  |  |  |     | 
|Statutory audit (including expenses)   |  |                 |  |      |     |  | 2.2  |             |  |      | 0.9   |  |  |       | 3.1 |  |       |  | 2.7 |  |  |  | 2.4 | 
|Other audit and assurance services(ii) |  |                 |  |      |     |  | 0.6  |             |  |      | 0.1   |  |  |       | 0.7 |  |       |  | 1.1 |  |  |  | 1.8 | 
|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       | 
|                                       |  |                 |  |      |     |  | 2.8  |             |  |      | 1.0   |  |  |       | 3.8 |  |       |  | 3.8 |  |  |  | 4.2 | 
|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       | 
|Other services                         |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       |  |     |  |  |  |     | 
|Transaction services(iii)              |  |                 |  |      |     |  | 0.1  |             |  |      | 0.6   |  |  |       | 0.7 |  |       |  |    |  |  |  | 0.8 | 
|Taxation services                      |  |                 |  |      |     |  | 1.4  |             |  |      | 2.5   |  |  |       | 3.9 |  |       |  | 3.2 |  |  |  | 2.4 | 
|Other services                         |  |                 |  |      |     |  | 0.7  |             |  |      |      |  |  |       | 0.7 |  |       |  | 0.7 |  |  |  | 0.4 | 
|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       | 
|                                       |  |                 |  |      |     |  | 2.2  |             |  |      | 3.1   |  |  |       | 5.3 |  |       |  | 3.9 |  |  |  | 3.6 | 
|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       | 
|Total                                  |  |                 |  |      |     |  | 5.0  |             |  |      | 4.1   |  |  |       | 9.1 |  |       |  | 7.7 |  |  |  | 7.8 | 
|                                       |  |                 |  |      |     |  |      |             |  |      |       |  |  |       |     |  |       | 





| |       |                                                                                                                                                            
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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 and
    accountancy advice.
|
| | (iii) | Transaction services costs relate primarily to financial due
    diligence and other assignments.                                                          



8   EMPLOYEE INFORMATION




|                             |  |      |        |  |      |  |        |      |  |  |        | 
|---------------------------- |  | ---- | ------ |  | ---- |  | ------ | ---- |  |  | ------ | 
|                             |  | 2005 |        |  | 2004 |  |        | 2003 | 
|                             |  |      |        |  |      |  |        |      | 
|Retail Republic of Ireland   |  |      | 7,761  |  |      |  | 7,813  |      |  |  | 7,806  | 
|BOI Life                     |  |      | 1,051  |  |      |  | 1,066  |      |  |  | 1,111  | 
|Wholesale Financial Services |  |      | 1,429  |  |      |  | 1,305  |      |  |  | 1,234  | 
|UK Financial Services        |  |      | 4,820  |  |      |  | 5,298  |      |  |  | 5,633  | 
|Asset Management Services    |  |      | 634    |  |      |  | 652    |      |  |  | 673    | 
|UK Post Office Joint Venture |  |      | 143    |  |      |  | 10     |      |  |  |       | 
|Group and Central            |  |      | 1,122  |  |      |  | 1,396  |      |  |  | 1,757  | 
|                             |  |      |        |  |      |  |        |      | 
|                             |  |      | 16,960 |  |      |  | 17,540 |      |  |  | 18,214 | 
|                             |  |      |        |  |      |  |        |      | 



F-24



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


9   EXCEPTIONAL ITEMS






| |   |                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Profit of 31m on
    the sale of the Banks 50% shareholding in EuroConex
    Technologies Limited to Nova EuroConex Holdings BV, a subsidiary
    of US Bancorp, on June 29, 2004.
|
| |  | Implementation costs of
    10m associated
    with the UKFS Business Improvement Programme.                                                                                       
|
| |  | Restructuring of the UK IFA Businesses                                                                                                                                              



| |   |                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On March 18, 2005, the Group completed the sale of Chase
    de Vere Financial Solutions plc and Moneyextra Mortgages
    Limited to AWD plc, part of AWD Holdings AG. The sale proceeds
    were 28.4m
    (£19.4m), which after charging for certain costs and
    provisions associated with the disposal, has resulted in a net
    loss on disposal of
    20.0m
    (£13.7m).
|
| |  | Provisions released following the exit from
    leases 8m.                                                                                                                                                                                                                                                                                                                          



| |   |                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------
| |  | The write off of goodwill associated with Venson for the
    impairment of certain assets amounted
    to 4m.





| |   |                                                                                                                                                                                                                       
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the net proceeds of
    36 million
    on the sale of our share in the alliance between Bank of Ireland
    Securities Services and State Street Bank,                                                               
|
| |  | the write-off of the remainder of the goodwill associated with
    Chase de Vere of
    93 million
    together with some provisions of
    22 million
    for the impairment of certain assets in the IFA business.
|
| |  | additional costs of
    4 million
    incurred in relation to restructuring undertaken in previous
    years.                                                                                                        
|
| |  | implementation costs of
    14 million
    associated with the UKFS Business Improvement Programme.                                                                                                                  

10  TAXATION


|                                                    |                                                               |                 |     |     |      |  |     |      |   |  |     |     |  
|--------------------------------------------------- | ------------------------------------------------------------- | --------------- | --- | --- | ---- |  | --- | ---- | - |  | --- | --- | -
|                                                    |                                                               | 2005            |     |     | 2004 |  |     | 2003 |  
|                                                    |                                                               |                 |     |     |      |  |     |      |  
|                                                    |                                                               | (in  millions) |    
|Current Tax                                         |                                                               |                 |     |     |      |  |     |      |   |  |     |    
|Irish Corporation tax                               |                                                               |                 |     |     |      |  |     |      |   |  |     |    
|                                                    | Current year                                                  |                 |     | 138 |      |  |     | 141  |   |  |     | 108 |  
|                                                    | Prior years                                                   |                 |     | 2   |      |  |     | 8    |   |  |     | 17  |  
|Double taxation relief                              |                                                               |                 | (19 | )   |      |  | (19 | )    |   |  | (16 | )  
|Foreign tax                                         |                                                               |                 |     |     |      |  |     |      |   |  |     |    
|                                                    | Current year                                                  |                 |     | 75  |      |  |     | 70   |   |  |     | 69  |  
|                                                    | Prior years                                                   |                 |     | 3   |      |  |     | (14  | ) |  |     | (13 | )
|                                                    |                                                               |                 |     |     |      |  |     |      |  
|                                                    |                                                               |                 | 199 |     |      |  | 186 |      |   |  | 165 |    
|Deferred taxation                                   |                                                               |                 |     |     |      |  |     |      |   |  |     |    
|                                                    | Origination and reversal of timing
    differences  Domestic |                 |     | (1  | )    |  |     | 6    |   |  |     | (5  | )
|                                                    |  Foreign                                                     |                 |     | 27  |      |  |     | 7    |   |  |     | (6  | )
|                                                    |                                                               |                 |     |     |      |  |     |      |  
|                                                    |                                                               |                 | 26  |     |      |  | 13  |      |   |  | (11 | )  
|Share of associated undertakings and joint ventures |                                                               |                 | 16  |     |      |  | 9   |      |   |  | 9   |    
|                                                    |                                                               |                 |     |     |      |  |     |      |  
|                                                    |                                                               |                 | 241 |     |      |  | 208 |      |   |  | 163 |    
|                                                    |                                                               |                 |     |     |      |  |     |      |  

F-25



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




10  TAXATION     (continued)




|                                                    |  |                 |    |   |      |  |    |      |  |  |     |  
|--------------------------------------------------- |  | --------------- | -- | - | ---- |  | -- | ---- |  |  | --- | -
|                                                    |  | 2005            |    |   | 2004 |  |    | 2003 | 
|                                                    |  |                 |    |   |      |  |    |      | 
|                                                    |  | (in  millions) |   
|The deferred taxation (credit)/ charge arises from: |  |                 |    |   |      |  |    |      |  |  |     |  
|Leased assets                                       |  |                 | (4 | ) |      |  | (2 | )    |  |  | 9   |  
|Own assets                                          |  |                 | 2  |   |      |  | 7  |      |  |  | (2  | )
|Short term timing differences                       |  |                 | 28 |   |      |  | 8  |      |  |  | (18 | )
|                                                    |  |                 |    |   |      |  |    |      | 
|                                                    |  |                 | 26 |   |      |  | 13 |      |  |  | (11 | )
|                                                    |  |                 |    |   |      |  |    |      | 



|                                                                                                                                                            |  |                 |     |   |      |  |     |      |  |  |     |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------- | --- | - | ---- |  | --- | ---- |  |  | --- | -
|                                                                                                                                                            |  | 2005            |     |   | 2004 |  |     | 2003 | 
|                                                                                                                                                            |  |                 |     |   |      |  |     |      | 
|                                                                                                                                                            |  | (in  millions) |    
|Profit on ordinary activities before tax multiplied by the
    weighted standard rate of Corporate tax in Ireland of 12.5%
    (2004: 12.5%, 2003: 15.125%) |  |                 | 165 |   |      |  | 146 |      |  |  | 153 |  
|Effects of:                                                                                                                                                 |  |                 |     |   |      |  |     |      |  |  |     |  
|Levy on certain financial institutions                                                                                                                      |  |                 | 26  |   |      |  | 26  |      |  |  | 7   |  
|Foreign earnings subject to different rates of tax                                                                                                          |  |                 | 50  |   |      |  | 34  |      |  |  | 11  |  
|Non-deductible goodwill                                                                                                                                     |  |                 | 3   |   |      |  | 30  |      |  |  | 33  |  
|Tax exempted income and income at a reduced Irish tax rate                                                                                                  |  |                 | (23 | ) |      |  | (44 | )    |  |  | (63 | )
|Capital allowances less than/ (in excess of) depreciation                                                                                                   |  |                 | 2   |   |      |  | (5  | )    |  |  | (7  | )
|Other deferred tax timing differences                                                                                                                       |  |                 | (28 | ) |      |  | (8  | )    |  |  | 18  |  
|Prior year adjustments                                                                                                                                      |  |                 | 5   |   |      |  | (6  | )    |  |  | 4   |  
|Share of associated undertakings and joint ventures                                                                                                         |  |                 | (6  | ) |      |  | (4  | )    |  |  | (5  | )
|Other adjustments for current tax purposes                                                                                                                  |  |                 | 5   |   |      |  | 17  |      |  |  | 14  |  
|                                                                                                                                                            |  |                 |     |   |      |  |     |      | 
|Current tax charge                                                                                                                                          |  |                 | 199 |   |      |  | 186 |      |  |  | 165 |  
|                                                                                                                                                            |  |                 |     |   |      |  |     |      | 

F-26



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


11  DIVIDENDS


|                                              |  |                      |     |  |      |  |     |      |  |  |     | 
|--------------------------------------------- |  | -------------------- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                                              |  | Year ended March, 31 |    
|                                              |  |                      |    
|                                              |  | 2005                 |     |  | 2004 |  |     | 2003 | 
|                                              |  |                      |     |  |      |  |     |      | 
|                                              |  | (in  millions)      |    
|Equity Stock:                                 |  |                      |     |  |      |  |     |      |  |  |     | 
|2005                                          |  |                      |     |  |      |  |     |      |  |  |     | 
|On units of 0.64
    Ordinary Stock in issue |  |                      |     |  |      |  |     |      |  |  |     | 
|Interim dividend 16.6c                        |  |                      | 160 |  |      |  |     |      |  |  |     | 
|Proposed final dividend 29.0c                 |  |                      | 282 |  |      |  |     |      |  |  |     | 
|2004                                          |  |                      |     |  |      |  |     |      |  |  |     | 
|On units of 0.64
    Ordinary Stock in issue |  |                      |     |  |      |  |     |      |  |  |     | 
|Interim dividend 14.8c                        |  |                      |     |  |      |  | 143 |      |  |  |     | 
|Proposed final dividend 26.6c                 |  |                      |     |  |      |  | 257 |      |  |  |     | 
|2003                                          |  |                      |     |  |      |  |     |      |  |  |     | 
|On units of 0.64
    Ordinary Stock in issue |  |                      |     |  |      |  |     |      |  |  |     | 
|Interim dividend 13.2c                        |  |                      |     |  |      |  |     |      |  |  | 133 | 
|Proposed final dividend 23.8c                 |  |                      |     |  |      |  |     |      |  |  | 238 | 
|                                              |  |                      |     |  |      |  |     |      | 
|                                              |  |                      | 442 |  |      |  | 400 |      |  |  | 371 | 
|                                              |  |                      |     |  |      |  |     |      | 





|                                                                               |  |                      |   |  |      |  |   |      |  |  |   | 
|------------------------------------------------------------------------------ |  | -------------------- | - |  | ---- |  | - | ---- |  |  | - | 
|                                                                               |  | Year ended March 31, |  
|                                                                               |  |                      |  
|                                                                               |  | 2005                 |   |  | 2004 |  |   | 2003 | 
|                                                                               |  |                      |   |  |      |  |   |      | 
|                                                                               |  | (in  millions)      |  
|Non Equity Stock:                                                              |  |                      |   |  |      |  |   |      |  |  |   | 
|2005                                                                           |  |                      |   |  |      |  |   |      |  |  |   | 
|On units of 1.27
    of Non-Cumulative Preference Stock, Dividend
    1.5237 |  |                      | 5 |  |      |  |   |      |  |  |   | 
|On units of Stg£1 of Non-Cumulative Preference Stock,
    Dividend Stg£1.2625  |  |                      | 3 |  |      |  |   |      |  |  |   | 
|2004                                                                           |  |                      |   |  |      |  |   |      |  |  |   | 
|On units of 1.27
    of Non-Cumulative Preference Stock, Dividend
    1.5237 |  |                      |   |  |      |  | 5 |      |  |  |   | 
|On units of Stg£1 of Non-Cumulative Preference Stock,
    Dividend Stg£1.2625  |  |                      |   |  |      |  | 3 |      |  |  |   | 
|2003                                                                           |  |                      |   |  |      |  |   |      |  |  |   | 
|On units of 1.27
    of Non-Cumulative Preference Stock, Dividend
    1.5237 |  |                      |   |  |      |  |   |      |  |  | 5 | 
|On units of Stg£1 of Non-Cumulative Preference Stock,
    Dividend Stg£1.2625  |  |                      |   |  |      |  |   |      |  |  | 4 | 
|                                                                               |  |                      |   |  |      |  |   |      | 
|                                                                               |  |                      | 8 |  |      |  | 8 |      |  |  | 9 | 
|                                                                               |  |                      |   |  |      |  |   |      | 



F-27



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                  
|-- | -------------------------------------------------
|12 | EARNINGS PER UNIT OF
    0.64 ORDINARY
    STOCK



|   |      
|-- | -----
|a) | Basic




|                                             |  |      |         |  |      |  |       |      |  |  |       | 
|-------------------------------------------- |  | ---- | ------- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                             |  | 2005 |         |  | 2004 |  |       | 2003 | 
|                                             |  |      |         |  |      |  |       |      | 
|Profit attributable to Ordinary Stockholders |  |      | 1,073m |  |      |  | 935m |      |  |  | 826m | 
|Weighted average number of shares in issue   |  |      | 942m    |  |      |  | 961m  |      |  |  | 991m  | 
|Basic earnings per share                     |  |      | 113.9c  |  |      |  | 97.2c |      |  |  | 83.4c | 



|   |        
|-- | -------
|b) | Diluted




|                                                |  |      |         |  |      |  |       |      |  |  |        | 
|----------------------------------------------- |  | ---- | ------- |  | ---- |  | ----- | ---- |  |  | ------ | 
|                                                |  | 2005 |         |  | 2004 |  |       | 2003 | 
|                                                |  |      |         |  |      |  |       |      | 
|Profit attributable to Ordinary Stockholders    |  |      | 1,073m |  |      |  | 935m |      |  |  | 826m  | 
|Average number of shares in issue               |  |      | 942m    |  |      |  | 961m  |      |  |  | 991m   | 
|Effect of all dilutive potential Ordinary Stock |  |      | 8m      |  |      |  | 7m    |      |  |  | 10m    | 
|                                                |  |      |         |  |      |  |       |      | 
|                                                |  |      | 950m    |  |      |  | 968m  |      |  |  | 1,001m | 
|                                                |  |      |         |  |      |  |       |      | 
|Diluted earnings per share                      |  |      | 112.9c  |  |      |  | 96.6c |      |  |  | 82.6c  | 



|   |                                            
|-- | -------------------------------------------
|13 | CENTRAL GOVERNMENT AND OTHER ELIGIBLE BILLS

|                                          |  |                 |    |  |      |  |     | 
|----------------------------------------- |  | --------------- | -- |  | ---- |  | --- | 
|                                          |  | At March 31,    |   
|                                          |  |                 |   
|                                          |  | 2005            |    |  | 2004 | 
|                                          |  |                 |    |  |      | 
|                                          |  | (in  millions) |   
|Investment securities                     |  |                 |    |  |      |  |     | 
| government bills and similar securities |  |                 | 7  |  |      |  | 7   | 
|Other securities                          |  |                 |    |  |      |  |     | 
| government bills and similar securities |  |                 | 85 |  |      |  | 204 | 
|                                          |  |                 |    |  |      | 
|                                          |  |                 | 92 |  |      |  | 211 | 
|                                          |  |                 |    |  |      | 

F-28



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                            
|-- | ---------------------------
|14 | LOANS AND ADVANCES TO BANKS

|                                                        |  |                 |       |  |      |  |       | 
|------------------------------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | 
|                                                        |  | At March 31,    |      
|                                                        |  |                 |      
|                                                        |  | 2005            |       |  | 2004 | 
|                                                        |  |                 |       |  |      | 
|                                                        |  | (in  millions) |      
|Funds placed with Central Bank of Ireland               |  |                 | 117   |  |      |  | 114   | 
|Funds placed with other central banks                   |  |                 | 54    |  |      |  | 47    | 
|Funds placed with other banks                           |  |                 | 7,612 |  |      |  | 7,592 | 
|                                                        |  |                 |       |  |      | 
|                                                        |  |                 | 7,783 |  |      |  | 7,753 | 
|                                                        |  |                 |       |  |      | 
|Repayable on demand                                     |  |                 | 1,382 |  |      |  | 482   | 
|Other loans and advances to banks by remaining maturity |  |                 |       |  |      |  |       | 
| 3 months or less                                      |  |                 | 3,662 |  |      |  | 3,627 | 
| 1 year or less but over 3 months                      |  |                 | 2,682 |  |      |  | 2,826 | 
| 5 years or less but over 1 year                       |  |                 | 23    |  |      |  | 787   | 
| over 5 years                                          |  |                 | 34    |  |      |  | 31    | 
|                                                        |  |                 |       |  |      | 
|                                                        |  |                 | 7,783 |  |      |  | 7,753 | 
|                                                        |  |                 |       |  |      | 





|   |                                
|-- | -------------------------------
|15 | LOANS AND ADVANCES TO CUSTOMERS



|    |                                
|--- | -------------------------------
|(a) | Loans and advances to customers

|                                                            |  |                 |        |   |      |  |        |  
|----------------------------------------------------------- |  | --------------- | ------ | - | ---- |  | ------ | -
|                                                            |  | At March 31,    |       
|                                                            |  |                 |       
|                                                            |  | 2005            |        |   | 2004 | 
|                                                            |  |                 |        |   |      | 
|                                                            |  | (in  millions) |       
|Loans and advances to customers                             |  |                 | 76,360 |   |      |  | 63,876 |  
|Loans and advances to customers  finance leases            |  |                 | 2,025  |   |      |  | 2,593  |  
|Hire purchase receivables                                   |  |                 | 1,851  |   |      |  | 1,543  |  
|                                                            |  |                 |        |   |      | 
|                                                            |  |                 | 80,236 |   |      |  | 68,012 |  
|Provision for bad and doubtful debts (see Note 16)          |  |                 | (319   | ) |      |  | (472   | )
|                                                            |  |                 |        |   |      | 
|                                                            |  |                 | 79,917 |   |      |  | 67,540 |  
|                                                            |  |                 |        |   |      | 
|Repayable on demand                                         |  |                 | 2,990  |   |      |  | 2,413  |  
|Other loans and advances to customers by remaining maturity |  |                 |        |   |      |  |        |  
| 3 months or less                                          |  |                 | 3,670  |   |      |  | 2,142  |  
| 1 year or less but over 3 months                          |  |                 | 6,152  |   |      |  | 5,425  |  
| 5 years or less but over 1 year                           |  |                 | 18,156 |   |      |  | 16,295 |  
| over 5 years                                              |  |                 | 49,268 |   |      |  | 41,737 |  
|                                                            |  |                 |        |   |      | 
|                                                            |  |                 | 80,236 |   |      |  | 68,012 |  
|                                                            |  |                 |        |   |      | 

   


F-29



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|15 | LOANS AND ADVANCES TO CUSTOMERS  (continued)



|    |                                  
|--- | ---------------------------------
|(b) | Securitisation and loan transfers



|     |  |                                                  |  |       |          |  |           |                 |             |          |  |  |        |  |  |  |     | 
|---- |  | ------------------------------------------------ |  | ----- | -------- |  | --------- | --------------- | ----------- | -------- |  |  | ------ |  |  |  | --- | 
|     |  |                                                  |  |       |          |  |           | Presentation in |             |          | 
|Year |  | Securitisations                                  |  | Notes |          |  | Mortgages |                 |             | accounts |  |  | Value  | 
|     |  |                                                  |  |       |          |  |           |                 |             |          |  |  |        | 
|     |  |                                                  |  |       |          |  |           |                 |             | m       | 
|1994 |  | Residential Property Securities No. 4 plc (RPS4) |  |       | (i),(ii) |  |           |                 | Residential |          |  |  | Linked |  |  |  | 726 | 
|1997 |  | Residential Property Securities No. 5 plc (RPS5) |  |       | (i),(ii) |  |           |                 | Residential |          |  |  | Linked |  |  |  | 436 | 
|2000 |  | Liberator Securities No. 1 plc                   |  |       | (iii)    |  |           |                 | Residential |          |  |  | Linked |  |  |  | 500 | 
|2000 |  | Shipshape Residential Mortgages No. 1 plc (SS1)  |  |       | (iv)     |  |           |                 | Residential |          |  |  | Linked |  |  |  | 436 | 







|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|----- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(i)   | These companies issued Mortgage Backed Floating Rate Notes
    (Notes) to finance the purchase of the mortgage
    pools. Loan facilities have been made available by the Group to
    finance certain issue-related expenses and loan losses arising
    on the pools of mortgages sold. The loans are repayable when all
    Notes have been redeemed subject to the issuer having sufficient
    funds available.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     
|(ii)  | On October 29, 2004 the Group exercised its option to
    repurchase the remaining mortgages outstanding on Residential
    Property Securities No. 4 plc. The balances on these
    mortgages had reduced to £48m at the time of repurchase. On
    November 24, 2004 the Group exercised its option to
    repurchase the remaining mortgages outstanding on Residential
    Property Securities No. 5 plc. The balances on these
    mortgages had reduced to £38m at the time of repurchase.                                                                                                                                                                                                                                                                                                                                                                                                                              
|     
|(iii) | The company is incorporated under the Irish Companies Acts, 1963
    to 2003 and is registered and operates in the Republic of
    Ireland.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     
|(iv)  | Under the terms of this issue, the Group is not obliged to
    repurchase any of the assets or to transfer in any additional
    assets, except in respect of individual mortgages in breach of
    warranty. SS1 funded the purchase of mortgage assets by the
    issue of mortgage backed floating rate notes (notes)
    the lowest ranking (the C notes) of which have
    been purchased by the Group. Under the terms of this issue, the
    Group is not obliged to repurchase any of the assets, or to
    transfer in any additional assets, except in respect of
    individual mortgages in breach of warranty. SS1 has entered into
    an interest rate swap agreement with Bristol & West plc to
    hedge its exposure in respect of the interest payments
    receivable under the mortgage loans and its payment obligations
    to the notes. The terms of this agreement are tied to market
    rates.

F-30



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|15 | LOANS AND ADVANCES TO CUSTOMERS  (continued)



|                                |  |                 |     |   |      |  |     |      |  |  |     |  
|------------------------------- |  | --------------- | --- | - | ---- |  | --- | ---- |  |  | --- | -
|                                |  | At March 31,    |    
|                                |  |                 |    
|                                |  | 2005            |     |   | 2004 |  |     | 2003 | 
|                                |  |                 |     |   |      |  |     |      | 
|                                |  | (in  millions) |    
|Interest receivable             |  |                 | 23  |   |      |  | 32  |      |  |  | 51  |  
|Interest payable                |  |                 | (17 | ) |      |  | (25 | )    |  |  | (41 | )
|Fee income                      |  |                 |    |   |      |  | 1   |      |  |  | 1   |  
|Deposit income                  |  |                 |     |   |      |  |    |      |  |  | 1   |  
|Operating expenses              |  |                 | (2  | ) |      |  | (2  | )    |  |  | (3  | )
|                                |  |                 |     |   |      |  |     |      | 
|Profit for the financial period |  |                 | 4   |   |      |  | 6   |      |  |  | 9   |  
|                                |  |                 |     |   |      |  |     |      | 



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









|    |                          
|--- | -------------------------
|(d) | Leasing and hire purchase

|                                        |                                   |                 |       |       |      |  |       |       | 
|--------------------------------------- | --------------------------------- | --------------- | ----- | ----- | ---- |  | ----- | ----- | 
|                                        |                                   | At March 31,    |      
|                                        |                                   |                 |      
|                                        |                                   | 2005            |       |       | 2004 | 
|                                        |                                   |                 |       |       |      | 
|                                        |                                   | (in  millions) |      
|Amount receivable by remaining maturity |                                   |                 |       |       |      |  |       |      
|                                        |  within 1 year                   |                 |       | 1,325 |      |  |       | 1,331 | 
|                                        |  5 years or less but over 1 year |                 |       | 1,768 |      |  |       | 1,885 | 
|                                        |  over 5 years                    |                 |       | 783   |      |  |       | 920   | 
|                                        |                                   |                 |       |       |      | 
|                                        |                                   |                 | 3,876 |       |      |  | 4,136 |      
|                                        |                                   |                 |       |       |      | 

 


 


F-31



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|16 | PROVISION FOR BAD AND DOUBTFUL DEBTS

|                                                  |  |                      |      |   |      |  |      |      |  |  |     |  
|------------------------------------------------- |  | -------------------- | ---- | - | ---- |  | ---- | ---- |  |  | --- | -
|                                                  |  | Year ended March 31, |     
|                                                  |  |                      |     
|                                                  |  | 2005                 |      |   | 2004 |  |      | 2003 | 
|                                                  |  |                      |      |   |      |  |      |      | 
|                                                  |  | (in  millions)      |     
|At April 1,                                       |  |                      | 472  |   |      |  | 480  |      |  |  | 500 |  
|Exchange adjustments                              |  |                      | (9   | ) |      |  | 7    |      |  |  | (30 | )
|Charge against profits                            |  |                      | 79   |   |      |  | 86   |      |  |  | 100 |  
|Amounts written off                               |  |                      | (144 | ) |      |  | (114 | )    |  |  | (96 | )
|Recoveries                                        |  |                      | 21   |   |      |  | 13   |      |  |  | 6   |  
|Special release                                   |  |                      | (100 | ) |      |  |     |      |  |  |    |  
|Transfer of provisions to subsidiary undertakings |  |                      |     |   |      |  |     |      |  |  |    |  
|                                                  |  |                      |      |   |      |  |      |      | 
|At March 31,                                      |  |                      | 319  |   |      |  | 472  |      |  |  | 480 |  
|                                                  |  |                      |      |   |      |  |      |      | 
|Provisions at March 31,                           |  |                      |      |   |      |  |      |      |  |  |     |  
| specific                                        |  |                      | 181  |   |      |  | 191  |      |  |  | 170 |  
| general                                         |  |                      | 138  |   |      |  | 281  |      |  |  | 310 |  
|                                                  |  |                      |      |   |      |  |      |      | 
|                                                  |  |                      | 319  |   |      |  | 472  |      |  |  | 480 |  
|                                                  |  |                      |      |   |      |  |      |      | 






|   |                
|-- | ---------------
|17 | DEBT SECURITIES

|                                                    |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|--------------------------------------------------- |  | ----------------- | ------ | ----- | ---------- |  | ----- | ---------- |  |  | ----- | - |  |  | ------ | 
|                                                    |  | At March 31, 2005 |       
|                                                    |  |                   |       
|                                                    |  |                   |        | Gross |            |  | Gross |            |  | 
|                                                    |  | Book              |        |       | Unrealised |  |       | Unrealised |  |  | Fair  |  
|                                                    |  | Value             |        |       | Gains      |  |       | Losses     |  |  | Value |  
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  | m                |        |       | m         |  |       | m         |  |  | m    |  
|The Group                                           |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|Issued by public bodies                             |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|Investment securities                               |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| government securities                             |  |                   | 394    |       |            |  | 17    |            |  |  | (4    | ) |  |  | 407    | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|Other securities                                    |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| government securities                             |  |                   | 5,774  |       |            |  |       |            |  |  |       |   |  |  | 5,774  | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 5,774  |       |            |  |       |            |  |  |       |   |  |  | 5,774  | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|Issued by other issuers                             |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|Investment securities                               |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| bank and building society certificates of deposit |  |                   | 1,126  |       |            |  | 12    |            |  |  |      |   |  |  | 1,138  | 
| other debt securities                             |  |                   | 13,556 |       |            |  | 100   |            |  |  | (43   | ) |  |  | 13,613 | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 14,682 |       |            |  | 112   |            |  |  | (43   | ) |  |  | 14,751 | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|Other securities                                    |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| bank and building society certificates of deposit |  |                   |       |       |            |  |       |            |  |  |       |   |  |  |       | 
| other debt securities                             |  |                   | 471    |       |            |  |       |            |  |  |       |   |  |  | 471    | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 471    |       |            |  |       |            |  |  |       |   |  |  | 471    | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 21,321 |       |            |  | 129   |            |  |  | (47   | ) |  |  | 21,403 | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  

F-32



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                             
|-- | ----------------------------
|17 | DEBT SECURITIES  (continued)

|                                                    |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|--------------------------------------------------- |  | ----------------- | ------ | ----- | ---------- |  | ----- | ---------- |  |  | ----- | - |  |  | ------ | 
|                                                    |  | At March 31, 2004 |       
|                                                    |  |                   |       
|                                                    |  |                   |        | Gross |            |  | Gross |            |  | 
|                                                    |  | Book              |        |       | Unrealised |  |       | Unrealised |  |  | Fair  |  
|                                                    |  | Value             |        |       | Gains      |  |       | Losses     |  |  | Value |  
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  | m                |        |       | m         |  |       | m         |  |  | m    |  
|The Group                                           |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|Issued by public bodies                             |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|Investment securities                               |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| government securities                             |  |                   | 881    |       |            |  | 34    |            |  |  |      |   |  |  | 915    | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|Other securities                                    |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| government securities                             |  |                   | 4,174  |       |            |  |       |            |  |  |       |   |  |  | 4,174  | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 4,174  |       |            |  |       |            |  |  |       |   |  |  | 4,174  | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|Issued by other issuers                             |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
|Investment securities                               |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| bank and building society certificates of deposit |  |                   | 811    |       |            |  |      |            |  |  |      |   |  |  | 811    | 
| other debt securities                             |  |                   | 9,461  |       |            |  | 92    |            |  |  | (46   | ) |  |  | 9,507  | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 10,272 |       |            |  | 92    |            |  |  | (46   | ) |  |  | 10,318 | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|Other securities                                    |  |                   |        |       |            |  |       |            |  |  |       |   |  |  |        | 
| bank and building society certificates of deposit |  |                   |       |       |            |  |       |            |  |  |       |   |  |  |       | 
| other debt securities                             |  |                   | 349    |       |            |  |       |            |  |  |       |   |  |  | 349    | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 349    |       |            |  |       |            |  |  |       |   |  |  | 349    | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  
|                                                    |  |                   | 15,676 |       |            |  | 126   |            |  |  | (46   | ) |  |  | 15,756 | 
|                                                    |  |                   |        |       |            |  |       |            |  |  |       |  

|                                                            |  |                 |        |  |      |  |        | 
|----------------------------------------------------------- |  | --------------- | ------ |  | ---- |  | ------ | 
|                                                            |  | Year ended      |       
|                                                            |  | March 31,       |       
|                                                            |  |                 |       
|                                                            |  | 2005            |        |  | 2004 | 
|                                                            |  |                 |        |  |      | 
|                                                            |  | (in  millions) |       
|Investment securities                                       |  |                 |        |  |      |  |        | 
| listed                                                    |  |                 | 9,541  |  |      |  | 7,703  | 
| unlisted                                                  |  |                 | 5,535  |  |      |  | 3,450  | 
|                                                            |  |                 |        |  |      | 
|                                                            |  |                 | 15,076 |  |      |  | 11,153 | 
|                                                            |  |                 |        |  |      | 
|Other securities                                            |  |                 |        |  |      |  |        | 
| listed                                                    |  |                 | 5,795  |  |      |  | 4,349  | 
| unlisted                                                  |  |                 | 450    |  |      |  | 174    | 
|                                                            |  |                 |        |  |      | 
|                                                            |  |                 | 6,245  |  |      |  | 4,523  | 
|                                                            |  |                 |        |  |      | 
|Unamortised premiums and discounts on investment securities |  |                 | 9      |  |      |  | 13     | 
|                                                            |  |                 |        |  |      | 

 


F-33



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                             
|-- | ----------------------------
|17 | DEBT SECURITIES  (continued)

|                                 |  |      |        |           |           |  |          |       |  |  |        |  
|-------------------------------- |  | ---- | ------ | --------- | --------- |  | -------- | ----- |  |  | ------ | -
|                                 |  |      |        | Discount/ |           |  | Carrying |      
|Investment securities movements |  | Cost |        |           | (Premium) |  |          | Value | 
|                                 |  |      |        |           |           |  |          |       | 
|                                 |  | m   |        |           | m        |  |          | m    | 
|At April 1, 2004                 |  |      | 11,212 |           |           |  | (59      | )     |  |  | 11,153 |  
|Exchange adjustments             |  |      | (217   | )         |           |  |         |       |  |  | (217   | )
|Acquisitions                     |  |      | 7,837  |           |           |  |         |       |  |  | 7,837  |  
|Disposals and redemptions        |  |      | (3,682 | )         |           |  |         |       |  |  | (3,682 | )
|Amortisation                     |  |      |       |           |           |  | (15      | )     |  |  | (15    | )
|                                 |  |      |        |           |           |  |          |       | 
|At March 31, 2005                |  |      | 15,150 |           |           |  | (74      | )     |  |  | 15,076 |  
|                                 |  |      |        |           |           |  |          |       | 

|                                |  |                 |        |  |      |  |        | 
|------------------------------- |  | --------------- | ------ |  | ---- |  | ------ | 
|                                |  | Year ended      |       
|                                |  | March 31,       |       
|                                |  |                 |       
|                                |  | 2005            |        |  | 2004 | 
|                                |  |                 |        |  |      | 
|                                |  | (in  millions) |       
|Analysed by remaining maturity: |  |                 |        |  |      |  |        | 
|Due within one year             |  |                 | 5,887  |  |      |  | 4,371  | 
|Due one year and over           |  |                 | 15,434 |  |      |  | 11,305 | 
|                                |  |                 |        |  |      | 
|                                |  |                 | 21,321 |  |      |  | 15,676 | 
|                                |  |                 |        |  |      | 

 


 


Securitisation










F-34



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                             
|-- | ----------------------------
|17 | DEBT SECURITIES  (continued)

|                                  |  |           |     | 
|--------------------------------- |  | --------- | --- | 
|                                  |  | The Group |    
|                                  |  |           |    
|                                  |  | m        |    
|Securitisation and loan transfers |  |           | 207 | 
|Less: non-returnable amounts      |  |           | 188 | 
|                                  |  |           |    
|                                  |  |           | 19  | 
|                                  |  |           |    

18  EQUITY SHARES


|                               |  |                   |    |            |       |  |            |        |  |  |            |  |  |  |    | 
|------------------------------ |  | ----------------- | -- | ---------- | ----- |  | ---------- | ------ |  |  | ---------- |  |  |  | -- | 
|                               |  | At March 31, 2005 |   
|                               |  |                   |   
|                               |  |                   |    | Gross      |       |  | Gross      |        |  | 
|                               |  |                   |    | Unrealised |       |  | Unrealised |        |  | 
|                               |  | Book Value        |    |            | Gains |  |            | Losses |  |  | Fair Value | 
|                               |  |                   |    |            |       |  |            |        |  |  |            | 
|                               |  | (in  millions)   |   
|Held as financial fixed assets |  |                   |    |            |       |  |            |        |  |  |            |  |  |  |    | 
| listed                       |  |                   |   |            |       |  |           |        |  |  |           |  |  |  |   | 
| unlisted                     |  |                   | 29 |            |       |  |           |        |  |  |           |  |  |  | 29 | 
|Held for trading purposes      |  |                   |    |            |       |  |            |        |  |  |            |  |  |  |    | 
| listed                       |  |                   | 23 |            |       |  |           |        |  |  |           |  |  |  | 23 | 
| unlisted                     |  |                   |   |            |       |  |           |        |  |  |           |  |  |  |   | 
|                               |  |                   |    |            |       |  |            |        |  |  |            | 
|                               |  |                   | 52 |            |       |  |           |        |  |  |           |  |  |  | 52 | 
|                               |  |                   |    |            |       |  |            |        |  |  |            | 



|   |                                     
|-- | ------------------------------------
|19 | INTERESTS IN ASSOCIATED UNDERTAKINGS

|                        |  |                |    |   |      |  |    |  
|----------------------- |  | -------------- | -- | - | ---- |  | -- | -
|                        |  | Year ended     |   
|                        |  | March 31,      |   
|                        |  |                |   
|                        |  | 2005           |    |   | 2004 | 
|                        |  |                |    |   |      | 
|                        |  | (in  millions |   
|At April 1              |  |                | 14 |   |      |  | 13 |  
|Increase in investments |  |                | 5  |   |      |  | 4  |  
|Decrease in investments |  |                | (1 | ) |      |  | (1 | )
|Retained profits        |  |                | (1 | ) |      |  | (2 | )
|                        |  |                |    |   |      | 
|At March 31             |  |                | 17 |   |      |  | 14 |  
|                        |  |                |    |   |      | 



F-35



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


20  INTEREST IN JOINT VENTURES


|                               |  |                 |      |   |      |  |     | 
|------------------------------ |  | --------------- | ---- | - | ---- |  | --- | 
|                               |  | Year ended      |     
|                               |  | March 31,       |     
|                               |  |                 |     
|                               |  | 2005            |      |   | 2004 | 
|                               |  |                 |      |   |      | 
|                               |  | (in  millions) |     
|At April 1                     |  |                 | 243  |   |      |  | 25  | 
|Acquisitions                   |  |                 |     |   |      |  | 156 | 
|Payment for Post Office Brand  |  |                 |     |   |      |  | 44  | 
|Dividend received              |  |                 | (14  | ) |      |  |    | 
|Retained profits               |  |                 | 34   |   |      |  | 15  | 
|Amortisation of goodwill       |  |                 | (3   | ) |      |  |    | 
|Disposals                      |  |                 | (4   | ) |      |  |    | 
|Exchange adjustments           |  |                 | (9   | ) |      |  | 3   | 
|Transfer to Group undertakings |  |                 | (186 | ) |      |  |    | 
|                               |  |                 |      |   |      | 
|At March 31                    |  |                 | 61   |   |      |  | 243 | 
|                               |  |                 |      |   |      | 

 





|                             |  |      |     | 
|---------------------------- |  | ---- | --- | 
|Share of net assets acquired |  | 2004 |    
|                             |  |      |    
|                             |  | m   |    
|Cash at bank and in hand     |  |      | 75  | 
|Goodwill                     |  |      | 81  | 
|                             |  |      |    
|                             |  |      | 156 | 
|                             |  |      |    
|Consideration                |  |      | 149 | 
|Costs of Acquisition         |  |      | 7   | 
|                             |  |      |    
|                             |  |      | 156 | 
|                             |  |      |    

F-36



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


21  INTANGIBLE FIXED ASSETS


Goodwill


|                                                 |  |                 |     |   |      |  |     |  
|------------------------------------------------ |  | --------------- | --- | - | ---- |  | --- | -
|                                                 |  | The Group       |    
|                                                 |  |                 |    
|                                                 |  | 2005            |     |   | 2004 | 
|                                                 |  |                 |     |   |      | 
|                                                 |  | (in  millions) |    
|Cost                                             |  |                 |     |   |      |  |     |  
|At April 1                                       |  |                 | 424 |   |      |  | 423 |  
|Goodwill arising on acquisitions during the year |  |                 | 81  |   |      |  | 11  |  
|Transfer from joint ventures                     |  |                 | 119 |   |      |  |    |  
|Exchange adjustments                             |  |                 | (15 | ) |      |  | (10 | )
|                                                 |  |                 |     |   |      | 
|At March 31                                      |  |                 | 609 |   |      |  | 424 |  
|                                                 |  |                 |     |   |      | 
|Amortisation                                     |  |                 |     |   |      |  |     |  
|At April 1                                       |  |                 | 277 |   |      |  | 157 |  
|Charge for year                                  |  |                 | 23  |   |      |  | 19  |  
|Impairment                                       |  |                 | 3   |   |      |  | 93  |  
|Exchange adjustments                             |  |                 | (10 | ) |      |  | 8   |  
|                                                 |  |                 |     |   |      | 
|At March 31                                      |  |                 | 293 |   |      |  | 277 |  
|                                                 |  |                 |     |   |      | 
|Net Book Value                                   |  |                 | 316 |   |      |  | 147 |  
|                                                 |  |                 |     |   |      | 



F-37



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                      
|-- | ---------------------
|22 | TANGIBLE FIXED ASSETS

The Group


|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       |  |  |     |   |  |  |       |  
|----------------------------------------- |  | --------- | --- | --------- | --------- |  | --------- | --------- |  |  | --------- | -------- |  | ---------- | ----- | - | ------------- |  | -- | ----- |  |  | --- | - |  |  | ----- | -
|                                          |  |           |     |           |           |  |           |           |  |  |           | Payments |  |            |      
|                                          |  |           |     | Leases of |           |  | Leases of |           |  |  |           |          |  | on account |       |   |              
|                                          |  | Freehold  |     |           | 50 years  |  |           | less than |  |  | Computer  |          |  | Finance    |       |   | and assets in |  |    |      
|                                          |  | land and  |     |           | or more   |  |           | 50 years  |  |  | and other |          |  | lease      |       |   | the course of |  |    |      
|                                          |  | buildings |     |           | unexpired |  |           | unexpired |  |  | equipment |          |  | assets     |       |   | construction  |  |    | Total | 
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 
|                                          |  | m        |     |           | m        |  |           | m        |  |  | m        |          |  | m         |       |   | m            |  |    | m    | 
|Cost or valuation                         |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       |  |  |     |   |  |  |       |  
|At April 1, 2004                          |  |           | 533 |           |           |  | 19        |           |  |  | 81        |          |  |            | 1,372 |   |               |  | 10 |       |  |  | 96  |   |  |  | 2,111 |  
|Exchange adjustments                      |  |           | (5  | )         |           |  |          |           |  |  | (1        | )        |  |            | (10   | ) |               |  |   |       |  |  | (1  | ) |  |  | (17   | )
|Additions                                 |  |           | 6   |           |           |  |          |           |  |  | 8         |          |  |            | 63    |   |               |  |   |       |  |  | 110 |   |  |  | 187   |  
|Disposals                                 |  |           | (37 | )         |           |  | (1        | )         |  |  | (1        | )        |  |            | (47   | ) |               |  |   |       |  |  |    |   |  |  | (86   | )
|Reclassifications                         |  |           | 10  |           |           |  | (2        | )         |  |  | (2        | )        |  |            | 30    |   |               |  |   |       |  |  | (36 | ) |  |  |      |  
|Disposal of group undertakings            |  |           |    |           |           |  |          |           |  |  | (4        | )        |  |            |      |   |               |  |   |       |  |  |    |   |  |  | (4    | )
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 
|At March 31, 2005                         |  |           | 507 |           |           |  | 16        |           |  |  | 81        |          |  |            | 1,408 |   |               |  | 10 |       |  |  | 169 |   |  |  | 2,191 |  
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 
|Accumulated depreciation and amortisation |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       |  |  |     |   |  |  |       |  
|At April 1, 2004                          |  |           |    |           |           |  |          |           |  |  | 7         |          |  |            | 830   |   |               |  | 6  |       |  |  |    |   |  |  | 843   |  
|Exchange adjustments                      |  |           |    |           |           |  |          |           |  |  |          |          |  |            | (6    | ) |               |  |   |       |  |  |    |   |  |  | (6    | )
|Disposals                                 |  |           |    |           |           |  |          |           |  |  | (2        | )        |  |            | (37   | ) |               |  |   |       |  |  |    |   |  |  | (39   | )
|Charge for year                           |  |           | 9   |           |           |  |          |           |  |  | 10        |          |  |            | 141   |   |               |  | 1  |       |  |  |    |   |  |  | 161   |  
|Disposal of group undertakings            |  |           |    |           |           |  |          |           |  |  | (4        | )        |  |            |      |   |               |  |   |       |  |  |    |   |  |  | (4    | )
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 
|At March 31, 2005                         |  |           | 9   |           |           |  |          |           |  |  | 11        |          |  |            | 928   |   |               |  | 7  |       |  |  |    |   |  |  | 955   |  
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 
|Net book value                            |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       |  |  |     |   |  |  |       |  
|At March 31, 2005                         |  |           | 498 |           |           |  | 16        |           |  |  | 70        |          |  |            | 480   |   |               |  | 3  |       |  |  | 169 |   |  |  | 1,236 |  
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 
|At March 31, 2004                         |  |           | 533 |           |           |  | 19        |           |  |  | 74        |          |  |            | 542   |   |               |  | 4  |       |  |  | 96  |   |  |  | 1,268 |  
|                                          |  |           |     |           |           |  |           |           |  |  |           |          |  |            |       |   |               |  |    |       | 

Property and Equipment






     


F-38



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                   
|-- | ----------------------------------
|22 | TANGIBLE FIXED ASSETS  (continued)

 


|                             |  |                 |   |  |      |  |    | 
|---------------------------- |  | --------------- | - |  | ---- |  | -- | 
|                             |  | Year ended      |  
|                             |  | March 31,       |  
|                             |  |                 |  
|                             |  | 2005            |   |  | 2004 | 
|                             |  |                 |   |  |      | 
|                             |  | (in  millions) |  
|Tangible fixed assets leased |  |                 | 3 |  |      |  | 27 | 
|                             |  |                 |   |  |      | 

|                                                 |  |                 |    |  |      |  |    | 
|------------------------------------------------ |  | --------------- | -- |  | ---- |  | -- | 
|                                                 |  | Year ended      |   
|                                                 |  | March 31,       |   
|                                                 |  |                 |   
|                                                 |  | 2005            |    |  | 2004 | 
|                                                 |  |                 |    |  |      | 
|                                                 |  | (in  millions) |   
|Future capital expenditure                       |  |                 |    |  |      |  |    | 
| contracted but not provided in the accounts    |  |                 | 10 |  |      |  | 11 | 
|                                                 |  |                 |    |  |      | 
| authorised by the Directors but not contracted |  |                 | 14 |  |      |  | 4  | 
|                                                 |  |                 |    |  |      | 

         




|                    |  |         |     |  |            |  |   | 
|------------------- |  | ------- | --- |  | ---------- |  | - | 
|Year ended 31 March |  | Payable |     |  | Receivable | 
|                    |  |         |     |  |            | 
|                    |  | m      |     |  | m         | 
|2006                |  |         | 52  |  |            |  | 3 | 
|2007                |  |         | 51  |  |            |  | 2 | 
|2008                |  |         | 46  |  |            |  | 2 | 
|2009                |  |         | 39  |  |            |  | 1 | 
|2010                |  |         | 40  |  |            |  | 1 | 
|Thereafter          |  |         | 602 |  |            |  | 5 | 

     




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

|                                             |  |                 |       |  |      |  |       | 
|-------------------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | 
|                                             |  | Year ended      |      
|                                             |  | March 31,       |      
|                                             |  |                 |      
|                                             |  | 2005            |       |  | 2004 | 
|                                             |  |                 |       |  |      | 
|                                             |  | (in  millions) |      
|Sundry debtors and others                    |  |                 | 1,583 |  |      |  | 1,531 | 
|Foreign exchange and interest rate contracts |  |                 | 1,849 |  |      |  | 1,663 | 
|Value of life assurance business in force    |  |                 | 643   |  |      |  | 573   | 
|                                             |  |                 |       |  |      | 
|                                             |  |                 | 4,075 |  |      |  | 3,767 | 
|                                             |  |                 |       |  |      | 

F-39



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                        
|-- | -----------------------
|24 | LIFE ASSURANCE BUSINESS



|                                                                        |  |                 |     |  |      |  |     | 
|----------------------------------------------------------------------- |  | --------------- | --- |  | ---- |  | --- | 
|                                                                        |  | 2005            |     |  | 2004 | 
|                                                                        |  |                 |     |  |      | 
|                                                                        |  | (in  millions) |    
|Long term assurance business                                            |  |                 |     |  |      |  |     | 
|Net tangible assets of life companies including surplus                 |  |                 | 352 |  |      |  | 281 | 
|Value of life assurance business in force                               |  |                 | 643 |  |      |  | 573 | 
|                                                                        |  |                 |     |  |      | 
|                                                                        |  |                 | 995 |  |      |  | 854 | 
|                                                                        |  |                 |     |  |      | 
|Increase in net tangible assets of life companies including
    surplus |  |                 | 71  |  |      |  | 75  | 
|Increase in value of life assurance business in force                   |  |                 | 70  |  |      |  | 79  | 
|                                                                        |  |                 |     |  |      | 
|Profit after tax                                                        |  |                 | 141 |  |      |  | 154 | 
|                                                                        |  |                 |     |  |      | 

  




|                                                                  |  |                 |       |   |      |  |       |  
|----------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | -
|                                                                  |  | 2005            |       |   | 2004 | 
|                                                                  |  |                 |       |   |      | 
|                                                                  |  | (in  millions) |      
|Property                                                          |  |                 | 503   |   |      |  | 430   |  
|Fixed interest securities                                         |  |                 | 1,784 |   |      |  | 1,378 |  
|Other securities                                                  |  |                 | 5,668 |   |      |  | 4,578 |  
|Bank balances and cash                                            |  |                 | 567   |   |      |  | 574   |  
|Income receivable                                                 |  |                 | 53    |   |      |  | 49    |  
|Other assets                                                      |  |                 | 250   |   |      |  | 200   |  
|Other liabilities                                                 |  |                 | (6    | ) |      |  | (13   | )
|                                                                  |  |                 |       |   |      | 
|                                                                  |  |                 | 8,819 |   |      |  | 7,196 |  
|Less Bank of Ireland shares held for the benefit of policyholders |  |                 | (290  | ) |      |  | (227  | )
|                                                                  |  |                 |       |   |      | 
|                                                                  |  |                 | 8,529 |   |      |  | 6,969 |  
|                                                                  |  |                 |       |   |      | 

Value of in-force business




|                                                                                     |                             |      |       |      |      |  |       |      | 
|------------------------------------------------------------------------------------ | --------------------------- | ---- | ----- | ---- | ---- |  | ----- | ---- | 
|                                                                                     |                             | 2005 |       |      | 2004 | 
|                                                                                     |                             |      |       |      |      | 
|Risk adjusted discount rate (net of tax)                                             |                             |      | 8%    |      |      |  | 8%    |     
|The risk margin assumed in the risk adjusted discount rate has
    increased by 0.5% |                             |      |       |      |      |  |       |     
|Investment returns on unit linked assets                                             |                             |      | 6.0%  |      |      |  | 6.0%  |     
|                                                                                     |  Equities and property     |      |       | 6.5% |      |  |       | 7.0% | 
|                                                                                     |  Government fixed interest |      |       | 4.0% |      |  |       | 4.5% | 
|Shareholder taxation                                                                 |                             |      | 12.5% |      |      |  | 12.5% |     

|                |  |                                                                                                                                                                          
|--------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Mortality Rates |  | Based on actual experience.                                                                                                                                              
|Lapse Rates     |  | Based on actual experience on each block of business.                                                                                                                    
|Asset Values    |  | The value of unit-linked assets used to project future
    management charges is based on actual market values. Assets
    supporting the solvency margin are discounted.

F-40



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                     
|-- | ------------------------------------
|24 | LIFE ASSURANCE BUSINESS  (continued)

Achieved Profits:






| |   |                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A contribution from new business, comprising the additional
    value added after providing for the return equal to the risk
    adjusted discount rate on capital employed in writing the new
    business;                                                                                                                                                       
|
| |  | A contribution from in-force business at the beginning of the
    year, comprising interest at the risk adjusted discount rate on
    the value of in-force business together with the effect of any
    deviations in experience compared with the assumptions
    (excluding any investment variance) and the effect of any
    changes in operating assumptions;
|
| |  | Investment earnings on the net assets attributable to
    shareholders;                                                                                                                                                                                                                                                                                            
|
| |  | Investment variance, which represents the difference between the
    actual and expected return on unit-linked assets and the impact
    this has on management charges in the current and future years.                                                                                                                                                           
|
| |  | Changes in economic assumptions expected to be non-recurring.                                                                                                                                                                                                                                                                                                      

Premium Income Analysis




|                                           |  |            |       |  |          |  |     |           |  |  |       |  |  |  |       | 
|------------------------------------------ |  | ---------- | ----- |  | -------- |  | --- | --------- |  |  | ----- |  |  |  | ----- | 
|                                           |  | Individual |       |  |          |  |    
|                                           |  |            |       |  | Group    |  |     |          
|                                           |  | Life       |       |  | Pensions |  |     | Contracts |  |  | Total | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|                                           |  | m         |       |  | m       |  |     | m        |  |  | m    | 
|Gross Premiums Written  2005              |  |            |       |  |          |  |     |           |  |  |       |  |  |  |       | 
|Recurring premiums                         |  |            | 416   |  |          |  | 360 |           |  |  | 12    |  |  |  | 788   | 
|Single premiums                            |  |            | 584   |  |          |  | 302 |           |  |  | 92    |  |  |  | 978   | 
|Non-life single premiums                   |  |            | 80    |  |          |  |    |           |  |  |      |  |  |  | 80    | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Total gross premiums written               |  |            | 1,080 |  |          |  | 662 |           |  |  | 104   |  |  |  | 1,846 | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Gross Premiums Written  2004              |  |            |       |  |          |  |     |           |  |  |       |  |  |  |       | 
|Recurring premiums                         |  |            | 408   |  |          |  | 297 |           |  |  | 14    |  |  |  | 719   | 
|Single premiums                            |  |            | 393   |  |          |  | 280 |           |  |  | 46    |  |  |  | 719   | 
|Non-life single premiums                   |  |            | 155   |  |          |  | 0   |           |  |  | 0     |  |  |  | 155   | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Total gross premiums written               |  |            | 956   |  |          |  | 577 |           |  |  | 60    |  |  |  | 1,593 | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Gross New Business Premiums Written  2005 |  |            |       |  |          |  |     |           |  |  |       |  |  |  |       | 
|Recurring premiums                         |  |            | 59    |  |          |  | 132 |           |  |  |      |  |  |  | 191   | 
|Single premiums                            |  |            | 584   |  |          |  | 302 |           |  |  | 92    |  |  |  | 978   | 
|Non-life single premiums                   |  |            | 80    |  |          |  |    |           |  |  |      |  |  |  | 80    | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Total gross new business written           |  |            | 723   |  |          |  | 434 |           |  |  | 92    |  |  |  | 1,249 | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Gross New Business Premiums Written  2004 |  |            |       |  |          |  |     |           |  |  |       |  |  |  |       | 
|Recurring premiums                         |  |            | 52    |  |          |  | 124 |           |  |  | 0     |  |  |  | 176   | 
|Single premiums                            |  |            | 393   |  |          |  | 280 |           |  |  | 46    |  |  |  | 719   | 
|Non-life single premiums                   |  |            | 155   |  |          |  | 0   |           |  |  | 0     |  |  |  | 155   | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 
|Total gross new business written           |  |            | 600   |  |          |  | 404 |           |  |  | 46    |  |  |  | 1,050 | 
|                                           |  |            |       |  |          |  |     |           |  |  |       | 

F-41



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                  
|-- | -----------------
|25 | DEPOSITS BY BANKS

|                                     |  |                 |        |  |      |  |        | 
|------------------------------------ |  | --------------- | ------ |  | ---- |  | ------ | 
|                                     |  | Year ended      |       
|                                     |  | March 31,       |       
|                                     |  |                 |       
|                                     |  | 2005            |        |  | 2004 | 
|                                     |  |                 |        |  |      | 
|                                     |  | (in  millions) |       
|Deposits by Banks                    |  |                 | 20,254 |  |      |  | 17,060 | 
|of which:                            |  |                 |        |  |      |  |        | 
|Domestic                             |  |                 | 18,975 |  |      |  | 15,963 | 
|Foreign                              |  |                 | 1,279  |  |      |  | 1,097  | 
|                                     |  |                 |        |  |      | 
|                                     |  |                 | 20,254 |  |      |  | 17,060 | 
|                                     |  |                 |        |  |      | 
|Repayable on demand                  |  |                 | 4,186  |  |      |  | 3,591  | 
|Other deposits by remaining maturity |  |                 |        |  |      |  |        | 
| 3 months or less                   |  |                 | 13,217 |  |      |  | 11,824 | 
| 1 year or less but over 3 months   |  |                 | 2,100  |  |      |  | 1,175  | 
| 5 years or less but over 1 year    |  |                 | 661    |  |      |  | 324    | 
| over 5 years                       |  |                 | 90     |  |      |  | 146    | 
|                                     |  |                 |        |  |      | 
|                                     |  |                 | 20,254 |  |      |  | 17,060 | 
|                                     |  |                 |        |  |      | 



|   |                  
|-- | -----------------
|26 | CUSTOMER ACCOUNTS

|                                                                                          |  |                 |        |  |      |  |        | 
|----------------------------------------------------------------------------------------- |  | --------------- | ------ |  | ---- |  | ------ | 
|                                                                                          |  | Year ended      |       
|                                                                                          |  | March 31,       |       
|                                                                                          |  |                 |       
|                                                                                          |  | 2005            |        |  | 2004 | 
|                                                                                          |  |                 |        |  |      | 
|                                                                                          |  | (in  millions) |       
|Current accounts                                                                          |  |                 | 13,441 |  |      |  | 11,259 | 
|Demand deposits                                                                           |  |                 | 21,316 |  |      |  | 21,390 | 
|Term deposits and other products                                                          |  |                 | 24,836 |  |      |  | 21,098 | 
|Other short-term borrowings                                                               |  |                 | 672    |  |      |  | 648    | 
|                                                                                          |  |                 |        |  |      | 
|                                                                                          |  |                 | 60,265 |  |      |  | 54,395 | 
|                                                                                          |  |                 |        |  |      | 
|of which:                                                                                 |  |                 |        |  |      |  |        | 
|Non interest bearing current accounts                                                     |  |                 |        |  |      |  |        | 
|Domestic                                                                                  |  |                 | 9,001  |  |      |  | 7,730  | 
|Foreign                                                                                   |  |                 | 944    |  |      |  | 912    | 
|                                                                                          |  |                 |        |  |      | 
|                                                                                          |  |                 | 9,945  |  |      |  | 8,642  | 
|                                                                                          |  |                 |        |  |      | 
|Interest bearing current accounts and short term borrowings                               |  |                 |        |  |      |  |        | 
|Domestic                                                                                  |  |                 | 27,925 |  |      |  | 23,680 | 
|Foreign                                                                                   |  |                 | 22,395 |  |      |  | 22,073 | 
|                                                                                          |  |                 |        |  |      | 
|                                                                                          |  |                 | 50,320 |  |      |  | 45,753 | 
|                                                                                          |  |                 |        |  |      | 
|Repayable on demand                                                                       |  |                 | 32,847 |  |      |  | 29,929 | 
|Other deposits with agreed maturity dates or periods of notice,
    by remaining maturity |  |                 |        |  |      |  |        | 
| 3 months or less                                                                        |  |                 | 16,724 |  |      |  | 15,551 | 
| 1 year or less but over 3 months                                                        |  |                 | 4,643  |  |      |  | 3,017  | 
| 5 years or less but over 1 year                                                         |  |                 | 4,776  |  |      |  | 4,877  | 
| over 5 years                                                                            |  |                 | 1,275  |  |      |  | 1,021  | 
|                                                                                          |  |                 |        |  |      | 
|                                                                                          |  |                 | 60,265 |  |      |  | 54,395 | 
|                                                                                          |  |                 |        |  |      | 

F-42



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                         
|-- | ------------------------
|27 | DEBT SECURITIES IN ISSUE

|                                                     |  |                 |        |  |      |  |        | 
|---------------------------------------------------- |  | --------------- | ------ |  | ---- |  | ------ | 
|                                                     |  | Year ended      |       
|                                                     |  | March 31,       |       
|                                                     |  |                 |       
|                                                     |  | 2005            |        |  | 2004 | 
|                                                     |  |                 |        |  |      | 
|                                                     |  | (in  millions) |       
|Bonds and medium term notes by remaining maturity    |  |                 |        |  |      |  |        | 
| 3 months or less                                   |  |                 | 607    |  |      |  | 338    | 
| 1 year or less but over 3 months                   |  |                 | 1,784  |  |      |  | 1,303  | 
| 5 years or less but over 1 year                    |  |                 | 2,546  |  |      |  | 3,876  | 
| over 5 years                                       |  |                 | 2,019  |  |      |  |       | 
|Other debt securities in issue by remaining maturity |  |                 |        |  |      |  |        | 
| 3 months or less                                   |  |                 | 10,838 |  |      |  | 5,744  | 
| 1 year or less but over 3 months                   |  |                 | 2,745  |  |      |  | 1,655  | 
| 5 years or less but over 1 year                    |  |                 |       |  |      |  | 1      | 
|                                                     |  |                 |        |  |      | 
|                                                     |  |                 | 20,539 |  |      |  | 12,917 | 
|                                                     |  |                 |        |  |      | 



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

|                                             |  |                 |       |  |      |  |       | 
|-------------------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | 
|                                             |  | Year ended      |      
|                                             |  | March 31,       |      
|                                             |  |                 |      
|                                             |  | 2005            |       |  | 2004 | 
|                                             |  |                 |       |  |      | 
|                                             |  | (in  millions) |      
|Current taxation                             |  |                 | 91    |  |      |  | 85    | 
|Notes in circulation                         |  |                 | 785   |  |      |  | 761   | 
|Foreign exchange and interest rate contracts |  |                 | 1,831 |  |      |  | 1,686 | 
|Sundry creditors                             |  |                 | 1,931 |  |      |  | 1,452 | 
|Other                                        |  |                 | 1,349 |  |      |  | 1,435 | 
|Dividends                                    |  |                 | 282   |  |      |  | 257   | 
|                                             |  |                 |       |  |      | 
|                                             |  |                 | 6,269 |  |      |  | 5,676 | 
|                                             |  |                 |       |  |      | 



F-43



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                  
|-- | -----------------
|29 | DEFERRED TAXATION

|                                          |  |                 |     |   |      |  |     |  
|----------------------------------------- |  | --------------- | --- | - | ---- |  | --- | -
|                                          |  | Year ended      |    
|                                          |  | March 31,       |    
|                                          |  |                 |    
|                                          |  | 2005            |     |   | 2004 | 
|                                          |  |                 |     |   |      | 
|                                          |  | (in  millions) |    
|Taxation treatment of capital allowances: |  |                 |     |   |      |  |     |  
| finance leases                          |  |                 | 89  |   |      |  | 103 |  
| equipment used by group                 |  |                 | 21  |   |      |  | 14  |  
|Other short term timing differences       |  |                 | (38 | ) |      |  | (51 | )
|                                          |  |                 |     |   |      | 
|Deferred taxation provision/(asset)       |  |                 | 72  |   |      |  | 66  |  
|                                          |  |                 |     |   |      | 
|At April 1                                |  |                 | 66  |   |      |  | 54  |  
|Exchange adjustments                      |  |                 |    |   |      |  | (1  | )
|Charge for year                           |  |                 | 26  |   |      |  | 13  |  
|Disposals                                 |  |                 | (15 | ) |      |  |    |  
|Other movements                           |  |                 | (5  | ) |      |  |    |  
|                                          |  |                 |     |   |      | 
|At March 31                               |  |                 | 72  |   |      |  | 66  |  
|                                          |  |                 |     |   |      | 






30  OTHER PROVISIONS FOR LIABILITIES AND CHARGES


|                     |  |             |     |           |                |  |     |       |  |  |       |   |  |  |      |  
|-------------------- |  | ----------- | --- | --------- | -------------- |  | --- | ----- |  |  | ----- | - |  |  | ---- | -
|                     |  |             |     | Strategic |                |  |     |       | 
|                     |  | Pensions    |     |           | Transformation |  |     |       |  | 
|                     |  | obligations |     |           | Programme(1)   |  |     | Other |  |  | Total |  
|                     |  |             |     |           |                |  |     |       |  |  |       |  
|                     |  | m          |     |           | m             |  |     | m    |  |  | m    |  
|The Group            |  |             |     |           |                |  |     |       |  |  |       |   |  |  |      |  
|At April 1, 2004     |  |             | 158 |           |                |  |    |       |  |  | 63    |   |  |  | 221  |  
|Exchange adjustments |  |             | (1  | )         |                |  |    |       |  |  | (2    | ) |  |  | (3   | )
|Provisions made      |  |             | 69  |           |                |  | 117 |       |  |  | 47    |   |  |  | 233  |  
|Provisions utilised  |  |             | (80 | )         |                |  |    |       |  |  | (23   | ) |  |  | (103 | )
|Provisions released  |  |             | (4  | )         |                |  |    |       |  |  | (23   | ) |  |  | (27  | )
|                     |  |             |     |           |                |  |     |       |  |  |       |  
|At March 31, 2005    |  |             | 142 |           |                |  | 117 |       |  |  | 62    |   |  |  | 321  |  
|                     |  |             |     |           |                |  |     |       |  |  |       |  






|    |            
|--- | -----------
|(1) | See Note 7.

F-44



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


31  SUBORDINATED LIABILITIES


|                                |                                                                                                             |                 |       |       |      |  |       |       | 
|------------------------------- | ----------------------------------------------------------------------------------------------------------- | --------------- | ----- | ----- | ---- |  | ----- | ----- | 
|                                |                                                                                                             | Year ended      |      
|                                |                                                                                                             | March 31,       |      
|                                |                                                                                                             |                 |      
|                                |                                                                                                             | 2005            |       |       | 2004 | 
|                                |                                                                                                             |                 |       |       |      | 
|                                |                                                                                                             | (in  millions) |      
|Undated Loan Capital            |                                                                                                             |                 |       |       |      |  |       |      
|Bank of Ireland                 |                                                                                                             |                 |       |       |      |  |       |      
|                                | US$150m Undated Floating Rate Primary Capital Notes                                                         |                 |       | 114   |      |  |       | 121   | 
|Bank of Ireland UK Holdings plc |                                                                                                             |                 |       |       |      |  |       |      
|                                | 600m 7.40%
    Guaranteed Step-up Callable Perpetual Preferred Securities                                  |                 |       | 595   |      |  |       | 595   | 
|                                | Stg£350m 6.25% Guaranteed Callable Perpetual Preferred
    Securities                                       |                 |       | 504   |      |  |       | 521   | 
|BOI Capital Funding (No 1) LP   |                                                                                                             |                 |       |       |      |  |       |      
|                                | 600m Fixed Rate/
    Variable Rate Guaranteed Non-voting Non-Cumulative Perpetual
    Preferred Securities |                 |       | 587   |      |  |       |      | 
|Bristol & West                  |                                                                                                             |                 |       |       |      |  |       |      
|                                | Stg£75m
    133/8%
    Perpetual Subordinated Bonds                                                         |                 |       | 180   |      |  |       | 186   | 
|                                |                                                                                                             |                 |       |       |      | 
|                                |                                                                                                             |                 | 1,980 |       |      |  | 1,423 |      
|                                |                                                                                                             |                 |       |       |      | 
|Dated loan capital              |                                                                                                             |                 |       |       |      |  |       |      
|Bank of Ireland                 |                                                                                                             |                 |       |       |      |  |       |      
|                                | Stg£100m 9.75% Subordinated Bonds 2005                                                                      |                 |       |      |      |  |       | 150   | 
|                                | 750m 6.45%
    Subordinated Bonds 2010                                                                     |                 |       | 748   |      |  |       | 748   | 
|                                | 600m
    Subordinated Floating Rate Notes 2013                                                             |                 |       | 599   |      |  |       | 599   | 
|                                | 650m Fixed/
    Floating Rate Subordinated Notes 2019                                                      |                 |       | 650   |      |  |       | 650   | 
|Bristol & West                  |                                                                                                             |                 |       |       |      |  |       |      
|                                | Stg£75m
    103/4%
    Subordinated Bonds 2018                                                              |                 |       | 109   |      |  |       | 112   | 
|                                |                                                                                                             |                 |       |       |      | 
|                                |                                                                                                             |                 | 2,106 |       |      |  | 2,259 |      
|                                |                                                                                                             |                 |       |       |      | 
|                                |                                                                                                             |                 | 4,086 |       |      |  | 3,682 |      
|                                |                                                                                                             |                 |       |       |      | 
|Repayable                       |                                                                                                             |                 |       |       |      |  |       |      
|                                | in 1 year or less                                                                                           |                 |       |      |      |  |       | 150   | 
|                                | Between 2 and not more than 5 years                                                                         |                 |       | 748   |      |  |       |      | 
|                                | 5 years or more                                                                                             |                 |       | 1,358 |      |  |       | 2,109 | 
|                                |                                                                                                             |                 |       |       |      | 
|                                |                                                                                                             |                 | 2,106 |       |      |  | 2,259 |      
|                                |                                                                                                             |                 |       |       |      | 










F-45



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




31  SUBORDINATED
LIABILITIES  (continued)

























F-46



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


31  SUBORDINATED
LIABILITIES  (continued)


Securities in respect of any liquidation distributions will
rank senior to the rights of the General Partner in respect of
other partnership interests issued by the Issuer and pari passu
with claims of the holders of all other preferred securities
issued by the Issuer which rank pari passu with the Preferred
Securities.




3 8




   


       






32  MINORITY INTEREST  NON EQUITY


|               |                                                                        |                 |  |    |      |  |  |    | 
|-------------- | ---------------------------------------------------------------------- | --------------- |  | -- | ---- |  |  | -- | 
|               |                                                                        | Year ended      | 
|               |                                                                        | March 31,       | 
|               |                                                                        |                 | 
|               |                                                                        | 2005            |  |    | 2004 | 
|               |                                                                        |                 |  |    |      | 
|               |                                                                        | (in  millions) | 
|Bristol & West |                                                                        |                 |  |    |      |  |  |   
|               | Stg£50.4m
    81/8%
    Non-Cumulative Preference Shares of Stg£1 each |                 |  | 73 |      |  |  | 76 | 
|               |                                                                        |                 |  |    |      | 



F-47



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




32  MINORITY INTEREST  NON
EQUITY   (continued)






33  CAPITAL STOCK


|                                                                           |  |                 |       |  |      |  |       | 
|-------------------------------------------------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | 
|                                                                           |  | Year ended      |      
|                                                                           |  | March 31,       |      
|                                                                           |  |                 |      
|                                                                           |  | 2005            |       |  | 2004 | 
|                                                                           |  |                 |       |  |      | 
|                                                                           |  | (in  millions) |      
|Authorised                                                                 |  |                 |       |  |      |  |       | 
|1,500m units of
    0.64 of Ordinary
    Stock                            |  |                 | 960   |  |      |  | 960   | 
|8m units of Non-Cumulative Preference Stock of US$25 each                  |  |                 | 154   |  |      |  | 164   | 
|100m units of Non-Cumulative Preference Stock of Stg£1 each                |  |                 | 145   |  |      |  | 150   | 
|100m units of Non-Cumulative Preference Stock of
    1.27 each            |  |                 | 127   |  |      |  | 127   | 
|                                                                           |  |                 |       |  |      | 
|                                                                           |  |                 | 1,386 |  |      |  | 1,401 | 
|                                                                           |  |                 |       |  |      | 
|Allotted and fully paid                                                    |  |                 |       |  |      |  |       | 
|Equity                                                                     |  |                 |       |  |      |  |       | 
|943.0m units of
    0.64 of Ordinary
    Stock                            |  |                 | 604   |  |      |  | 604   | 
|82.1m units of
    0.64 of Treasury
    Stock                             |  |                 | 52    |  |      |  | 68    | 
|Non equity 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   |  |      |  | 679   | 
|                                                                           |  |                 |       |  |      | 



Movements in issued Ordinary Stock


|                                                                             |  |          |             |   |          |  |             |  
|---------------------------------------------------------------------------- |  | -------- | ----------- | - | -------- |  | ----------- | -
|                                                                             |  | Ordinary |             |   | Treasury | 
|                                                                             |  |          |             |   |          | 
|At April 1, 2004                                                             |  |          | 943,334,507 |   |          |  | 106,780,982 |  
|Stock Option Schemes                                                         |  |          | 853,500     |   |          |  | (853,500    | )
|Sharesave Scheme                                                             |  |          | 143,889     |   |          |  | (143,889    | )
|Long Term Performance Stock Plan                                             |  |          | 143,573     |   |          |  | (143,573    | )
|Cancellation of stock                                                        |  |          |            |   |          |  | (25,000,000 | )
|Stock purchased and held for the benefit of life assurance
    policyholders |  |          | (1,519,426  | ) |          |  | 1,519,426   |  
|Stock sold by subsidiary                                                     |  |          | 82,097      |   |          |  | (82,097     | )
|                                                                             |  |          |             |   |          | 
|At March 31, 2005                                                            |  |          | 943,038,140 |   |          |  | 82,077,349  |  
|                                                                             |  |          |             |   |          | 

F-48



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




33  CAPITAL STOCK  (continued)


 


 


  


 








Preference Stock













Use of Ordinary Stock in employee stock schemes




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



F-49



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


33  CAPITAL STOCK  (continued)


(a)  Employee Stock Issue
Scheme (continued)


of employment with a participating company on the last day of
the Groups financial year and their employment contract
existed for a period of at least 12 months as at that date
and is still in existence on the date on which a stock issue
announcement is made. Each year 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 assessed in
terms of real growth in alternative earnings per share
(EPS) as per the following table


|                                   |  |                                  
|---------------------------------- |  | ---------------------------------
|                                  
|Real Growth in alternative EPS (%) |  | Employee Stock Issue Scheme Award
|                                  
|0  1.99%                          |  | 0  1%                           
|                                  
|2.00  3.99%                       |  | 1  2%                           
|                                  
|4.00  5.99%                       |  | 2  3%                           
|                                  
|6.00  7.99%                       |  | 3  4%                           
|                                  
|8.00% and above                    |  | 4%                               
|                                  









|    |                                 
|--- | --------------------------------
|(b) | Sharesave Scheme (SAYE Scheme)

  


F-50



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




33  CAPITAL STOCK  (continued)




|    |                    
|--- | -------------------
|(c) | Stock Option Scheme

     




|    |                         
|--- | ------------------------
|(d) | Long Term Incentive Plan





F-51



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


33  CAPITAL STOCK  (continued)




|                                           |  |                                            
|------------------------------------------ |  | -------------------------------------------
|                                          
|TSR ranking relative to a Peer Group of 17
|Financial Services Companies               |  | Level of Vesting                           
|                                          
|1st or 2nd                                 |  | 100%                                       
|                                          
|3rd to 8th                                 |  | Scaled level of vesting between 91% and 44%
|                                          
|9th (Median)                               |  | 35%                                        
|                                          
|Below Median                               |  | Nil                                        
|                                          







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



F-52



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |         
|-- | --------
|34 | RESERVES

|                                                          |  |                 |       |   |      |  |       |  
|--------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | -
|                                                          |  | At March 31,    |      
|                                                          |  |                 |      
|                                                          |  | 2005            |       |   | 2004 | 
|                                                          |  |                 |       |   |      | 
|                                                          |  | (in  millions) |      
|Stock premium account                                     |  |                 |       |   |      |  |       |  
|Opening balance                                           |  |                 | 767   |   |      |  | 765   |  
|Exchange adjustments                                      |  |                 | (2    | ) |      |  | 2     |  
|                                                          |  |                 |       |   |      | 
|Closing balance                                           |  |                 | 765   |   |      |  | 767   |  
|                                                          |  |                 |       |   |      | 
|Capital reserve                                           |  |                 |       |   |      |  |       |  
|Opening balance                                           |  |                 | 498   |   |      |  | 436   |  
|Exchange adjustments                                      |  |                 | (1    | ) |      |  |      |  
|Transfer from revenue reserves                            |  |                 | 48    |   |      |  | 62    |  
|Reserve on cancellation of stock                          |  |                 | 16    |   |      |  |      |  
|                                                          |  |                 |       |   |      | 
|Closing balance                                           |  |                 | 561   |   |      |  | 498   |  
|                                                          |  |                 |       |   |      | 
|Profit and loss account                                   |  |                 |       |   |      |  |       |  
|Opening balance                                           |  |                 | 2,281 |   |      |  | 2,099 |  
|Profit retained                                           |  |                 | 583   |   |      |  | 473   |  
|Exchange adjustments                                      |  |                 | (104  | ) |      |  | 60    |  
|Ordinary stock buyback                                    |  |                 |      |   |      |  | (377  | )
|Reissue of Treasury stock under employee stock scheme     |  |                 | 7     |   |      |  | 25    |  
|Reissue of Treasury stock previously held by subsidiaries |  |                 | 1     |   |      |  |      |  
|Transfer from revaluation reserve                         |  |                 | 4     |   |      |  | 2     |  
|Purchase of stock by subsidiaries                         |  |                 |      |   |      |  | (1    | )
|                                                          |  |                 |       |   |      | 
|Closing balance                                           |  |                 | 2,772 |   |      |  | 2,281 |  
|                                                          |  |                 |       |   |      | 
|Revaluation reserve                                       |  |                 |       |   |      |  |       |  
|Opening balance                                           |  |                 | 239   |   |      |  | 181   |  
|Exchange adjustments                                      |  |                 | (1    | ) |      |  | 1     |  
|Revaluation of property                                   |  |                 |      |   |      |  | 59    |  
|Transfer to revenue reserves on sale of property          |  |                 | (4    | ) |      |  | (2    | )
|                                                          |  |                 |       |   |      | 
|Closing balance                                           |  |                 | 234   |   |      |  | 239   |  
|                                                          |  |                 |       |   |      | 



|   |              
|-- | -------------
|35 | PENSION COSTS







|    |                            
|--- | ---------------------------
|(a) | SSAP 24 pension disclosures



F-53



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)


35                    PENSION
COSTS  (continued)









| |   |                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The actuarial surplus is being spread over the average remaining
    service lives of current employees;                                                                              
|
| |  | a provision of
    130m (2004:
    141m) in regard
    to the main scheme is included in the accounts being the excess
    of the accumulated pension charge over the amount funded;
|
| |  | the amortisation of the surplus gives rise to a net cost of
    48m in relation
    to the main scheme, compared to a net cost of
    36m in 2004.                                  

 






|    |                           
|--- | --------------------------
|(b) | FRS 17 Pension disclosures



|                                        |  |                  |      |  |                  |  |      |                  |  |  |      | 
|--------------------------------------- |  | ---------------- | ---- |  | ---------------- |  | ---- | ---------------- |  |  | ---- | 
|                                        |  | 2005             |      |  | 2004             |  |      | 2003             | 
|Major assumptions                       |  | Weighted average |      |  | Weighted average |  |      | Weighted average | 
|                                        |  |                  |      |  |                  |  |      |                  | 
|                                        |  | %                |      |  | %                |  |      | %                | 
|Rate of general increase in salaries    |  |                  | 3.09 |  |                  |  | 3.08 |                  |  |  | 3.29 | 
|Rate of increase in pensions in payment |  |                  | 2.64 |  |                  |  | 2.66 |                  |  |  | 2.91 | 
|Rate of increase to deferred pensions   |  |                  | 2.25 |  |                  |  | 2.25 |                  |  |  | 2.50 | 
|Discount rate for scheme liabilities    |  |                  | 4.85 |  |                  |  | 5.50 |                  |  |  | 5.50 | 
|Inflation rate                          |  |                  | 2.25 |  |                  |  | 2.25 |                  |  |  | 2.50 | 

F-54



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                           
|-- | --------------------------
|35 | PENSION COSTS  (continued)



|                                      |  |                |       |                    |                |  |     |                |                    |  |                |    |  |                    |     |   |                |  |       |  |  |  |     |  
|------------------------------------- |  | -------------- | ----- | ------------------ | -------------- |  | --- | -------------- | ------------------ |  | -------------- | -- |  | ------------------ | --- | - | -------------- |  | ----- |  |  |  | --- | -
|                                      |  | March 31, 2005 |       |                    | March 31, 2004 |  |     | March 31, 2003 |                   
|                                      |  |                |       |                    |                |  |     |                |                   
|                                      |  |                |       | Expected long term |                |  |     |                | Expected long term |  |                |    |  | Expected long term |    
|                                      |  | Market value   |       |                    | rate of return |  |     | Market value   |                    |  | rate of return |    |  | Market value       |     |   | rate of return | 
|                                      |  |                |       |                    |                |  |     |                |                    |  |                |    |  |                    |     |   |                | 
|                                      |  | m             |       |                    |                |  | m  |                |                    |  |                | m |  |                    |    
|Equities                              |  |                | 2,181 |                    |                |  | 7.8 | %              |                    |  | 2,048          |    |  |                    | 7.5 | % |                |  | 1,734 |  |  |  | 9.0 | %
|Bonds                                 |  |                | 753   |                    |                |  | 4.1 | %              |                    |  | 668            |    |  |                    | 4.8 | % |                |  | 464   |  |  |  | 4.2 | %
|Property                              |  |                | 402   |                    |                |  | 6.8 | %              |                    |  | 363            |    |  |                    | 6.5 | % |                |  | 337   |  |  |  | 8.0 | %
|Other                                 |  |                | 88    |                    |                |  | 3.5 | %              |                    |  | 38             |    |  |                    | 4.0 | % |                |  | 73    |  |  |  | 4.0 | %
|                                      |  |                |       |                    |                |  |     |                |                    |  |                |    |  |                    |     |   |                | 
|Total market value of schemes assets |  |                | 3,424 |                    |                |  |     |                |                    |  | 3,117          |    |  |                    |     |   |                |  | 2,608 |  |  |  |     |  
|                                      |  |                |       |                    |                |  |     |                |                    |  |                |    |  |                    |     |   |                | 
|Present value of schemes liabilities |  |                | 4,293 |                    |                |  |     |                |                    |  | 3,508          |    |  |                    |     |   |                |  | 3,407 |  |  |  |     |  
|                                      |  |                |       |                    |                |  |     |                |                    |  |                |    |  |                    |     |   |                | 

|                              |  |    |      |   |  |  |    |  |  |  |      |    |  |  |  |  |  |  |      |   |  |  |  | 
|----------------------------- |  | -- | ---- | - |  |  | -- |  |  |  | ---- | -- |  |  |  |  |  |  | ---- | - |  |  |  | 
|                              |  | m |      |   |  |  | m |  |  |  |      | m |  |  | 
|                              |  |    |      |   |  |  |    |  |  |  |      |    |  |  | 
|Aggregate deficit in schemes  |  |    | (869 | ) |  |  |    |  |  |  | (391 | )  |  |  |  |  |  |  | (800 | ) |  |  |  | 
|Aggregate surplus in schemes  |  |    |     |   |  |  |    |  |  |  |     |    |  |  |  |  |  |  | 1    |   |  |  |  | 
|                              |  |    |      |   |  |  |    |  |  |  |      |    |  |  |  |  |  | 
|Overall deficit in schemes    |  |    | (869 | ) |  |  |    |  |  |  | (391 | )  |  |  |  |  |  |  | (799 | ) |  |  |  | 
|Related deferred tax asset    |  |    | 130  |   |  |  |    |  |  |  | 59   |    |  |  |  |  |  |  | 118  |   |  |  |  | 
|                              |  |    |      |   |  |  |    |  |  |  |      |    |  |  |  |  |  | 
|Net pension (liability)/asset |  |    | (739 | ) |  |  |    |  |  |  | (332 | )  |  |  |  |  |  |  | (681 | ) |  |  |  | 
|                              |  |    |      |   |  |  |    |  |  |  |      |    |  |  |  |  |  | 



|                                                          |  |           |       |   |           |  |       |  
|--------------------------------------------------------- |  | --------- | ----- | - | --------- |  | ----- | -
|                                                          |  | March 31, |       |   | March 31, | 
|                                                          |  | 2005      |       |   | 2004      | 
|                                                          |  |           |       |   |           | 
|                                                          |  | m        |       |   | m        | 
|Net assets of the Group                                   |  |           | 4,789 |   |           |  | 4,281 |  
|Pension provision (net of deferred tax)                   |  |           | 120   |   |           |  | 138   |  
|                                                          |  |           |       |   |           | 
|                                                          |  |           | 4,909 |   |           |  | 4,419 |  
|Net pension (liability)                                   |  |           | (739  | ) |           |  | (332  | )
|                                                          |  |           |       |   |           | 
|Net assets of the Group including pension liability       |  |           | 4,170 |   |           |  | 4,087 |  
|                                                          |  |           |       |   |           | 
|Profit and loss account reserve                           |  |           | 2,772 |   |           |  | 2,281 |  
|Pension provision (net of deferred tax)                   |  |           | 120   |   |           |  | 138   |  
|                                                          |  |           |       |   |           | 
|                                                          |  |           | 2,892 |   |           |  | 2,419 |  
|Pension reserve                                           |  |           | (739  | ) |           |  | (332  | )
|                                                          |  |           |       |   |           | 
|Profit and loss account reserve including pension reserve |  |           | 2,153 |   |           |  | 2,087 |  
|                                                          |  |           |       |   |           | 

F-55



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                           
|-- | --------------------------
|35 | PENSION COSTS  (continued)



|                                        |                                               |           |      |      |           |  |      |      |  
|--------------------------------------- | --------------------------------------------- | --------- | ---- | ---- | --------- |  | ---- | ---- | -
|                                        |                                               | March 31, |      |      | March 31, | 
|                                        |                                               | 2005      |      |      | 2004      | 
|                                        |                                               |           |      |      |           | 
|                                        |                                               | m        |      |      | m        | 
|Other finance income                    |                                               |           |      |      |           |  |      |     
|                                        | Expected return on pension scheme assets      |           |      | 209  |           |  |      | 203  |  
|                                        | Interest on pension scheme liabilities        |           |      | (189 | )         |  |      | (186 | )
|Other                                   |                                               |           | 7    |      |           |  |     |     
|                                        |                                               |           |      |      |           | 
|                                        | Net return                                    |           |      | 27   |           |  |      | 17   |  
|                                        |                                               |           |      |      |           | 
|Included within administrative expenses |                                               |           |      |      |           |  |      |     
|                                        | Current service cost                          |           |      | (119 | )         |  |      | (117 | )
|                                        | Past service cost                             |           |      | (1   | )         |  |      | (5   | )
|                                        |                                               |           |      |      |           | 
|                                        |                                               |           | (120 | )    |           |  | (122 | )   
|                                        |                                               |           |      |      |           | 
|                                        | Cost of providing defined retirement benefits |           |      | (93  | )         |  |      | (105 | )
|                                        |                                               |           |      |      |           | 

|                                                                                                |  |           |      |   |           |  |     |  
|----------------------------------------------------------------------------------------------- |  | --------- | ---- | - | --------- |  | --- | -
|                                                                                                |  | March 31, |      |   | March 31, | 
|                                                                                                |  | 2005      |      |   | 2004      | 
|                                                                                                |  |           |      |   |           | 
|                                                                                                |  | m        |      |   | m        | 
|Analysis of the amount recognised in Statement of Total
    Recognised Gains and Losses (STRGL) |  |           |      |   |           |  |     |  
|Gain/(Loss) on assets                                                                           |  |           | 115  |   |           |  | 327 |  
|Experience (loss) on liabilities                                                                |  |           | (18  | ) |           |  | (29 | )
|Gain/(Loss) on change of assumptions (financial and demographic)                                |  |           | (577 | ) |           |  | 170 |  
|Currency (loss)/gain                                                                            |  |           | 3    |   |           |  | (2  | )
|                                                                                                |  |           |      |   |           | 
|Total gain/(loss) recognised in STRGL before adjustment for tax                                 |  |           | (477 | ) |           |  | 466 |  
|                                                                                                |  |           |      |   |           | 

|                                                    |  |           |      |   |           |  |      |  
|--------------------------------------------------- |  | --------- | ---- | - | --------- |  | ---- | -
|                                                    |  | March 31, |      |   | March 31, | 
|                                                    |  | 2005      |      |   | 2004      | 
|                                                    |  |           |      |   |           | 
|                                                    |  | m        |      |   | m        | 
|Movement in (deficit)/surplus during the year       |  |           |      |   |           |  |      |  
|(Deficit)/ Surplus in scheme at beginning of period |  |           | (391 | ) |           |  | (799 | )
|Contributions paid                                  |  |           | 92   |   |           |  | 47   |  
|Current service cost                                |  |           | (119 | ) |           |  | (117 | )
|Past service cost                                   |  |           | (1   | ) |           |  | (5   | )
|Other finance income                                |  |           | 20   |   |           |  | 17   |  
|Actuarial (loss)/gain                               |  |           | (480 | ) |           |  | 468  |  
|Currency gain/(loss)                                |  |           | 3    |   |           |  | (2   | )
|Settlement gain                                     |  |           | 4    |   |           |  |     |  
|Curtailment gain                                    |  |           | 3    |   |           |  |     |  
|                                                    |  |           |      |   |           | 
|(Deficit) in the scheme at end of period            |  |           | (869 | ) |           |  | (391 | )
|Related deferred tax asset                          |  |           | 130  |   |           |  | 59   |  
|                                                    |  |           |      |   |           | 
|                                                    |  |           | (739 | ) |           |  | (332 | )
|                                                    |  |           |      |   |           | 

F-56



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                           
|-- | --------------------------
|35 | PENSION COSTS  (continued)

|                                                  |  |           |        |   |           |  |       |  
|------------------------------------------------- |  | --------- | ------ | - | --------- |  | ----- | -
|                                                  |  | March 31, |        |   | March 31, | 
|                                                  |  | 2005      |        |   | 2004      | 
|                                                  |  |           |        |   |           | 
|                                                  |  | m        |        |   | m        | 
|History of experience gains and losses            |  |           |        |   |           |  |       |  
|Gain/(Loss) on scheme assets:                     |  |           |        |   |           |  |       |  
|Amount                                            |  |           | 115    |   |           |  | 327   |  
|Percentage of scheme assets                       |  |           | 3.4%   |   |           |  | 10.6% |  
|Experience (loss) on scheme liabilities:          |  |           |        |   |           |  |       |  
|Amount                                            |  |           | (18    | ) |           |  | (29   | )
|Percentage of scheme liabilities                  |  |           | (0.5%  | ) |           |  | (0.8% | )
|Total actuarial (loss) recognised in STRGL:       |  |           |        |   |           |  |       |  
|Amount                                            |  |           | (477   | ) |           |  | 466   |  
|Percentage of scheme liabilities at end of period |  |           | (11.1% | ) |           |  | 13.3% |  



|   |                                            
|-- | -------------------------------------------
|36 | DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS









F-57



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


|                               |  |                 |        |  |        |  |        |       |  |  |        |  |           |       |         |  |  |  |         | 
|------------------------------ |  | --------------- | ------ |  | ------ |  | ------ | ----- |  |  | ------ |  | --------- | ----- | ------- |  |  |  | ------- | 
|                               |  | March 31, 2005  |        |  |       
|                               |  |                 |        |  |       
|                               |  | Within          |        |  | One to |  |        | Over  |  |  |        |  | March 31, |      
|                               |  | one             |        |  | five   |  |        | five  |  |  |        |  | 2004      |      
|                               |  | Year            |        |  | years  |  |        | years |  |  | Total  |  |           | Total |        
|                               |  |                 |        |  |        |  |        |       |  |  |        |  |           |       |        
|                               |  | (in  millions) |       
|Underlying Principal Amount:   |  |                 |        |  |        |  |        |       |  |  |        |  |           |       |         |  |  |  |         | 
|Exchange Rate Contracts        |  |                 | 16,254 |  |        |  | 1,912  |       |  |  | 624    |  |           |       | 18,790  |  |  |  | 20,263  | 
|Interest Rate Contracts        |  |                 | 69,618 |  |        |  | 42,425 |       |  |  | 18,319 |  |           |       | 130,362 |  |  |  | 111,934 | 
|Equity and Commodity Contracts |  |                 | 397    |  |        |  | 3,073  |       |  |  | 858    |  |           |       | 4,328   |  |  |  | 3,793   | 
|Credit Contracts               |  |                 |       |  |        |  | 55     |       |  |  | 60     |  |           |       | 115     |  |  |  |        | 
|Replacement Cost               |  |                 |        |  |        |  |        |       |  |  |        |  |           |       |         |  |  |  |         | 
|Exchange Rate Contracts        |  |                 | 258    |  |        |  | 78     |       |  |  | 42     |  |           |       | 378     |  |  |  | 359     | 
|Interest Rate Contracts        |  |                 | 144    |  |        |  | 499    |       |  |  | 346    |  |           |       | 989     |  |  |  | 1,023   | 
|Equity & Commodity Contracts   |  |                 | 3      |  |        |  | 173    |       |  |  | 78     |  |           |       | 254     |  |  |  | 136     | 
|Credit Contracts               |  |                 |       |  |        |  | 1      |       |  |  |       |  |           |       | 1       |  |  |  |        | 



|                             |  |                 |       |      |           |  |     |       |      |  |       |  |  |  |       | 
|---------------------------- |  | --------------- | ----- | ---- | --------- |  | --- | ----- | ---- |  | ----- |  |  |  | ----- | 
|                             |  | March 31, 2005  |       |      |          
|                             |  |                 |       |      | March 31, | 
|                             |  |                 |       | Non- |           |  |     |       | 2004 | 
|                             |  | Financial       |       |      | Financial |  |     | Total |      |  | Total | 
|                             |  |                 |       |      |           |  |     |       |      |  |       | 
|                             |  | (in  millions) |      
|Exchange Rate Contracts      |  |                 | 309   |      |           |  | 69  |       |      |  | 378   |  |  |  | 359   | 
|Interest Rate Contracts      |  |                 | 905   |      |           |  | 84  |       |      |  | 989   |  |  |  | 1,023 | 
|Equity & Commodity Contracts |  |                 | 254   |      |           |  |    |       |      |  | 254   |  |  |  | 136   | 
|Credit Contracts             |  |                 | 1     |      |           |  |    |       |      |  | 1     |  |  |  |      | 
|                             |  |                 |       |      |           |  |     |       |      |  |       | 
|                             |  |                 | 1,469 |      |           |  | 153 |       |      |  | 1,622 |  |  |  | 1,518 | 
|                             |  |                 |       |      |           |  |     |       |      |  |       | 

F-58



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


Trading Instruments




|                                             |                             |                |         |  |       |  |         |       |   |  |  |      |  
|-------------------------------------------- | --------------------------- | -------------- | ------- |  | ----- |  | ------- | ----- | - |  |  | ---- | -
|                                             |                             | March 31, 2005 |        
|                                             |                             |                |        
|                                             |                             | Underlying     |         |  |       |  | Average |      
|                                             |                             | Principal      |         |  | Fair  |  |         | Fair  |  
|                                             |                             | Amount(1)      |         |  | Value |  |         | Value |  
|                                             |                             |                |         |  |       |  |         |       |  
|                                             |                             | m             |         |  | m    |  |         | m    |  
|Interest rate contracts:                     |                             |                |         |  |       |  |         |       |   |  |  |     
|Interest rate swaps                          |                             |                | 70,180  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         | 785   |   |  |  | 782  |  
|                                             | in an unfavourable position |                |         |  |       |  |         | (394  | ) |  |  | (402 | )
|Interest rate caps, floors & options held    |                             |                | 10,728  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         | 2     |   |  |  | 3    |  
|                                             | in an unfavourable position |                |         |  |       |  |         |      |   |  |  |     |  
|Interest rate caps, floors & options written |                             |                | 967     |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         | 1     |   |  |  | 1    |  
|                                             | in an unfavourable position |                |         |  |       |  |         | (1    | ) |  |  | (2   | )
|Forward rate agreements                      |                             |                | 12,361  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         | 5     |   |  |  | 5    |  
|                                             | in an unfavourable position |                |         |  |       |  |         | (5    | ) |  |  | (4   | )
|Financial futures                            |                             |                | 3,012   |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         |      |   |  |  |     |  
|                                             | in an unfavourable position |                |         |  |       |  |         |      |   |  |  |     |  
|                                             |                             |                |         |  |       |  |         |       |  
|                                             |                             |                | 97,248  |  |       |  | 393     |       |   |  |  |     
|                                             |                             |                |         |  |       |  |         |       |  
|Foreign exchange contracts:                  |                             |                |         |  |       |  |         |       |   |  |  |     
|Forward foreign exchange                     |                             |                | 11,571  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         | 125   |   |  |  | 127  |  
|                                             | in an unfavourable position |                |         |  |       |  |         | (91   | ) |  |  | (158 | )
|Currency Swaps                               |                             |                | 1,062   |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         | 54    |   |  |  | 33   |  
|                                             | in an unfavourable position |                |         |  |       |  |         | (32   | ) |  |  | (24  | )
|                                             |                             |                |         |  |       |  |         |       |  
|                                             |                             |                | 12,633  |  |       |  | 56      |       |   |  |  |     
|                                             |                             |                |         |  |       |  |         |       |  
|Credit Contracts:                            |                             |                |         |  |       |  |         |       |   |  |  |     
|Credit Default Swaps                         |                             |                | 60      |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                |         |  |       |  |         |      |   |  |  |     |  
|                                             | in an unfavourable position |                |         |  |       |  |         |      |   |  |  | (1   | )
|                                             |                             |                |         |  |       |  |         |       |  
|                                             |                             |                | 109,941 |  |       |  |        |       |   |  |  |     
|                                             |                             |                |         |  |       |  |         |       |  






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The underlying principal amount represents the notional amount
    upon which the instruments are based and does not generally
    represent the amounts exchanged by the parties to the
    instruments.

F-59



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


|                                             |                             |                 |         |  |       |  |         |       |   |  |  |      |  
|-------------------------------------------- | --------------------------- | --------------- | ------- |  | ----- |  | ------- | ----- | - |  |  | ---- | -
|                                             |                             | 2004            |        
|                                             |                             |                 |        
|                                             |                             | Underlying      |         |  |       |  | Average |      
|                                             |                             | Principal       |         |  | Fair  |  |         | Fair  |  
|                                             |                             | Amount(1)       |         |  | Value |  |         | Value |  
|                                             |                             |                 |         |  |       |  |         |       |  
|                                             |                             | (in  millions) |        
|Interest rate contracts:                     |                             |                 |         |  |       |  |         |       |   |  |  |     
|Interest rate swaps                          |                             |                 | 85,170  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         | 948   |   |  |  | 932  |  
|                                             | in an unfavourable position |                 |         |  |       |  |         | (683  | ) |  |  | (734 | )
|Interest rate caps, floors & options held    |                             |                 | 13,543  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         | 3     |   |  |  | 2    |  
|                                             | in an unfavourable position |                 |         |  |       |  |         |      |   |  |  |     |  
|Interest rate caps, floors & options written |                             |                 | 10,590  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         | 1     |   |  |  |     |  
|                                             | in an unfavourable position |                 |         |  |       |  |         | (4    | ) |  |  | (4   | )
|Forward rate agreements                      |                             |                 | 6,870   |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         | 5     |   |  |  | 4    |  
|                                             | in an unfavourable position |                 |         |  |       |  |         | (4    | ) |  |  | (3   | )
|Financial futures                            |                             |                 | 1,861   |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         |      |   |  |  |     |  
|                                             | in an unfavourable position |                 |         |  |       |  |         |      |   |  |  |     |  
|                                             |                             |                 |         |  |       |  |         |       |  
|                                             |                             |                 | 118,034 |  |       |  | 266     |       |   |  |  |     
|                                             |                             |                 |         |  |       |  |         |       |  
|Foreign exchange contracts:                  |                             |                 |         |  |       |  |         |       |   |  |  |     
|Forward foreign exchange                     |                             |                 | 14,605  |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         | 171   |   |  |  | 143  |  
|                                             | in an unfavourable position |                 |         |  |       |  |         | (189  | ) |  |  | (169 | )
|Currency Swaps                               |                             |                 | 646     |  |       |  |         |       |   |  |  |     
|                                             | in a favourable position    |                 |         |  |       |  |         | 25    |   |  |  | 28   |  
|                                             | in an unfavourable position |                 |         |  |       |  |         | (24   | ) |  |  | (24  | )
|                                             |                             |                 |         |  |       |  |         |       |  
|                                             |                             |                 | 15,251  |  |       |  | (17     | )     |   |  |  |     
|                                             |                             |                 |         |  |       |  |         |       |  
|                                             |                             |                 | 133,285 |  |       |  |         |       |   |  |  |     
|                                             |                             |                 |         |  |       |  |         |       |  






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The underlying principal amount represents the notional amount
    upon which the instruments are based and does not generally
    represent the amounts exchanged by the parties to the
    instruments.

|                                       |  |                 |    |  |      |  |    |      |  |  |    | 
|-------------------------------------- |  | --------------- | -- |  | ---- |  | -- | ---- |  |  | -- | 
|                                       |  | 2005            |    |  | 2004 |  |    | 2003 | 
|                                       |  |                 |    |  |      |  |    |      | 
|                                       |  | (in  millions) |   
|Dealing profits                        |  |                 |    |  |      |  |    |      |  |  |    | 
|Securities and interest rate contracts |  |                 | 40 |  |      |  | 41 |      |  |  | 48 | 
|Foreign exchange contracts             |  |                 | 26 |  |      |  | 33 |      |  |  | 34 | 
|Equity contracts                       |  |                 |   |  |      |  | (1 | )    |  |  | 3  | 
|                                       |  |                 |    |  |      |  |    |      | 
|Total                                  |  |                 | 66 |  |      |  | 73 |      |  |  | 85 | 
|                                       |  |                 |    |  |      |  |    |      | 



F-60



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


Non Trading Derivatives










F-61



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)




|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     |  
|-------------------------- | -------------- | -------------- | ------ | -------- | -------- |  |  | ------- |  |  | -------- | ---- |  | ----- |  | ---- |  |  | ---- | --- | -
|                           |                | March 31, 2005 |       
|                           |                |                |       
|                           |                |                |        | Weighted |          |  | 
|                           |                | Underlying     |        |          | Weighted |  |  | Average |  |  | Weighted |      |  |      
|                           |                | Principal      |        |          | Average  |  |  | Receive |  |  | Average  |      |  | Fair  | 
|                           |                | Amount         |        |          | Maturity |  |  | Rate    |  |  | Pay Rate |      |  | Value | 
|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       | 
|                           |                | m             |        |          | in Years |  |  | %       |  |  | %        |      |  | m    | 
|Interest rate contracts:   |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
|Interest Rate Swaps        |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
| receive fixed            |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
|                           | 1 year or less |                |        | 13,235   |          |  |  | 0.36    |  |  |          | 3.29 |  |       |  | 3.31 |  |  |      | 65  |  
|                           | 1-5 years      |                |        | 3,342    |          |  |  | 2.76    |  |  |          | 2.23 |  |       |  | 3.98 |  |  |      | 15  |  
|                           | 5-10 years     |                |        | 1,837    |          |  |  | 6.39    |  |  |          | 4.05 |  |       |  | 4.46 |  |  |      | (9  | )
|                           | Over 10 years  |                |        | 115      |          |  |  | 22.05   |  |  |          | 5.45 |  |       |  | 4.92 |  |  |      | 7   |  
|Interest Rate Swaps        |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
| pay fixed                |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
|                           | 1 year or less |                |        | 13,855   |          |  |  | 0.26    |  |  |          | 4.13 |  |       |  | 4.18 |  |  |      | (48 | )
|                           | 1-5 years      |                |        | 10,783   |          |  |  | 2.47    |  |  |          | 4.70 |  |       |  | 4.98 |  |  |      | (41 | )
|                           | 5-10 years     |                |        | 1,614    |          |  |  | 7.65    |  |  |          | 3.53 |  |       |  | 4.93 |  |  |      | (73 | )
|                           | Over 10 years  |                |        | 731      |          |  |  | 15.09   |  |  |          | 3.29 |  |       |  | 5.46 |  |  |      | (81 | )
|Interest Rate Swaps        |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
| pay and receive floating |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
|                           | 1 year or less |                |        | 20       |          |  |  | 0.57    |  |  |          | 2.44 |  |       |  | 2.22 |  |  |      |    |  
|                           | 1-5 years      |                |        | 390      |          |  |  | 3.32    |  |  |          | 3.19 |  |       |  | 2.83 |  |  |      | 10  |  
|                           | 5-10 years     |                |        | 122      |          |  |  | 7.32    |  |  |          | 3.79 |  |       |  | 2.23 |  |  |      | 5   |  
|                           | Over 10 years  |                |        | 254      |          |  |  | 26.57   |  |  |          | 2.20 |  |       |  | 2.20 |  |  |      | 2   |  
|Interest Rate Caps         |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
|                           | 1 year or less |                |        | 3        |          |  |  | 0.68    |  |  |          | 7.5  |  |       |  | 0.0  |  |  |      |    |  
|                           | 1-5 years      |                |        | 89       |          |  |  | 1.17    |  |  |          | 6.14 |  |       |  | 0.0  |  |  |      |    |  
|Interest Rate Floors       |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |    
|                           | 1-5 years      |                |        | 73       |          |  |  | 1.01    |  |  |          | 5.0  |  |       |  | 0.0  |  |  |      |    |  
|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       | 
|                           |                |                | 46,463 |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  | (148 | )  
|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       | 

F-62



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


|                                   |                |                |        |       |          |  |  |       |  |  |     |     |  
|---------------------------------- | -------------- | -------------- | ------ | ----- | -------- |  |  | ----- |  |  | --- | --- | -
|                                   |                | March 31, 2005 |       
|                                   |                |                |       
|                                   |                | Underlying     |        |       | Weighted |  |  |      
|                                   |                | Principal      |        |       | Average  |  |  | Fair  | 
|                                   |                | Amount         |        |       | Maturity |  |  | Value | 
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                | m             |        |       | in Years |  |  | m    | 
|Exchange rate contracts:           |                |                |        |       |          |  |  |       |  |  |     |    
|Forward Foreign Exchange           |                |                |        |       |          |  |  |       |  |  |     |    
|                                   | 1 year or less |                |        | 2,502 |          |  |  | 0.15  |  |  |     | (6  | )
|                                   | 1-5 years      |                |        | 63    |          |  |  | 1.41  |  |  |     |    |  
|Currency Swaps                     |                |                |        |       |          |  |  |       |  |  |     |    
|                                   | 1 year or less |                |        | 1,070 |          |  |  | 0.56  |  |  |     | 50  |  
|                                   | 1-5 years      |                |        | 1,896 |          |  |  | 1.55  |  |  |     | (52 | )
|                                   | 5-10 years     |                |        | 96    |          |  |  | 6.78  |  |  |     | (1  | )
|Currency Options                   |                |                |        |       |          |  |  |       |  |  |     |    
|                                   | 1 year or less |                |        | 530   |          |  |  | 0.42  |  |  |     |    |  
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                |                | 6,157  |       |          |  |  |       |  |  | (9  | )  
|                                   |                |                |        |       |          |  |  |       | 
|Credit Contracts:                  |                |                |        |       |          |  |  |       |  |  |     |    
|Credit Default Swaps               |                |                |        |       |          |  |  |       |  |  |     |    
|                                   | 1-5 years      |                |        | 55    |          |  |  | 2.7   |  |  |     | 1   |  
|                                   |                |                |        |       |          |  |  |       | 
|Equity and commodity contracts:    |                |                |        |       |          |  |  |       |  |  |     |    
|Equity Index Linked Contracts held |                |                |        |       |          |  |  |       |  |  |     |    
|                                   | 1 year or less |                |        | 397   |          |  |  | 0.59  |  |  |     | (8  | )
|                                   | 1-5 years      |                |        | 3,073 |          |  |  | 2.95  |  |  |     | 40  |  
|                                   | 5-10 years     |                |        | 858   |          |  |  | 5.91  |  |  |     | 47  |  
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                |                | 4,328  |       |          |  |  |       |  |  | 79  |    
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                |                | 57,003 |       |          |  |  |       |  |  | (77 | )  
|                                   |                |                |        |       |          |  |  |       | 

F-63



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |      |  
|-------------------------- | -------------- | -------------- | ------ | -------- | -------- |  |  | ------- |  |  | -------- | ---- |  | ----- |  | ---- |  |  | ---- | ---- | -
|                           |                | March 31, 2004 |       
|                           |                |                |       
|                           |                |                |        | Weighted |          |  | 
|                           |                | Underlying     |        |          | Weighted |  |  | Average |  |  | Weighted |      |  |      
|                           |                | Principal      |        |          | Average  |  |  | Receive |  |  | Average  |      |  | Fair  | 
|                           |                | Amount         |        |          | Maturity |  |  | Rate    |  |  | Pay Rate |      |  | Value | 
|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       | 
|                           |                | m             |        |          | in Years |  |  | %       |  |  | %        |      |  | m    | 
|Interest rate contracts:   |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|Interest Rate Swaps        |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
| receive fixed            |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|                           | 1 year or less |                |        | 8,822    |          |  |  | 0.28    |  |  |          | 2.57 |  |       |  | 2.64 |  |  |      | 30   |  
|                           | 1-5 years      |                |        | 2,598    |          |  |  | 2.90    |  |  |          | 0.89 |  |       |  | 3.26 |  |  |      | 14   |  
|                           | 5-10 years     |                |        | 438      |          |  |  | 6.30    |  |  |          | 0.92 |  |       |  | 2.48 |  |  |      | 8    |  
|                           | Over 10 years  |                |        | 81       |          |  |  | 23.10   |  |  |          | 5.68 |  |       |  | 0.00 |  |  |      | 7    |  
|Interest Rate Swaps        |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
| pay fixed                |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|                           | 1 year or less |                |        | 3,291    |          |  |  | 0.50    |  |  |          | 2.47 |  |       |  | 2.65 |  |  |      | (14  | )
|                           | 1-5 years      |                |        | 1,135    |          |  |  | 3.25    |  |  |          | 2.34 |  |       |  | 5.94 |  |  |      | (102 | )
|                           | 5-10 years     |                |        | 710      |          |  |  | 7.70    |  |  |          | 2.21 |  |       |  | 4.97 |  |  |      | (60  | )
|                           | Over 10 years  |                |        | 610      |          |  |  | 15.61   |  |  |          | 2.24 |  |       |  | 5.73 |  |  |      | (82  | )
|Interest Rate Swaps        |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
| pay and receive floating |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|                           | 1 year or less |                |        | 147      |          |  |  | 0.61    |  |  |          | 2.15 |  |       |  | 2.12 |  |  |      |     |  
|                           | 1-5 years      |                |        | 224      |          |  |  | 3.16    |  |  |          | 2.55 |  |       |  | 2.41 |  |  |      | 1    |  
|                           | 5-10 years     |                |        | 136      |          |  |  | 7.11    |  |  |          | 3.24 |  |       |  | 3.10 |  |  |      | 2    |  
|                           | Over 10 years  |                |        | 304      |          |  |  | 27.77   |  |  |          | 1.95 |  |       |  | 2.11 |  |  |      | 2    |  
|Forward Rate Agreements    |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
| loans                    |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|                           | 1 year or less |                |        | 33       |          |  |  | 0.54    |  |  |          | 0.00 |  |       |  | 4.53 |  |  |      |     |  
|                           | 1-5 years      |                |        | 8        |          |  |  | 1.05    |  |  |          | 0.00 |  |       |  | 4.88 |  |  |      |     |  
|Forward Rate Agreements    |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
| deposits                 |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|                           | 1 year or less |                |        | 235      |          |  |  | 0.88    |  |  |          | 0.00 |  |       |  | 2.82 |  |  |      |     |  
|Interest Rate Caps         |                |                |        |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  |      |     
|                           | 1 year or less |                |        | 158      |          |  |  | 2.00    |  |  |          | 6.09 |  |       |  | 0.00 |  |  |      |     |  
|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       | 
|                           |                |                | 18,930 |          |          |  |  |         |  |  |          |      |  |       |  |      |  |  | (194 | )   
|                           |                |                |        |          |          |  |  |         |  |  |          |      |  |       | 

F-64



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)


|                                   |                |                |        |       |          |  |  |       |  |  |      |     |  
|---------------------------------- | -------------- | -------------- | ------ | ----- | -------- |  |  | ----- |  |  | ---- | --- | -
|                                   |                | March 31, 2004 |       
|                                   |                |                |       
|                                   |                | Underlying     |        |       | Weighted |  |  |      
|                                   |                | Principal      |        |       | Average  |  |  | Fair  | 
|                                   |                | Amount         |        |       | Maturity |  |  | Value | 
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                | m             |        |       | in Years |  |  | m    | 
|Exchange rate contracts:           |                |                |        |       |          |  |  |       |  |  |      |    
|Forward Foreign Exchange           |                |                |        |       |          |  |  |       |  |  |      |    
|                                   | 1 year or less |                |        | 1,845 |          |  |  | 0.13  |  |  |      | 15  |  
|                                   | 1-5 years      |                |        | 16    |          |  |  | 1.21  |  |  |      |    |  
|Currency Swaps                     |                |                |        |       |          |  |  |       |  |  |      |    
|                                   | 1 year or less |                |        | 218   |          |  |  | 0.73  |  |  |      | 1   |  
|                                   | 1-5 years      |                |        | 2,352 |          |  |  | 2.33  |  |  |      | (68 | )
|                                   | 5-10 years     |                |        | 140   |          |  |  | 7.01  |  |  |      | 9   |  
|Currency Options                   |                |                |        |       |          |  |  |       |  |  |      |    
|                                   | 1 year or less |                |        | 440   |          |  |  | 0.44  |  |  |      |    |  
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                |                | 5,011  |       |          |  |  |       |  |  | (43  | )  
|                                   |                |                |        |       |          |  |  |       | 
|Equity and commodity contracts:    |                |                |        |       |          |  |  |       |  |  |      |    
|Equity Index Linked Contracts held |                |                |        |       |          |  |  |       |  |  |      |    
|                                   | 1 year or less |                |        | 227   |          |  |  | 0.57  |  |  |      | (5  | )
|                                   | 1-5 years      |                |        | 2,713 |          |  |  | 3.17  |  |  |      | (99 | )
|                                   | 5-10 years     |                |        | 853   |          |  |  | 6.17  |  |  |      | 14  |  
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                |                | 3,793  |       |          |  |  |       |  |  | (90  | )  
|                                   |                |                |        |       |          |  |  |       | 
|                                   |                |                | 27,734 |       |          |  |  |       |  |  | (327 | )  
|                                   |                |                |        |       |          |  |  |       | 



Reconciliation of movements in notional amounts of interest
rate, exchange rate and equity index linked instruments.


|                          |  |                 |         |   |       |  |          |         |  |         |          |   |              |        |        |   |  |  |       |  
|------------------------- |  | --------------- | ------- | - | ----- |  | -------- | ------- |  | ------- | -------- | - | ------------ | ------ | ------ | - |  |  | ----- | -
|                          |  |                 |         |   |       |  |          | Forward |  |         |         
|                          |  | Interest        |         |   |       |  | Currency |         |  | Foreign |          |   | Equity Index |       
|                          |  | Rate Swaps      |         |   | FRAs |  |          | Swaps   |  |         | Exchange |   |              | Linked |       
|                          |  |                 |         |   |       |  |          |         |  |         |          |   |              |        |       
|                          |  | (in  millions) |        
|At April 1, 2004          |  |                 | 18,496  |   |       |  | 275      |         |  |         | 2,710    |   |              |        | 1,862  |   |  |  | 3,793 |  
|Exchange adjustments      |  |                 | (284    | ) |       |  | 2        |         |  |         | (53      | ) |              |        | 48     |   |  |  | (67   | )
|Additions                 |  |                 | 69,574  |   |       |  | 1,511    |         |  |         | 946      |   |              |        | 7,587  |   |  |  | 1,024 |  
|Maturities/amortisations |  |                 | (41,277 | ) |       |  | (1,788   | )       |  |         | (540     | ) |              |        | (6,831 | ) |  |  | (315  | )
|Cancellations             |  |                 | (211    | ) |       |  |         |         |  |         |         |   |              |        | (102   | ) |  |  | (110  | )
|                          |  |                 |         |   |       |  |          |         |  |         |          |   |              |        |       
|At March 31, 2005         |  |                 | 46,298  |   |       |  |         |         |  |         | 3,063    |   |              |        | 2,564  |   |  |  | 4,325 |  
|                          |  |                 |         |   |       |  |          |         |  |         |          |   |              |        |       



Unrecognised gains and losses on derivative hedges




F-65



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)




 


   


   


Non Trading Derivative Deferred Balances




|                                                                                                            |  |          |     |  |           |  |      |                |  |  |      |  
|----------------------------------------------------------------------------------------------------------- |  | -------- | --- |  | --------- |  | ---- | -------------- |  |  | ---- | -
|                                                                                                            |  | Deferred |     |  | Total net | 
|                                                                                                            |  |          |     |  | deferred  | 
|                                                                                                            |  | Gains    |     |  | Losses    |  |      | gains/(losses) | 
|                                                                                                            |  |          |     |  |           |  |      |                | 
|                                                                                                            |  | m       |     |  | m        |  |      | m             | 
|As at April 1, 2004                                                                                         |  |          | 2.5 |  |           |  | (3.8 | )              |  |  | (1.3 | )
|Gains and losses arising in previous years that were recognised
    in the year ended March 31, 2005        |  |          | 1.4 |  |           |  | (1.4 | )              |  |  |     |  
|                                                                                                            |  |          |     |  |           |  |      |                | 
|Gains and losses arising before April 1, 2004 that were not
    recognised in the year ended March 31, 2005 |  |          | 1.1 |  |           |  | (2.4 | )              |  |  | (1.3 | )
|Gains and losses arising in the year ended March 31, 2005
    that were not recognised in that year         |  |          | 5.2 |  |           |  | 2.3  |                |  |  | 7.5  |  
|                                                                                                            |  |          |     |  |           |  |      |                | 
|As at March 31, 2005                                                                                        |  |          | 6.3 |  |           |  | (0.1 | )              |  |  | 6.2  |  
|                                                                                                            |  |          |     |  |           |  |      |                | 
|Of which:                                                                                                   |  |          |     |  |           |  |      |                |  |  |      |  
|Gains and losses expected to be recognised in the year ended
    March 31, 2006                             |  |          | 2.2 |  |           |  | (0.1 | )              |  |  | 2.1  |  
|                                                                                                            |  |          |     |  |           |  |      |                | 



|                                                                                        |  |                                            |  |                                  
|--------------------------------------------------------------------------------------- |  | ------------------------------------------ |  | ---------------------------------
|Activity                                                                                |  | Market Risk                                |  | Type of Derivative               
|                                                                                        |  |                                            |  |                                  
|Fixed rate lending                                                                      |  | Sensitivity to increases in interest rates |  | Pay fixed interest rate swaps    
|Capped rate lending                                                                     |  | Sensitivity to increases in interest rates |  | Buy interest rate caps           
|Fixed rate funding                                                                      |  | Sensitivity to falls in interest rates     |  | Receive fixed interest rate swaps
|Management of the investment of reserves and other non-interest
    bearing liabilities |  | Sensitivity to changes in interest rates   |  | Interest rate swaps              

F-66



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




36  DERIVATIVES AND OTHER FINANCIAL
INSTRUMENTS  (continued)






|   |                                               
|-- | ----------------------------------------------
|37 | INTEREST RATE REPRICING GAP  NON TRADING BOOK





F-67



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|37 | INTEREST RATE REPRICING GAP  NON TRADING
    BOOK  (continued)

Non Trading Interest Rate Repricing  Total


|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |         |  
|----------------------------------------------------- |  | -------------- | ------ | ------------ | ---------- |  | ---------- | --------- |  | -------- | ---------- | - |  | ---------- | ------ | --- | -------- |  | ------ | ----- |  |  | ------- | - |  |  | ------- | -
|                                                      |  | March 31, 2005 |       
|                                                      |  |                |       
|                                                      |  |                |        | 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 |  |        |      
|                                                      |  | three months   |        |              | six months |  |            | one year  |  |          | five years |   |  | five years |        |     | bearing  |  |        | Total | 
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|                                                      |  | m             |        |              | m         |  |            | m        |  |          | m         |   |  | m         |        |     | m       |  |        | m    | 
|Assets                                                |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |         |  
|Central Government bills and other eligible bills     |  |                | 92     |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  |       |       |  |  |        |   |  |  | 92      |  
|Loans and advances to banks                           |  |                | 4,667  |              |            |  | 2,140      |           |  |          | 271        |   |  |            | 19     |     |          |  |       |       |  |  | 243     |   |  |  | 7,340   |  
|Loans and advances to customers                       |  |                | 52,359 |              |            |  | 3,817      |           |  |          | 6,108      |   |  |            | 14,235 |     |          |  | 2,611  |       |  |  | 526     |   |  |  | 79,656  |  
|Debt securities and equity shares                     |  |                | 11,378 |              |            |  | 1,539      |           |  |          | 306        |   |  |            | 1,657  |     |          |  | 1,026  |       |  |  | 31      |   |  |  | 15,937  |  
|Other assets                                          |  |                | 1,909  |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  |       |       |  |  | 3,792   |   |  |  | 5,701   |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Total assets                                          |  |                | 70,405 |              |            |  | 7,496      |           |  |          | 6,685      |   |  |            | 15,911 |     |          |  | 3,637  |       |  |  | 4,592   |   |  |  | 108,726 |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Liabilities                                           |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |         |  
|Deposits by banks                                     |  |                | 17,869 |              |            |  | 1,129      |           |  |          | 1,174      |   |  |            | 7      |     |          |  | 22     |       |  |  |        |   |  |  | 20,201  |  
|Customer accounts                                     |  |                | 42,012 |              |            |  | 1,787      |           |  |          | 2,633      |   |  |            | 2,092  |     |          |  | 1,107  |       |  |  | 10,379  |   |  |  | 60,010  |  
|Debt securities in issue                              |  |                | 15,156 |              |            |  | 1,514      |           |  |          | 1,461      |   |  |            | 2,387  |     |          |  | 21     |       |  |  |        |   |  |  | 20,539  |  
|Other liabilities                                     |  |                | 633    |              |            |  | 34         |           |  |          | 6          |   |  |            | 54     |     |          |  | 70     |       |  |  | 2,916   |   |  |  | 3,713   |  
|Subordinated liabilities                              |  |                | 714    |              |            |  |           |           |  |          |           |   |  |            | 1,397  |     |          |  | 1,975  |       |  |  |        |   |  |  | 4,086   |  
|Minority interests and shareholders funds            |  |                |       |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  |       |       |  |  | 4,924   |   |  |  | 4,924   |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Total liabilities                                     |  |                | 76,384 |              |            |  | 4,464      |           |  |          | 5,274      |   |  |            | 5,937  |     |          |  | 3,195  |       |  |  | 18,219  |   |  |  | 113,473 |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Net amounts due from/to Group units                   |  |                | 63     |              |            |  | (1,306     | )         |  |          | (225       | ) |  |            | 2,681  |     |          |  | 3,101  |       |  |  | 650     |   |  |  | 4,964   |  
|Off balance sheet items                               |  |                | 1,038  |              |            |  | 3,025      |           |  |          | 1,658      |   |  |            | (6,797 | )   |          |  | 791    |       |  |  |        |   |  |  | (285    | )
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Interest rate repricing gap                           |  |                | (4,878 | )            |            |  | 4,751      |           |  |          | 2,844      |   |  |            | 5,858  |     |          |  | 4,334  |       |  |  | (12,979 | ) |  |  | (68     | )
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Cumulative interest rate repricing gap                |  |                | (4,878 | )            |            |  | (127       | )         |  |          | 2,717      |   |  |            | 8,575  |     |          |  | 12,909 |       |  |  | (68     | ) |  |  |         |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Euro                                                  |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |         |  
|Cumulative interest rate repricing gap March 31, 2005 |  |                | 772    |              |            |  | 2,624      |           |  |          | 4,517      |   |  |            | 8,615  |     |          |  | 11,202 |       |  |  | 863     |   |  |  |         |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Sterling                                              |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |         |  
|Cumulative interest rate repricing gap March 31, 2005 |  |                | (3,545 | )            |            |  | (2,783     | )         |  |          | (1,741     | ) |  |            | (30    | )   |          |  | 1,685  |       |  |  | 848     |   |  |  |         |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 

F-68



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|37 | INTEREST RATE REPRICING GAP  NON TRADING
    BOOK  (continued)

Non Trading Interest Rate Repricing  Total


|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |        |  
|----------------------------------------------------- |  | -------------- | ------ | ------------ | ---------- |  | ---------- | --------- |  | -------- | ---------- | - |  | ---------- | ------ | --- | -------- |  | ------ | ----- |  |  | ------- | - |  |  | ------ | -
|                                                      |  | March 31, 2004 |       
|                                                      |  |                |       
|                                                      |  |                |        | 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 |  |        |      
|                                                      |  | three months   |        |              | six months |  |            | one year  |  |          | five years |   |  | five years |        |     | bearing  |  |        | Total | 
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|                                                      |  | m             |        |              | m         |  |            | m        |  |          | m         |   |  | m         |        |     | m       |  |        | m    | 
|Assets                                                |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |        |  
|Central Government bills and other eligible bills     |  |                | 211    |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  |       |       |  |  |        |   |  |  | 211    |  
|Loans and advances to banks                           |  |                | 4,625  |              |            |  | 1,824      |           |  |          | 961        |   |  |            |       |     |          |  | 1      |       |  |  | 180     |   |  |  | 7,591  |  
|Loans and advances to customers                       |  |                | 42,845 |              |            |  | 2,748      |           |  |          | 5,211      |   |  |            | 14,273 |     |          |  | 2,063  |       |  |  | 233     |   |  |  | 67,373 |  
|Debt securities and equity shares                     |  |                | 6,858  |              |            |  | 1,736      |           |  |          | 595        |   |  |            | 1,595  |     |          |  | 732    |       |  |  | 54      |   |  |  | 11,570 |  
|Other assets                                          |  |                | 1,620  |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  |       |       |  |  | 3,790   |   |  |  | 5,410  |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Total assets                                          |  |                | 56,159 |              |            |  | 6,308      |           |  |          | 6,767      |   |  |            | 15,868 |     |          |  | 2,796  |       |  |  | 4,257   |   |  |  | 92,155 |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Liabilities                                           |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |        |  
|Deposits by banks                                     |  |                | 15,473 |              |            |  | 1,352      |           |  |          | 122        |   |  |            | 23     |     |          |  | 15     |       |  |  |        |   |  |  | 16,985 |  
|Customer accounts                                     |  |                | 38,758 |              |            |  | 1,329      |           |  |          | 1,849      |   |  |            | 2,870  |     |          |  | 970    |       |  |  | 9,271   |   |  |  | 55,047 |  
|Debt securities in issue                              |  |                | 10,689 |              |            |  | 883        |           |  |          | 965        |   |  |            | 380    |     |          |  |       |       |  |  |        |   |  |  | 12,917 |  
|Other liabilities                                     |  |                | 540    |              |            |  | 33         |           |  |          | 19         |   |  |            | 64     |     |          |  | 87     |       |  |  | 2,748   |   |  |  | 3,491  |  
|Subordinated liabilities                              |  |                | 2,268  |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  | 1,414  |       |  |  |        |   |  |  | 3,682  |  
|Minority interests and shareholders funds            |  |                |       |              |            |  |           |           |  |          |           |   |  |            |       |     |          |  |       |       |  |  | 4,534   |   |  |  | 4,534  |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Total liabilities                                     |  |                | 67,728 |              |            |  | 3,597      |           |  |          | 2,955      |   |  |            | 3,337  |     |          |  | 2,486  |       |  |  | 16,553  |   |  |  | 96,656 |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Net amounts due from/to Group
    units               |  |                | 6,172  |              |            |  | 221        |           |  |          | (669       | ) |  |            | (1,874 | )   |          |  | 110    |       |  |  | (283    | ) |  |  | 3,677  |  
|Off balance sheet items                               |  |                | 4,872  |              |            |  | (1,031     | )         |  |          | (1,455     | ) |  |            | (6,139 | )   |          |  | 3,793  |       |  |  |        |   |  |  | 40     |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Interest rate repricing gap                           |  |                | (525   | )            |            |  | 1,901      |           |  |          | 1,688      |   |  |            | 4,518  |     |          |  | 4,213  |       |  |  | (12,579 | ) |  |  | (784   | )
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Cumulative interest rate repricing gap                |  |                | (525   | )            |            |  | 1,376      |           |  |          | 3,064      |   |  |            | 7,582  |     |          |  | 11,795 |       |  |  | (784    | ) |  |  |       |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Euro                                                  |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |        |  
|Cumulative interest rate repricing gap March 31, 2004 |  |                | 1,172  |              |            |  | 2,689      |           |  |          | 3,794      |   |  |            | 6,231  |     |          |  | 9,008  |       |  |  | 1,203   |   |  |  |       |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 
|Sterling                                              |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       |  |  |         |   |  |  |        |  
|Cumulative interest rate repricing gap March 31, 2004 |  |                | 2,052  |              |            |  | 330        |           |  |          | 553        |   |  |            | 2,429  |     |          |  | 3,855  |       |  |  | (738    | ) |  |  |       |  
|                                                      |  |                |        |              |            |  |            |           |  |          |            |   |  |            |        |     |          |  |        |       | 



|   |                                     
|-- | ------------------------------------
|38 | FAIR VALUES OF FINANCIAL INSTRUMENTS



F-69



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                      
|-- | -----------------------------------------------------
|38 | FAIR VALUES OF FINANCIAL
    INSTRUMENTS  (continued)





F-70



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                      
|-- | -----------------------------------------------------
|38 | FAIR VALUES OF FINANCIAL
    INSTRUMENTS  (continued)



|                                                     |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|---------------------------------------------------- |  | --------------- | ------ |  | ------ |  | ------ | -------- |  |  | ------ | - |  |  | ------ | -
|                                                     |  | 2005            |        |  | 2004   | 
|                                                     |  |                 |        |  |        | 
|                                                     |  | Carrying        |        |  | Fair   |  |        | Carrying |  |  | Fair   |  
|                                                     |  | Amount          |        |  | Values |  |        | Amount   |  |  | Values |  
|                                                     |  |                 |        |  |        |  |        |          |  |  |        |  
|                                                     |  | (in  millions) |       
|Financial instruments held for trading               |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|Debt securities(1)                                   |  |                 | 6,264  |  |        |  | 6,264  |          |  |  | 4,542  |   |  |  | 4,542  |  
|Equity shares(1)                                     |  |                 | 23     |  |        |  | 23     |          |  |  | 35     |   |  |  | 35     |  
|Derivative Financial Instruments                     |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|Interest rate contracts                              |  |                 | 393    |  |        |  | 393    |          |  |  | 266    |   |  |  | 266    |  
|Foreign exchange contracts                           |  |                 | 56     |  |        |  | 56     |          |  |  | (17    | ) |  |  | (17    | )
|Non trading financial instruments                    |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|Assets                                               |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|Cash and balances at central banks(1)                |  |                 | 1,600  |  |        |  | 1,600  |          |  |  | 1,397  |   |  |  | 1,397  |  
|Items in course of collection(1)                     |  |                 | 560    |  |        |  | 560    |          |  |  | 584    |   |  |  | 584    |  
|Central government bills and other eligible bills(1) |  |                 | 92     |  |        |  | 92     |          |  |  | 211    |   |  |  | 211    |  
|Loans and advances to banks                          |  |                 | 7,783  |  |        |  | 8,013  |          |  |  | 7,753  |   |  |  | 7,751  |  
|Loans and advances to customers                      |  |                 | 79,917 |  |        |  | 79,950 |          |  |  | 67,629 |   |  |  | 67,483 |  
|Securitisation and loan transfers(1)                 |  |                 | 16     |  |        |  | 16     |          |  |  | 89     |   |  |  | 89     |  
|Debt securities                                      |  |                 | 15,057 |  |        |  | 15,139 |          |  |  | 11,134 |   |  |  | 11,214 |  
|Securitisation                                       |  |                 | 19     |  |        |  | 19     |          |  |  | 19     |   |  |  | 19     |  
|Equity shares                                        |  |                 | 29     |  |        |  | 29     |          |  |  | 29     |   |  |  | 29     |  
|Liabilities                                          |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|Deposits by banks                                    |  |                 | 20,254 |  |        |  | 20,262 |          |  |  | 17,060 |   |  |  | 16,997 |  
|Customer accounts                                    |  |                 | 60,265 |  |        |  | 60,259 |          |  |  | 54,395 |   |  |  | 54,268 |  
|Debt securities in issue                             |  |                 | 20,539 |  |        |  | 20,577 |          |  |  | 12,917 |   |  |  | 12,918 |  
|Items in course of transmission(1)                   |  |                 | 230    |  |        |  | 230    |          |  |  | 230    |   |  |  | 230    |  
|Subordinated liabilities                             |  |                 | 4,086  |  |        |  | 4,434  |          |  |  | 3,682  |   |  |  | 3,975  |  
|Minority interests: non equity                       |  |                 | 73     |  |        |  | 103    |          |  |  | 76     |   |  |  | 138    |  
|Derivative financial instruments                     |  |                 |        |  |        |  |        |          |  |  |        |   |  |  |        |  
|Interest rate contracts                              |  |                 |        |  |        |  | (148   | )        |  |  |        |   |  |  | (194   | )
|Exchange rate contracts                              |  |                 |        |  |        |  | (9     | )        |  |  |        |   |  |  | (43    | )
|Equity and commodity contracts                       |  |                 |        |  |        |  | 79     |          |  |  |        |   |  |  | (90    | )
|Credit contracts                                     |  |                 |        |  |        |  | 1      |          |  |  |        |   |  |  |       |  






|    |                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.



F-71



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                      
|-- | -----------------------------------------------------
|38 | FAIR VALUES OF FINANCIAL
    INSTRUMENTS  (continued)









|   |                            
|-- | ---------------------------
|1. | Loans and Advances to Banks





|   |                                
|-- | -------------------------------
|2. | Loans and Advances to Customers











|   |                                  
|-- | ---------------------------------
|3. | Debt Securities and Equity Shares



F-72



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                      
|-- | -----------------------------------------------------
|38 | FAIR VALUES OF FINANCIAL
    INSTRUMENTS  (continued)





|   |                  
|-- | -----------------
|4. | Deposits by Banks





|   |                  
|-- | -----------------
|5. | Customer Accounts





|   |                         
|-- | ------------------------
|6. | Debt Securities in issue





|   |                         
|-- | ------------------------
|7. | Subordinated Liabilities





|   |                                                  
|-- | -------------------------------------------------
|8. | Financial Instruments with Off-Balance Sheet Risk





|   |                                      
|-- | -------------------------------------
|9. | Life Assurance Assets and Liabilities



F-73



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                       
|-- | --------------------------------------
|39 | CONTINGENT LIABILITIES AND COMMITMENTS



|                                                                                                  |  |                 |        |      |                 |  |       |          |      |  |          |  |  |  |       | 
|------------------------------------------------------------------------------------------------- |  | --------------- | ------ | ---- | --------------- |  | ----- | -------- | ---- |  | -------- |  |  |  | ----- | 
|                                                                                                  |  | 2005            |        |      | 2004            | 
|                                                                                                  |  |                 |        |      |                 | 
|                                                                                                  |  |                 |        | Risk |                 |  |       |          | Risk | 
|                                                                                                  |  | Contract        |        |      | Weighted        |  |       | Contract |      |  | Weighted | 
|                                                                                                  |  | Amount          |        |      | Amount          |  |       | Amount   |      |  | Amount   | 
|                                                                                                  |  |                 |        |      |                 |  |       |          |      |  |          | 
|                                                                                                  |  | (in  millions) |        |      | (in  millions) | 
|Contingent Liabilities                                                                            |  |                 |        |      |                 |  |       |          |      |  |          |  |  |  |       | 
|Acceptances and endorsements                                                                      |  |                 | 34     |      |                 |  | 17    |          |      |  | 33       |  |  |  | 18    | 
|Guarantees and assets pledged as collateral security                                              |  |                 |        |      |                 |  |       |          |      |  |          |  |  |  |       | 
| Assets pledged                                                                                  |  |                 |       |      |                 |  |      |          |      |  |         |  |  |  |      | 
| Guarantees and irrevocable letters of credit                                                    |  |                 | 1,268  |      |                 |  | 1,222 |          |      |  | 1,291    |  |  |  | 1,236 | 
|Other contingent liabilities                                                                      |  |                 | 643    |      |                 |  | 302   |          |      |  | 494      |  |  |  | 223   | 
|                                                                                                  |  |                 |        |      |                 |  |       |          |      |  |          | 
|                                                                                                  |  |                 | 1,945  |      |                 |  | 1,541 |          |      |  | 1,818    |  |  |  | 1,477 | 
|                                                                                                  |  |                 |        |      |                 |  |       |          |      |  |          | 
|Commitments                                                                                       |  |                 |        |      |                 |  |       |          |      |  |          |  |  |  |       | 
|Sale and option to resell transactions                                                            |  |                 |       |      |                 |  |      |          |      |  |         |  |  |  |      | 
|Other commitments                                                                                 |  |                 |        |      |                 |  |       |          |      |  |          |  |  |  |       | 
| Documentary credits and short-term trade-related
    transactions                               |  |                 | 62     |      |                 |  | 18    |          |      |  | 75       |  |  |  | 18    | 
| Forward asset purchases, forward deposits placed and
    forward sale and repurchase agreements |  |                 |       |      |                 |  |      |          |      |  |         |  |  |  |      | 
| Undrawn note issuance and revolving underwriting
    facilities                                 |  |                 | 498    |      |                 |  |      |          |      |  | 622      |  |  |  | 10    | 
| Undrawn formal standby facilities, credit lines and
    other commitments to lend               |  |                 |        |      |                 |  |       |          |      |  |          |  |  |  |       | 
| irrevocable with original maturity of over
    1 year                                           |  |                 | 7,367  |      |                 |  | 3,425 |          |      |  | 5,416    |  |  |  | 2,489 | 
| revocable or irrevocable with original maturity of
    1 year or less (ii)                      |  |                 | 21,369 |      |                 |  |      |          |      |  | 19,122   |  |  |  |      | 
|                                                                                                  |  |                 |        |      |                 |  |       |          |      |  |          | 
|                                                                                                  |  |                 | 29,296 |      |                 |  | 3,443 |          |      |  | 25,235   |  |  |  | 2,517 | 
|                                                                                                  |  |                 |        |      |                 |  |       |          |      |  |          | 








|     |                                                                                                                                                                                               
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 cancellable
    at any time or which have a maturity of less than one year have
    a risk weighting of zero.                              



|   |        
|-- | -------
|40 | GENERAL



| |     |                                                                                                                                                                                                                                                                                   
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Bank has given letters of credit 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.

F-74



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                     
|-- | --------------------
|40 | GENERAL  (continued)



| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (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 Unit Trust Managers 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, First Rate Enterprises Limited,
    Florenville Limited, IBI Corporate Finance Limited, J & E
    Davy, J & E Davy Holdings Limited, Bank of Ireland Insurance
    Services Limited, Bushfield Leasing Limited, Clonvern Limited,
    Davy Securities Limited, Edendork Leasing Limited, Focus
    Investments Limited, Glenswilly Leasing Limited, Nerling
    Limited, Nestland Limited, Premier  Direct Management
    Limited, Premier  Direct Insurance Services Limited
    and Tustin Limited.
|
| | (c) | There exists a contingent liability to repay in whole or in part
    grants received on finance leases if certain events set out in
    the relevant agreements occur.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  



|   |                       
|-- | ----------------------
|41 | DIRECTORS INFORMATION





Directors Remuneration policy








The reward package for executive Directors and senior
management






| |   |                                                                                                                                                                        
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.

F-75



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Performance-related bonus scheme The level
    earned by each executive Director is a function of the
    Remuneration Committees assessment of that Directors
    performance against pre-determined goals, required leadership
    behaviours and the overall performance of the Group in any year
    in absolute terms. The maximum bonus potential of executive
    Directors and Group Executive Committee members is currently
    100% of salary.                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Long Term Incentive Plan In 2004 the Group
    established a Long Term Incentive Plan (LTIP), with
    stockholder approval, for key senior executives who are best
    placed to maximise stockholder value. This replaced the Long
    Term Performance Stock Plan (LTPSP), which had been
    introduced in 1999. Under this Plan, and its predecessor, the
    LTPSP, which is described in more detail in Note 33 on
    page F-51, conditional awards have been made to the
    executive Directors as set out in the table on page F-80.                                                                                                                                                                                                                                                           
|
| |  | Stock options In 2004, the Group established
    the Executive Stock Option Scheme, with stockholder approval.
    This replaced the previous Executive Stock Option Scheme
    introduced in 1996. 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 encourage identification
    with the interests of stockholders in general. The exercise of
    all options granted since 2004 is conditional upon alternative
    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 33).
|
| |  | 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 33). Executive Directors
    participate on the same basis as staff generally.                                                                                                                                                                                                                                                                                                              
|
| |  | Sharesave In 1999 the Group established a
    Sharesave Scheme (SAYE scheme). Under this scheme
    the executive Directors who participated in the scheme were
    granted options over units of Ordinary Stock as set out in the
    table on page F-79. (see Note 33). Under the scheme, first
    offered in 2000, participants could save for three, five or
    seven years. The three year scheme matured in May 2003. A
    further offer under the scheme was made in December 2003. Under
    the 2003 offer, participants could save for three or five years.
    It is the Groups practice to consider further offers under
    the scheme from time to time.                                                                                                                                  
|
| |  | Pensions The executive Directors are members
    of the Bank Staff Pension Plan and have a normal retirement age
    of 60. This pension plan is contributory at the rate of 2.5% of
    salary and is a defined benefit plan based on an accrual rate of
    1/60th
    of pensionable salary for each year of pensionable service with
    a maximum of
    40/60ths
    payable at age 60. Of the executive Directors total
    remuneration package, only their salary is pensionable.                                                                                                                                                                                                                                                                                                                   

Service contracts


 


F-76



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)

Directors remuneration 2004/2005 (all figures in
000s)


|                                                        |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  |       |       |  |  |       |       | 
|------------------------------------------------------- | ------ | ------ | --- | ----- | ---- |  | ----- | ---- |  | ----- | ----- | -- | ----- | ------ | --- | ----- | -------- | ------- | -- | --------- | ----- |  | --------- | ----- |  | --------- | --- | --- |  |  | ----- | ----- |  |  | ----- | ----- | 
|                                                        |        |        |     | Court |      |  | Other |      |  | Perf. |       |    | Other |        |     |       |          | Pension |    |           | Total |  |           | Total | 
|                                                        |        | Salary |     |       | fees |  |       | fees |  |       | bonus |    |       | remun. |     |       | Benefits |         |    | contribs. |       |  | remun.    |       |  | remun.    |    
|                                                        |        | (1)    |     |       | (2)  |  |       | (3)  |  |       | (4)   |    |       | (5)    |     |       | (6)      |         |    | (7)       |       |  | 2004/2005 |       |  | 2003/2004 |    
|                                                        |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |    
|Governor                                                |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  |       |       |  |  |       |      
|L G Crowley                                             |        |        | 383 |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           | 36  |     |  |  | 419   |       |  |  | 328   |      
|Deputy Governor                                         |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  |       |       |  |  |       |      
|R Burrows                                               |        |        | 148 |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 148   |       |  |  | 90    |      
|Executive Directors                                     |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  |       |       |  |  |       |      
|B J Goggin*                                             |        |        | 911 |       |      |  |       |      |  |       |       |    |       |        | 800 |       |          |         | 21 |           |       |  | 33        |       |  |           | 154 |     |  |  | 1,919 |       |  |  | 1,115 |      
|J ODonovan                                             |        |        | 420 |       |      |  |       |      |  |       |       |    |       |        | 303 |       |          |         | 25 |           |       |  | 28        |       |  |           | 71  |     |  |  | 847   |       |  |  | 714   |      
|M D Soden (to 29.05.2004)                               |        |        | 167 |       |      |  |       |      |  |       |       |    |       |        | 50  |       |          |         | 19 |           |       |  | 5         |       |  |           | 28  |     |  |  | 269   |       |  |  | 1,594 |      
|Non-Executive Directors                                 |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  |       |       |  |  |       |      
|R E Bailie                                              |        |        |     |       |      |  | 77    |      |  |       | 30    |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 107   |       |  |  | 69    |      
|D J Dilger                                              |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 43    |      
|D J Geaney                                              |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 60    |      
|P Haran (from 13.01.2005)                               |        |        |     |       |      |  | 17    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 17    |       |  |  | 0     |      
|M A Keane (to 28.02.2005)                               |        |        |     |       |      |  | 70    |      |  |       | 44    |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 114   |       |  |  | 100   |      
|R MacSharry                                             |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 60    |      
|D McCourt (from 06.04.2004)                             |        |        |     |       |      |  | 76    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 76    |       |  |  | 0     |      
|G M Magan                                               |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 43    |      
|C A Marland                                             |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 60    |      
|T Moran                                                 |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 60    |      
|T Neill (from 06.04.2004)                               |        |        |     |       |      |  | 76    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 76    |       |  |  | 0     |      
|D OBrien                                               |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 60    |      
|M Redmond                                               |        |        |     |       |      |  | 77    |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 77    |       |  |  | 60    |      
|                                                        |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |    
|                                                        | Totals |        |     | 2,029 |      |  |       | 932  |  |       |       | 74 |       |        |     | 1,153 |          |         |    | 65        |       |  |           | 66    |  |           |     | 289 |  |  |       | 4,608 |  |  |       | 4,456 | 
|                                                        |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |    
|Ex gratia payments paid to former Directors/ Dependants |        |        |     |       |      |  |       |      |  |       |       |    |       |        |     |       |          |         |    |           |       |  |           |       |  |           |     |     |  |  | 545   |       |  |  | 541   |      








|    |                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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.                                                                                                                                                              
|   
|(2) | Court fees are paid only to non-executive Directors and are
    subject to review annually at June each year.                                                                                                                                                                                                               
|   
|(3) | Includes fees paid by boards of subsidiary companies within the
    Group and an additional payment of 40% of the standard fee to
    the Chairman of the Group Audit Committee to cover the
    additional workload involved in this Committee.                                                                            
|   
|(4) | Payments under the performance bonus scheme are linked to
    individual performance and overall Group performance versus
    targets over the financial year.                                                                                                                                                              
|   
|(5) | Includes the cash value of Ordinary Stock receivable under the
    Employee Stock Issue Scheme.                                                                                                                                                                                                                             
|   
|(6) | Benefits include car allowance and interest on any loans at
    staff rates.                                                                                                                                                                                                                                                
|   
|(7) | Contributions to defined benefit pension schemes. The fees paid
    or payable to non-executive Directors appointed post April 1991
    are not pensionable. As the Governor was appointed a Director
    pre April 1991, an element of his salary, equivalent to the
    standard directors fee, is treated as pensionable.
|   
|(8) | Mike Hodgkinson receives no emoluments from the Bank of Ireland
    Group in line with the agreement with Post Office Ltd. B J
    Goggin who sits on the Board of the Post Office Ltd. also
    receives no emoluments from that Board.                                                                                    

F-77



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                                                                                                                                                                                                                                                                             
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|41 | DIRECTORS INFORMATION  (continued)                                                                                                                                                                                                                                                                         
|  
|  
|  
|*  | Prior to his appointment as Group Chief Executive, Brian Goggin,
    while Chief Executive Asset Management Services Division,
    participated in that Divisions Deferred Cash Incentive
    Scheme and a Long Term Incentive Programme, in lieu of the Bank
    of Ireland Groups Executive Stock Plans.









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



|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |         | 
|------------ |  | ----------- |  | ------------- |  | ----------- |  | -------- | ----- | ------------ | ----------- |  | ------- | ---------- |  |  | --------- |  |  | -------- | ------ |  | ----- |  | ----- |  |  |  | ------- | 
|             |  |             |  |               |  |             |  |          |       | Options at 1 |             |  |         |            |  |  |           |  | 
|             |  |             |  |               |  |             |  |          |       | April 2004   |             |  |         |            |  |  | Market    |  |  | Options  |       
|             |  |             |  |               |  |             |  |          |       | or date of   |             |  |         |            |  |  | price at  |  |  | at 31    |       
|             |  | Date of     |  | Earliest      |  |             |  | Exercise |       |              | appointment |  |         | Granted in |  |  | Exercised |  |  | exercise |        |  | March | 
|             |  | grant       |  | exercise date |  | Expiry date |  | price    |       |              | if later    |  |         | year       |  |  | in year   |  |  | date     |        |  | 2005  | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|             |  |             |  |               |  |             |  |         |       |              |             |  |         |            |  |  |          |  |  |         
|Directors    |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |         | 
|B J Goggin   |  | Nov 28 1996 |  | Nov 28 1999   |  | Nov 28 2006 |  |          | 3.24  |              |             |  | 80,000  |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  | 80,000  | 
|             |  | 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   |  | Sep 18 2013 |  |          | 10.77 |              |             |  | 50,000  |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  | 50,000  | 
|             |  | Jul 26 2004 |  | Jul 26 2007   |  | Jul 26 2014 |  |          | 10.76 |              |             |  |         |            |  |  | 92,000    |  |  |          |        |  |       |  |       |  |  |  | 92,000  | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|             |  |             |  |               |  |             |  |          |       |              |             |  | 200,000 |            |  |  | 92,000    |  |  |          |        |  |       |  |       |  |  |  | 292,000 | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|J ODonovan  |  | Nov 26 2001 |  | Nov 26 2004   |  | Nov 26 2011 |  |          | 10.54 |              |             |  | 38,000  |            |  |  |           |  |  |          | 13,000 |  |       |  | 12.06 |  |  |  |         | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          | 10,000 |  |       |  | 12.15 |  |  |  | 15,000  | 
|             |  | 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  | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|             |  |             |  |               |  |             |  |          |       |              |             |  | 113,000 |            |  |  | 35,000    |  |  |          | 23,000 |  |       |  |       |  |  |  | 125,000 | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|M D Soden*   |  | Nov 26 2001 |  | Nov 26 2004   |  | Nov 26 2011 |  |          | 10.54 |              |             |  | 181,000 |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |        | 
|             |  | Jun 24 2002 |  | Jun 24 2005   |  | Jun 24 2012 |  |          | 12.50 |              |             |  | 80,000  |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |        | 
|             |  | Jun 18 2003 |  | Jun 18 2006   |  | Jun 18 2013 |  |          | 10.77 |              |             |  | 200,000 |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |        | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|             |  |             |  |               |  |             |  |          |       |              |             |  | 461,000 |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |        | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|Secretary    |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  |         | 
|J B Clifford |  | Jun 05 1996 |  | Jun 05 1999   |  | Jun 05 2006 |  |          | 2.82  |              |             |  | 60,000  |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  | 60,000  | 
|             |  | May 25 2000 |  | May 25 2003   |  | May 25 2010 |  |          | 6.96  |              |             |  | 15,000  |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  | 15,000  | 
|             |  | Jun 24 2002 |  | Jun 24 2005   |  | Jun 24 2012 |  |          | 12.50 |              |             |  | 10,000  |            |  |  |           |  |  |          |        |  |       |  |       |  |  |  | 10,000  | 
|             |  | 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  | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 
|             |  |             |  |               |  |             |  |          |       |              |             |  | 105,000 |            |  |  | 21,500    |  |  |          |        |  |       |  |       |  |  |  | 126,500 | 
|             |  |             |  |               |  |             |  |          |       |              |             |  |         |            |  |  |           |  |  |          |        |  |       | 






|  |                          
|- | -------------------------
|* | These options have lapsed

F-78



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)







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




|             |  |                      |       |  |              |  |       |           |  |  |          |              |  |            |                |  |                 |  |        |  |  |  |       | 
|------------ |  | -------------------- | ----- |  | ------------ |  | ----- | --------- |  |  | -------- | ------------ |  | ---------- | -------------- |  | --------------- |  | ------ |  |  |  | ----- | 
|             |  | 2000 Sharesave       |       |  | Market value |  |       |           |  |  |          | Market value |  |            | 2000 Sharesave | 
|             |  | options granted      |       |  | at date of   |  |       | Options   |  |  | Date of  |              |  | at date of |                |  | options held at | 
|Name         |  | at February 28, 2000 |       |  | Grant        |  |       | Exercised |  |  | Exercise |              |  | exercise   |                |  | March 31, 2005  | 
|             |  |                      |       |  |              |  |       |           |  |  |          |              |  |            |                |  |                 | 
|Directors:   |  |                      |       |  |              |  |       |           |  |  |          |              |  |            |                |  |                 |  |        |  |  |  |       | 
|B J Goggin   |  |                      | 4,261 |  |              |  | 6.07 |           |  |  |          |              |  |            |                |  |                 |  |        |  |  |  | 4,261 | 
|Secretary:   |  |                      |       |  |              |  |       |           |  |  |          |              |  |            |                |  |                 |  |        |  |  |  |       | 
|J B Clifford |  |                      | 2,233 |  |              |  | 6.07 |           |  |  | 2,233    |              |  |            | 4th June 03    |  |                 |  | 11.20 |  |  |  |      | 



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

 


|                        |  |                    |       |  |              |   |       |                 |  |  |       | 
|----------------------- |  | ------------------ | ----- |  | ------------ | - | ----- | --------------- |  |  | ----- | 
|                        |  | 2003 Sharesave     |       |  | Market value |   |       | 2003 Sharesave  | 
|                        |  | options granted at |       |  | at date of   |   |       | options held at | 
|Name                    |  | December 15, 2003  |       |  | Grant        |   |       | March 31, 2005  | 
|                        |  |                    |       |  |              |   |       |                 | 
|Directors:              |  |                    |       |  |              |   |       |                 |  |  |       | 
|J ODonovan             |  |                    | 2,653 |  |              |  | 10.60 |                 |  |  | 2,653 | 
|M D Soden (to 29.05.04) |  |                    | 1,522 |  |              |  | 10.60 |                 |  |  |      | 
|Secretary:              |  |                    |       |  |              |   |       |                 |  |  |       | 
|J B Clifford            |  |                    | 1,522 |  |              |  | 10.60 |                 |  |  | 1,522 | 

F-79



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)



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



|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |         |  |  |  |            |  |  |  |            | 
|------------ |  | ------- | ---------- | ------------- | ------------ |  | ------------- | ---------- |  | ------ | ------- |  |  | ----------- | --------- |  | ----------- |  | ------ | ------------- |  |  | -------- |  |  | -------- | ------- |  |  |  | ---------- |  |  |  | ---------- | 
|             |  |         |            | No. of shares |              |  |               |            |  |        |         |  |  |             | Potential |  |             |  |        |              
|             |  |         |            | conditionally |              |  | Conditionally |            |  | Vested |         |  |  |             |           |  | interest in |  |        | Original      |  |  |         
|             |  | Date of |            |               | held at      |  |               | awarded in |  |        | in the  |  |  | Retained in |           |  | Lapsed in   |  |        | shares at     |  |  | Maturity |  |  | Maturity |        
|             |  | Award   |            |               | 1 April 2004 |  |               | the year*  |  |        | year**  |  |  | Scheme***   |           |  | the year    |  |        | 31 March 2005 |  |  | Date     |  |  | Date     |        
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|Directors    |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |         |  |  |  |            |  |  |  |            | 
|B J Goggin   |  |         | July 13 99 |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  | 9,221  |               |  |  |          |  |  |          | 11,526  |  |  |  | 13 July 02 |  |  |  | 13 July 09 | 
|             |  |         | May 25 00  |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  | 13,541 |               |  |  |          |  |  |          | 16,249  |  |  |  | 25 May 03  |  |  |  | 25 May 05  | 
|             |  |         | May 21 01  |               |              |  | 10,811        |            |  |        |         |  |  |             | 8,649     |  |             |  | 8,649  |               |  |  | 2,162    |  |  |          | 10,379  |  |  |  | 21 May 04  |  |  |  | 21 May 06  | 
|             |  |         | June 24 02 |               |              |  | 13,763        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 13,763  |  |  |  | 24 June 05 |  |  |  |            | 
|             |  |         | July 26 04 |               |              |  |               |            |  |        | 139,000 |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 139,000 |  |  |  | 26 July 07 |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|             |  |         |            |               |              |  | 24,574        |            |  |        | 139,000 |  |  |             | 8,649     |  |             |  | 31,411 |               |  |  | 2,162    |  |  |          | 190,917 |  |  |  |            |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|J ODonovan  |  |         | June 24 02 |               |              |  | 10,055        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 10,055  |  |  |  | 24 June 05 |  |  |  |            | 
|             |  |         | June 18 03 |               |              |  | 14,058        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 14,058  |  |  |  | 18 June 06 |  |  |  |            | 
|             |  |         | July 26 04 |               |              |  |               |            |  |        | 35,000  |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 35,000  |  |  |  | 26 July 07 |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|             |  |         |            |               |              |  | 24,113        |            |  |        | 35,000  |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 59,113  |  |  |  |            |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|M D Soden    |  |         | Nov 26 01  |               |              |  | 23,756        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  | 23,756   |  |  |          |        |  |  |  | 26 Nov 04  |  |  |  |            | 
|             |  |         | June 24 02 |               |              |  | 25,137        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  | 25,137   |  |  |          |        |  |  |  | 24 June 05 |  |  |  |            | 
|             |  |         | June 18 03 |               |              |  | 33,739        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  | 33,739   |  |  |          |        |  |  |  | 18 June 03 |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|             |  |         |            |               |              |  | 82,632        |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  | 82,632   |  |  |          |        |  |  |  |            |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|Secretary    |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |         |  |  |  |            |  |  |  |            | 
|J B Clifford |  |         | July 13 99 |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  | 7,648  |               |  |  |          |  |  |          | 9,560   |  |  |  | 13 July 02 |  |  |  | 13 July 09 | 
|             |  |         | May 25 00  |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  | 10,226 |               |  |  |          |  |  |          | 12,271  |  |  |  | 25 May 03  |  |  |  | 25 May 05  | 
|             |  |         | May 21 01  |               |              |  | 6,004         |            |  |        |         |  |  |             | 4,803     |  |             |  | 4,803  |               |  |  | 1,201    |  |  |          | 5,764   |  |  |  | 21 May 04  |  |  |  | 21 May 06  | 
|             |  |         | June 24 02 |               |              |  | 5,703         |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 5,703   |  |  |  | 24 June 05 |  |  |  |            | 
|             |  |         | June 18 03 |               |              |  | 8,330         |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 8,330   |  |  |  | 18 June 06 |  |  |  |            | 
|             |  |         | July 26 04 |               |              |  |               |            |  |        | 15,000  |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          | 15,000  |  |  |  | 26 July 07 |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        
|             |  |         |            |               |              |  | 20,037        |            |  |        | 15,000  |  |  |             | 4,803     |  |             |  | 22,677 |               |  |  | 1,201    |  |  |          | 56,628  |  |  |  |            |  |  |  |            | 
|             |  |         |            |               |              |  |               |            |  |        |         |  |  |             |           |  |             |  |        |               |  |  |          |  |  |          |        






|    |                                                                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|*   | Market price at date of award
    10.76                                                                                                                                                                                                                                                                           
|   
|**  | Market price at date of vesting
    9.80                                                                                                                                                                                                                                                                          
|   
|*** | 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-80



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)

Changes in the directorate during the period


|                                           |  |                     |             |                             |  |  |              |  |  |  |                   |  |  |  |              | 
|------------------------------------------ |  | ------------------- | ----------- | --------------------------- |  |  | ------------ |  |  |  | ----------------- |  |  |  | ------------ | 
|                                           |  | Executive Directors |             |                             |  |  |             
|                                           |  |                     |             |                             |  |  |             
|                                           |  |                     |             | Non-executive Directors and | 
|                                           |  |                     |             | Officers                    | 
|                                           |  |                     |             |                             | 
|Number at March 31, 2004                   |  | 3                   |             | 12                         
|Changes during year                        |  |                     | - M D Soden |                             |  |  | (05/29/2004) |  |  |  | + Declan McCourt  |  |  |  | (04/06/2004) | 
|                                           |  |                     |             |                             |  |  |              |  |  |  | + Terry Neill     |  |  |  | (04/06/2004) | 
|                                           |  |                     |             |                             |  |  |              |  |  |  | + Mike Hodgkinson |  |  |  | (05/11/2004) | 
|                                           |  |                     |             |                             |  |  |              |  |  |  | + Paul Haran      |  |  |  | (01/13/2005) | 
|                                           |  |                     |             |                             |  |  |              |  |  |  | - Maurice Keane   |  |  |  | (02/28/2005) | 
|Number at March 31, 2005                   |  | 2                   |             | 15                         
|Average number during 2004/2005(2003/2004) |  | 2.2 (3)             |             | 15.1 (11.5)                

Directors pension entitlements




|                        |  |                    |       |  |                |     |       |                 |  |  |       | 
|----------------------- |  | ------------------ | ----- |  | -------------- | --- | ----- | --------------- |  |  | ----- | 
|                        |  |                    |       |  |                | (c) |      
|                        |  | (a)                |       |  | (b)            |     |       | Accrued pension | 
|                        |  | Additional pension |       |  | Increase in    |     |       | entitlement at  | 
|                        |  | earned in the year |       |  | transfer value |     |       | March 31, 2005  | 
|                        |  |                    |       |  |                |     |       |                 | 
|                        |  | 000               |       |  | 000           |     |       | 000            | 
|Executive Directors     |  |                    |       |  |                |     |       |                 |  |  |       | 
|B J Goggin              |  |                    | 297.5 |  |                |     | 4,680 |                 |  |  | 588.9 | 
|J ODonovan             |  |                    | 24.7  |  |                |     | 380   |                 |  |  | 153.5 | 
|M D Soden (to 05.29.04) |  |                    | 40.8  |  |                |     | 796   |                 |  |  | 132.4 | 
|Non-executive Officer   |  |                    |       |  |                |     |       |                 |  |  |       | 
|L G Crowley             |  |                    | 6.7   |  |                |     | 117   |                 |  |  | 32.7  | 












F-81



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)

Directors interests in stock




|                |  |                                  |         |  |                        |  |         | 
|--------------- |  | -------------------------------- | ------- |  | ---------------------- |  | ------- | 
|                |  | UNITS OF 0.64 OF ORDINARY STOCK |        
|                |  |                                  |        
|                |  | As at March 31, 2005             |         |  | As at April 1, 2004(1) | 
|                |  | Beneficial                       |         |  | Beneficial             | 
|                |  |                                  |         |  |                        | 
|DIRECTORS       |  |                                  |         |  |                        |  |         | 
|R E Bailie      |  |                                  | 3,808   |  |                        |  | 3,352   | 
|R Burrows       |  |                                  | 46,590  |  |                        |  | 45,981  | 
|L G Crowley     |  |                                  | 38,640  |  |                        |  | 31,881  | 
|D J Dilger      |  |                                  | 2,523   |  |                        |  | 2,190   | 
|D J Geaney      |  |                                  | 18,068  |  |                        |  | 7,734   | 
|B J Goggin      |  |                                  | 334,126 |  |                        |  | 322,784 | 
|P M Haran       |  |                                  | 2,000   |  |                        |  | 2,000   | 
|Mike Hodgkinson |  |                                  | 2,000   |  |                        |  | 2,000   | 
|R MacSharry     |  |                                  | 1,954   |  |                        |  | 1,620   | 
|J D McCourt     |  |                                  | 5,200   |  |                        |  | 5,000   | 
|G.M. Magan      |  |                                  | 1,423   |  |                        |  | 1,090   | 
|C A Marland     |  |                                  | 1,705   |  |                        |  | 1,371   | 
|T J Moran       |  |                                  | 1,720   |  |                        |  | 1,386   | 
|T V Neill       |  |                                  | 83,826  |  |                        |  | 34,126  | 
|D OBrien       |  |                                  | 301,705 |  |                        |  | 301,371 | 
|J ODonovan     |  |                                  | 53,363  |  |                        |  | 27,207  | 
|M P Redmond     |  |                                  | 2,877   |  |                        |  | 2,543   | 
|SECRETARY       |  |                                  |         |  |                        |  |         | 
|J B Clifford    |  |                                  | 58,684  |  |                        |  | 51,450  | 






|    |                                    
|--- | -----------------------------------
|(1) | or at date of appointment if later.





F-82



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                    
|-- | -----------------------------------
|41 | DIRECTORS INFORMATION  (continued)

Transactions with Directors




|                                                             |  |                  |            |  |           |  |            |      |  |  |      |  |  |  |      | 
|------------------------------------------------------------ |  | ---------------- | ---------- |  | --------- |  | ---------- | ---- |  |  | ---- |  |  |  | ---- | 
|                                                             |  | Aggregate amount |            |  | Number of | 
|                                                             |  | Outstanding      |            |  | persons   | 
|                                                             |  |                  |            |  |           | 
|                                                             |  | 2005             |            |  | 2004      |  |            | 2005 |  |  | 2004 | 
|                                                             |  |                  |            |  |           |  |            |      |  |  |      | 
|                                                             |  |                 |            |  |          |  |            |      |  | 
|Directors                                                    |  |                  |            |  |           |  |            |      |  |  |      |  |  |  |      | 
|Loans to executive Directors on terms similar to staff loans |  |                  | 210,007    |  |           |  | 209,855    |      |  |  | 1    |  |  |  | 1    | 
|Other loans on normal commercial terms                       |  |                  | 25,040,420 |  |           |  | 24,417,939 |      |  |  | 12   |  |  |  | 9    | 
|Quasi-loans and credit transactions                          |  |                  |           |  |           |  |           |      |  |  | None |  |  |  | None | 
|                                                             |  |                  |            |  |           |  |            |      |  |  |      | 
|                                                             |  |                  | 25,250,427 |  |           |  | 24,627,794 |      |  |  |      |  |  |  |      | 
|                                                             |  |                  |            |  |           |  |            |      |  |  |      | 
|Connected Persons                                            |  |                  |            |  |           |  |            |      |  |  |      |  |  |  |      | 
|Loans to connected persons                                   |  |                  | 3,940      |  |           |  | 6,577      |      |  |  | 1    |  |  |  | 1    | 
|Quasi-loans and credit transactions                          |  |                  |           |  |           |  |           |      |  |  | None |  |  |  | None | 
|                                                             |  |                  |            |  |           |  |            |      |  |  |      | 
|                                                             |  |                  | 3,940      |  |           |  | 6,577      |      |  |  |      |  |  |  |      | 
|                                                             |  |                  |            |  |           |  |            |      |  |  |      | 



|   |                                 
|-- | --------------------------------
|42 | NOTES TO THE CASH FLOW STATEMENT



|    |                
|--- | ---------------
|(i) | Gross Cashflows

|                                                                                  |  |                 |       |   |      |  |       |      |  |  |       |  
|--------------------------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                                                  |  | 2005            |       |   | 2004 |  |       | 2003 | 
|                                                                                  |  |                 |       |   |      |  |       |      | 
|                                                                                  |  | (in  millions) |      
|RECONCILIATION OF OPERATING PROFIT TO NET CASH FLOW FROM
    OPERATING ACTIVITIES |  |                 |       |   |      |  |       |      |  |  |       |  
|Operating Profit                                                                  |  |                 | 1,270 |   |      |  | 1,238 |      |  |  | 1,155 |  
|Net operating exceptional item                                                    |  |                 | 17    |   |      |  |      |      |  |  |      |  
|(Increase)/decrease in accrued income and prepayments                             |  |                 | (188  | ) |      |  | (144  | )    |  |  | 31    |  
|Increase/(decrease) in accruals and deferred income                               |  |                 | 160   |   |      |  | 39    |      |  |  | (87   | )
|Provision for bad and doubtful debts                                              |  |                 | 79    |   |      |  | 86    |      |  |  | 100   |  
|Loans and advances written off net of recoveries                                  |  |                 | (123  | ) |      |  | (101  | )    |  |  | (90   | )
|Depreciation and amortisation                                                     |  |                 | 186   |   |      |  | 183   |      |  |  | 182   |  
|Interest charged on subordinated liabilities                                      |  |                 | 225   |   |      |  | 177   |      |  |  | 156   |  
|Other non-cash movements                                                          |  |                 | 17    |   |      |  | 21    |      |  |  | (2    | )
|Profit on disposal of fixed assets                                                |  |                 | (8    | ) |      |  | (20   | )    |  |  | (37   | )
|Profit on disposal of leases                                                      |  |                 |      |   |      |  |      |      |  |  | (21   | )
|                                                                                  |  |                 |       |   |      |  |       |      | 

F-83



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                              
|-- | ---------------------------------------------
|42 | NOTES TO THE CASH FLOW STATEMENT  (continued)

|                                                                       |  |                 |         |   |      |  |        |      |  |  |        |  
|---------------------------------------------------------------------- |  | --------------- | ------- | - | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                       |  | 2005            |         |   | 2004 |  |        | 2003 | 
|                                                                       |  |                 |         |   |      |  |        |      | 
|                                                                       |  | (in  millions) |        
|Net cash flow from trading activities                                  |  |                 | 1,635   |   |      |  | 1,479  |      |  |  | 1,387  |  
|Net decrease in collections / transmissions                            |  |                 | 19      |   |      |  | 23     |      |  |  | 18     |  
|Net decrease/(increase) in loans and advances to banks                 |  |                 | 824     |   |      |  | (492   | )    |  |  | (257   | )
|Net (increase) in loans and advances to customers                      |  |                 | (13,411 | ) |      |  | (9,425 | )    |  |  | (3,774 | )
|Net increase in deposits by banks                                      |  |                 | 3,231   |   |      |  | 4,405  |      |  |  | 187    |  
|Net increase in customers accounts                                     |  |                 | 6,713   |   |      |  | 5,102  |      |  |  | 60     |  
|Net increase in debt securities in issue                               |  |                 | 7,749   |   |      |  | 3,127  |      |  |  | 3,617  |  
|Net (increase) in non-investment debt and equity securities            |  |                 | (1,594  | ) |      |  | (890   | )    |  |  | (1,192 | )
|Net (increase)/decrease in other assets                                |  |                 | (39     | ) |      |  | 94     |      |  |  | (1,572 | )
|Net increase/(decrease) in other liabilities                           |  |                 | 248     |   |      |  | 177    |      |  |  | 1,934  |  
|Exchange movements                                                     |  |                 | 306     |   |      |  | 64     |      |  |  | 701    |  
|                                                                       |  |                 |         |   |      |  |        |      | 
|NET CASH FLOW FROM OPERATING ACTIVITIES                                |  |                 | 5,681   |   |      |  | 3,664  |      |  |  | 1,109  |  
|                                                                       |  |                 |         |   |      |  |        |      | 
|Returns on investment and servicing of finance                         |  |                 |         |   |      |  |        |      |  |  |        |  
|Interest paid on subordinated liabilities                              |  |                 | (223    | ) |      |  | (161   | )    |  |  | (158   | )
|Preference dividends paid                                              |  |                 | (8      | ) |      |  | (8     | )    |  |  | (9     | )
|Dividends paid to minority shareholders in subsidiary
    undertakings |  |                 | (14     | ) |      |  | (20    | )    |  |  | (9     | )
|Issue expenses on subordinated liabilities                             |  |                 | (13     | ) |      |  | (1     | )    |  |  | (5     | )
|                                                                       |  |                 |         |   |      |  |        |      | 
|                                                                       |  |                 | (258    | ) |      |  | (190   | )    |  |  | (181   | )
|                                                                       |  |                 |         |   |      |  |        |      | 

|                                                                                |  |                 |        |   |      |  |        |      |  |  |        |  
|------------------------------------------------------------------------------- |  | --------------- | ------ | - | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                                |  | 2005            |        |   | 2004 |  |        | 2003 | 
|                                                                                |  |                 |        |   |      |  |        |      | 
|                                                                                |  | (in  millions) |       
|Capital expenditure and financial investment                                    |  |                 |        |   |      |  |        |      |  |  |        |  
|Net (purchases) of investment debt and equity securities                        |  |                 | (4,155 | ) |      |  | (2,734 | )    |  |  | (1,214 | )
|Purchase of tangible fixed assets                                               |  |                 | (187   | ) |      |  | (215   | )    |  |  | (299   | )
|Sale of tangible fixed assets                                                   |  |                 | 55     |   |      |  | 74     |      |  |  | 146    |  
|                                                                                |  |                 |        |   |      |  |        |      | 
|                                                                                |  |                 | (4,287 | ) |      |  | (2,875 | )    |  |  | (1,367 | )
|                                                                                |  |                 |        |   |      |  |        |      | 
|Acquisitions and disposals                                                      |  |                 |        |   |      |  |        |      |  |  |        |  
|Disposal of State Street                                                        |  |                 |       |   |      |  | 36     |      |  |  |       |  
|Acquisition of Foreign Currency Exchange Corp (FCEC)                            |  |                 |       |   |      |  | (11    | )    |  |  |       |  
|Acquisition of Post Office Financial Services net of cash
    balances acquired |  |                 |       |   |      |  | (156   | )    |  |  |       |  
|Payment for use of Post Office brand                                            |  |                 |       |   |      |  | (44    | )    |  |  |       |  
|Acquisition of Focus Investments                                                |  |                 |       |   |      |  | (5     | )    |  |  | (3     | )
|Increase in investments in associated undertakings                              |  |                 | (3     | ) |      |  | (3     | )    |  |  |       |  
|Increase in investment in Iridian                                               |  |                 | (33    | ) |      |  |       |      |  |  | (184   | )
|Net cash balances of Group undertaking acquired                                 |  |                 | 142    |   |      |  | 4      |      |  |  | 10     |  
|Sale of EuroConex Technologies Limited                                          |  |                 | 35     |   |      |  |       |      |  |  | 13     |  
|Sale of UK IFA Balances                                                         |  |                 | 28     |   |      |  |       |      |  |  | (8     | )
|Cash balances of UK IFA businesses disposed                                     |  |                 | (24    | ) |      |  |       |      |  |  |       |  
|Acquisition of Burdale                                                          |  |                 | (72    | ) |      |  |       |      |  |  |       |  
|                                                                                |  |                 |        |   |      |  |        |      | 
|                                                                                |  |                 | 73     |   |      |  | (179   | )    |  |  | (172   | )
|                                                                                |  |                 |        |   |      |  |        |      | 

F-84



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                              
|-- | ---------------------------------------------
|42 | NOTES TO THE CASH FLOW STATEMENT  (continued)

|                                      |  |                 |      |   |      |  |       |      |  |  |      |  
|------------------------------------- |  | --------------- | ---- | - | ---- |  | ----- | ---- |  |  | ---- | -
|                                      |  | 2005            |      |   | 2004 |  |       | 2003 | 
|                                      |  |                 |      |   |      |  |       |      | 
|                                      |  | (in  millions) |     
|Financing                             |  |                 |      |   |      |  |       |      |  |  |      |  
|Reserve of Treasury stock             |  |                 | 7    |   |      |  | 25    |      |  |  | 5    |  
|Repayment of subordinated liabilities |  |                 | (145 | ) |      |  | (289  | )    |  |  | (174 | )
|Issue of subordinated liabilities     |  |                 | 600  |   |      |  | 1,250 |      |  |  | 507  |  
|Ordinary Stock buyback                |  |                 |     |   |      |  | (377  | )    |  |  | (133 | )
|                                      |  |                 |      |   |      |  |       |      | 
|                                      |  |                 | 462  |   |      |  | 609   |      |  |  | 205  |  
|                                      |  |                 |      |   |      |  |       |      | 



|     |                                                                   
|---- | ------------------------------------------------------------------
|(ii) | Analysis of the balances of cash as shown in the Balance
    Sheet

|                          |  |                 |       |           |             |  |       |            |  |  |       |  
|------------------------- |  | --------------- | ----- | --------- | ----------- |  | ----- | ---------- |  |  | ----- | -
|                          |  |                 |       | Loans and |             |  |      
|                          |  | Cash and        |       |           | Advances to |  |       |           
|                          |  | Balances at     |       |           | Banks       |  |       |           
|                          |  | Central         |       |           | Repayable   |  |       |           
|                          |  | Banks           |       |           | on Demand   |  |       | Total Cash | 
|                          |  |                 |       |           |             |  |       |            | 
|                          |  | (in  millions) |      
|2005                      |  |                 |       |           |             |  |       |            |  |  |       |  
|At April 1, 2004          |  |                 | 1,397 |           |             |  | 482   |            |  |  | 1,879 |  
|Cash flow                 |  |                 | 206   |           |             |  | 907   |            |  |  | 1,113 |  
|Foreign exchange movement |  |                 | (3    | )         |             |  | (7    | )          |  |  | (10   | )
|                          |  |                 |       |           |             |  |       |            | 
|At March 31, 2005         |  |                 | 1,600 |           |             |  | 1,382 |            |  |  | 2,982 |  
|                          |  |                 |       |           |             |  |       |            | 
|2004                      |  |                 |       |           |             |  |       |            |  |  |       |  
|At April 1, 2003          |  |                 | 679   |           |             |  | 745   |            |  |  | 1,424 |  
|Cash flow                 |  |                 | 716   |           |             |  | (262  | )          |  |  | 454   |  
|Foreign exchange movement |  |                 | 2     |           |             |  | (1    | )          |  |  | 1     |  
|                          |  |                 |       |           |             |  |       |            | 
|At March 31, 2004         |  |                 | 1,397 |           |             |  | 482   |            |  |  | 1,879 |  
|                          |  |                 |       |           |             |  |       |            | 



|      |                                 
|----- | --------------------------------
|(iii) | Analysis of changes in financing

|                                       |  |                  |       |   |              |  |          |            |  |  |    |  
|-------------------------------------- |  | ---------------- | ----- | - | ------------ |  | -------- | ---------- |  |  | -- | -
|                                       |  | Capital Stock    |       |   |              |  | Minority |           
|                                       |  | (including stock |       |   | Subordinated |  |          | Interest  | 
|                                       |  | premium)         |       |   | Liabilities  |  |          | Non Equity | 
|                                       |  |                  |       |   |              |  |          |            | 
|                                       |  | (in  millions)  |      
|2005                                   |  |                  |       |   |              |  |          |            |  |  |    |  
|At April 1, 2004                       |  |                  | 1,446 |   |              |  | 3,681    |            |  |  | 76 |  
|Effect of foreign exchange differences |  |                  | (2    | ) |              |  | (38      | )          |  |  | (3 | )
|Cash flow                              |  |                  |      |   |              |  | 442      |            |  |  |   |  
|Other non cash movements               |  |                  | (16   | ) |              |  | 1        |            |  |  |   |  
|                                       |  |                  |       |   |              |  |          |            | 
|At March 31, 2005                      |  |                  | 1,428 |   |              |  | 4,086    |            |  |  | 73 |  
|                                       |  |                  |       |   |              |  |          |            | 
|2004                                   |  |                  |       |   |              |  |          |            |  |  |    |  
|At April 1, 2003                       |  |                  | 1,449 |   |              |  | 2,703    |            |  |  | 73 |  
|Effect of foreign exchange differences |  |                  | 2     |   |              |  | 16       |            |  |  | 3  |  
|Cash flow                              |  |                  |      |   |              |  | 961      |            |  |  |   |  
|Other non cash movements               |  |                  | (5    | ) |              |  | 1        |            |  |  |   |  
|                                       |  |                  |       |   |              |  |          |            | 
|At March 31, 2004                      |  |                  | 1,446 |   |              |  | 3,681    |            |  |  | 76 |  
|                                       |  |                  |       |   |              |  |          |            | 

F-85



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                              
|-- | ---------------------------------------------
|42 | NOTES TO THE CASH FLOW STATEMENT  (continued)



|     |                                   
|---- | ----------------------------------
|(iv) | Burdale Financial Holdings Limited

|                       |  |    |    | 
|---------------------- |  | -- | -- | 
|                       |  | m |   
|                       |  |    |   
|Net assets acquired    |  |    | 27 | 
|Goodwill               |  |    | 52 | 
|                       |  |    |   
|At March 31, 2005      |  |    | 79 | 
|                       |  |    |   
|Satisfied by:          |  |    |    | 
|Cash                   |  |    | 72 | 
|Deferred consideration |  |    | 7  | 
|                       |  |    |   
|                       |  |    | 79 | 
|                       |  |    |   






|    |                               
|--- | ------------------------------
|(v) | Post Office Financial Services






|   |                           
|-- | --------------------------
|43 | RELATED PARTY TRANSACTIONS



|    |                                                       
|--- | ------------------------------------------------------
|(a) | Subsidiary, Associated Undertakings and Joint Ventures



 





 




|    |              
|--- | -------------
|(b) | Pension Funds





|    |          
|--- | ---------
|(c) | Directors



F-86



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                        
|-- | ---------------------------------------
|43 | RELATED PARTY TRANSACTIONS  (continued)







 






|    |               
|--- | --------------
|(d) | Securitisation

         




|   |                                                       
|-- | ------------------------------------------------------
|44 | ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCY

|                                          |  |                 |         |  |      |  |         | 
|----------------------------------------- |  | --------------- | ------- |  | ---- |  | ------- | 
|                                          |  | At March 31,    |        
|                                          |  |                 |        
|                                          |  | 2005            |         |  | 2004 | 
|                                          |  |                 |         |  |      | 
|                                          |  | (in  millions) |        
|Denominated in euro                       |  |                 | 64,645  |  |      |  | 52,391  | 
|Denominated in currencies other than euro |  |                 | 61,819  |  |      |  | 54,040  | 
|                                          |  |                 |         |  |      | 
|Total Assets                              |  |                 | 126,464 |  |      |  | 106,431 | 
|                                          |  |                 |         |  |      | 
|Denominated in euro                       |  |                 | 67,093  |  |      |  | 45,399  | 
|Denominated in currencies other than euro |  |                 | 59,371  |  |      |  | 61,032  | 
|                                          |  |                 |         |  |      | 
|Total Liabilities                         |  |                 | 126,464 |  |      |  | 106,431 | 
|                                          |  |                 |         |  |      | 



F-87



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                             
|-- | --------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US INVESTORS

Summary of Significant Differences between Irish and US
Accounting Principles




|                                                                                                                                                                                                                                        |  |                                                                                                                                                                  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                                              |  | US GAAP                                                                                                                                                          
|                                                                                                                                                                                                                                        |  |                                                                                                                                                                  
|                                                                                                                                                                                                                                       
|Property depreciation                                                                                                                                                                                                                   |  |                                                                                                                                                                  
|                                                                                                                                                                                                                                       
|Freehold and long leasehold property is maintained in a state of
    good repair and it is considered that residual values are such
    that depreciation is not significant, accordingly this property
    is not depreciated.         |  | Freehold and long leasehold property is depreciated over 50
    years.                                                                                           
|                                                                                                                                                                                                                                       
|Revaluation of property                                                                                                                                                                                                                 |  |                                                                                                                                                                  
|                                                                                                                                                                                                                                       
|Property is carried either at original cost or at subsequent
    valuation less depreciation calculated on the revalued amount
    where applicable. Revaluation surpluses and deficits are taken
    directly to stockholders equity. |  | Revaluation of property is not permitted in the financial
    statements.                                                                                        
|                                                                                                                                                                                                                                       
|Software development costs                                                                                                                                                                                                              |  |                                                                                                                                                                  
|                                                                                                                                                                                                                                       
|The Group capitalises costs incurred internally in developing
    computer software for internal use. Expenditure is amortised
    over its estimated useful life ranging between 5 and 10 years.                                       |  | AICPA SOP 98-1 requires certain costs incurred in respect of
    software for internal use to be capitalised and subsequently
    amortised over its useful life.

F-88



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | US GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Goodwill arising on acquisition of shares in group and
    associated undertakings, being the excess of cost over fair
    value of the Groups share of the identifiable assets and
    liabilities acquired is capitalised and amortised over its
    estimated useful economic life.
    Goodwill arising on the acquisition of subsidiary undertakings
    prior to March 31, 1998 was written off directly to
    reserves in the year of acquisition.
    Goodwill arising on acquisitions of subsidiary undertakings
    occurring after March 31, 1998 is capitalised as an asset
    on the balance sheet and amortised over its estimated useful
    economic life.
    Goodwill carried in the Group Balance Sheet is subject to
    impairment review when the carrying amount may not be
    recoverable and is written down by the amount of any impairment
    loss identified in the year. |  | 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.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Stock Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Where shares are awarded, or options granted, the charge made to
    the profit and loss account is the difference between the
    intrinsic value at the time the award is made and any
    contribution made by the employee. Where conditional awards are
    dependent on performance criteria, the cost is spread over the
    performance period.
    Under the terms of the Groups Revenue approved Save As You
    Earn (SAYE) schemes, employees have the option to purchase
    shares at a discount to the market price. Under UITF 17,
    such schemes are exempted from the requirements to charge this
    difference to the profit and loss account over the period of
    their savings contract.                                                                                                                                                                                        |  | As permitted by FAS 123, stock based compensation is accounted
    for in accordance with APB 25. Any differences between intrinsic
    value of the shares issued or options granted at the time the
    award is made and any contribution made by the employee is
    charged to the profit and loss account over the period to
    vesting.                                                                                                                       

F-89



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | US GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Profits and losses on disposal are recognised when realised and
    included in dealing profits, except for those securities
    maintained for hedging purposes, which are amortised over the
    lives of the underlying transaction and included in net interest
    income.
    Securities may be classified as (i) investment carried at
    cost, less provision for any diminution in value and
    (ii) other securities, which are stated at fair value,
    except for those securities maintained for the purpose of
    hedging which are accounted for on the same basis as the item
    hedged.
    Changes in the fair value of securities marked to market are
    recognised in the profit and loss account as they arise. |  | Profits and losses on the sale of investments are included in
    operating income in the year in which they arise.
    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.
    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 or 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.
    Securities held to maturity are only those securities for which
    management has both the intent and ability to hold until
    maturity.

F-90



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                                                                                                                                                                                                                |  | US GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|                                                                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Pensions                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|                                                                                                                                                                                                                                                                                                                                                                                                         
|Contributions to the Groups defined benefit schemes are
    charged to the profit and loss account so as to spread the
    expected cost of pensions calculated in accordance with the
    advice of qualified actuaries, on a systematic basis over the
    employees working lives. Variations from the regular cost are
    spread over the average remaining service life of relevant
    employees. |  | The same basic actuarial method is used as under Irish GAAP, but
    under FAS87 certain assumptions differ, assets are assessed at
    fair value and liabilities are assessed at current settlement
    rates. Certain variations from regular cost are allocated in
    equal amounts over the average remaining service lives of
    current employees.
    Recognition of a liability when the accumulated benefit
    obligation exceeds the fair value of assets is also required.
    The pension related elements of voluntary leaving and voluntary
    early retirement programmes are generally expensed in the year
    in which they are awarded.
    The impact of this pronouncement has been included in the GAAP
    reconciliation in respect of the main Bank of Ireland and
    Bristol & West pension plans.

F-91



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                                                                                                                                                                                                               |  | US GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|Long-term assurance policies                                                                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                        
|Income from long term assurance business consists of surpluses
    attributable to stockholders from the long term fund which arise
    in the year plus increases in 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. |  | 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
    US 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.
    In 2005 unrealised gains and losses on properties held to meet
    unit linked policy holder liabilities are not recognised under
    US GAAP in line with SOP 03/01. Such properties are held at
    depreciated historical cost.
|                                                                                                                                                                                                                                                                                                                                                                                                        
|Acceptances                                                                                                                                                                                                                                                                                                                                                                                              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                        
|Acceptances are not recorded on the balance sheet.                                                                                                                                                                                                                                                                                                                                                       |  | Acceptances and related customer liabilities are recorded on the
    balance sheet.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                                                                                                                                                                                                        
|Dividends payable                                                                                                                                                                                                                                                                                                                                                                                        |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|                                                                                                                                                                                                                                                                                                                                                                                                        
|Dividends declared after the period end are recorded in the
    period to which they relate.                                                                                                                                                                                                                                                                                                             |  | Dividends are recorded in the period in which they are declared.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

F-92



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | US GAAP                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Securitisation Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Depending on specified qualifying criteria there are three
    methods of accounting for securitised and loan transfer
    transactions: continued recognition, linked presentation and
    derecognition.
    The linked presentation method is adopted where there is no
    significant change in the Groups rights to benefits and
    the Groups exposure is limited to a fixed monetary
    ceiling. Under this method, only the net amount is consolidated,
    however on the face of the Group balance sheet, the related
    gross amounts are disclosed. |  | 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.
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Finance lease receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Leasing income is recognised in proportion to the funds invested
    in the lease so as to give a constant rate of return over each
    period after taking account of taxation cashflows.                                                                                                                                                                                                                                                                                                                                                                            |  | Gross earnings are allocated to give rise to a level of return
    on the investment without taking account of tax payments and
    receipts.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Derivatives                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Where a derivative is documented and evidenced as reasonably
    expected to match or eliminate risk from a transaction, accrual
    accounting is applied. Profits or losses on the derivative are
    included in the relevant income or expense category in the
    profit and loss account.
    Derivatives which are not accrual accounted are recorded at fair
    value, with the change recorded in the profit and loss account.                                                                                                                              |  | FAS 133 requires all derivatives to be recorded at fair value.
    If certain conditions are met, then the derivative may be
    designated as a hedge. In many cases, Bank of Ireland match
    internal hedges with third party derivatives on an aggregate
    rather than an individual basis which largely offset the overall
    risk to the group. These hedges do not meet the criteria under
    FAS 133 to qualify as fair value, cash flow or foreign exchange
    hedges. For this reason, such contracts are restated at market
    value with changes in the fair value recorded in the income
    statement for the purposes of the US GAAP reconciliation.                                                                                                                                                                                                                                                  

F-93



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


|                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                          
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Irish GAAP                                                                                                                                                                                                       |  | US GAAP                                                                                                                                                                                                                                                                                                                  
|                                                                                                                                                                                                                 |  |                                                                                                                                                                                                                                                                                                                          
|Loan origination fees                                                                                                                                                                                            |  |                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                
|Certain loan fees are recognised when received.                                                                                                                                                                  |  | Loan origination fees net of direct loan origination costs are
    deferred and recognised as an adjustment to the yield on the
    related loan or facility.                                                                                                                                                            
|                                                                                                                                                                                                                
|Restructuring                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                          
|                                                                                                                                                                                                                
|A provision for restructuring costs is recognised in accordance
    with FRS12 when a constructive obligation to transfer economic
    benefit as a result of a past event exists at the balance sheet
    date. |  | 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.

Consolidated Net Income


|                                                                |           |                 |       |       |      |  |     |       |  |  |     |       | 
|--------------------------------------------------------------- | --------- | --------------- | ----- | ----- | ---- |  | --- | ----- |  |  | --- | ----- | 
|                                                                |           | 2005            |       |       | 2004 |  |     | 2003  | 
|                                                                |           |                 |       |       |      |  |     |       | 
|                                                                |           | (in  millions) |      
|Net income under Irish GAAP                                     |           |                 | 1,073 |       |      |  | 935 |       |  |  | 826 |      
|Depreciation                                                    |           |                 | (2    | )     |      |  | (1  | )     |  |  | (2  | )    
|Software development costs                                      |           |                 |      |       |      |  | 4   |       |  |  | 5   |      
|Goodwill                                                        |           |                 | 13    |       |      |  | 12  |       |  |  | 6   |      
|Pension costs                                                   |           |                 | (32   | )     |      |  | (48 | )     |  |  | (44 | )    
|Long-term assurance policies                                    |           |                 | (302  | )     |      |  | (86 | )     |  |  | (39 | )    
|Group Transformation Programme                                  |           |                 |      |       |      |  | (11 | )     |  |  | (23 | )    
|Strategic Transformation Programme                              |           |                 | 117   |       |      |  |    |       |  |  |    |      
|Leasing                                                         |           |                 | 10    |       |      |  | (27 | )     |  |  | (38 | )    
|Stock based compensation                                        |           |                 | (6    | )     |      |  | (3  | )     |  |  | (3  | )    
|Derivatives                                                     |           |                 | (24   | )     |      |  | 97  |       |  |  | 75  |      
|Special purpose entities                                        |           |                 | (55   | )     |      |  |    |       |  |  |    |      
|Other                                                           |           |                 | (15   | )     |      |  | 12  |       |  |  | 1   |      
|Deferred tax effect on these adjustments                        |           |                 | 37    |       |      |  | 8   |       |  |  | 3   |      
|                                                                |           |                 |       |       |      |  |     |       | 
|                                                                |           |                 | 814   |       |      |  | 892 |       |  |  | 767 |      
|                                                                |           |                 |       |       |      |  |     |       | 
|Net income under US GAAP                                        |           |                 |       |       |      |  |     |       |  |  |     |      
|Earnings per unit of
    0.64 Ordinary
    Stock under US GAAP |           |                 |       |       |      |  |     |       |  |  |     |      
|                                                                |  basic   |                 |       | 86.4c |      |  |     | 92.8c |  |  |     | 77.4c | 
|                                                                |           |                 |       |       |      |  |     |       | 
|                                                                |  diluted |                 |       | 85.7c |      |  |     | 92.2c |  |  |     | 76.7c | 
|                                                                |           |                 |       |       |      |  |     |       | 

F-94



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


Consolidated Total Stockholders Funds


|                                                                                  |  |                 |       |   |      |  |       |  
|--------------------------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | -
|                                                                                  |  | 2005            |       |   | 2004 | 
|                                                                                  |  |                 |       |   |      | 
|                                                                                  |  | (in  millions) |      
|Total stockholders funds including non equity interest
    under Irish GAAP      |  |                 | 4,789 |   |      |  | 4,281 |  
|Property less related depreciation                                                |  |                 | (383  | ) |      |  | (382  | )
|Goodwill                                                                          |  |                 | 448   |   |      |  | 445   |  
|Debt securities  available for sale                                              |  |                 | 85    |   |      |  | 104   |  
|Pension costs                                                                     |  |                 | (88   | ) |      |  | (20   | )
|Long-term assurance policies                                                      |  |                 | (716  | ) |      |  | (415  | )
|Dividends                                                                         |  |                 | 282   |   |      |  | 257   |  
|Leasing                                                                           |  |                 | (62   | ) |      |  | (72   | )
|Strategic Transformation Programme                                                |  |                 | 117   |   |      |  |      |  
|Derivatives                                                                       |  |                 | 75    |   |      |  | 99    |  
|Special purpose entities                                                          |  |                 | (55   | ) |      |  |      |  
|Other                                                                             |  |                 | (28   | ) |      |  | (7    | )
|Deferred taxation on these adjustments                                            |  |                 | 67    |   |      |  | 28    |  
|                                                                                  |  |                 |       |   |      | 
|Consolidated stockholders funds including non equity
    interests under US GAAP |  |                 | 4,531 |   |      |  | 4,318 |  
|                                                                                  |  |                 |       |   |      | 

Consolidated Total Assets


|                                     |  |                 |         |   |      |  |         |  
|------------------------------------ |  | --------------- | ------- | - | ---- |  | ------- | -
|                                     |  | 2005            |         |   | 2004 | 
|                                     |  |                 |         |   |      | 
|                                     |  | (in  millions) |        
|Total assets under Irish GAAP        |  |                 | 126,464 |   |      |  | 106,431 |  
|Property less related depreciation   |  |                 | (383    | ) |      |  | (382    | )
|Goodwill                             |  |                 | 467     |   |      |  | 473     |  
|Debt securities  available for sale |  |                 | 85      |   |      |  | 104     |  
|Pension costs                        |  |                 | (83     | ) |      |  | (15     | )
|Acceptances                          |  |                 | 34      |   |      |  | 33      |  
|Long-term assurance policies         |  |                 | (716    | ) |      |  | (415    | )
|Special purpose entities             |  |                 | 1,129   |   |      |  | 1,389   |  
|Leasing                              |  |                 | (62     | ) |      |  | (72     | )
|Derivatives                          |  |                 | 680     |   |      |  | 883     |  
|Other                                |  |                 | (68     | ) |      |  | (80     | )
|                                     |  |                 |         |   |      | 
|Total assets under US GAAP           |  |                 | 127,547 |   |      |  | 108,349 |  
|                                     |  |                 |         |   |      | 

F-95



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


Consolidated Total Liabilities and Stockholders
Funds


|                                                                                              |  |                 |         |   |      |  |         |  
|--------------------------------------------------------------------------------------------- |  | --------------- | ------- | - | ---- |  | ------- | -
|                                                                                              |  | 2005            |         |   | 2004 | 
|                                                                                              |  |                 |         |   |      | 
|                                                                                              |  | (in  millions) |        
|Total liabilities and stockholders funds including non
    equity interests under Irish GAAP |  |                 | 126,464 |   |      |  | 106,431 |  
|Stockholders funds (US GAAP adjustment)                                                      |  |                 | (258    | ) |      |  | 37      |  
|Dividends                                                                                     |  |                 | (282    | ) |      |  | (257    | )
|Special purpose entities                                                                      |  |                 | 1,184   |   |      |  | 1,389   |  
|Acceptances                                                                                   |  |                 | 34      |   |      |  | 33      |  
|Strategic Transformation Programme                                                            |  |                 | (117    | ) |      |  |        |  
|Derivatives                                                                                   |  |                 | 605     |   |      |  | 784     |  
|Other                                                                                         |  |                 | 5       |   |      |  | (19     | )
|Deferred taxation on these adjustments                                                        |  |                 | (88     | ) |      |  | (49     | )
|                                                                                              |  |                 |         |   |      | 
|Total liabilities and stockholders funds including non
    equity interests under US GAAP    |  |                 | 127,547 |   |      |  | 108,349 |  
|                                                                                              |  |                 |         |   |      | 



|    |         
|--- | --------
|(1) | Goodwill





|                                  |  |      |     |  |      |  |     |      |  |  |     | 
|--------------------------------- |  | ---- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                                  |  | 2005 |     |  | 2004 |  |     | 2003 | 
|                                  |  |      |     |  |      |  |     |      | 
|Reported net income under US GAAP |  |      | 814 |  |      |  | 892 |      |  |  | 767 | 
|Goodwill amortisation             |  |      |    |  |      |  |    |      |  |  |    | 
|                                  |  |      |     |  |      |  |     |      | 
|Net income                        |  |      | 814 |  |      |  | 892 |      |  |  | 767 | 
|                                  |  |      |     |  |      |  |     |      | 



|                             |  |          |     |  |          |  |      |           |  |  |            |  |           |          |    |   |      |  |     |   |  |  |     | 
|---------------------------- |  | -------- | --- |  | -------- |  | ---- | --------- |  |  | ---------- |  | --------- | -------- | -- | - | ---- |  | --- | - |  |  | --- | 
|                             |  | April 1, |     |  |          |  |      |           |  |  |            |  | March 31, |         
|                             |  | 2004     |     |  | Transfer |  |      | Additions |  |  | Impairment |  |           | Exchange |    |   | 2005 | 
|                             |  |          |     |  |          |  |      |           |  |  |            |  |           |          |    |   |      | 
|Retail Republic of Ireland   |  |          | 7   |  |          |  |     |           |  |  |           |  |           |          | (3 | ) |      |  |    |   |  |  | 4   | 
|BOI Life                     |  |          | 94  |  |          |  |     |           |  |  |           |  |           |          |   |   |      |  |    |   |  |  | 94  | 
|Wholesale Financial Services |  |          | 19  |  |          |  |     |           |  |  | 44         |  |           |          |   |   |      |  | 3   |   |  |  | 66  | 
|UK Financial Services        |  |          | 340 |  |          |  |     |           |  |  |           |  |           |          |   |   |      |  | (11 | ) |  |  | 329 | 
|Asset Management Services    |  |          | 160 |  |          |  |     |           |  |  | 29         |  |           |          |   |   |      |  | (9  | ) |  |  | 180 | 
|UK Post Office               |  |          | 126 |  |          |  | (126 | )         |  |  |           |  |           |          |   |   |      |  |    |   |  |  |    | 
|                             |  |          |     |  |          |  |      |           |  |  |            |  |           |          |    |   |      | 
|                             |  |          | 746 |  |          |  | (126 | )         |  |  | 73         |  |           |          | (3 | ) |      |  | (17 | ) |  |  | 673 | 
|                             |  |          |     |  |          |  |      |           |  |  |            |  |           |          |    |   |      | 

F-96



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles




|    |         
|--- | --------
|(2) | Pensions





|                                     |  |                      |      |   |      |  |      |      |  |  |      |  
|------------------------------------ |  | -------------------- | ---- | - | ---- |  | ---- | ---- |  |  | ---- | -
|                                     |  | Year Ended March 31, |     
|                                     |  |                      |     
|                                     |  | 2005                 |      |   | 2004 |  |      | 2003 | 
|                                     |  |                      |      |   |      |  |      |      | 
|                                     |  | (in  millions)      |     
|Service cost                         |  |                      | 95   |   |      |  | 86   |      |  |  | 74   |  
|Cost of special termination benefits |  |                      | 1    |   |      |  | 4    |      |  |  | 93   |  
|Interest cost                        |  |                      | 165  |   |      |  | 162  |      |  |  | 141  |  
|Expected return on plan assets       |  |                      | (178 | ) |      |  | (178 | )    |  |  | (208 | )
|Net amortization and deferral        |  |                      | 2    |   |      |  | 19   |      |  |  | (15  | )
|                                     |  |                      |      |   |      |  |      |      | 
|                                     |  |                      | 85   |   |      |  | 93   |      |  |  | 85   |  
|                                     |  |                      |      |   |      |  |      |      | 





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



F-97



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles




|                  |  |                   |       |  |                   |  |       |                   |  |  |       | 
|----------------- |  | ----------------- | ----- |  | ----------------- |  | ----- | ----------------- |  |  | ----- | 
|                  |  | Target allocation |       |  | Actual allocation |  |       | Actual allocation | 
|                  |  | as at March 31,   |       |  | as at March 31,   |  |       | as at March 31,   | 
|                  |  | 2005              |       |  | 2005              |  |       | 2004              | 
|                  |  |                   |       |  |                   |  |       |                   | 
|                  |  | %                 |       |  | %                 |  |       | %                 | 
|Equity securities |  |                   | 60.0  |  |                   |  | 61.9  |                   |  |  | 63.9  | 
|Debt securities   |  |                   | 27.5  |  |                   |  | 22.1  |                   |  |  | 22.6  | 
|Property          |  |                   | 12.5  |  |                   |  | 13.3  |                   |  |  | 13.0  | 
|Other assets      |  |                   |      |  |                   |  | 2.7   |                   |  |  | 0.5   | 
|                  |  |                   |       |  |                   |  |       |                   | 
|Total             |  |                   | 100.0 |  |                   |  | 100.0 |                   |  |  | 100.0 | 
|                  |  |                   |       |  |                   |  |       |                   | 









  




|                                                                                    |  |                 |     |  |      |  |     | 
|----------------------------------------------------------------------------------- |  | --------------- | --- |  | ---- |  | --- | 
|                                                                                    |  | At March 31,    |    
|                                                                                    |  |                 |    
|                                                                                    |  | 2005            |     |  | 2004 | 
|                                                                                    |  |                 |     |  |      | 
|                                                                                    |  | (in  millions) |    
|Interest in property occupied by Bank of Ireland                                    |  |                 | 139 |  |      |  | 130 | 
|Bank of Ireland
    0.64 Ordinary
    Stock                                        |  |                 | 55  |  |      |  | 51  | 
|Bank of Ireland 7.4% Guaranteed Step-up Callable Perpetual
    Preferred Securities |  |                 | Nil |  |      |  | Nil | 
|Securities Lending with Davy Stockbrokers                                           |  |                 | Nil |  |      |  | Nil | 
|Cash                                                                                |  |                 | 13  |  |      |  | 1   | 

F-98



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


   




|                                                                           |  |                 |       |   |      |  |       |      |  |  |       |  
|-------------------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                                                                           |  | 2005            |       |   | 2004 |  |       | 2003 | 
|                                                                           |  |                 |       |   |      |  |       |      | 
|                                                                           |  | (in  millions) |      
|Change in projected benefit obligation                                     |  |                 |       |   |      |  |       |      |  |  |       |  
|Projected benefit obligation at April 1                                    |  |                 | 3,055 |   |      |  | 2,950 |      |  |  | 2,404 |  
|Exchange adjustments                                                       |  |                 | (8    | ) |      |  | 9     |      |  |  | (23   | )
|Service cost (net of members contributions)                                |  |                 | 95    |   |      |  | 86    |      |  |  | 74    |  
|Interest cost                                                              |  |                 | 165   |   |      |  | 162   |      |  |  | 141   |  
|Members contributions                                                      |  |                 | 10    |   |      |  | 10    |      |  |  | 10    |  
|Liability change                                                           |  |                 |      |   |      |  |      |      |  |  |      |  
|Actuarial (gain)/ loss                                                     |  |                 | 504   |   |      |  | (74   | )    |  |  | 310   |  
|Special termination benefits                                               |  |                 | 1     |   |      |  | 4     |      |  |  | 93    |  
|Benefits paid                                                              |  |                 | (93   | ) |      |  | (92   | )    |  |  | (59   | )
|Other                                                                      |  |                 | 13    |   |      |  |      |      |  |  |      |  
|                                                                           |  |                 |       |   |      |  |       |      | 
|Projected benefit obligation at March 31                                   |  |                 | 3,742 |   |      |  | 3,055 |      |  |  | 2,950 |  
|                                                                           |  |                 |       |   |      |  |       |      | 
|Change in plan assets                                                      |  |                 |       |   |      |  |       |      |  |  |       |  
|Fair value of plan assets at April 1                                       |  |                 | 2,689 |   |      |  | 2,275 |      |  |  | 3,008 |  
|Exchange adjustments                                                       |  |                 | (6    | ) |      |  | 6     |      |  |  | (23   | )
|Actual return                                                              |  |                 | 290   |   |      |  | 462   |      |  |  | (674  | )
|Employer contribution                                                      |  |                 | 72    |   |      |  | 28    |      |  |  | 13    |  
|Members contribution                                                       |  |                 | 10    |   |      |  | 10    |      |  |  | 10    |  
|Benefits paid                                                              |  |                 | (93   | ) |      |  | (92   | )    |  |  | (59   | )
|Other                                                                      |  |                 | 9     |   |      |  |      |      |  |  |      |  
|                                                                           |  |                 |       |   |      |  |       |      | 
|Fair value of plan assets at March 31                                      |  |                 | 2,971 |   |      |  | 2,689 |      |  |  | 2,275 |  
|                                                                           |  |                 |       |   |      |  |       |      | 
|Change in funded status                                                    |  |                 |       |   |      |  |       |      |  |  |       |  
|Funded status at March 31                                                  |  |                 | (771  | ) |      |  | (366  | )    |  |  | (675  | )
|Unamortised net loss/ (gain)                                               |  |                 | 650   |   |      |  | 259   |      |  |  | 633   |  
|Minimum Liability Obligation                                               |  |                 | (66   | ) |      |  | (29   | )    |  |  | (70   | )
|Unamortised net asset at transition                                        |  |                 | (7    | ) |      |  | (8    | )    |  |  | (9    | )
|                                                                           |  |                 |       |   |      |  |       |      | 
|(Accrued) prepaid pension cost recognised in balance sheet at
    year end |  |                 | (194  | ) |      |  | (144  | )    |  |  | (121  | )
|                                                                           |  |                 |       |   |      |  |       |      | 



|    |                    
|--- | -------------------
|(3) | Cashflow Statements





F-99



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles








|    |                  
|--- | -----------------
|(4) | Deferred Taxation



|                                       |  |                 |     |   |      |  |     |  
|-------------------------------------- |  | --------------- | --- | - | ---- |  | --- | -
|                                       |  | At March 31,    |    
|                                       |  |                 |    
|                                       |  | 2005            |     |   | 2004 | 
|                                       |  |                 |     |   |      | 
|                                       |  | (in  millions) |    
|Deferred tax liabilities               |  |                 |     |   |      |  |     |  
|Accelerated capital allowances:        |  |                 |     |   |      |  |     |  
| on finance leases                    |  |                 | 103 |   |      |  | 106 |  
| on equipment used by the Group       |  |                 | 10  |   |      |  | 14  |  
|                                       |  |                 |     |   |      | 
|Total                                  |  |                 | 113 |   |      |  | 120 |  
|Deferred tax assets                    |  |                 |     |   |      |  |     |  
|Reserve for loan and lease loss        |  |                 | 28  |   |      |  | 55  |  
|Accruals and Reserves                  |  |                 | 2   |   |      |  | 1   |  
|Minimum tax credits                    |  |                 | 1   |   |      |  | 1   |  
|Other                                  |  |                 | 15  |   |      |  | 1   |  
|                                       |  |                 |     |   |      | 
|Total                                  |  |                 | 46  |   |      |  | 58  |  
|Deferred tax asset valuation allowance |  |                 | (5  | ) |      |  | (4  | )
|                                       |  |                 |     |   |      | 
|Net deferred tax assets                |  |                 | 41  |   |      |  | 54  |  
|                                       |  |                 |     |   |      | 
|Net deferred tax liabilities           |  |                 | 72  |   |      |  | 66  |  
|                                       |  |                 |     |   |      | 



|    |               
|--- | --------------
|(5) | Impaired Loans



F-100



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles











     


 




|    |                        
|--- | -----------------------
|(6) | Stock Compensation Plan



  


F-101



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles




|                                 |  |                      |           |          |       |  |         |        |          |  |           |  |  |  |        | 
|-------------------------------- |  | -------------------- | --------- | -------- | ----- |  | ------- | ------ | -------- |  | --------- |  |  |  | ------ | 
|                                 |  | Year Ended March 31, |          
|                                 |  |                      |          
|                                 |  | 2005                 |           |          | 2004  | 
|                                 |  |                      |           |          |       | 
|                                 |  |                      |           | Weighted |       |  |         |        | Weighted | 
|                                 |  |                      |           | Average  |       |  |         |        | Average  | 
|                                 |  |                      |           | exercise |       |  |         |        | exercise | 
|                                 |  | Number               |           |          | price |  |         | Number |          |  | price     | 
|                                 |  |                      |           |          |       |  |         |        |          |  |           | 
|Outstanding at beginning of year |  |                      | 6,585,000 |          |       |  | 8.989   |        |          |  | 5,734,500 |  |  |  | 8.0657 | 
|Granted in year                  |  |                      | 1,661,500 |          |       |  | 10.760  |        |          |  | 1,836,000 |  |  |  | 10.754 | 
|Exercised in year                |  |                      | 853,500   |          |       |  | 5.5684  |        |          |  | 776,000   |  |  |  | 6.128  | 
|Lapsed in year                   |  |                      | 781,100   |          |       |  | 10.6398 |        |          |  | 209,500   |  |  |  | 9.773  | 
|                                 |  |                      |           |          |       |  |         |        |          |  |           | 
|Outstanding at end of year       |  |                      | 6,611,900 |          |       |  | 9.6809  |        |          |  | 6,585,000 |  |  |  | 8.989  | 
|                                 |  |                      |           |          |       |  |         |        |          |  |           | 



|                            |  |                |           |  |                  |  |                  |                |  |  |         | 
|--------------------------- |  | -------------- | --------- |  | ---------------- |  | ---------------- | -------------- |  |  | ------- | 
|                            |  | Number         |           |  |                  |  | Number           |               
|                            |  | Outstanding at |           |  | Weighted Average |  |                  | Exercisable at | 
|                            |  | March 31,      |           |  | Remaining        |  |                  | March 31,      | 
|                            |  | 2005           |           |  | Contractual Life |  |                  | 2005           | 
|                            |  |                |           |  |                  |  |                  |                | 
|Exercise price (
    cent) |  |                |           |  |                  |  |                  |                |  |  |         | 
|2.111                       |  |                | 20,000    |  |                  |  | 2 months         |                |  |  | 20,000  | 
|2.819                       |  |                | 250,000   |  |                  |  | 1 year 3 months  |                |  |  | 250,000 | 
|3.241                       |  |                | 80,000    |  |                  |  | 1 year 8 months  |                |  |  | 80,000  | 
|4.529                       |  |                | 350,000   |  |                  |  | 2 years 3 months |                |  |  | 350,000 | 
|5.753                       |  |                | 22,500    |  |                  |  | 2 years 8 months |                |  |  | 22,500  | 
|8.264                       |  |                | 192,000   |  |                  |  | 3 years 2 months |                |  |  | 192,000 | 
|8.933                       |  |                | 361,000   |  |                  |  | 4 years 4 months |                |  |  | 361,000 | 
|8.430                       |  |                | 80,250    |  |                  |  | 4 years 8 months |                |  |  | 80,250  | 
|6.960                       |  |                | 552,000   |  |                  |  | 5 years 2 months |                |  |  | 552,000 | 
|9.150                       |  |                | 123,650   |  |                  |  | 5 years 8 months |                |  |  | 123,650 | 
|11.050                      |  |                | 582,000   |  |                  |  | 6 years 2 months |                |  |  | 582,000 | 
|10.540                      |  |                | 30,000    |  |                  |  | 6 years 8 months |                |  |  | 30,000  | 
|12.500                      |  |                | 801,000   |  |                  |  | 7 years 3 months |                |  |  |        | 
|10.650                      |  |                | 20,000    |  |                  |  | 7 years 9 months |                |  |  |        | 
|10.770                      |  |                | 1,387,000 |  |                  |  | 8 years 3 months |                |  |  |        | 
|10.540                      |  |                | 121,000   |  |                  |  | 8 years 9 months |                |  |  |        | 
|10.760                      |  |                | 1,639,500 |  |                  |  | 9 years 4 months |                |  |  |        | 

  


F-102



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles










|    |                   
|--- | ------------------
|(7) | Earnings per share





|                                                                        |  |        |     |           |               |  |     |        |           |  |        |  |  |               |     |  |        |  |     |  |  |  |       | 
|----------------------------------------------------------------------- |  | ------ | --- | --------- | ------------- |  | --- | ------ | --------- |  | ------ |  |  | ------------- | --- |  | ------ |  | --- |  |  |  | ----- | 
|                                                                        |  | 2005   |     |           | 2004          | 
|                                                                        |  |        |     |           |               | 
|                                                                        |  |        |     | Per-share |               |  |     |        | Per-share | 
|                                                                        |  | Income |     |           | Share No      |  |     | Amount |           |  | Income |  |  | Share No      |     |  | Amount | 
|                                                                        |  |        |     |           |               |  |     |        |           |  |        |  |  |               |     |  |        | 
|                                                                        |  | m     |     |           | (in millions) |  |     | Cent   |           |  | m     |  |  | (in millions) |     |  | Cent   | 
|Basic EPS                                                               |  |        |     |           |               |  |     |        |           |  |        |  |  |               |     |  |        |  |     |  |  |  |       | 
|Approximate net income (US GAAP) available to ordinary
    stockholders |  |        | 814 |           |               |  | 942 |        |           |  | 86.4c  |  |  |               | 892 |  |        |  | 961 |  |  |  | 92.8c | 
|Effect of dilutive securities employee share options                    |  |        |     |           |               |  | 8   |        |           |  |        |  |  |               |     |  |        |  | 7   |  |  |  |       | 
|                                                                        |  |        |     |           |               |  |     |        |           |  |        |  |  |               |     |  |        | 
|Diluted EPS                                                             |  |        | 814 |           |               |  | 950 |        |           |  | 85.7c  |  |  |               | 892 |  |        |  | 968 |  |  |  | 92.2c | 
|                                                                        |  |        |     |           |               |  |     |        |           |  |        |  |  |               |     |  |        | 

|                                                                         |  |        |     |           |               |  |      |        |  |  |       | 
|------------------------------------------------------------------------ |  | ------ | --- | --------- | ------------- |  | ---- | ------ |  |  | ----- | 
|                                                                         |  | 2003   |    
|                                                                         |  |        |    
|                                                                         |  |        |     | Per-share |              
|                                                                         |  | Income |     |           | Share No      |  |      | Amount | 
|                                                                         |  |        |     |           |               |  |      |        | 
|                                                                         |  | m     |     |           | (in millions) |  |      | Cent   | 
|Basic EPS                                                                |  |        |     |           |               |  |      |        |  |  |       | 
|Approximate net income (US GAAP ) available to ordinary
    stockholders |  |        | 767 |           |               |  | 991  |        |  |  | 77.4c | 
|Effect of dilutive securities employee share options                     |  |        |     |           |               |  | 10   |        |  |  |       | 
|                                                                         |  |        |     |           |               |  |      |        | 
|Diluted EPS                                                              |  |        | 767 |           |               |  | 1001 |        |  |  | 76.7c | 
|                                                                         |  |        |     |           |               |  |      |        | 



F-103



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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles




|    |                                                                 
|--- | ----------------------------------------------------------------
|(8) | Alternative Presentation of Consolidated Statement of
    Income





|                                                                        |              |                 |       |    |      |  |       |    | 
|----------------------------------------------------------------------- | ------------ | --------------- | ----- | -- | ---- |  | ----- | -- | 
|                                                                        |              | At March 31,    |      
|                                                                        |              |                 |      
|                                                                        |              | 2005            |       |    | 2004 | 
|                                                                        |              |                 |       |    |      | 
|                                                                        |              | (in  millions) |      
|Net interest income                                                     |              |                 | 1,898 |    |      |  | 1,744 |   
|Other income                                                            |              |                 | 1,364 |    |      |  | 1,320 |   
|                                                                        |              |                 |       |    |      | 
|Total income                                                            |              |                 | 3,262 |    |      |  | 3,064 |   
|Total operating expenses                                                |              |                 | 1,975 |    |      |  | 1,826 |   
|                                                                        |              |                 |       |    |      | 
|Operating profit                                                        |              |                 | 1,287 |    |      |  | 1,238 |   
|Income from associated undertakings                                     |              |                 | 46    |    |      |  | 29    |   
|                                                                        |              |                 |       |    |      | 
|Profit on ordinary activities before exceptional items                  |              |                 | 1,333 |    |      |  | 1,267 |   
|Exceptional item                                                        |              |                 | (12   | )  |      |  | (97   | ) 
|                                                                        |              |                 |       |    |      | 
|Profit before tax                                                       |              |                 | 1,321 |    |      |  | 1,170 |   
|Taxation on profit on ordinary activities                               |              |                 | 241   |    |      |  | 208   |   
|                                                                        |              |                 |       |    |      | 
|Profit on ordinary activities after tax                                 |              |                 | 1,080 |    |      |  | 962   |   
|Minority interest                                                       |              |                 |       |    |      |  |       |   
|                                                                        |  equity     |                 |       | (7 | )    |  |       | 13 | 
|                                                                        |  non-equity |                 |       | 6  |      |  |       | 6  | 
|Non cumulative preference stock dividends                               |              |                 | 8     |    |      |  | 8     |   
|                                                                        |              |                 |       |    |      | 
|Profit for financial year attributable to holders of ordinary
    stock |              |                 | 1,073 |    |      |  | 935   |   
|                                                                        |              |                 |       |    |      | 



|    |                                                               
|--- | --------------------------------------------------------------
|(9) | Alternative presentation of the Consolidated Balance
    Sheet



F-104



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles




|                                                                           |  |                 |         |   |      |  |         |  
|-------------------------------------------------------------------------- |  | --------------- | ------- | - | ---- |  | ------- | -
|                                                                           |  | At March 31,    |        
|                                                                           |  |                 |        
|                                                                           |  | 2005            |         |   | 2004 | 
|                                                                           |  |                 |         |   |      | 
|                                                                           |  | (in  millions) |        
|Assets:                                                                    |  |                 |         |   |      |  |         |  
|Cash and balances at Central Banks                                         |  |                 | 1,600   |   |      |  | 1,397   |  
|Items in the course of collection from banks                               |  |                 | 560     |   |      |  | 584     |  
|Central government and other eligible bills                                |  |                 | 92      |   |      |  | 211     |  
|Loans and advances to banks                                                |  |                 | 8,350   |   |      |  | 8,327   |  
|Loans and advances to customers                                            |  |                 | 79,917  |   |      |  | 67,540  |  
|Securitization and loan transfers                                          |  |                 | 344     |   |      |  | 593     |  
|Less: non-returnable amounts                                               |  |                 | (328    | ) |      |  | (504    | )
|                                                                           |  |                 |         |   |      | 
|                                                                           |  |                 | 16      |   |      |  | 89      |  
|Debt securities                                                            |  |                 | 23,124  |   |      |  | 17,073  |  
|Equity shares                                                              |  |                 | 5,720   |   |      |  | 4,642   |  
|Interest in associated undertakings                                        |  |                 | 17      |   |      |  | 14      |  
|Interest in joint ventures                                                 |  |                 | 61      |   |      |  | 243     |  
|Intangible Fixed Assets                                                    |  |                 | 316     |   |      |  | 147     |  
|Tangible fixed assets                                                      |  |                 | 1,739   |   |      |  | 1,698   |  
|Other assets                                                               |  |                 | 4,319   |   |      |  | 3,954   |  
|Prepayments and accrued income                                             |  |                 | 923     |   |      |  | 739     |  
|Market value of shares held for the benefit of policyholders               |  |                 | (290    | ) |      |  | (227    | )
|                                                                           |  |                 |         |   |      | 
|Total Assets                                                               |  |                 | 126,464 |   |      |  | 106,431 |  
|                                                                           |  |                 |         |   |      | 
|Liabilities:                                                               |  |                 |         |   |      |  |         |  
|Deposits by banks                                                          |  |                 | 20,254  |   |      |  | 17,060  |  
|Customer accounts                                                          |  |                 | 60,265  |   |      |  | 54,395  |  
|Debt securities in issue                                                   |  |                 | 20,539  |   |      |  | 12,917  |  
|Items in the course of transmission to banks                               |  |                 | 230     |   |      |  | 230     |  
|Other liabilities                                                          |  |                 | 14,721  |   |      |  | 12,571  |  
|Proposed dividends  equity                                                |  |                 | 282     |   |      |  | 257     |  
|Accruals and deferred income                                               |  |                 | 770     |   |      |  | 621     |  
|Provision for liabilities and charges                                      |  |                 |         |   |      |  |         |  
| deferred taxation                                                        |  |                 | 72      |   |      |  | 66      |  
| other provisions for liabilities and charges                             |  |                 | 321     |   |      |  | 221     |  
|Subordinated liabilities                                                   |  |                 | 4,086   |   |      |  | 3,682   |  
|Minority interest                                                          |  |                 |         |   |      |  |         |  
| equity                                                                   |  |                 | 62      |   |      |  | 54      |  
| non-equity                                                               |  |                 | 73      |   |      |  | 76      |  
|Called up capital stock                                                    |  |                 | 663     |   |      |  | 679     |  
|Stock premium account                                                      |  |                 | 765     |   |      |  | 767     |  
|Capital reserve                                                            |  |                 | 561     |   |      |  | 498     |  
|Profit and loss account                                                    |  |                 | 2,772   |   |      |  | 2,281   |  
|Revaluation reserve                                                        |  |                 | 234     |   |      |  | 239     |  
|                                                                           |  |                 |         |   |      | 
|Total stockholders funds including non-equity interests                   |  |                 | 4,995   |   |      |  | 4,464   |  
|Cost of own shares held for the benefit of life assurance
    policyholder |  |                 | (206    | ) |      |  | (183    | )
|                                                                           |  |                 |         |   |      | 
|                                                                           |  |                 | 4,789   |   |      |  | 4,281   |  
|                                                                           |  |                 |         |   |      | 
|Total liabilities                                                          |  |                 | 126,464 |   |      |  | 106,431 |  
|                                                                           |  |                 |         |   |      | 

F-105



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles


(10) Guarantees




Financial Guarantees






Standby letters of credit




Other guarantees






(11) Consolidation


 








F-106



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                              
|-- | -------------------------------------------------------------
|45 | GROUP FINANCIAL INFORMATION FOR US
    INVESTORS  (continued)



Summary of Significant Differences between Irish and US
Accounting Principles








| |                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Group has securitised some of its lending portfolios using
    entities established solely for that purpose. The funding of
    these entities has been provided by the Group. Further details
    are outlined in Note 15.





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 US and
    European commercial paper markets. A US bank administers the
    day-to-day operations of the company and the multi-seller
    conduit. The US 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
    July 16, 2005, the commercial paper issued by the
    multi-seller conduit is currently rated P-1/A-1/F1 by
    Moodys/S&P/Fitch.
|
| | As of March 31, 2005, the Group had an outstanding undrawn
    liquidity facility to the company amounting to $817.2m. 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 US$1.03bn. 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.                                                                                                                                                                                                                                                                                                                                                                





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 2003 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
    5m 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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | The market value at the date of sale of the assets sold to
    Partholon was
    243m and they
    are disclosed by way of linked presentation on the Bank Balance
    Sheet and Group Balance Sheet. The Group is not obliged, nor
    intends to support any losses in respect of the assets of
    Partholon. Repayment of the loan notes issued by Partholon will
    be made solely from the cashflows generated by its pool of
    assets. This is clearly stated in the agreements with the
    holders of the loan notes. The proceeds generated by the
    acquired assets will be used to pay interest and capital on the
    loan notes and any other administrative expenses and taxation.

F-107



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                                                    
|-- | -----------------------------------------------------------------------------------
|46 | SFAS NO. 115 ACCOUNTING FOR CERTAIN INVESTMENTS IN
    DEBT AND EQUITY SECURITIES





|                   |  |                 |        |  |        |  |        |       |  |  |        |  |  |  |        | 
|------------------ |  | --------------- | ------ |  | ------ |  | ------ | ----- |  |  | ------ |  |  |  | ------ | 
|                   |  | At March 31,    |       
|                   |  |                 |       
|                   |  | 2005            |        |  | 2004   | 
|                   |  |                 |        |  |        | 
|                   |  | Book            |        |  | Market |  |        | Book  |  |  | Market | 
|                   |  | Value           |        |  | Value  |  |        | Value |  |  | Value  | 
|                   |  |                 |        |  |        |  |        |       |  |  |        | 
|                   |  | (in  millions) |       
|Held to maturity   |  |                 | 3,704  |  |        |  | 3,701  |       |  |  | 3,662  |  |  |  | 3,638  | 
|Available for sale |  |                 | 11,669 |  |        |  | 11,754 |       |  |  | 7,635  |  |  |  | 7,739  | 
|Trading            |  |                 | 5,948  |  |        |  | 5,948  |       |  |  | 4,379  |  |  |  | 4,379  | 
|                   |  |                 |        |  |        |  |        |       |  |  |        | 
|Total              |  |                 | 21,321 |  |        |  | 21,403 |       |  |  | 15,676 |  |  |  | 15,756 | 
|                   |  |                 |        |  |        |  |        |       |  |  |        | 



|                                               |  |                                         |        |  |        |  |        |           |  |  |        |  |  |  |       | 
|---------------------------------------------- |  | --------------------------------------- | ------ |  | ------ |  | ------ | --------- |  |  | ------ |  |  |  | ----- | 
|                                               |  | Available for Sale Investment Portfolio |       
|                                               |  |                                         |       
|                                               |  | 2005                                    |        |  | 2004   | 
|                                               |  |                                         |        |  |        | 
|                                               |  | Amortized                               |        |  | Market |  |        | Amortized |  |  | Market | 
|                                               |  | Cost                                    |        |  | Value  |  |        | Cost      |  |  | Value  | 
|                                               |  |                                         |        |  |        |  |        |           |  |  |        | 
|                                               |  | (in  millions)                         |       
|Irish government                               |  |                                         | 297    |  |        |  | 297    |           |  |  | 129    |  |  |  | 129   | 
|Other European government                      |  |                                         | 394    |  |        |  | 407    |           |  |  | 830    |  |  |  | 864   | 
|US Treasury and US Government agencies         |  |                                         |       |  |        |  |       |           |  |  | 49     |  |  |  | 49    | 
|Mortgage backed obligation of federal agencies |  |                                         |       |  |        |  |       |           |  |  |       |  |  |  |      | 
|Corporate bonds                                |  |                                         | 10,712 |  |        |  | 10,784 |           |  |  | 6,094  |  |  |  | 6,164 | 
|Other securities                               |  |                                         | 266    |  |        |  | 266    |           |  |  | 533    |  |  |  | 533   | 
|                                               |  |                                         |        |  |        |  |        |           |  |  |        | 
|Total                                          |  |                                         | 11,669 |  |        |  | 11,754 |           |  |  | 7,635  |  |  |  | 7,739 | 
|                                               |  |                                         |        |  |        |  |        |           |  |  |        | 

     


F-108



---



##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                                                                 
|-- | ------------------------------------------------------------------------------------------------
|46 | SFAS NO. 115 ACCOUNTING FOR CERTAIN INVESTMENTS IN
    DEBT AND EQUITY SECURITIES  (continued)



|                                                |  |                 |       |           |            |  |            |          |  |  |          |  |  |       |     |  |  |  |        | 
|----------------------------------------------- |  | --------------- | ----- | --------- | ---------- |  | ---------- | -------- |  |  | -------- |  |  | ----- | --- |  |  |  | ------ | 
|                                                |  |                 |       | After One |            |  | After Five |          |  |  |          | 
|                                                |  | In One          |       |           | Year       |  |            | Years    |  |  |          |  | 
|                                                |  | Year or         |       |           | Through    |  |            | Through  |  |  | After 10 |  |  |      
|                                                |  | Less            |       |           | Five Years |  |            | 10 Years |  |  | Years    |  |  | Total |    
|                                                |  |                 |       |           |            |  |            |          |  |  |          |  |  |       |    
|                                                |  | (in  millions) |      
|Irish government                                |  |                 |      |           |            |  |           |          |  |  |         |  |  |       | 297 |  |  |  | 297    | 
|Other European government                       |  |                 | 117   |           |            |  | 277        |          |  |  |         |  |  |       |    |  |  |  | 394    | 
|US Treasury and US Government agencies          |  |                 |      |           |            |  |           |          |  |  |         |  |  |       |    |  |  |  |       | 
|Mortgage backed obligations of federal agencies |  |                 |      |           |            |  |           |          |  |  |         |  |  |       |    |  |  |  |       | 
|Corporate bonds                                 |  |                 | 4,421 |           |            |  | 5,473      |          |  |  | 818      |  |  |       |    |  |  |  | 10,712 | 
|Other securities                                |  |                 | 266   |           |            |  |           |          |  |  |         |  |  |       |    |  |  |  | 266    | 
|                                                |  |                 |       |           |            |  |            |          |  |  |          |  |  |       |    
|Total                                           |  |                 | 4,804 |           |            |  | 5,750      |          |  |  | 818      |  |  |       | 297 |  |  |  | 11,669 | 
|                                                |  |                 |       |           |            |  |            |          |  |  |          |  |  |       |    



|                                           |  |                                       |       |  |                |  |       |           |  |  |        |  |  |  |       | 
|------------------------------------------ |  | ------------------------------------- | ----- |  | -------------- |  | ----- | --------- |  |  | ------ |  |  |  | ----- | 
|                                           |  | Held to Maturity Investment Portfolio |      
|                                           |  |                                       |      
|                                           |  | March 31, 2005                        |       |  | March 31, 2004 | 
|                                           |  |                                       |       |  |                | 
|                                           |  | Amortized                             |       |  | Market         |  |       | Amortized |  |  | Market | 
|                                           |  | Cost                                  |       |  | Value          |  |       | Cost      |  |  | Value  | 
|                                           |  |                                       |       |  |                |  |       |           |  |  |        | 
|                                           |  | (in  millions)                       |      
|Irish government                           |  |                                       |      |  |                |  |      |           |  |  |       |  |  |  |      | 
|Other European government                  |  |                                       |      |  |                |  |      |           |  |  | 1      |  |  |  | 1     | 
|U.S. treasury and U.S. government agencies |  |                                       |      |  |                |  |      |           |  |  |       |  |  |  |      | 
|Corporate bonds                            |  |                                       | 3,184 |  |                |  | 3,182 |           |  |  | 3,142  |  |  |  | 3,118 | 
|Other securities                           |  |                                       | 520   |  |                |  | 520   |           |  |  | 519    |  |  |  | 519   | 
|                                           |  |                                       |       |  |                |  |       |           |  |  |        | 
|                                           |  |                                       | 3,704 |  |                |  | 3,702 |           |  |  | 3,662  |  |  |  | 3,638 | 
|                                           |  |                                       |       |  |                |  |       |           |  |  |        | 

      


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##### Table of Contents



BANK OF IRELAND GROUP


NOTES ON THE FINANCIAL STATEMENTS  (Continued)




|   |                                                                                                 
|-- | ------------------------------------------------------------------------------------------------
|46 | SFAS NO. 115 ACCOUNTING FOR CERTAIN INVESTMENTS IN
    DEBT AND EQUITY SECURITIES  (continued)



|                                           |  |                                       |     |           |            |  |            |          |  |  |          |  |  |       |     |  |  |  |       | 
|------------------------------------------ |  | ------------------------------------- | --- | --------- | ---------- |  | ---------- | -------- |  |  | -------- |  |  | ----- | --- |  |  |  | ----- | 
|                                           |  | Maturity Distribution of              |    
|                                           |  | Held to Maturity Investment Portfolio |    
|                                           |  | At March 31, 2005                     |    
|                                           |  |                                       |    
|                                           |  |                                       |     | After One |            |  | After Five |          |  | 
|                                           |  | In One                                |     |           | Year       |  |            | Years    |  |  |         
|                                           |  | Year or                               |     |           | Through    |  |            | Through  |  |  | After 10 |  |  |      
|                                           |  | Less                                  |     |           | Five Years |  |            | 10 Years |  |  | Years    |  |  | Total |    
|                                           |  |                                       |     |           |            |  |            |          |  |  |          |  |  |       |    
|                                           |  | (in  millions)                       |    
|Irish government                           |  |                                       |    |           |            |  |           |          |  |  |         |  |  |       |    |  |  |  |      | 
|Other European government                  |  |                                       |    |           |            |  |           |          |  |  |         |  |  |       |    |  |  |  |      | 
|U.S. treasury and U.S. government agencies |  |                                       |    |           |            |  |           |          |  |  |         |  |  |       |    |  |  |  |      | 
|Corporate bonds                            |  |                                       | 395 |           |            |  | 1,512      |          |  |  | 1,046    |  |  |       | 231 |  |  |  | 3,184 | 
|Other securities                           |  |                                       | 224 |           |            |  | 214        |          |  |  | 82       |  |  |       |    |  |  |  | 520   | 
|                                           |  |                                       |     |           |            |  |            |          |  |  |          |  |  |       |    
|Total                                      |  |                                       | 619 |           |            |  | 1,726      |          |  |  | 1,128    |  |  |       | 231 |  |  |  | 3,704 | 
|                                           |  |                                       |     |           |            |  |            |          |  |  |          |  |  |       |    



|   |                     
|-- | --------------------
|47 | COMPREHENSIVE INCOME

|                                      |                                                     |                 |     |      |      |  |     |      |   |  |     |      |  
|------------------------------------- | --------------------------------------------------- | --------------- | --- | ---- | ---- |  | --- | ---- | - |  | --- | ---- | -
|                                      |                                                     | At March 31,    |    
|                                      |                                                     |                 |    
|                                      |                                                     | 2005            |     |      | 2004 |  |     | 2003 |  
|                                      |                                                     |                 |     |      |      |  |     |      |  
|                                      |                                                     | (in  millions) |    
|Net income in accordance with US GAAP |                                                     |                 | 814 |      |      |  | 892 |      |   |  | 767 |     
|Other comprehensive income net of tax |                                                     |                 |     |      |      |  |     |      |   |  |     |     
|                                      | Foreign currency translation adjustment             |                 |     | (117 | )    |  |     | 69   |   |  |     | (379 | )
|                                      | Net movement on unrealized gains on debt securities |                 |     | (17  | )    |  |     | (8   | ) |  |     | 67   |  
|                                      | Pension additional benefit obligation               |                 |     | (38  | )    |  |     | 42   |   |  |     | (70  | )
|                                      |                                                     |                 |     |      |      |  |     |      |  
|Comprehensive income                  |                                                     |                 | 642 |      |      |  | 995 |      |   |  | 385 |     
|                                      |                                                     |                 |     |      |      |  |     |      |  

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##### Table of Contents



BANK OF IRELAND GROUP


SIGNATURES






| |                                                
| | -----------------------------------------------
| | The Governor and Company of the Bank of Ireland
| | (Registrant)                                   
|
| | Date: August 29, 2005                          



| |     | 
| | --- | 
| | By: | 

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



| |     | 
| | --- | 
| | By: | 

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

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