Allied Irish Banks, p.l.c. Completes KeppelTat Lee Bank Alliance.

DUBLIN, Ireland--(BUSINESS WIRE)--Aug. 6, 1999--

Allied Irish Banks, p.l.c. (`AIB') [NYSE: AIB;AIBPR:FMBPR] today announced that, following the receipt of all regulatory and other approvals, it had invested S$351 million in 3 Year Senior Bonds with Warrants in Keppel TatLee Bank Limited (`KTB') in Singapore.

AIB has also concluded an Agreement for the sale of it's Private Banking and Treasury operations in Singapore to KTB for a consideration of S$41.2 million. The sale will take effect on 15 October 1999.

AIB has agreed to subscribe for 10,280,000 new ordinary shares in KTB, on the same date, representing 0.94% of the enlarged equity of KTB, for a total consideration of S$41.12 million.

KTB announced its half yearly results to 30 June 1999 on 5 August. We attach a copy of the summary commentary and Profit and Loss Account issued by KTB . For further information please contact:

Our USA representative is Greg Lehman,Vice President, D.F. King and Co. Inc., 77 Water St., New York, NY 10005. Phone [phone]

KEPPEL TATLEE BANK LIMITED

FIRST HALF 1999 GROUP PERFORMANCE

(1) Summary

The Keppel TatLee Bank Group1 recorded an increase of 293% in net attributable profits to $113.8 million for the half-year ended June 1999. The substantial increase in profits was due to higher revenues from an enlarged operation, improved interest margins as well as significant cost savings arising from the merger. As a result, return on shareholders' funds improved from 4% to 9.1% on an annualized basis while earnings per share for the half-year increased from 4.9 cents to 10.5 cents.

The improved economic climate in Singapore and the region, as well as the success of the merger integration, also led to the Group's strong performance in the following areas:

(a) 148% rise in operating profit to $196.6 million (1998: $79.4

million).

(b) Substantial improvement in expense-to-income ratio to 33.4%

(1998: 43.0%).

(c) Increase in shareholders' funds by 72% to $2.5 billion (1998:

$1.5 billion).

(d) 13% decrease in total non-performing loans (NPLs) to $1,927

million from end-December 1998.

(d) Adequate provision coverage. Total cumulative (specific and

general) provisions amounted to $1,214 million, covering 63% of

total NPLs2. NPLs in Indonesia are more than 100% covered by

provisions while that of Thailand are covered up to 97%.

1 On 15 August 1998, Tat Lee Bank (TLB) became a wholly owned

subsidiary of Keppel Bank (KB) and was subsequently merged with

KB on 26 December 1998. The first half 1999 results therefore

represent that of the merged entity, the new Keppel TatLee Bank

Group, whereas the interim 1998 figures represent only those of

KB.

2 NPLs are stated conservatively on a gross basis, without netting

out security value. Those in the Substandard category include

loans to borrowers with weak financials even though interest and

principal payments are current.

The Board of Directors of Keppel TatLee Bank Limited wishes to announce the following:- -0-

       1 UNAUDITED RESULTS FOR THE HALF YEAR ENDED 30 JUNE 1999
        ------------------------------------------------------

                        The Group                    The Bank
        -----------------------------    ------------------------------
                                         Incr/                  Incr/
                        1999    1998   (Decr)   1999     1998   (Decr)
                       ----    ----    ------   ----     ----  ------
                       $'000   $'000     %      $'000    $'000     %
  Interest income     492,441  400,367   23.0   428,779  353,810  21.2
  Less: Interest
  expense             270,959  302,358  (10.4)  246,738  282,447 (12.6)

  Net interest
  income              221,482    98,009   126.0  182,041  71,363 155.1

  Fee and commission
  income              50,228    16,808   198.8   13,335  6,179   115.8
  Trading/dealing
  results             10,416   20,509   (49.2)   4,025   19,554 (79.4)
  Dividend income      1,797      317    466.9   1,508   10,137 (85.1)
  Rental income        2,594      949    173.3   2,176      852  155.4
  Other income         8,665    2,683    223.0   5,194    2,274  128.4

  Total non-interest
  income               73,700   41,266    78.6   26,238  38,996 (32.7)

  Income before
  operating
  expenses             295,182  139,275    111.9  208,279 110,359 88.7
  Less : Staff costs    49,855   32,912     51.5   36,234 23,855  51.9
   Other operating
        expenses        48,758   26,968     80.8   37,621 20,835  80.6

  Total operating
   expenses             98,613   59,880     64.7   73,855  44,690 65.3

  Operating Profit     196,569   79,395    147.6  134,424 65,669 104.7


  Less : Provision for
  possible loan
  losses and
  diminution in
  value of other
  assets              66,318     42,226    57.1   52,492  37,693  39.3

                      130,251    37,169   250.4   81,932  27,976 192.9


  Share of results of
  associate             3,696     1,320    180.0   -    -         -

  Net Profit before
  taxation            133,947     38,489   248.0  81,932  27,976 192.9
  Less : Taxation      14,801      6,316   134.3  -       3,000 (100.0)

  Net Profit after
  taxation            119,146     32,173   270.3  81,932 24,976  228.0
  Less : Minority
  interests             5,321      3,185   67.1 -      -         -


  Net profit
  attributable
  to members           113,825     28,988  292.7  81,932 24,976  228.0