RJ/AD/COC Irish Deposits: Retail Deposit Market Survey 16 th January 2015

2. Methodology:Questions were included on Millward Brown’s Omnibus survey using face-to-face, in-home methodology. Sample Description:Nationally representative sample of all adults aged 25+ in the Republic of Ireland. Quotas set on age, social class, gender and region to ensure a representative sample. Sample size:n = 867 (nationally representative sample of 25+) Sampling Area:66 sampling points nationwide, representative of the actual size and spread of urban and rural localities. Fieldwork dates:15 th December 2014 – 8 th January 2015 Objective:To gain consumer insight into the savings and deposit market Research Methodology

3. AB C1 C2 DE F Rest of Leinster Munster Conn/Ulster Gender % Age % Social Class % Region % Work Status % Sample Profile of Irish Adults Aged 25+ Working Base: All aged 25+ (n=867) Male Female Dublin Not working

4. Bank of Ireland & AIB continue to dominate in saver numbers Q.1aWith which, if any, of these do you have a deposit or savings account, personally or jointly with someone else? Base: All 25+ (n=867) 2014 % None year olds19% DEs24% Rest of Leinster residents20% Other Any Deposit/Savings Account Credit Union5% KBC1% RaboBank1% Nationwide UK* Danske/NIB* Investec* Barclays* Refused4%

5. Bank of Ireland & AIB continue to dominate in saver numbers Q.1aWith which, if any, of these do you have a deposit or savings account, personally or jointly with someone else? Base: All 25+ (n=867) 2014 % None Other 2013 % Any Deposit/Savings Account Credit Union5% KBC1% RaboBank1% Nationwide UK* Danske/NIB* Investec* Barclays* Refused4% Credit Union4% Danske/NIB2% KBC2% RaboBank1% Nationwide UK1% Barclays1% Investec1% Refused1%

6. Big 2 remain the main providers of deposit/savings accounts Q.1aWith which, if any, of these do you have a deposit or savings account, personally or jointly with someone else? Q.1bWhich of those you have mentioned is your main deposit or savings account? Base: All with a savings account (n=727) 2014 % Other Main Deposit/Savings Account Credit Union5% Danske/NIB* Barclays* RaboBank* Investec* Refused3%

7. Word of mouth from friends and family is very important in choosing a deposit/savings account – Irish institution and security still play a part. Interest rate is only 4 th reason Q.2What was the main reason you chose to open a deposit or savings account with your institution? Base: with savings/deposit accounts (n=727) 2014 % Family/friends recommended it Irish bank/institution Security of that bank/institution Interest rate/return Government guarantee on deposits/savings there Bank/institution's credit rating Online/internet access/account Non-Irish bank institution Liked their advertising Other

8. Security of that bank/institution Family/friends recommended it Government guarantee on deposits/savings there Irish bank/institution Interest rate/return Bank/institution's credit rating Non-Irish bank institution Online/internet access/account Liked their advertising Other Reason for Choosing x Main Bank Q.2What was the main reason you chose to open a deposit or savings account with your institution? Base: Customers of each provider (main bank/institution) (214) % Family/friends recommended it Irish bank/institution Security of that bank/institution Online/internet access/account Interest rate/return Government guarantee on deposits/savings there Bank/institution's credit rating Liked their advertising Non-Irish bank institution Other (43) % Family/friends recommended it Irish bank/institution Security of that bank/institution Government guarantee on deposits/savings there Interest rate/return Bank/institution's credit rating Online/internet access/account Liked their advertising Non-Irish bank institution Other (237) %

9. Family/friends recommended it Interest rate/return Security of that bank/institution Irish bank/institution Non-Irish bank institution Online/internet access/account Government guarantee on deposits/savings there Bank/institution's credit rating Liked their advertising Other Reason for Choosing x Main Bank Q.2What was the main reason you chose to open a deposit or savings account with your institution? Base: Customers of each provider (main bank/institution) (86) % Family/friends recommended it Irish bank/institution Interest rate/return Security of that bank/institution Government guarantee on deposits/savings there Online/internet access/account Bank/institution's credit rating Liked their advertising Non-Irish bank institution Other (81) %

10. Alternative Deposit Institution Choice Q.3If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose? 2014 % None/Would not go to another Base: All with savings/deposit account (n=727) All others Credit Union4% KBC2% RaboBank2% NationwideUK* Danske Bank/NIB* Barclays* Investec* Don’t Know/Unsure3%

11. Alternative Deposit Institution Choice Steady Over Time Q.3If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose? 2013 % None/Would not go to another 2012 % Base: All with savings/deposit account (n=727) 2014 % All others Credit Union4% KBC2% RaboBank2% Nationwide UK* Danske Bank/NIB* Barclays* Investec* Don’t Know/Unsure 3% Credit Union5% KBC3% RaboBank2% Danske Bank/NIB1% Barclays* Nationwide UK* Investec* Refused1% Credit Union4% RaboBank3% Danske Bank/NIB1% KBC1% Other1%

12. Alternative Deposit Institution Choice by Institution Base: Any Customer of Each Provider %% Customers of Each Provider Q.3If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose?

13. Alternative Deposit Institution Choice Slow to Change Base: Any Customer of Each Provider %% 14 (16)-8 (12)16 (13) 13 (12)15 (20)14 (15)- -15 (10)13 (10)14 (10) 6 (8)6 (6)-7 (6) 4 (5)3 (2)4 (3)5 (7) Customers of Each Provider Q.3If you were to choose to put deposits or savings with a bank other than one you have an account with, which bank would you choose? () = 2013 Figures

14. An Post, Rabobank and KBC score more strongly on perceived best interest rates than market share. 4 in 10 see no difference between providers Q.4 Which bank do you think offers the best interest rates on deposits or savings? Base: All Adults 25+ (n=867) NoneAll the same 24% 18% 15% 14% 6% 3% Market Share = 29% Market Share = 33% Market Share = 12% Market Share = 1% Best Interest Rates on Deposits or Savings 3% Market Share = <1% 9% Market Share = 6% 5% Market Share = 11% (11%) (12%) (8%) (3%) (2%)(5%)(11%) (27%) () = 2013 Figures

15. AIB customers strongest in belief it offers the best interest rates Base: Any Customer of each Provider 30% 32% Q.4 Which bank do you think offers the best interest rates on deposits or savings? Best Interest Rates on Deposits or Savings 44% 37% 33% (26%)(24%)(29%) (39%) (17%) () = 2013 Figures

16. Bank of Ireland marginally ahead of AIB/EBS in terms of offering best customer service Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts? Base: All Adults 25+ (n=867) Best Customer Service for Deposits or Savings Accounts NoneAll the same 20% 14% 18% 6% 1% Market Share = 29%Market Share = 12% Market Share = 1% 1% Market Share = <1% 8% Market Share = 6% 7% Market Share = 11% 20% Market Share = 33%

17. Customers see little difference in service for top 3 providers own customers. An Post lags here Base: Any Customer of each Provider Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts? Best Customer Service for Deposits or Savings Accounts 31% 47% 56% 54%

18. Big two providers seen as best for online service for deposits or savings accounts Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts? Base: All Adults 25+ (n=867) Best Online/Internet Service for Deposits or Savings Accounts NoneAll the same 25% 17% 18% 1% Market Share = 29% Market Share = 1% 2% Market Share = <1% 6% Market Share = 11% 19% Market Share = 33% 8% Market Share = 12% 4% Market Share = 6%

19. AIB/EBS and ptsb thought to deliver on best online service to its own customers, particularly compared to BOI Base: Any customer of each Provider Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts? Best Online/Internet Service for Deposits or Savings Accounts 17% 42% 54% 48% 53%

20. Big two regarded as best bank in marketplace as a whole Q.4 Which bank do you think offers the best interest rates on deposits or savings? Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts? Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts? Base: All Adults 25+ (n=867) BEST BANK (Average mentions across the 3 ratings) 17% 1% Market Share = 29% Market Share = 1% 2% Market Share = <1% 6% Market Share = 11% 18% Market Share = 33% 7% Market Share = 6% 7% Market Share = 12%

21. AIB/EBS customers afford it the best rating across 3 questions Base: Any Customer of each Provider Q.4 Which bank do you think offers the best interest rates on deposits or savings? Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts? Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts? BEST BANK (Average mentions across the 3 ratings) 30% 42% 51% 45% 41%

22. AIB/EBS main customers give it the edge across the 3 questions Base: Main customer of each Provider Q.4 Which bank do you think offers the best interest rates on deposits or savings? Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts? Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts? BEST BANK (Average mentions across the 3 ratings) (Main Provider) 44% 53% 56% 50% 45%

23. Best Bank (Average mentions across the 3 questions) Indexed Vs. Market Share % Base: All Adults 25+ (n=867) Rabobank outperforms market share strongly as best bank on the 3 ratings combined

24. Rabobank and KBC outperform versus market share on interest rates. Rabobank also does well on online service Best Interest Rates on Deposits or Savings % Base: All Adults 25+ (n=867) Q.4 Which bank do you think offers the best interest rates on deposits or savings? Q.5 Which bank do you think offers the best customer service in respect of deposits or savings accounts? Q.6 Which bank do you think offers the best online or Internet service in respect of deposits or savings accounts? Best Customer Service for Deposits or Savings Accounts % Best Online/Interest Service for Deposits or Savings Accounts %

25. Confidence in financial stability of Irish Banks has improved compared to 12 months ago Q.7Compared to 12 months ago, are you more confident or less confident about the financial stability of Irish banks? Base: All Adults 25+ (n=867) Don’t know More confident Less confident No change in confidence Refused

26. Confidence in financial stability of Irish Banks has improved markedly over the past 12 months Base: All Adults 25+ (n=867) Who is more confident? Males39% Conn/Ulster Residents 46% ABs46% Age 65+23% Munster Residents 26% C2s43% Rest of Leinster Residents43% Munster Residents43% Don’t know Who is less confident? No change in confidence Refused Q.7Compared to 12 months ago, are you more confident or less confident about the financial stability of Irish banks? More confident? Less confident? No change in confidence Refused Don’t know

27. Knowledge of bank credit rating is rising slowly from low level, despite heavy media coverage Q.8 Bank Credit Ratings range from AAA to C. Do you know what your main bank’s credit rating is? Base: All Adults 25+ (n=867) Not sure Yes No White-collar households continue to be more knowledgeable of bank credit rating No Not sure Yes ABs36% Conn/Ulster Residents 24% C2DEs72%

28. Property is more popular than buying shares as an alternative to savings or deposits. Just over half the public would not consider any alternative product. Q.9 Which, if any, of the following would you consider purchasing as an alternative to a deposit or savings account? Base: All Adults 25+ (n=867) 12% 10% 3% Guaranteed Investment Bond Government Bond Equity Fund Tracker Bond Property Fund 51% None of these 8% 23% Buying Shares Buying Property ABs30% Munster Residents29% Age 50+16% Conn/Ulster Residents17% Age 65+14% ABs17% ABC1s12% ABs7% Farming Community8% Farming Community12%ABs8%

29. Key Results from this Survey Confidence in Irish financial institutions has undergone a marked positive shift over the past 12 months. There is still a lot of ground to be made up but this shift is to be welcomed as a sign of an economic recovery. The reasons for choosing a savings/deposit institution are rooted in recommendation by family/friends and perceived security. Rate is only placed 4 th in this list of reasons. Government security is evidently a stronger reason for choosing An Post/State savings. AIB customers are the most convinced that their bank is the best (across the 3 ratings measured). An Post, Rabobank and KBC score more strongly on rates than their market share but it is intriguing that 4 in 10 see no difference between the institutions in rate terms. Rabobank outperforms on online service versus its market share too. Still only 15% of those aged 25 or more know their bank’s credit rating (although it is up 4% on last year). Those from higher white-collar backgrounds (ABs) are the most knowledgeable in this respect, reaching 36%. Overall, the survey indicates a more confident but still docile population of savers. Newer comers to the fray will need to continue to stress their differences versus the main two banks if they are to gain strong traction.

RJ/AD/COC Irish Deposits: Retail Deposit Market Survey 16 th January 2015