UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 6-K

                        Report of Foreign Private Issuer


                        Pursuant to Rule 13a-16 or 15d-16
                    under the Securities Exchange Act of 1934




                       For the date of 22 December, 2006

                   ALLIED IRISH BANKS, public limited company

             Bankcentre, Ballsbridge, Dublin 4, Republic of Ireland



Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

                         Form 20-F..X... Form 40-F.....

Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

                               Yes ..... No ..X...

If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________


For Immediate Release                                       22nd December, 2006




Transfer of shares between Allied Irish Finance and Allied Irish Banks, p.l.c.





Allied Irish Banks, p.l.c. ("AIB") (NYSE: AIB) announces the following:



As part of a re-organisation  within the AIB Group,  under which the business of
AIB Finance Ltd  ("AIF") is being  transferred  to Allied  Irish  Banks,  p.l.c.
("AIB")  on 1  January  2007,  subject  to  and  in  accordance  with  Statutory
Instrument  No. 557 made by the Minister  for Finance,  5.6 million AIB ordinary
shares of  EUR0.32  each have been  transferred  from AIF to AIB on 22  December
2006. Technically, this involved the purchase of those shares by AIB at a market
price of EUR22.90 per share.  The 5.6 million shares in question will be held by
AIB as Treasury  Shares,  bringing the total  number of ordinary  shares held as
Treasury  Shares to  42,787,079.  The total  number  of AIB  ordinary  shares of
EUR0.32 each in issue,  less the ordinary shares held as Treasury Shares, is now
875,648,491.



This announcement is made in compliance with Listing Rule 9.4.6 of the Irish
Stock Exchange and 12.4.6 of the FSA.




                                   Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorised.


                                               ALLIED IRISH BANKS, p.l.c.
                                               (Registrant)




Date  22 December, 2006                        By: ___________________
                                                   John O'Donnell
                                                   Group Director, Finance,
                                                   Risk and Enterprise
                                                   Technology
                                                   Allied Irish Banks, p.l.c.