Investor Presentaiton

Reducing our cost base €887m €49m H1 2017 Operating expenses to reduce further €55m €909m €882m €51m H1 2018 H2 2018 Operating expenses H2 2017 Transformation Investment charge H1 2017 H2 2017 H1 2018 Transformation of cost base Operating expenses of €882m reduced by €27m (3%) vs. H2 2017, broadly in line with H1 2017 Expect operating expenses, including transformation investment charge, to reduce every year to 2021; target of €1.7bn in 2021 Operating expenses: €882m Total staff costs decreased by €6m vs. H2 2017 primarily reflecting lower average staff numbers partly offset by impact of the Group Career and Reward framework Other costs have decreased by €28m vs. H2 2017 reflecting efficiencies from initiatives across the businesses Increase in depreciation charge reflects technology investments in recent years Transformation Investment charge: €51m (€m) (€m) (€m) Total staff costs 452 448 442 • - Staff costs 378 374 369 - Pension costs 74 74 73 • Other costs 360 367 339 Depreciation 75 94 101 Operating Expenses 887 909 882 Transformation Investment charge¹ 49 55 51 Operating Expenses incl. Transformation 936 964 933 Levies and Regulatory charges 63 36 Total Operating Expenses Average staff numbers 67 999 1,000 1,000 11,261 11,132 10,752 64% 67% 66% Cost income ratio² • Total transformation investment in H1 2018 of €141m, (CET1 ratio impact of c.30bps) of which €51m charged to the income statement (36%); €39m capitalised as intangible assets (28%); €51m charged as non-core restructuring costs (36%) Levies and Regulatory charges: €67m Expect levies and regulatory charges to total €100m-€105m for FY 2018 Bank of Ireland Group Transformation Investment charge was previously disclosed as 'Core Banking Platform Investment charge', it has been updated to include the broader scope of Transformation covering Culture, Systems and Business Model for H1 2017 and H2 2017 2See Slide 44 for calculation 14

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