2021 Interim Results - Debt Investor Presentation
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Strategy supported by two significant
acquisition opportunities
DAVY
J&E Davy ("Davy")
Agreement reached in July on
acquisition of wealth management
and capital markets businesses
Davy founded in 1926; Ireland's market leading provider of mass affluent
and high net worth wealth advisory and capital markets services
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Bank of Ireland 2021 Interim Results - Debt Investor Presentation
KBC
KBC Ireland
MOU agreed in April to acquire
performing loan assets and
deposit liabilities
Acquisition on a portfolio basis, with commercial terms
being negotiated
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Market leader in wealth management in Ireland with over €16bn AUM,
including Davy Select, one of Ireland's leading investment platforms for
self-directed investing
Leading corporate advisory platform in Ireland (acting as corporate broker
to 8 of the 10 largest Irish companies), €10bn+ of capital raised since 2017
> 700 employees and FY 2020 adjusted PBT of c.€33m and c.75%/25% split
of business across wealth and capital markets
Agreement reached for an enterprise value of €440m and expected CET1
capital ratio impact of c.80bps, financed through existing resources
Strong strategic fit, strengthening the range of services available to the
Group's wealth and corporate customers
Ageing Irish population is increasingly wealthy and seeking advice;
acquisition will unlock growth opportunities within the Irish market and
diversify income
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Financed through existing resources
KBC Ireland has c.300k customers; c.€9bn in performing
loans and c.€5bn in deposits at the end of 20201
Acquisition will complement Group's strategy to grow
core mortgage business in Ireland, and supports the
investments being made in systems transformation
OOO
Completion on both transactions, subject to regulatory and competition authority approval, expected in 2022.
Acquisitions expected to be accretive to ROTE. We will provide an update on the Group's financial outlook
alongside refreshed medium term targets in 2022
1 KBC Bank Ireland and KBC Group public disclosures
Bank of Ireland
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