Investor Presentaiton

Non-performing loans and impairment charges Significant reduction of €4.1bn (34%) in non-performing loans in 2016 €15.8bn €1.5bn Non-performing loans 50% Reduction €12.0bn €1.4bn €14.3bn €7.9bn €1.0bn €10.6bn €6.9bn Dec 14 Dec 15 Dec 16 Defaulted Loans Probationary Mortgages Impairment charge on customer loans 47% 49% 65% Reduction 49% Non-performing loans - €7.9bn Bank of Ireland Group ▶ €4.1bn reduction during 2016; 50% reduction in NPLs over last two years Reductions in all asset classes Defaulted loans component of €6.9bn; down >60% from reported peak in June 2013 ▶ The reduction in NPLs reflects the Group's ongoing progress with resolution strategies and the positive economic environment Expect further reductions in 2017 and beyond; pace will be influenced by a range of factors Impairment charge on customer loans Net impairment charge of 21bps for 2016 NPL coverage ratio of 49% Net impairment charge for 2017 expected to be broadly similar to 2016 charge 59bps 2014 32bps 2015 21bps 2016 Coverage ratio, being impairment provisions divided by non-performing loans Annual impairment charges on customer loans as a % of average gross loans for the period Note: Non-performing loans includes defaulted loans plus probationary mortgages 10

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