2020 Interim Results

222 H1 2020 impairment charge €937m - prudent and comprehensive approach H1 2020 • • IFRS 9 models macro-economic update €432m Updated IFRS 9 models incorporating impact of Forward Looking Information (FLI) from latest macro- economic outlook Central scenario¹ assumes a deep downturn, gradual recovery and an orderly Brexit Reduced weighting towards upside scenario Will reflect mitigating impacts of government support schemes Payment breaks Bank of Ireland 2020 Interim Results €184m Management adjustment to reflect increased risk related to: Estimated rates of migration from payment breaks to forbearance / arrears Assessment of mortgages, consumer loans, higher impacted sectors at risk from COVID-19 impact Actual loan loss experience €321m Actual loan loss experience on Stage 3 loans: - Property and construction €179m, includes €166m related to legacy investment property exposures Non-property SME and corporate €115m Mortgage and consumer portfolios €27m - - 2020 Outlook • A change in the macro- economic outlook would lead to a change in IFRS 9 expected credit loss H1 2020 impairment charge incorporates risk of credit migration of customers on payment breaks Actual loss experience in H2 will reflect timing of loan migration to Stage 3 and final payment break outcomes While uncertainties remain, subject to no further deterioration in the economic environment or outlook, 2020 impairment charge expected to be in a range of c.€1.1bn to €1.3bn 1 See slide 44 for 2020-2024 macro-economic assumptions used in IFRS 9 models Bank of Ireland

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