Bank of Ireland 2020 Interim Results
Strategic progress in Retail UK business with further
restructuring required
Retail UK
£258m
£239m
(£16m) (£6m)
£1m
(£155m) (£147m) (£136m)
(£12m) (£31m) (£250m)
•
.
H1 20181 H1 2019
H1 2020
Net interest income
£250m
Other income
Costs
Impairment
JV income
£15m
£14m
•
£1m
Underlying profit/(loss)
£90m
£80m
Cost income ratio
Loan book
64%
£24.2bn
60%
£24.8bn £24.5bn
(£145m)
57%
•
Deposits
₤19.0bn
£19.2bn £19.5bn
1 Excludes credit cards, exited 2019
Bank of Ireland 2020 Interim Results
Net interest income: back book deleveraging, lower base rates
and mortgage competition impacting NII; partial offset from
actions taken on pricing of deposits and new lending
Other income: commission mix enhanced; income increased
£7m vs. H1 2019
Costs: 7% cost reduction in H1 2020; 23% reduction since 2017
Asset quality: Increased impairments from deteriorating
macro-economic outlook; historic loan losses favourable to
industry average
JV income: no. 1 travel business (FRES) in UK; 2020 income
impacted by COVID-19 and reduced travel
Loan book: improving loan book mix; bespoke mortgage
growth and legacy portfolio 30% lower
Strategic imperative to improve returns
Protracted difficult market conditions necessitate further restructuring of our retail businesses in UK. A multi-year restructuring
programme now commenced:
GB Retail restructuring
A smaller balance sheet and higher margin business:
Run-down of lower margin and less profitable
mortgages over time (UK mortgage loan book £19.6bn)
Grow bespoke mortgage business; c.150 brokers /
£320m of new lending since launch
Leverage expertise in travel money and car finance
Smaller balance sheet will enable further funding cost
reductions
Material reduction in cost base from smaller scale,
efficiency and operating model
Northern Ireland Retail
•
Strategic review recently commenced to
assess options impacting:
£2.5bn of consumer, mortgage and
business loans
Northern
Ireland
-
£5.0bn of deposit and current accounts
c.200k consumer and business customers
GB
Bank of Ireland
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