Investor Presentaiton
Stable net interest income
€1,069m
285bps
(17bps)
Net interest income¹ / NIM
€1,081m
280bps
(21bps)
H1 2019
H2 2019
H1 2020
Loan asset spread²
Liquid asset spread²
2.14%
(6bps)
NIM movement
(4bps)
(2bps)
Bank of Ireland 2020 Interim Results
€1,079m
278bps
(24bps)
Stable net interest income / NIM 2.02%
Net interest income benefitting from loan book growth
since 2017 and reduced liability costs offsetting lower
structural hedge income and UK competitive pressures
NIM 2.02% is 12bps lower than FY 2019 reflecting:
-
-
Growth in liquid assets
Impact of low rate environment on structural hedge
Competitive pressure in the UK mortgage market
Strong commercial pricing discipline
Q2 exit NIM 1.97%
Outlook
.
FY 2020 NIM to be c.1.95% primarily reflecting:
-
Lower new lending volumes
Growth in liquid assets
Impact of low rate environment on structural hedge
Net interest income in 2020 to be c.5% lower than 2019
2.02%
FY 2019
Liquid asset
growth
Structural hedge UK competitive
pressures
H1 2020
1 Excludes IFRS income classifications which are included in NIM calculation
2 Spread Loan asset yield or Liquid asset (excl. NAMA bonds) yield less Group's average cost of funds
Bank of Ireland
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