Bank of Ireland H1 2020 Credit Presentation
Strong cost discipline - €31m / 3% reduction
€903m
Cost Movement
Bank of Ireland H1 2020 Credit Presentation
Strong cost discipline - €31m / 3% reduction
•
(€47m)
.
€4m
€12m
€872m
H1 2019
Cost initiatives COVID-19 costs
Other costs
H1 2020
•
€31m / 3% net reduction after absorbing wage inflation
of 2.6%
Gross cost savings €47m:
-
Process efficiencies, organisational design and
sourcing strategically (€21m)
Change demand reduction and efficiencies driving
lower levels of investment spend and value for money
savings (€26m)
COVID-19 costs €12m, incremental expenditure
managing response to the pandemic
Non-core items
•
€136m charge included in non-core related to
impairment of intangible assets:
Charge incurred on software assets, as no longer
expected to provide future economic benefits
No impact on capital ratios
€27m of charges related to business model restructuring
H1 2019
Non-core items
(€m)
H1 2020
(€m)
Impairment on intangible assets
(136)
-
Customer redress programme
(62)
(7)
- Tracker Mortgage Examination
(55)
(7)
- Other programme
(7)
Cost of restructuring programme
(27)
(27)
•
Investment return on treasury stock held
1
17
•
for policyholders
Other
27
Total non-core items
(61)
(153)
Outlook
2020 costs to be lower than 2019
2021 costs to be below previous guidance of €1.65bn
Bank of Ireland
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