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Investor Presentaiton

Net interest income Further growth in net interest income achieved in H1 2015 2.05% Net interest income trend 2.15% 2.21% €1,161m €1,197m €1,219m Net interest income - €1,219m Bank of Ireland Group Delivered net interest income growth of €22m (c.2%) vs H2 2014 reflecting NIM growth and higher interest earning assets Average interest earning assets Increased to €109bn in H1 2015 from €108bn in H2 2014, driven predominantly by FX translation effects NIM H1 2014 H2 2014 H1 2015 Net interest income Net interest margin 3.60% Net interest margin drivers 3.56% 1.72% 1.56% 3.58% H1 2015 H1 NIM improved to 2.21% reflecting; Lower funding costs; Positive impact of new lending volumes; partially offset by; Lower yields on replacement liquid assets following bond sales maturities Q2 2015 NIM was 2.17%; Reflects impact of bond sales and pre-funding of planned UK mortgage growth in H1 2015 Expect modest growth from Q2 level reflecting benefits of lower funding costs and new lending, partially offset by impact of lower liquid asset yields Q3 NIM was 2.18% 1.23% 1.15% 1.03% 0.89% H1 2014 H2 2014 Loan Asset Yield Liquid Asset Yield Cost of Funds 5
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