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Investor Presentaiton

Regulatory Capital Requirements Supervisory Review and Evaluation Process (SREP¹) requirement 15.8% Capital Conservation Buffer (CCB) of 2.5% fully phased in by 2019 1.5% O-SII¹ Buffer phased in over 3 years from July 2019 +P2G 1.875% CCB Regulatory C.0.3% CCyB CET1 Ratio 2.25% P2R Dec 2017 4.5% Min CET1 Requirement SREP¹ 2018 OSII +0.5% 2.5% +1.0% 2.5% +1.5% 2.5% SREP requirement for 2019 onwards not known at this point Requirement to be reviewed annually CCyB subject to quarterly review² 2019 2020 2021 Minimum Regulatory Capital Requirement • A minimum CET1 ratio of 8.625% on a regulatory basis from 1 January 2018 • Includes a Pillar 1 requirement of 4.5%, a P2R of 2.25% and a capital conservation buffer for 2018 of 1.875% The FPC (UK) have set the countercyclical buffer (CCYB)2 at 0%; increasing to 0.5% in June 2018 and 1% in November 2018. This will increase the Group's capital requirement by c.0.15% in June 2018 and a further c.0.15% in November 2018. • The CBI (ROI) continues to set the CCyB2 at 0% • Pillar 2 guidance (P2G) is not disclosed in accordance with regulatory preference • The Group expects to maintain a CET1 ratio in excess of 13% on a regulatory basis and on a fully loaded basis by the end of the O-SII phase-in period. This includes meeting applicable regulatory capital requirements plus an appropriate management buffer • We expect to receive our initial MREL target in H1 2018 Bank of Ireland Group *SREP and O-SII requirement are subject to annual review by the Single Supervisory Mechanism (SSM) and the Central Bank of Ireland (CBI) respectively 2CCyB is subject to quarterly review by Central Bank of Ireland (ROI) and Financial Policy Committee (UK). 46
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