Investor Presentaiton

Asset quality Non-performing exposures 10.1% €8.1bn Jun 17 8.3% €2.2bn reduction €6.5bn Dec 17 Asset quality continues to improve • 7.5% €5.9bn Jun 18 NPES as a % of gross customer loans Non-performing exposures Net impairment (losses) / gains €81m €44m Non-performing exposures (NPES) of €5.9bn, a reduction of €0.6bn (10%) during H1 2018 NPES reduced to 7.5% of gross customer loans Reductions reflect successful resolution strategies and the positive economic environment Expect further reductions in H2 2018 and beyond; pace will be influenced by a range of factors NPE reduction strategies will be kept under review in response to the associated and evolving regulatory capital framework Net impairment gains • First reporting period under new IFRS 9 accounting standard Net impairment gains of €81m for H1 2018, primarily reflecting: • Strong performance of the Group's loan portfolios Better than expected outcomes from ongoing resolution of NPES (€59m) H1 2017 H2 2017 Net impairment (losses) / gains Bank of Ireland Group H1 2018 0 Higher than expected recoveries post write-off • More positive than expected economic environment and outlook in key markets, driving lower impairment loss allowances under IFRS 9 models Absent a deterioration in the economic environment or outlook, expect net impairment gains for the full year 2018 Expect cost of risk to be in the range of up to 20bps to 30bps p.a. during 2019-2021 12

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