Investor Presentaiton
Bank of Ireland Overview H1 2016
Strong Operating Performance
Total Income
H1 2015
€1,759m
H2 2015
€1,513m
H1 2016
€1,587m
Net Interest Margin (NIM)
2.21%
2.17%
2.11%
Operating expenses
(€848m)
(€898m)
(€890m)
Levies and regulatory charges
(€27m)
(€48m)
(€62m)
Impairment charges
(€168m)
(€128m)
(€95m)
Underlying profit
€743m
€458m
€560m
before tax
Robust balance sheet metrics
Dec 15
Customer loans (net)
€84.7bn
Jun 16
€80.2bn
Non-performing loans
€12.0bn
€9.9bn
CET1 ratios:
Transitional
13.3%
12.8%
Fully Loaded
11.3%
10.7%
Transitional Total
18.0%
Capital Ratio
17.2%
Liquidity metrics: NSFR
120%
119%
LCR
108%
116%
LDR
106%
103%
Bank of Ireland Group
Underlying profit of €560m in H1 2016
NIM of 2.11%, impacted by the low interest rate
environment, lower liquid asset yields and FX
translation effects
Commercial discipline maintained on lending and
deposit margins
All trading divisions contributing to the Group's profitability
Increased new lending by 14% on H1 2015
Continue to be largest lender to the Irish economy
Growth in core loan books of €1.1bn
Reduced non-performing loans by €2.1bn in H1 2016 to
€9.9bn; defaulted loans now c.10% of customer loans and
>50% below reported peak in June 2013
Net impairment charge of 21 bps for H1 2016 vs 28bps in
H2 2015
Continued organic capital generation offset by IAS19
accounting standard pension deficit;
Fully loaded CET1 ratio of 10.7%
Transitional CET1 ratio of 12.8%
Transitional Total Capital ratio of 17.2%
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