2020 Results Announcement
c.€1.7bn cost target achieved one year early;
new €1.5bn target for 2023
Cost Movement
€1,785m
(€90m)
€25m
Bank of Ireland 2020 Results Announcement
€65m / 4% net reduction reflects
.
Wage inflation of 2.6%
•
•
.
COVID-19 costs €25m; €90m / 5% reduction excluding
COVID-19 costs
Lower pension costs of €33m
Transformation investment costs of €56m
•
€1,720m
Lower depreciation charge
2019
Cost initiatives
COVID-19 costs
2020
FY 2019
Non-core items
(€m)
FY 2020
(€m)
•
Cost of restructuring programme
(59)
(245)
•
Transformation Investment costs
(55)
(237)
- Other restructuring charges
(4)
(8)
Investment on internally generated
computer software
(136)
•
Customer redress charges
(74)
(39)
Investment return on treasury stock held
for policyholders
(2)
9
Other
22
25
Total non-core items
(113)
(386)
Non-core items
•
€245m business model restructuring charges include
€189m relating to the voluntary redundancy programme,
resulting in €114m reduction in annualised staff costs
when completed
€136m charge related to H1 impairment of intangible
software assets
Customer redress costs of €39m
Transformation investment in 2020
€410m split across the income statement (14%), balance
sheet (28%) and non-core items (58%)
Bank of Ireland
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