2018 Credit Presentation

BOI Credit Ratings Investment grade ratings for BOIG and GovCo 2018 Credit Presentation 20 20 BOIG Issuer Ratings GovCo Issuer Ratings Progress on BOI Credit Ratings Key Rating Drivers STANDARD & POOR'S BBB- (Positive) BBB+ (Positive) Oct 2018: GovCo rating upgraded one notch from BBB to BBB+ and BOIG rating BBB- affirmed (outlook remains Positive) Dec 2018: Affirmed the BBB- and BBB+ ratings on BOIG and GovCo respectively (outlook remains Positive) • Upside could develop from: • Further reductions in non- performing loans Additional loss-absorbing capacity (ALAC) uplift MOODY'S Baa3 (Positive) A3 (Positive) Jul 2017: Assigned Baa3 (Positive) rating to newly established holding company Dec 2018: GovCo rating upgraded one notch from Baa1 to A3 and BOIG rating Baa3 affirmed (outlook remains Positive) Improvements in capitalisation and risk absorption capacity; while maintaining stable profitability, funding and liquidity metrics • Further reductions in non- • • Fitch Ratings BBB (Stable) BBB (Positive) Nov 2017: 1 notch upgrade for both BOIG and GovCo issuer ratings to BBB, Stable outlook Dec 2018: Affirmed the BBB ratings on BOIG and GovCo; GovCo outlook revised to Positive from Stable (BOIG outlook remains Stable) Further reductions in non-performing loans; while reducing capital encumbrance Successful execution of strategy to improve cost efficient and profitable Irish Covered Bonds (ACS) Aaa MOODY'S performing loans Bank of Ireland

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