Investor Presentaiton

Net interest income NIM benefitting from new lending and lower funding costs 2.21% Net interest margin drivers 2.17% 2.11% 2.27% 277 bps 269 bps 269 bps 264 bps 27 bps 34 bps 22 bps 9 bps H1 2015 H2 2015 H1 2016 H2 2016 NIM Loan Asset Spread' Liquid Asset Spread¹ Average interest earning assets €108.8bn €108.0bn €105.1bn €99.4bn €24.3bn €22.4bn €22.5bn €20.5bn €84.6bn €85.6bn €82.6bn €78.9bn Net interest income - €2,283m NIM Bank of Ireland Group Net interest income lower than 2015 due primarily to FX translation impact of c.€90m, the impact of the low interest rate environment and lower liquid asset income ► 2016 NIM of 2.19% (H1 2016: 2.11%, H2 2016: 2.27%) reflects; Positive impact from new lending and strong commercial discipline on pricing Maturity of expensive CoCo (€1bn; 10% fixed coupon) at end July 2016 Lower cost of deposit funding, offset by; Continued impact of low interest rate environment Expect NIM to grow modestly from H2 2016 level through 2017 Average interest earning assets ► Reduced to €99.4bn in H2 2016. Reduction primarily due to FX translation impact H1 2015 H2 2015 Average Loans & Advances H1 2016 H2 2016 Average Liquid Assets Spread = Loan asset yield or Liquid asset yield less Group's average cost of funds 8

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