Investor Presentaiton
Capital
CET1 ratios - June 2016
Total equity
Less Additional Tier 1
Deferred tax¹
Pension deficit
Available for sale reserve
Removal of national filters
Intangible assets and goodwill
Other items²
Common Equity Tier 1 Capital
Credit RWA
Operational RWA
Market, CVA and other RWA³
Total RWA
Common Equity Tier 1 ratio
CRD-IV phasing impacts
Bank of Ireland Group
Transitional ratio
(€bn)
8.7
Fully loaded ratio
(€bn)
8.7
(0.8)
(0.8)
(0.3)
(1.3)
0.4
(0.3)
(0.1)
(0.5)
(0.5)
(0.4)
(0.6)
6.7
5.5
43.1
43.1
4.8
4.8
4.1
3.9
52.0
51.8
12.8%
10.7%
Deferred tax asset - certain DTAs are deducted at phased rate of 20% from 1 Jan 2016
Pension deficit - Basel II addback is phased out at 60% in 2016, increasing by 20% per annum thereafter
Available for sale reserve - non-sovereign unrealised losses and gains are phased in 60% in 2016, increasing by 20% per annum
thereafter. The Group has opted to maintain its sovereign filter on both gains and losses on exposures to central governments
classified in the "available for sale" category
In March 2016, the ECB published a new regulation on options and discretions which comes into force on 1 October 2016.
These regulations include an increase in the phase in of the DTA deduction (negative 50bps) and the removal of the sovereign
filter (positive 40bps). If these changes were implemented at 1 July 2016, the pro forma transitional CET1 ratio would reduce from
12.8% to 12.7%
1RWA impact includes a 250% risk weighting applied to deferred tax assets due to temporary differences
2Other items - the principle items being the cash flow hedge reserve and 10% /15% threshold deduction
Other RWA includes RWA relating to non-credit obligations / other assets and RWA arising from the 10/15% threshold deduction
38View entire presentation