IAS19 Defined Benefit Pension + Mortgage Portfolio Analysis slide image

IAS19 Defined Benefit Pension + Mortgage Portfolio Analysis

H123 financial performance H1 2022 (€m) restated¹ Net interest income 1,072 H1 2023 (€m) 1,802 Business income 273 350 Other income/expenses and valuation items 22 49 Total Income 1,367 2,201 Operating expenses (811) (907) Levies and Regulatory charges (95) (110) Operating profit pre-impairment 461 1,184 Net impairment charges (47) (158) Share of associates /JVs 21 11 Underlying profit/(loss) before tax 435 1,037 Non-core Items (84) Profit before tax 351 (12) 1,025 Bank of Ireland H1 2023 2.96% H123 performance reflects strategic actions, positive business momentum, higher interest rates and continued focus on efficiencies Operating profit pre-impairment reflects higher Net interest income Total business income4 - Operating expenses; like-for-like broadly flat Net credit impairment charge (€158m); reflects cautious macroeconomic assumptions, portfolio activity and Day 1 effects from KBCI portfolio acquisition Cost to Income ratio of 42% reflects higher income and operating leverage Earnings per share 74.1c in H123 (H122 23.9c) H1 2022 restated¹ Net interest margin (NIM) 1.73% Cost income ratio² 60% 42% Earnings per share 23.9c 74.1c Return on Tangible Equity (ROTE) - adjusted³ 7.0% 18.5% 1 Comparative figures restated for application of IFRS 17 on 1 January 2023 2 See slide 52 for basis of calculation 3 See slide 51 for basis of calculation; H122 adjusted to include non core within calculation basis 4 Including share of associates and JVs 9
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