Bank of Ireland 2020 Interim Results
222
H1 2020 impairment charge €937m - prudent and
comprehensive approach
H1 2020
•
•
IFRS 9 models
macro-economic update
€432m
Updated IFRS 9 models
incorporating impact of
Forward Looking Information
(FLI) from latest macro-
economic outlook
Central scenario¹ assumes
a deep downturn, gradual
recovery and an orderly Brexit
Reduced weighting towards
upside scenario
Will reflect mitigating impacts
of government support
schemes
Payment breaks
Bank of Ireland 2020 Interim Results
€184m
Management adjustment to
reflect increased risk related
to:
Estimated rates of
migration from payment
breaks to forbearance /
arrears
Assessment of mortgages,
consumer loans, higher
impacted sectors at risk
from COVID-19 impact
Actual loan loss experience
€321m
Actual loan loss experience
on Stage 3 loans:
-
Property and construction
€179m, includes €166m
related to legacy
investment property
exposures
Non-property SME and
corporate €115m
Mortgage and consumer
portfolios €27m
-
-
2020 Outlook
•
A change in the macro-
economic outlook would
lead to a change in IFRS 9
expected credit loss
H1 2020 impairment charge
incorporates risk of credit
migration of customers on
payment breaks
Actual loss experience in
H2 will reflect timing of loan
migration to Stage 3 and final
payment break outcomes
While uncertainties remain, subject to no further deterioration in the economic environment or outlook,
2020 impairment charge expected to be in a range of c.€1.1bn to €1.3bn
1 See slide 44 for 2020-2024 macro-economic assumptions used in IFRS 9 models
Bank of IrelandView entire presentation