2018 Credit Presentation slide image

2018 Credit Presentation

Capital CET1 ratios - Dec 2018 Regulatory ratio (€bn) 2018 Credit Presentation Fully loaded ratio (€bn) Total equity Less Additional Tier 1 Deferred tax¹ Intangible assets and goodwill Foreseeable dividend² Expected loss deduction Other items³ Common Equity Tier 1 Capital Credit RWA Operational RWA Market, CCR and Securitisations Total RWA Common Equity Tier 1 ratio Total Capital Ratio Leverage Ratio Phasing impacts on Regulatory ratio • 10.1 10.1. (0.8) (0.8) (0.4) (1.1) (0.7) (0.7) (0.2) (0.2) (0.6) (0.6) (0.2) (0.3) 7.2 6.4 41.6 41.4 4.5 4.5 1.7 1.7 47.8 47.6 15.0% 13.4% 18.8% 17.2% 7.0% 6.3% Deferred tax assets - certain DTAs¹ are deducted at a rate of 40% for 2018, increasing annually at a rate of 10% thereafter until 2024 • IFRS 9 - the Group has elected to apply the transitional arrangement which on a Regulatory CET1 basis resulted in minimal impact from initial adoption and will partially mitigate future impacts in the period to 2022. The transitional arrangement allows a 95% add-back in 2018, decreasing to 85%, 70%, 50% and 25% in subsequent years 1 Deferred tax assets due to temporary differences are included in other RWA with a 250% risk weighting applied 2 Dividend deduction of €173m 3 Other items - the principal items being the cash flow hedge reserve, securitisation deduction and 10%/15% threshold deduction Bank of Ireland 47
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