2019 Interim Results slide image

2019 Interim Results

Capital - fully loaded CET1 ratio improved by 40bps CET1 ratios - Jun 2019 Bank of Ireland 2019 Interim Results Total equity Less Additional Tier 1 Deferred tax Intangible assets and goodwill Foreseeable dividend' Expected loss deduction Other items² Common Equity Tier 1 Capital Credit RWA Operational RWA Market, Counterparty Credit Risk and Securitisations Total RWA Common Equity Tier 1 ratio Total Capital Ratio Leverage Ratio Phasing impacts on Regulatory ratio Regulatory ratio (€bn) Fully loaded ratio (€bn) 10.1 10.1. (0.8) (0.8) (0.5) (1.1) (0.7) (0.7) (0.1) (0.1) (0.4) (0.4) (0.3) (0.4) 7.3 6.6 42.7 42.5 4.5 4.5 1.7 1.7 48.9 48.7 14.9% 13.6% 18.0% 16.7% 7.2% 6.6% • Deferred tax assets - certain DTAs³ are deducted at a rate of 50% for 2019, 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 85% add-back in 20194, decreasing to 70%, 50%, and 25% in subsequent years 1 Dividend accrual of €100m (c.20bps of CET1 capital) in H1 2019, equivalent to an annualised dividend per share of 18.5c 2 Other items - the principal items being the cash flow hedge reserve, securitisation deduction and 10% / 15% threshold deduction 3 Deferred tax assets due to temporary differences are included in other RWA with a 250% risk weighting applied 4 The IFRS9 addback to the Regulatory CET1 was c.16bps at 30 Jun 2019, reduced from c.18bps at 31 Dec 2018. Bank of Ireland 47
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