Bank of Ireland 2020 Debt Investor Presentation
Defined Benefit Pension Schemes
Group IAS19 Defined Benefit Pension (Deficit) / Surplus
€313m
1.60%
2.10%
2.00%
Bank of Ireland 2020 Debt Investor Presentation
Total Group Defined Benefit Pension Scheme Assets (%)
€7.1bn
€7.2bn
€7.2bn
€8.4bn
€8.9bn
1.30%
0.80%
58%
55%
65%
65%
69%
(€0.23bn)
(€0.14bn)
(€0.13bn)
17%
21%
(€0.48bn)
23%
23%
21%
25%
24%
12%
12%
10%
Dec 17
Dec 18
Dec 19
Dec 20
Jun 16
Dec 18
Dec 19
Dec 20
■IAS19 DB Pension (Deficit) / Surplus
EUR Discount Rate
(€1.19bn)
Jun 16
IAS19 Pension Deficit Sensitivities
(Jun 2016 / Dec 2017 / Dec 2018 / Dec 2019 / Dec 2020)
€118m €102m €109m 88m
Interest Rates¹
€173m €162m €153m
€181m €196m
Credit Spreads²
€122m €128m
€71m
€90m €102m €121m
€28m €28m €38m
€22m
Inflation³
Global Equity4
1 Sensitivity of Group deficit to a 0.25% decrease in interest rates
2 Sensitivity of IAS19 liabilities to a 0.10% decrease in credit spread over risk free rates
3 Sensitivity of Group deficit to a 0.10% increase in long term inflation
4
Sensitivity of deficit to a 5% decrease in global equity markets with allowance for other
correlated diversified asset classes
.
.
•
Dec 17
Listed equities
'Diversified assets includes infrastructure, private equity, hedge funds and property
Diversified assets' Credit / LDI / Hedging
IAS19 pension deficit of €0.13bn at Dec 2020 (€0.14bn deficit Dec
2019). Schemes in deficit €0.29bn, schemes in surplus €0.16bn
Both euro and sterling discount rates decreased over the year,
primarily due to falls in long term risk free interest rates. The
credit spread component of the discount rate remained largely
unchanged over the period
The interest rate hedging in the investment portfolios largely
compensated for the impact of the reduction in risk free rates
Long term euro inflation assumptions also decreased in the
period with the reduction in liabilities partially offset by the
reduction in inflation hedging assets
De-risking strategies in recent years have also reduced the
schemes' exposure to global equity movements. Listed equity
asset holdings have been reduced in favour of increases in
diversified assets and credit / LDI / hedging allocations
Bank of Ireland
58View entire presentation