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Investor Presentaiton

Capital CET1 ratios Dec 2017 Regulatory ratio (€bn) Fully loaded ratio (€bn) Total equity Less Additional Tier 1 Deferred tax¹ Pension deficit Available for sale reserve National filters Intangible assets and goodwill Foreseeable dividend Other items² Common Equity Tier 1 Capital Credit RWA³ Operational RWA Market, CCR and Securitisations Total RWA Common Equity Tier 1 ratio 9.7 9.7 (0.8) (0.8) (0.3) (1.1) 0.1 (0.1) (0.1) (0.7) (0.7) (0.1) (0.1) (0.6) (0.8) 7.1 6.2 38.7 38.5 4.6 4.6 1.7 1.7 45.0 44.8 15.8% 13.8% 7.0% 6.2% Leverage ratio CRD-IV phasing impacts on Regulatory ratio • Deferred tax assets - certain DTAs are deducted at a rate of 30% for 2017, increasing annually at a rate of 10% thereafter until 2024 . Pension deficit - addback is phased out at 80% in 2017, and will be fully phased out in 2018 • Available for sale reserve - unrealised losses and gains are phased in at 80% in 2017, and will be fully phased-in in 2018 • IFRS 9 - The Group has elected to apply the transitional arrangement which on a Regulatory CET1 basis will result in minimal impact from initial adoption and partially mitigate future impacts in the period to 2022. The transitional arrangement allows an 95% add-back in 2018, decreasing to 85%, 70%, 50% and 25% in subsequent years Bank of Ireland Group 'Deferred tax assets due to temporary differences are included in Credit RWA with a 250% risk weighting applied 2Other items - the principal items being the cash flow hedge reserve, expected loss deduction, securitisation deduction, 10%/15% threshold deduction ³Includes RWA relating to non-credit obligation assets / other assets, settlement risk and RWA arising from the 10% / 15% threshold deduction 47
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