Bank of Ireland 2019 Credit Presentation
Capital guidance increasing to >13.5%
Bank of Ireland 2019 Credit Presentation
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Regulatory Capital Requirements
•
Capital guidance increasing from >13% to >13.5% on regulatory basis and on fully loaded basis by end of O-SII phase-in
(July 2021)
Increase reflects recent announcement by the Bank of England of 1% increase in the UK countercyclical buffer, increasing Group
capital requirements by c.0.30% from Dec 2020
Pro forma CET1 Regulatory Capital Requirements
Pillar 1 CET1
Pillar 2 Requirement (P2R)
Capital Conservation Buffer (CCB)
Countercyclical buffer (CCYB)²
Ireland (c.60% of RWA)
UK (c.30% of RWA)
US and other (c. 10% of RWA)
O-SII Buffer
Systemic Risk Buffer - Ireland
Pro forma Minimum CET1 Regulatory Requirements
Pillar 2 Guidance (P2G)
Outlook
Range
2019
2020
2021
4.50%
4.50%
4.50%
4.50%
1% -2.25%¹
2.25%
2.25%
2.25%
2.50%
2.50%
2.50%
2.50%
0% - 2.50%
0.90%
1.20%
1.20%
0.60%
0.60%
0.60%
0.30%
0.60%
0.60%
0% - 2.00%
0.50%
1.00%
1.50%
0% - 3.00%
TBC
TBC
10.65%
11.45%
11.95%
Not disclosed in line with regulatory preference
There are offsetting regulatory capital developments that may emerge in 2020 and 2021. These include:
Introduction of Systemic Risk Buffer (SyRB) in Ireland - the timing, sizing and application of the SyRB are not yet known
The ECB may also permit banks to meet some of P2R from non-CET1 own funds, potentially reducing CET1 capital
requirement
1 This is the expected range for P2R, which is subject to annual review
2 CCуB could be set in excess of 2.50% in exceptional circumstances. A change in the CCуB could also be implemented in less than 12 months in
exceptional circumstances
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