Bank of Ireland 2019 Interim Results
Defined Benefit Pension Schemes
Group IAS19 Defined Benefit Pension Deficit
1.60%
€1.19bn
2.20%
2.10%
2.00%
1.30%
Bank of Ireland 2019 Interim Results
Mix of BSPF* Defined Benefit Pension Scheme Assets (%)¹
€4.0bn
€5.6bn
€6.1bn
45%
72%
72%
11%
€0.45bn
€0.48bn
€0.23bn
€0.29bn
44%
23%
5%
Dec 18
23%
5%
Jun 19
Jun 16
Dec 16
Dec 17
IAS19 DB Pension Deficit
Dec 18
EUR Discount Rate
Jun 19
€313m
IAS19 Pension Deficit Sensitivities
(Jun 2016 / Dec 2018 Jun 2019)
€173m
€174m
€153m
€122m
€102m €122m
€71m
€28m €37m
Inflation³
Interest Rates¹
Credit Spreads²
1 Sensitivity of Group deficit to a 0.25% decrease in interest rates
€90m €97m
Global Equity
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 12
Listed equities Diversified assets2 Credit / LDI / Hedging
* BSPF = Bank of Ireland Staff Pensions Fund
Graphs shows BSPF asset allocation. BSPF represents approx. 77% of DB Pension assets
2 Diversified assets includes infrastructure, private equity, hedge funds and property
• IAS19 Pension deficit of €0.29bn at Jun 2019: schemes in deficit
€0.34bn, schemes in surplus €0.05bn
• The primary drivers of the movement in the deficit were the net negative
impact of changes in long term assumptions partly offset by the
increase in assets and positive experience gains
•
•
The Group has continued to support Trustees in diversifying asset
portfolios away from listed equity into other return-seeking but
potentially less volatile asset classes. In H1 2019, the BOI Group
UK scheme (2nd largest Group scheme) de-risked by reducing the
allocation to growth assets, emerging markets and absolute return
and increased liability hedging with a transition of c.£117m into an LDI
portfolio
The Trustees of the New Ireland pension scheme (4th largest Group
scheme) have also agreed a significant investment de-risking proposal
which is currently being implemented
BSPF asset returns of +10.9% and +4.8% p.a. were achieved over 1
year and 3 years respectively to end June 2019
Bank of Ireland
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