Investor Presentaiton

Defaulted loans and impairment charge Defaulted loan volumes €5bn reduction €18.3bn €16.7bn €14.3bn €13.3bn Jun 13 Jun 14 Dec 14 Jun 15 Defaulted Loans Impairment charge on customer loans 50% 52% 97bps 83bps 53% 36bps H1 2014 H2 2014 Coverage ratio H1 2015 Annual impairment charge on customer loans as a % of average gross loans for the period Bank of Ireland Group €1bn reduction during H1 2015, notwithstanding FX translation headwinds of c.€0.4bn: Reductions in all asset classes €5bn or 27% reduction since peak in Jun 13 Further €0.8bn reduction in Q3 2015; expect level of defaulted loans to continue to reduce Charge of 36 bps for H1 2015 vs 97bps in H1 2014 Reduced charge across all loan portfolios Coverage ratio increased to 53% (52% at Dec 14) Expect H2 impairment charge to remain at broadly similar levels to H1 charge 8

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